Google Local Services Ads vs. Google Ads (PPC): Which Is Right for Your Business?

When it comes to generating leads through Google, businesses often ask: Should I run Google Local Services Ads (LSAs) or traditional Google Ads (PPC)?

Both platforms can bring in new customers—but they work very differently. Understanding the distinctions can help you choose the best strategy (or combination) for your goals and budget.

Let’s compare Google LSAs and Google Ads side by side.

What Are Google Local Services Ads (LSAs)?

LSAs are pay-per-lead ads that appear at the very top of Google Search, above traditional PPC ads and the map pack. They’re designed for local service businesses like plumbers, electricians, and lawyers.

Key features:

Pay only for valid leads (not clicks)
Google Guaranteed or Screened badges
Customer reviews displayed in the ad
Phone call and message leads

What Are Google Ads (PPC)?

Google Ads (formerly AdWords) are pay-per-click campaigns that allow you to bid on keywords. Ads appear in search results, display networks, YouTube, and more.

Key features:

Full control over keywords, copy, and landing pages
Advanced targeting options
Works for ecommerce, B2B, and service businesses
Charged per click (not per lead)

LSA vs. PPC: Pros and Cons

Feature	LSAs	Google Ads (PPC)
Cost Model	Pay per lead	Pay per click
Placement	Top of search, above ads & maps	Top & bottom of search results
Targeting	Based on service area & job types	Based on keywords, devices, location
Conversion Type	Calls, messages	Website clicks, forms, calls
Ease of Setup	Simple (if eligible)	More complex
Review Integration	Built-in	Manual setup
Lead Quality Control	Dispute bad leads	Pay for all clicks (good or bad)

When to Use LSAs

You’re in a supported service industry (e.g. legal, trades, home services)
You want call-based or message-based leads
You prefer a simpler, lower-maintenance ad setup
Your budget is focused on local lead gen only

When to Use Google Ads

You want to drive traffic to your website or landing pages
You operate outside of supported LSA verticals
You need more control over targeting, bidding, and creative
You’re running an ecommerce, B2B, or national campaign

Pro Tip: Many local businesses succeed by using LSAs and Google Ads together—LSAs for lead volume, and PPC for visibility and remarketing.

Final Thoughts

LSAs and Google Ads aren’t one-size-fits-all solutions. The best choice depends on your business goals, industry, and marketing budget. In many cases, a blended strategy offers the most comprehensive coverage.