Local Services Ads vs Google Search Ads: Which Should You Run?

By Corey Frankosky · Last Updated August 6, 2026

If you run a local service business, you have probably wondered whether to run Local Services Ads or Google Search Ads. Here is my honest answer after running both for clients. You should run both. In this guide you will learn how Local Services Ads work, what they cost, the real pros and cons, and how to split your budget between Local Services Ads and Search Ads to bring in the most quality leads.

1The Short Answer: Run Both

I do not look at it as Local Services Ads versus Search Ads. I look at it as run both, and understand that Search Ads may cost a little more than Local Services Ads. If you want your ads at the very top of Google, you need both, because there are different ad formats stacking at the top of the page and you will have plenty of searches where no Local Services Ad shows at all.

Search for any home service near you. In most markets, Local Services Ads sit at the very top, then standard Search Ads and Performance Max ads show below and at the bottom of page one. Running both means your business can appear in more than one of those spots for the same search, which gives you a better shot at the lead.

Question to Answer:

When you search your own service near me, which ad formats show at the top, and are you in any of them?

2Watch: Local Services Ads vs Search Ads

Here is the full walkthrough where I search real home service queries, show how Local Services Ads and Search Ads stack on the page, and explain when to lean into each one.

3What Local Services Ads Are

Local Services Ads, or LSAs, are Google's pay-per-lead ads for local businesses. Instead of paying for a click, you pay when someone actually contacts you through the ad. They show at the very top of Google for local searches, above the standard Search Ads.

Before you can run them, Google puts you through screening and verification. You submit your business details, licensing, and insurance, and once you pass you earn the Google Guaranteed badge, or the Google Screened badge for professional services. That green checkmark is what builds trust with the person searching. Local Services Ads connect directly to your Google Business Profile, so your reviews and profile carry into the ad.

A lot of categories are eligible, including home services, automotive, business and legal, health, wellness, beauty, and care. If you click "more providers" on the search results, you land on the pro list, which shows every verified business running Local Services Ads in your area.

Question to Answer:

Is your business verified for Local Services Ads, with your licensing and insurance already submitted to Google?

4How Local Services Ads Differ From Search Ads

They look similar on the page, but they work very differently. Here is the comparison that matters.

The biggest structural difference is where the selling happens. With Local Services Ads, the ad is your profile and your reviews. With Search Ads, you send people to your website, and the landing page keeps selling them.

Question to Answer:

Would you rather pay per lead through your profile, or pay per click and let your website close the visitor?

5The Pros of Local Services Ads

Local Services Ads have some real advantages, especially for a service business that wants simple lead management.

• You pay per lead, not per click. You are charged when someone actually requests a quote or calls, not when they click around.
• They are more predictable over time. Once you run them for a few months, you get a feel for your numbers. I have clients who spend about $2,000 a month and pull 40 to 50 leads pretty consistently.
• Prime placement and trust. You sit at the very top of the page with the Google Guaranteed badge and your review score front and center.
• Simpler to manage. There are no keywords, ad copy, or landing pages to build. Your profile does the work.

Question to Answer:

Do you know your target cost per lead, so you can tell whether Local Services Ads are working for your business?

6The Cons of Local Services Ads

They are not perfect, and it is worth being honest about the downsides before you pour your whole budget in.

• Lead volume swings. You might get 30 leads in March and 10 the next month if the market slows or a competitor with a bigger budget and more reviews outbids you. That inconsistency is the biggest downside.
• Lead quality can be lower. Even though it is the same people searching, LSA leads often feel like a race to the bottom. People request five quotes and pick the cheapest, so the lead is more price shopper than buyer.
• Everyone looks the same. Scroll a plumber near me search and every listing is a similar review count and a 4.8 or 4.9 rating. It is hard to stand out, and you can feel like just another number in the list.

None of this makes them a bad channel. It just means you should not treat Local Services Ads as your only source of leads.

Question to Answer:

Can your business handle a month where Local Services Ads leads suddenly drop by half?

7Why You Should Run Both

The strongest local advertisers run Local Services Ads and Search Ads together. There are two big reasons.

First, coverage. When you run both, your business can show at the top as a Local Services Ad and again as a Search Ad or a Performance Max ad lower on the page. More placements on page one means more chances at the lead.

Second, tracking and quality. Search Ads leads can be harder to track, because someone might research on their phone, then call from a different device, or go through your website and then your Google Business Profile. You lose the trail. But Search Ads leads are often higher quality, because your website gets to sell them before they reach out. Running both lets you compare real cost per lead and lead quality across the two, then push budget toward whichever is winning.

Question to Answer:

Are you measuring cost per lead and lead quality separately for Local Services Ads and Search Ads?

8How to Split Your Budget

How you divide your budget depends on how much you have to spend. Here is how I think about it.

1. Smaller budget. Lean toward Local Services Ads. You pay per lead, placement is prime, and management is simpler.
2. Medium budget. Run both. Put money behind each, wait a month, and see where the budget is being spent better.
3. Larger budget. Keep both active and max them out. If you are producing a lot of quality leads, you have a much better chance at more jobs, bigger jobs, and keeping your crews and pipeline full.

The honest hard part is figuring out where your money works best. That takes a month or two of running both and actually reading the data. If you would rather have someone manage both channels and move the budget for you, that is exactly what my Local Services and Google Ads management covers, and the full system is what I teach in the Surfside PPC Google Ads Course.

Question to Answer:

Based on your monthly budget, should you be leaning into Local Services Ads, splitting evenly, or maxing out both?