Google Ads vs. Local Service Ads: Which Should Service Businesses Choose?
For service-based businesses — HVAC companies, landscapers, plumbers, roofers, pest control companies, and countless others — online advertising is no longer optional. Customers are searching for help right now, and the businesses with the strongest visibility in Google are the ones that win those high-intent leads.
Two of the most powerful advertising options available are Google Ads and Local Services Ads (LSAs). You’ve probably seen both of these before with a “Sponsored” label near them but may not understand the differences between them. While both appear at the top of Google’s search results, they work very differently, attract different types of customers, and deliver different costs and outcomes. The question you might be asking is: which platform is the better investment for my business?
To answer that, we need to break down how each system works, how leads are generated, and what type of business benefits most from each.
What Are Local Services Ads (aka Google Guaranteed Ads)?
For years, Google had separate profiles for your LSA and your GBP. But in November of 2024, Google actually got rid of the LSA profile and essentially merged it with your GBP; making your GBP that much more important in the grand scheme of your digital marketing.
Local Services Ads appear at the very top of Google’s search results with the “Google Guaranteed” badge. These often look like your Google Business Profile as these ads typically show:
- Your business name
- Your hours
- Your rating and review count
- Your phone number or call button
- Your service area
Most importantly, LSAs operate on a pay-per-lead model, not pay-per-click. You only pay when someone contacts you through the ad. Leads can come in as:
- Phone calls
- Messages
- Appointment requests
For service-based companies, LSAs often offer one of the most straightforward, reliable ways to connect with customers actively searching for help.
Who Local Services Ads Work Best For
LSAs are ideal for:
- Home service companies
- Contractors
- Trades businesses (plumbing, HVAC, electrical)
- Cleaning and maintenance companies
- Pest control companies
- Garage door repair companies
- Locksmiths
- Roofers
- Junk removal companies
Basically, if your business involves going to a customer’s home or serving someone locally, LSAs can be a powerful weapon in your marketing strategy. For a full list of business Google’s LSA services, you can check here. This list is always changing and by the time you read this blog, it may be updated with new industries!
What Are Google Ads (Search Ads)?
Google Ads (formerly AdWords) are the traditional paid search ads that appear just below LSAs. Thes have many pseudonyms and can be confusing to keep track of them all. Some call them AdWords. Some call them Google Ads. Some call them Search Ads. Some call them PPC. They all mean the same thing. For simplicity’s sake, we’ll refer to them as “Google Ads”.
These ads operate on a pay-per-click (PPC) model, meaning you pay each time a user clicks your ad — regardless of whether they become a lead.
Google Ads give you more control than LSAs, including:
- Keyword targeting
- Bid strategies
- Ad copy customization
- Landing page optimization
- Conversion tracking
- Geographic targeting
This makes them highly flexible and capable of capturing demand at many stages of the customer journey.
Who Google Search Ads Work Best For
Google Ads are a strong fit for:
- Businesses in competitive markets
- Companies launching new services
- Businesses needing rapid scaling
- Companies serving multiple areas or cities
- Brands wanting full control over messaging
Google Ads can reach users researching, comparing, or looking for a provider right now. They can target both high-intent searches and broader informational searches, giving you more reach than LSAs alone.
Key Differences Between LSAs and Google Ads
Although both ad types can generate leads for service businesses, they differ dramatically in features, cost structure, and how Google ranks them.
Here is a breakdown:
| Feature | Local Services Ads | Google Ads |
|---|---|---|
| Cost Model | Pay per lead | Pay per click |
| Position on Page | Very top spot | Below LSAs |
| Audience | Ready-to-buy customers | Broader search intent & Ready-to-buy customers |
| Setup Complexity | Simple | Complex |
| Ranking Factors | Reviews, proximity, responsiveness, trust | Bids, keywords, ad relevance, landing pages |
| Control Level | Low | Very high |
| Lead Quality | High (usually service-ready) | Varies |
| Branding Opportunity | Low | High |
Both platforms work, but they work differently — and understanding their strengths is the key to making the right choice. Both target bottom of funnel users (meaning people who are ready to buy a product/service) but have different ways of doing so.
