Local Services Ads vs. Google Ads: A Clear Comparison

Nishtha

April 30, 2025

In today’s digital world, advertising online is essential for any business, especially those serving local customers. With so many advertising options available, it can be overwhelming to decide where to invest your marketing budget. Two popular choices for local businesses are Google Ads and Local Services Ads by Google. Although they might sound similar, they serve different purposes and work in different ways. Understanding these differences is key to creating an effective advertising strategy that drives results.

At SEO Expert New York, we often help businesses navigate these options to maximize their online visibility and ROI. In this blog, we’ll explain what Google Ads and Local Services Ads are, highlight their main differences, and help you determine which one might be right for your business.

1. What Are Google Ads?

Google Ads (formerly known as Google AdWords) is Google’s flagship advertising platform that allows businesses to create and run ads across Google’s extensive network. These ads can appear on Google search results pages, YouTube, partner websites, and the Google Display Network.

Key Points About Google Ads:

• Google Ads offers several campaign types, including Search Ads, Display Ads, Video Ads, and Shopping Ads.
• The most common type for local businesses is Search Ads, which appear at the top or bottom of Google search results based on users’ search queries.
• Advertisers choose keywords relevant to their products or services and bid on them. Ads are then displayed depending on the bid amount and the ad’s Quality Score, a metric Google uses to measure relevance and user experience.
• Google Ads provides advanced targeting options, allowing businesses to focus on specific locations, languages, devices, and demographics.
• It operates on a pay-per-click (PPC) model, meaning you pay only when someone clicks on your ad.

Google Ads can be a powerful tool for businesses of all sizes, especially those looking to increase visibility for a variety of products or services beyond local markets. For detailed insights on how to choose the right Google ad type for your campaign, you can visit our guide on How to Choose the Right Type of Google Ad for Your Campaign.

Because of its wide reach and flexibility, Google Ads is ideal for companies wanting to control every aspect of their advertising—from keywords to ad copy and landing pages. However, it can require more time and expertise to manage effectively.

2. What Are Local Services Ads?

Local Services Ads (LSAs) by Google are a specialized form of advertising designed specifically for local service providers such as plumbers, electricians, house cleaners, and other home service businesses. Unlike traditional Google Ads, LSAs appear at the very top of the search results, above regular paid ads, making them highly visible to potential customers searching for local services.

Key Points About Local Services Ads:

• LSAs operate on a pay-per-lead model, where businesses pay only when a potential customer contacts them through the ad.
• These ads display a “Google Guaranteed” badge, signaling to users that the business has passed Google’s background checks and meets certain quality standards.
• To qualify for LSAs, businesses must complete a vetting process including license verification and background checks, enhancing trust and credibility.
• LSAs focus on connecting local customers directly with service providers in their area, offering a simplified experience with no need to manage keywords or complex bidding.
• The ad displays the business’s phone number, reviews, and basic profile information, making it easy for customers to make a quick decision.

Local services by Google are highly effective for businesses focused on attracting qualified, intent-driven leads in their local market. The transparency and trust provided by the Google Guarantee help businesses stand out in competitive service industries.

If you want expert assistance in optimizing your Google local business presence, our SEO Consultant services can provide tailored solutions to improve your local ads strategy.

3. Key Differences Between Google Ads and Local Services Ads

Understanding the core differences between Google Ads and Local Services Ads is crucial for any business looking to invest wisely in Google local advertising.

Ad Format & Placement

• Google Ads appear as text or display ads within the search results or across Google’s partner network.
• Local Service Ads appear as a dedicated block at the very top of Google search results with enhanced features like the Google Guarantee badge.

Billing Model

• Google Ads charge based on pay-per-click; you pay every time someone clicks on your ad, regardless of whether they contact you or buy your product.
• Local Service Ads operate on a pay-per-lead basis, charging you only when a real customer contacts you, making budgeting more predictable.

Target Audience & Intent

• Google Ads target a broad audience, allowing advertisers to reach users based on search intent, demographics, and location.
• LSAs focus on local ads with high purchase intent, connecting users actively searching for local services.

