Google Ads vs. Local Service Ads: What’s the Difference?

If you’re a business owner looking to advertise on Google, you’ve likely come across Google Ads and Local Service Ads (LSAs). While both help you attract customers, they operate differently and serve distinct purposes. Understanding the differences can help you choose the best option for your business.

What Are Google Ads?

Google Ads is Google’s pay-per-click (PPC) advertising platform that allows businesses to create ads that appear in search results, websites, YouTube, and more. These ads can be text-based, display ads, or even shopping ads, depending on your campaign goals. Key Features of Google Ads:

• Bidding System: You bid on keywords to compete for ad placement.

• Pay-Per-Click (PPC): You only pay when someone clicks your ad.

• Custom Targeting: You can target specific keywords, locations, demographics, and interests.

• Wide Reach: Your ads can appear across Google Search, partner websites, YouTube, and more.
  

Google Ads is best for businesses that want to increase brand visibility, drive traffic to their website, or generate online conversions (such as product purchases, sign-ups, or calls).

What Are Local Service Ads (LSAs)?

Local Service Ads are designed specifically for service-based businesses like plumbers, electricians, HVAC contractors, and locksmiths. Unlike Google Ads, LSAs focus on lead generation rather than clicks or website visits.

• Key Features of Local Service Ads:

• Pay-Per-Lead Model: You only pay when a potential customer contacts you directly through the ad.

• Google Guaranteed Badge: LSAs include a Google Guaranteed badge, which builds trust and credibility.

• Top Placement on Google: LSAs appear above traditional Google Ads in search results.

• No Keywords Needed: Google determines when your ad is shown based on your business category and location.
  

LSAs are best for local businesses that want to generate direct leads (such as phone calls or appointment bookings) without managing complex keyword-based campaigns.

Which One Should You Use?

Choose Google Ads if…

• You want more control over your targeting and bidding.

• You need to drive traffic to your website or sell products online.

• You want to advertise beyond local searches (e.g., on YouTube or Google’s Display Network).
  

Choose Local Service Ads if…

• You run a service-based business and want direct leads.

• You prefer to pay per lead instead of per click.

• You want to build trust with the Google Guaranteed badge.
  

For some businesses, a combination of both Google Ads and LSAs can be the most effective approach.

Final Thoughts

Both Google Ads and Local Service Ads can be powerful tools to grow your business. The right choice depends on your goals, industry, and budget. If you’re a local service provider looking for qualified leads, LSAs may be the best fit. If you need broader visibility and more control, Google Ads is the way to go.

Need help setting up your digital advertising strategy? Contact us today to get started!