Local Services Ads: Strengths and Weaknesses
Strengths
1. Pay Only for Verified Leads
You aren’t paying for clicks from people who are “just browsing.” You pay only for calls or messages that qualify as leads. This dramatically improves ROI for many service businesses.
2. Highest Placement on Google
LSAs appear above Google Ads and organic results, giving them a visibility advantage traditional ads can’t match.
3. Highly Trusted Due to Google Guaranteed Badge
The “Google Guaranteed” or “Google Screened” badge builds immediate trust. Customers feel more confident contacting you, especially for in-home services.
4. Review-Driven Rankings
Businesses with great reviews and high responsiveness get rewarded with better placement. This levels the playing field for smaller service providers.
5. Simple Setup and Management
Compared to Google Ads, LSAs require less daily oversight. The platform automates many ranking decisions.
Weaknesses
1. Limited Control
You cannot write custom ad copy, choose keywords, or direct traffic to a landing page. Google controls almost everything.
2. Geography Limitations
Google relies heavily on proximity. You may struggle to appear in areas farther from your core location.
3. Lead Quality Can Vary
While leads are often high intent, some may be for services you don’t offer. You can dispute invalid leads, but the process isn’t perfect.
4. Not Available to All Business Types
LSAs mainly support home, professional, and personal service categories. If you fall outside those, you must rely on Google Ads.
Google Ads: Strengths and Weaknesses
Strengths
1. Full Control Over Targeting
You choose your keywords, locations, audiences, bidding strategy, and landing pages. This level of precision allows for highly scalable campaigns.
2. Brand Awareness and Visibility
Because ads appear for a wide range of searches, you can position your brand in front of customers even as they research or compare options.
3. Greater Scalability
You can expand to new cities, add new services, or scale ad spend up or down whenever you want.
4. Better Data Tracking
Google Ads gives full insight into:
- Clicks
- Conversions
- Close rates
- Cost per lead
- Keyword performance
- Landing page performance
This helps businesses refine their strategy over time.
5. Works for All Industries
Unlike LSAs, Google Ads supports nearly every business type.
Weaknesses
1. You Pay for Every Click
Clicks don’t always equal leads. Without strong conversion optimization, budget can be wasted quickly.
2. Requires Ongoing Management
Successful Google Ads campaigns demand ongoing keyword optimization, negative keyword filtering, bid adjustments, and A/B testing.
3. Can Become Expensive in Competitive Markets
Industries like HVAC, plumbing, roofing, and legal services can see extremely high cost-per-click numbers.
4. Lower Placement Than LSAs
Google Ads appear below LSAs, so businesses using only PPC may lose visibility to competitors using LSAs.
So… Which Should Your Service Business Choose?
The answer depends on your goals, market, and budget — but for most service businesses, the right choice is not either/or. It’s both.
Choose Local Services Ads if:
- You want high-intent leads
- You want the highest possible placement
- You rely heavily on local calls
- You want simpler management
- You have strong reviews
LSAs are typically the fastest path to immediate lead flow.
Choose Google Ads if:
- You want to scale aggressively
- You want full control over keyword targeting
- You want to expand into multiple cities
- You want more brand visibility
- Your service category isn’t supported by LSAs
Google Ads gives you flexibility and reach that LSAs can’t.
Why the Best Strategy Uses Both
Service businesses that combine LSAs + Google Ads dominate the search results by:
- Showing up in multiple positions
- Capturing both high-intent and mid-funnel customers
- Increasing brand visibility
- Reducing competition
- Maximizing total leads
When both platforms are running together, your business can appear 2–3 times on the same results page — and customers almost always choose the business they see most often.
Want the Right Strategy for Your Service Business?
If you want high-quality leads, stronger visibility, and a data-backed approach to LSAs and Google Ads, the Migos Marketing team is here to help. Use our contact form to reach out. Our team will help you build a custom advertising strategy that attracts more customers, lowers your cost per lead, and helps you dominate your local market.