If you're a local service business looking to generate more leads online, you've likely encountered both Local Service Ads (LSAs) and traditional Google Ads PPC campaigns. Both can be effective, but they serve different purposes and work better for different types of businesses. Let's break down the key differences to help you make the right choice.
What Are Local Service Ads?
Local Service Ads are Google's specialized advertising platform designed specifically for local service businesses. They appear at the very top of search results, above traditional Google Ads, and feature a distinctive "Google Screened" or "Google Guaranteed" badge.
Key Features of Local Service Ads:
- Pay-per-lead pricing model (not pay-per-click)
- Google screening and background check process
- Prominent placement above traditional ads
- Built-in review and rating system
- Direct phone call integration
- Limited to specific service categories
What Are Google Ads PPC Campaigns?
Traditional Google Ads PPC (Pay-Per-Click) campaigns are the standard advertising format that appears in search results, on websites, and across Google's advertising network.
Key Features of Google Ads PPC:
- Pay-per-click pricing model
- Extensive targeting and customization options
- Multiple ad formats (text, display, video, shopping)
- Detailed analytics and conversion tracking
- Available for virtually any business type
- Full control over ad copy, landing pages, and user experience
Cost Comparison: LSAs vs. Google Ads
Local Service Ads Pricing:
- Pay only for qualified leads (phone calls or messages)
- Lead costs typically range from $20-$100+ depending on service type
- No cost for clicks that don't convert to leads
- Weekly budget caps to control spending
Google Ads PPC Pricing:
- Pay for each click, regardless of outcome
- Click costs vary widely by industry and competition
- Average cost-per-click for home services: $3-$50+
- Conversion rates typically 2-5% for service businesses
Eligibility and Requirements
Local Service Ads Requirements:
- Must operate in an eligible service category
- Pass Google's screening process (background checks, license verification)
- Maintain required insurance coverage
- Serve customers in your local area
- Meet Google's quality and responsiveness standards
Google Ads Requirements:
- Open to virtually any business type
- Must comply with Google Ads policies
- Need a functional website or landing page
- No special licensing or screening required
Performance and Results
Local Service Ads Performance:
- Higher trust factor due to Google screening
- Premium placement above traditional ads
- Typically higher conversion rates for phone calls
- Limited control over targeting and messaging
- Simpler setup and management
Google Ads PPC Performance:
- More granular targeting options
- Full control over ad copy and landing pages
- Detailed performance analytics
- Ability to optimize for different conversion goals
- Requires more active management and optimization
Which Option Is Right for Your Business?
Choose Local Service Ads If:
- You operate in an eligible service category (HVAC, plumbing, electrical, etc.)
- You can pass Google's screening requirements
- You prefer a simple, hands-off advertising approach
- Phone calls are your primary conversion goal
- You want to minimize wasted ad spend on unqualified clicks
- Building trust and credibility is crucial for your business
Choose Google Ads PPC If:
- Your business doesn't qualify for Local Service Ads
- You need more control over targeting and messaging
- You have multiple conversion goals (calls, forms, online bookings)
- You want to drive traffic to specific landing pages
- You have the resources to actively manage and optimize campaigns
- You need detailed analytics and conversion tracking
Can You Use Both?
Absolutely! Many successful service businesses use both Local Service Ads and Google Ads PPC as complementary strategies:
- LSAs for immediate leads: Capture high-intent customers ready to call
- Google Ads for broader reach: Target customers in different stages of the buying process
- Different service areas: Use LSAs for core services and Google Ads for specialized offerings
- Seasonal adjustments: Adjust budget allocation based on seasonal demand
Getting Started
For Local Service Ads:
- Check if your business category is eligible
- Complete the Google screening process
- Set up your business profile and service areas
- Set your weekly budget and lead preferences
- Monitor and respond to leads promptly
For Google Ads PPC:
- Define your campaign goals and target audience
- Conduct keyword research for your services
- Create compelling ad copy and landing pages
- Set up conversion tracking
- Launch campaigns and monitor performance
- Continuously optimize based on data
The Bottom Line
Both Local Service Ads and Google Ads PPC can be effective for generating leads, but they serve different purposes. LSAs are ideal for service businesses that qualify and want a simple, trust-building approach to lead generation. Google Ads PPC offers more flexibility and control but requires more active management.
Consider your business goals, available resources, and target audience when making your decision. Many businesses find that a combination of both approaches provides the best overall results.