Google Ads VS Local Service Ads

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Mar 7, 2025

Google Ads vs. Local Services Ads: Which One Is Right for Your Business?

When evaluating paid advertising options for lead generation, two powerful tools emerge in Google's ecosystem: Google Ads (Search) and Local Services Ads (LSAs). While both aim to connect your business with customers actively seeking your services, they operate differently — and understanding these differences is essential to choosing the right fit.

What Are Local Services Ads (LSAs)?

Local Services Ads are designed for service-based businesses operating in specific verticals and locations. They appear above traditional search ads and include your business name, ratings, and a clickable call button — without the user needing to visit your website. You only pay for qualified leads, not clicks.

Comparing Google Ads and Local Services Ads

Here's a side-by-side breakdown of the strengths and limitations of each platform:

Feature

Google Ads (Search)

Local Services Ads (LSAs)

Ad Placement

Below LSAs but above organic

Top of the page, highest position

Payment Model

Pay-per-click (PPC) ✅

Pay-per-lead ✅

Lead Quality Control

Medium – depends on targeting ⚠️

High – only charged for verified leads ✅

Keyword Targeting

Full control over keywords ✅

No control over keywords ❌

Custom Ad Copy

Fully customisable ✅

Limited to business info ❌

Landing Page Control

Direct users to any landing page ✅

No landing page – leads call/message directly ❌

Visual Elements

Text-based, extensions optional ✅

Shows reviews, Google Guarantee ✅

Budget Flexibility

Very flexible ✅

Flexible, but fewer levers ✅

Industries Eligible

Any ✅

Limited (see below) ❌

Google Guarantee Badge

Optional ❌

Included if qualified ✅

Conversion Tracking & Data

Full tracking access ✅

Limited tracking data ❌

Industries Eligible for Local Services Ads

Local Services Ads are currently available for specific verticals. Here’s a list of some of the main industries:

  • Legal: Lawyers, DUI attorneys, personal injury lawyers, etc.

  • Home Services: Plumbers, electricians, HVAC, roofing, landscaping, carpet cleaning, etc.

  • Real Estate Services: Agents and brokers

  • Financial Services: Tax services, accountants

  • Health & Wellness: Dentists, therapists, chiropractors

  • Pet Services: Groomers, boarders, trainers

  • Education & Tutoring: Private tutors, test prep

Check Google’s official LSA eligibility list

Which Should You Choose?

  • Choose Google Ads if you want granular keyword control, custom messaging, flexibility in landing page testing, and deep analytics. It’s ideal for aggressive lead generation, branded campaigns, and performance optimization.

  • Choose LSAs if you operate in an eligible industry, want to only pay for verified leads, and prioritize local visibility. It’s especially effective for businesses where phone calls convert to customers quickly.

Why Work with a PPC Professional?

Understanding how to balance or integrate both platforms can be complex. From budget allocation to lead trackingchoosing the wrong strategy can lead to wasted spend or missed opportunities.

At our agency, we help:

  • Determine the right blend of Google Ads and LSAs

  • Qualify your business for the Google Guarantee

  • Create high-performing Google Ads campaigns that align with your business KPIs

Reach out to learn how we can maximize your ROI across both channels.

Google Ads Help Centre

Local Services Ads Help Centre