Quick comparison
| Local Services Ads (LSAs) | Google Search Ads | |
|---|---|---|
| You pay for | Each lead (call/message) | Each click |
| Placement | Very top, above Search Ads | Top of search results |
| Trust signal | Google Guaranteed / Screened badge + reviews | None built in |
| Control & targeting | Limited (category + area) | Extensive (keywords, audiences, bids) |
| Eligibility | Specific categories only; varies by country | Almost any business |
| Best for | Licensed local service trades | Any local business; full control |
How Local Services Ads work
LSAs appear right at the top of relevant local searches with a Google Guaranteed (or Google Screened) badge, your reviews, and a tap-to-call. To run them you pass Google's verification/screening for your category, and you're charged per lead — a call or message — rather than per click. You can dispute clearly invalid leads. They're available for specific categories (many home services, legal, and select others), and availability varies by country.
How Google Search Ads work
Search Ads run on keywords you choose, with full control over targeting, bids, ad copy, and the landing page you send people to. You're charged per click. They reach far more searches than LSAs (any service or question, not just your category) and work for businesses that aren't LSA-eligible at all.
Cost: per lead vs. per click
The models differ in where the risk sits. With LSAs you only pay when someone contacts you, which feels safer — but you have less control over lead quality and targeting. With Search Ads you pay per click, so some spend goes to clicks that don't convert — but you control exactly who sees the ad and where they land, which (done well) can produce a lower cost per qualified lead.
Which should you run?
- Licensed trade in an eligible category (plumber, HVAC, electrician, lawyer): start with LSAs — top placement, pay-per-lead, instant trust badge.
- Not LSA-eligible (ecommerce, B2B, many retail/service businesses): run Google Search Ads.
- Most established local service businesses: run both — LSAs to capture the very top, Search Ads to control targeting and cover services LSAs don't.
Why running both often wins
LSAs and Search Ads occupy different spots on the page and capture intent differently. Running both lets you own more of the results, capture the pay-per-lead traffic at the top, and use Search Ads' control to reach the searches LSAs miss. For a local business with the budget, it's rarely either/or.
Frequently asked questions
Not necessarily — they price differently. LSAs charge per lead (you pay only when contacted); Search Ads charge per click. For eligible trades, LSAs can deliver a lower effective cost per lead, but it varies by market.
Yes, and many local businesses do. LSAs sit at the very top for high-intent searches; Search Ads add control and cover keywords LSAs don't. Together you own more of the page.
Only if your category is eligible (many home services, legal, and some others; availability varies by country). If you're not eligible, Google Search Ads are the way to advertise locally.