Eligibility & Industry Restrictions

• Google Ads are open to virtually all business types.
• LSAs are limited to specific service categories and require background checks and license verification.

Trust & Credibility

• Google Ads rely on ad quality and relevance but don’t offer additional trust signals.
• LSAs offer the Google Guaranteed badge, providing an added layer of consumer confidence.

Control & Customization

• Google Ads allow full control over keywords, ad copy, and landing pages.
• LSAs offer a simpler setup focused on service profiles rather than detailed ad customization.

Performance Tracking & Metrics

• Google Ads track clicks, impressions, conversions, and ROI.
• LSAs primarily focus on leads generated and bookings made through the platform.

For businesses wanting to optimize legal-related ads or learn about SEO strategies, check out our Legal SEO Service and the article on SEO Slug Optimization: How to Rank Higher on Google.

4. Who Should Use Google Ads?

Google Ads is a versatile platform that fits a wide range of businesses beyond just local service providers. Here are some key scenarios where Google Ads is the preferred choice:

Businesses with Diverse Offerings

Companies that sell multiple products or services, including those that serve customers nationwide or globally, benefit from Google Ads’ broad targeting capabilities.

Companies Targeting Broader Markets

If your business aims to reach customers beyond a local radius, or targets different languages, age groups, or devices, Google Ads allows you to customize campaigns to fit these needs.

Brands Focused on Awareness and Search Intent

Google Ads excels at capturing users at different stages of the buying journey—from awareness through to purchase—by targeting specific keywords and interests.

Ideal Business Types for Google Ads

• E-commerce stores with a variety of products
• SaaS companies reaching clients internationally
• Retail businesses expanding online presence
• B2B companies targeting specific industries or roles

Google Ads offers powerful tools to track and optimize your campaigns, making it ideal for businesses willing to invest time and resources in fine-tuning their digital marketing. If you’re uncertain about which platform suits your needs, consider consulting with our SEO Consultant team at SEO Expert New York for personalized guidance.

5. Who Should Use Local Services Ads?

While Google Ads offer broad flexibility, Local Services Ads (LSAs) are specially designed for businesses that want to advertise locally on Google with a focus on generating high-quality leads in their immediate service area. LSAs are particularly suited to certain industries and business models where trust and direct customer contact are crucial.

Businesses That Benefit Most from Local Services Ads:

• Home Service Providers: Plumbers, electricians, HVAC technicians, cleaners, landscapers, and other contractors often find LSAs highly effective. Because LSAs feature the Google Guaranteed badge, they provide an instant trust signal that encourages local customers to call or book directly.
• Local Businesses Needing Qualified Leads: Unlike general local search ads, which can attract clicks with varying intent, LSAs connect businesses to customers actively seeking their exact services nearby.
• Small to Medium-Sized Enterprises (SMEs): LSAs simplify the advertising process. Since businesses don’t need to manage keywords, bids, or ad copy, it’s ideal for SMEs with limited marketing resources or those new to digital advertising.
• Industries Requiring Licensing and Verification: Google’s vetting process for LSAs ensures that only legitimate, licensed professionals appear in these ads. This makes LSAs an excellent choice for service industries where trust and compliance matter.

Advantages of Using Local Services Ads:

• Pay only for real leads rather than clicks, improving budget efficiency
• Appear prominently at the top of search results, above traditional Google Ads
• Leverage Google’s “Google Guaranteed” trust factor to boost consumer confidence
• Benefit from Google handling much of the ad setup and verification process

For businesses in specialized sectors like healthcare, navigating local advertising requires a nuanced approach. Our Healthcare SEO service at SEO Expert New York helps medical professionals effectively use local advertising Google tools, including LSAs, to reach nearby patients and grow their practice.

6. How to Choose Between Google Ads and Local Services Ads

Choosing between Google Ads for local businesses and Local Services Ads depends on your business goals, industry, budget, and the type of customers you want to attract. Here’s a practical framework to help you decide:

1. Identify Your Business Type and Industry

• If your business falls within the categories eligible for Local Services Ads—such as home services, legal, or healthcare—you should strongly consider LSAs for their lead quality and trust factor.
• If your offerings are broader or not covered by LSAs, then traditional Google Ads or google local business advertising through search and display campaigns may be more effective.

