Pick Local Services Ads if your trade or profession qualifies, you can pass Google's screening and you want calls without managing a campaign. Pick Google Search ads if your business doesn't qualify, you can't pass Google's screening, or you want control over which searches you show up for. Plenty of service businesses end up running both.
This guide is for owners deciding where to put their first ad dollars. It compares the two the way that matters to your bank account: what each one costs you per lead.
What's the difference between Local Services Ads and Google Ads?
Local Services Ads (LSAs) charge you per lead, and only screened businesses in certain service categories can run them. Regular Google Ads, the text ads in search results, charge you per click and are open to any business.
Google's own Local Services Ads page sums it up the same way: LSAs are "pay-per-lead listings for verified local service providers," while standard Google Ads are "customizable, pay-per-click text ads open to any business."
Both are Google products, and LSA charges are billed through Google Ads, which is why people mix them up. They work very differently once they're running.
| Local Services Ads | Google Search ads | |
|---|---|---|
| You pay for | A lead: a call, message or booking request | A click on your ad |
| Who can run them | Businesses in eligible categories that pass screening | Any business that follows the ad policies |
| Where they show | Top of Google search results, usually with a Google Verified badge | In search results, as text ads |
| How you target | Job types and service areas you choose | Keywords, locations, schedule and more |
| What the customer sees | Your LSA profile, reviews and badge | Ad text you write, then your website |
| Budget | Weekly budget, with a monthly cap | Average daily budget, with a monthly cap |
| Time to start | After screening (weeks); pre-badge leads sooner in many categories | Can start once your ads pass review |
| Bad leads | Some invalid leads aren't charged or are credited | You pay for valid clicks, whether or not they turn into calls |
Who can use Local Services Ads?
Only businesses in categories Google supports, and only after they pass screening. As of November 2026, Google's headline groups in the US are home (plumbing, contracting, moving), business (lawyers, accounting, real estate), health (dentists, optometrists, primary care), learning (tutoring, preschool), care (child care, pet training), wellness (massage, yoga, personal training), beauty (hair stylists, aestheticians, lash extensions) and automotive (mechanics, body shops).
The exact job types vary by city, so check your business on Google's getting started page before you plan around LSAs. The full list is wider than these groups and now includes many restaurant and food categories. If you sell products or offer a service Google doesn't list for your area, Search ads are your option.
Screening is the other gate. Google's verification requirements differ by category and can include business and owner license checks, proof of insurance and background checks. Google says the process takes 3 to 4 weeks on average after you submit your documents. Once you pass the preliminary checks, many categories can run pre-badge ads that bring leads before screening is finished, placed below fully verified providers. Pre-badge ads aren't available for garage door services, health care or locksmiths. Getting started also asks for reviews (rules vary by category), billing details and a budget.
When are Local Services Ads the better choice?
LSAs suit a business that qualifies, has decent reviews, answers its phone and doesn't want to run a campaign. You choose your job types and service areas, set a weekly budget, and Google sends calls and messages. There are no keywords to research and no ad text to write. Google matches your ad to searches related to the job types you picked, in the cities, counties or neighborhoods you serve.
You also pay only for leads. Google's lead rules count answered calls, missed calls longer than 20 seconds during business hours, messages and booking requests, and leads that turn out to be low quality can be credited back in many categories. Our guide to what Local Services Ads cost walks through the budget and billing in detail.
The trade-off is control. Your position depends on your bid and on how likely Google thinks you are to get the lead, which it judges from things like your rating and number of reviews, how fast you respond, your photos and the verification checks you've completed. Missing a lot of calls can hurt your ranking. A missed-call text back setup helps you reply to the calls you can't pick up.
When are Google Search ads the better choice?
Search ads make sense when you don't qualify for LSAs, want leads from a second source while screening runs, or want to choose exactly which searches you pay for.
You pick the keywords, write the ad, send people to a page you control, and set your schedule. That control lets you go after your most profitable jobs ("tankless water heater installation") instead of whatever Google matches to a broad job type.
Budgets are flexible too. Google says there are no flat fees or monthly subscriptions. You set an average daily budget, and Google's billing rules let a busy day spend up to twice that amount, while the month never goes over your daily budget times 30.4.
Search ads only pay off when the page they land on turns visitors into calls and form fills, and when you track which clicks became leads. Without that, you can't tell a working campaign from an expensive one. A landing page that loads fast on a phone and puts the phone number up top does a lot of the work; our website design page covers what that takes.
Which costs less per lead?
It depends on how many of your clicks turn into calls. To compare fairly, turn your click cost into a lead cost: divide your average cost per click by the share of clicks that become a call or form. Then hold that number up against the price per lead you see in your LSA account for the same job type.
Here's how it plays out with example numbers. These aren't averages for any trade; use Google's Keyword Planner for click prices in your area and your own tracking for the rest.
| Scenario | Cost per click | Clicks that become leads | Cost per lead |
|---|---|---|---|
| Search ads, average landing page | $6 | 1 in 10 (10%) | $6 / 0.10 = $60 |
| Search ads, strong landing page | $6 | 1 in 5 (20%) | $6 / 0.20 = $30 |
| Local Services Ads | Not charged per click | Charged per lead | $40 (your LSA lead price) |
In this example, LSAs win against an average landing page and lose against a strong one. Two things move the result more than anything else: how well your page turns visitors into calls, and how fast you answer. A business that converts 1 in 5 visitors can often afford Search ads alongside LSAs. One that converts 1 in 15 should fix its page before buying more clicks.
Leads aren't all the same, either. Count how many leads from each source turn into paid jobs over a couple of months, and compare cost per job, not just cost per lead.
Which should you start with?
Start with Local Services Ads if you qualify. Add Search ads when LSA leads level off, or when you want a specific job that LSAs' broad job types can't target. The decision path below covers the common cases.
Can you run Local Services Ads and Google Ads at the same time?
Yes. Nothing stops a business from running both: they're separate products with separate budgets.
It's usually worth it once LSAs are running well and you want more calls than your LSA budget brings in. Use Search ads to go after specific, high-value jobs that LSAs' broad job types don't target. Track each source separately so you can tell which one is paying for itself. If you'd rather have someone set this up and watch the numbers, that's what our digital advertising service does.
Frequently Asked Questions
Do Local Services Ads use keywords?
No. You choose the job types you offer and the areas you serve, and Google shows your ad for searches related to those job types in those areas.
Do I need a website for Local Services Ads?
Google's getting started requirements for LSAs (a license or registration, reviews, billing and a budget) don't list a website, because customers call, message or book through the ad itself. Search ads send people to a page on your site, so for those the website matters a lot.