Local Service Ads vs Google Ads: Which Is Better for Your Trade?
Google gives home service businesses two primary advertising options: Local Service Ads (LSAs) and traditional Google Search Ads. Both can generate leads, but they work very differently.
Local Service Ads at a Glance
- Placement: Above search ads, at the very top of results
- Pricing: Pay per lead (not per click)
- Cost: $15–$75 per lead depending on trade and market
- Requirements: Background check, license verification, insurance
- Badge: “Google Guaranteed” or “Google Screened”
- Best for: Businesses that want phone calls from ready-to-book customers
Google Search Ads at a Glance
- Placement: Below LSAs, above organic results
- Pricing: Pay per click
- Cost: $8–$45 per click, $100–$400 per lead
- Requirements: None (any business can run ads)
- Best for: Businesses that want control over targeting, messaging, and landing pages
When to Use LSAs
LSAs are ideal when you want the simplest path to leads. You set your budget, service area, and services — Google handles the rest. The Google Guaranteed badge adds trust, and paying per lead means you only pay for actual inquiries.
Downsides: less control over which leads you get, can’t send traffic to custom landing pages, and lead quality can be inconsistent.
When to Use Search Ads
Search ads give you full control: choose exact keywords, write specific ad copy, direct traffic to optimized landing pages, and track every click through to a booked job. Better for businesses that want data-driven optimization.
Downsides: higher cost per lead, requires active management, easy to waste money without expertise.
The Best Approach: Run Both
The most successful home service businesses run LSAs and search ads simultaneously. LSAs capture the “easy” leads at the top of the page. Search ads capture the rest with more targeted messaging. Together, they dominate the entire top of the search results page for your service area.