2. Define Your Advertising Goals

• If your goal is to generate immediate, qualified leads with high purchase intent, LSAs are ideal. These ads prioritize customers ready to book or call.
• If you want to build brand awareness, target a wider audience, or promote multiple products and services, Google Ads offers greater control and reach.

3. Budget and Pricing Model Considerations

• LSAs operate on a pay-per-lead basis, allowing you to only pay when a potential customer contacts you. This can lead to better ROI for local service businesses.
• Google Ads use a pay-per-click model, which may require careful keyword and bid management to avoid spending on low-quality clicks.

4. Control and Customization Needs

• Google Ads offer extensive customization options, including ad copy, keyword targeting, geographic focus, device preferences, and more.
• LSAs simplify the process by focusing on business profiles and verified information but offer limited customization in ad content.

5. Trust and Local Reputation

• LSAs provide the “Google Guaranteed” badge that can significantly increase trust and conversion rates in competitive local markets.
• Google Ads for local businesses can benefit from strong reviews and optimized landing pages but don’t include the same trust verification.

In many cases, a combination of both local ad services can work well. Running local google ads alongside LSAs allows businesses to capture broader market segments—from those casually browsing to customers ready to buy.

If you want to learn more about how to integrate these strategies into your overall marketing plan or need professional assistance in local advertising Google campaigns, reach out to SEO Expert New York. Our expert team specializes in crafting tailored campaigns that maximize your visibility and conversions.

7. Tips to Maximize Results on Both Platforms

Whether you choose Google Ads, Local Services Ads, or a mix of both, maximizing your return on investment requires consistent optimization and a strategic approach. Here are practical tips to get the best results from each platform:

Tips for Google Ads:

• Do Detailed Keyword Research: Use Google’s Keyword Planner or tools like SEMrush to identify search terms your potential customers are using. This is especially crucial for google local search ads, where keyword intent can vary based on location.
• Write Clear, Compelling Ad Copy: Focus on customer pain points and solutions. Highlight what makes your business unique—whether it’s pricing, availability, or customer service.
• Optimize for Location-Based Targeting: If you’re running google local business ads, be sure to narrow your geographic targeting to the cities or zip codes you actually serve. This helps avoid wasting your budget on irrelevant clicks.
• Track Conversions Accurately: Set up conversion tracking to monitor calls, form submissions, or purchases. This allows you to measure what’s working and optimize accordingly.

Tips for Local Services Ads:

• Maintain a Strong Review Profile: Reviews heavily influence placement in local service ads Google rankings. Always encourage satisfied customers to leave reviews on your Google Business Profile.
• Respond Quickly to Leads: Speed matters. Google ranks businesses higher if they respond promptly to incoming inquiries or bookings.
• Keep Your Profile Up-to-Date: Ensure your business hours, services, service area, and licensing documents are current. Google may pause your local ad services if this information is outdated.
• Monitor Your Lead Quality: Use the platform’s lead dispute feature if you receive irrelevant or spammy leads.

Both platforms require attention, but with the right strategy, they can complement each other beautifully. For instance, while google local business advertising can help capture direct leads, traditional Google Ads can expand awareness and remarketing opportunities.

Conclusion

When it comes to online advertising, the choice between Google Ads and Local Services Ads isn’t about which is better—it’s about which is better for your business goals. If you’re in a service-based industry and want to advertise locally on Google while paying only for real leads, Local Services Ads may be the smarter route. On the other hand, if your business needs broader reach, more control over messaging, or promotes various offerings, then Google Ads for local businesses is likely the better fit.

Both platforms can be incredibly powerful when used correctly—and even more effective when combined. Leveraging google local business advertising strategies alongside LSAs can help you dominate local search and stay ahead of your competitors.

At SEO Expert New York, we specialize in crafting high-performing ad strategies for businesses of all sizes, from legal and medical practices to contractors and retailers. Whether you’re new to online advertising or want to scale your current efforts, our expert team can help you unlock the full potential of Google’s advertising platforms.