Google Ads vs Local Service Ads
Advertising is the lifeblood of any modern business growth Whether you’re running an online store, offering professional services, or managing a local business, Google provides multiple advertising options to help you reach potential customers. The two best advertising platforms, according to the public, are Google Ads and Local Service Ads (LSAs). While they may end up generating conversion and engagements, they serve a different purpose and have entirely different target audiences.
So, which one is best for your business? We’ll compare Google Ads vs. Local Service Ads, covering their key features, differences, and which one you should choose for maximum results.
What is Google Ads?
It's a pay-per-click option in advertising to offer a click-based payment method, previously called Google AdWords, giving the opportunities to different businesses to bid on keywords where ads display through Google Search, Youtube, and Google partner sites.
Types of Google Ads
- Google Search (appears at the top or bottom of search results)
- Google Display Network (banner ads across partner websites)
- YouTube Ads (video ads before or during videos)
- Google Shopping Ads (for eCommerce businesses)
Key Features of Google Ads
- Keyword Targeting - Advertisers can bid on specific search terms relevant to their business.
- Ad Formats - A large collection of ad formats, such as search, display, video, shopping, and app-based.
- Advanced Audience Targeting - Allows demographic, behavioral, and geographic targeting.
- Performance Tracking & Analytics - Provides insights into clicks, conversions, and ROI.
- Flexibility with Budgets - The user has complete control over daily and campaign budgeting.
- Ad Extensions - Displays additional information about the ad like phone numbers, links, and locations.
- Remarketing & Retargeting - Helps re-engage visitors who previously interacted with the business.
Why Businesses Prefer Google Ads?
Google Ads is widely used across industries due to its flexibility and scalability. Whether you're an eCommerce brand, SaaS provider, local retailer, or service-based company, Google Ads can drive targeted traffic to your website. Businesses with a national or global audience benefit the most because of the platform’s wide reach and advanced targeting options.
If your business needs:
- Instant visibility on Google search results
- Flexible budgeting and cost control
- Diverse ad formats (text, images, video, shopping, app promotion)
- Detailed conversion tracking and analytics
Then Google Ads is an excellent choice. However, it does require ongoing optimization and bidding strategy management to maintain profitability.
What are Local Service Ads (LSAs)?
LSAs represent the local service advertisement for every local service business such as plumbing, locksmithing, electrical jobs, real estate, and lawyers. Unlike Google Ads, LSAs only bill businesses when they receive a valid lead (ex.- a call or message inquiry), and focus only on location-based searches.
LSA ranks at the top of Google searches, above traditional paid search ads and organic listings, making it even more likely that local customers will see it when actively researching services.
Key Features of LSAs
- Google Guaranteed Badge – Enhances credibility by verifying businesses.
- Pay-Per-Lead Model – Charges only for direct customer inquiries (calls/messages).
- Top Placement – LSAs appear above all search results, increasing visibility.
- Local Targeting – Matches customers with nearby service providers.
- Easy Setup – No keyword research or ad copywriting is required.
- Customer Reviews & Ratings – Helps in building trust and attracting more customers.
- Lead Management Dashboard – Allows businesses to track and respond to leads more efficiently than ever.
In LSAs, businesses do not compete in keyword bidding as in Google Ads; thus, lead generation becomes easier and more straightforward. However, LSAs are only functional in a specific service-based industry, so not all businesses can qualify.
Businesses that benefit from LSAs the most
- Plumbers, electricians, and HVAC specialists!
- Lawyers, real estate agents, financial consultants
- Cleaning services, pest control, home fixing services
- Medical services, dental, chiropractors
Difference Between Google Ads and LSA Ads!
Although both aim to increase the visibility of a business on the web, they differ in several respects, let's see:
Payment Structure
Google Ads: Pay-Per-Click (PPC) advertisement, whereby the advertisers are charged for every click on their ad, may or may not lead to the conversion.
Local Service Ads: Advertising takes the form of pay-per-lead, charging only those leads who are privy to the contact of customers via that ad, gateways of generating leads will be much more reasonable.
Ad Placement
Google Ads: Their ad appearance can be above, below, or beside the organic search results, contingent upon ad ranks and bidding strategy.
Local Service Ads: They enjoy a unique situation to be appearing on the SERPs above Google Ads and organic results, providing first-class exposure.
Targeting and Reach
Google Ads: Offers a wealth of targeting options, such as keywords, demographics, interests, and behaviors, thereby giving businesses a broad reach or narrow targeting.
Local Service Ads: Such ads are designed to specifically target local searches, reaching anyone who searches for a specific service within a specific area, thus fitting very well for local service providers.
Content and Format of the Ad
Google Ads: Requires advertisers to create the ad copy: a headline, description, and the ad itself. Google Ads has the flexibility but requires effective copywriting skills for best results.
Local Service Ads: Follows a predefined format of showing business information like name, phone number, operating hours, and reviews, that make ad creation quite easy.
Trust Indicators
Google Ads: Are not endowed with trust badges or guarantees; trust has to be built into the advertisement copy and landing web page content.
Local Service Ads: Display the "Google Guarantee" badge for businesses that have passed Google's verification, providing a level of assurance that bolsters consumer trust.
Which One is Best for Your Business?
Whether you choose Google Ads or the Local Service Ads will depend on a variety of factors:
Business Type and Services Offered
Local Service Ads would be best for local service-based solutions like plumbing, electrical, or cleaning.
Google Ads will help you reach a wider audience, e-commerce, and B2B services far beyond the local confines.
Budget and Payment Preferences
If you would prefer to pay for real leads that are most likely to convert, LSAs' pay-per-lead system would be more economical.
If you want to increase your brand recognition and are willing to pay for clicks, Google Ads is the most comprehensive PPC solution.
Control and Customization
Google Ads offers superior control over everything from ad copy through targeting options to bidding strategies and should be utilized by businesses with precise marketing goals.
LSAs work instead by aiming to connect local paying customers with such service providers. They are simple and user-friendly for anyone. The setup and maintenance are straightforward and are less customizable.
Trust and Credibility
Credibility in potential customers will spike tremendously with an acquired "Google Guarantee" badge right under LSAs, especially for service-based businesses where trust is paramount.
Conclusion
In fact, Google Ads and Local Service Ads provide different benefits for different businesses. Their features are distinct and should be understood in conjunction with your particular business objectives, ideal customer segment, and budget for informed decision-making purposes. If you want an expert to help contact us.
