When marketing your business online, it’s essential to choose the right platform to reach your target audience effectively. Two of the most powerful tools in Google’s advertising arsenal are Google Local Services Ads and Google Ads (formerly AdWords). While both help businesses get in front of potential customers, they differ significantly in format, targeting, and functionality. Here’s a breakdown of the key differences to help you decide which is right for your business.
1. Ad Placement and Appearance
LSAs appear at the very top of Google search results, above both traditional Google Ads and organic listings. They include business name, rating, phone number, and a “Google Guaranteed” badge if applicable.
Google Ads can appear at the top or bottom of search results pages, on YouTube, Gmail, and across the Google Display Network. These ads often include headlines, descriptions, site links, and call-to-action extensions.
2. Pay Model
LSAs use a pay-per-lead model. You only pay when a customer contacts your business through the ad (e.g., calls, messages, or books a service).
Google Ads operate on a pay-per-click (PPC) model, where you pay each time someone clicks your ad, regardless of whether they contact you.
3. Targeting and Setup
LSAs are designed for local service-based businesses (e.g., plumbers, electricians, painters). You select your service area and job types, and Google matches you with relevant leads.
Google Ads offers detailed targeting options including keywords, demographics, location, time of day, and even user intent, making it ideal for both local and national campaigns across industries.
4. Qualification and Verification
LSAs require businesses to undergo a background check and license verification to qualify for the “Google Guaranteed” badge. This builds trust and improves lead quality.
Google Ads has no formal vetting process. Anyone can launch a campaign, although ad copy and landing pages must comply with Google’s policies.
5. User Intent and Trust Signals
LSAs cater to high-intent local searches (e.g., “roof repair near me”), and the “Google Guaranteed” badge adds an extra layer of consumer trust.
Google Ads can target users at any stage of the buying funnel—from awareness to conversion—but lacks the built-in credibility of the Google Guarantee.
6. Management and Complexity
LSAs are relatively simple to set up and manage, making them ideal for small business owners who want straightforward lead generation.
Google Ads requires more strategy, optimization, and budget control, but offers greater flexibility and scalability.
Google Local Services Ads and Google Ads
Both Google Local Services Ads and Google Ads offer valuable opportunities for businesses to grow online. LSAs are ideal for local service providers seeking cost-effective, high-intent leads with minimal setup. Google Ads, on the other hand, is better suited for businesses looking for comprehensive campaign control, broader reach, and detailed targeting.
Depending on your goals, industry, and marketing budget, you might even benefit from using both platforms together to maximize visibility and lead generation.
Need help setting up your Google LSAs or optimizing your Google Ads campaign? Reach out to us to get started.
