Local Services Ads vs Google Ads: which one first?
By Leo Agostini, 13 years in marketing. Updated .
For most home service companies and many law firms, start with Local Services Ads and add search ads next to them. Local Services Ads charge per lead and sit at the very top with a Google badge, so they are often the cheapest calls you can buy. Search ads cost per click but let you choose which jobs or cases to chase, which is how you grow the profitable work.
The difference in one table
| Topic | Local Services Ads | Google search ads |
|---|---|---|
| You pay for | Each lead (call, message or booking) | Each click |
| Where it shows | At the very top, with a badge | Below LSA, above the map and results |
| Keywords and ad text | Chosen by Google from your profile | Chosen and written by you |
| What sets your position | Bid, reviews, responsiveness, profile | Bid, ad quality, landing page |
| Getting started | Background check and license verification | Live in days |
| Best at | Cheap, steady calls for core services | Choosing which jobs and cases to chase |
How Local Services Ads decide who shows first
Google ranks Local Services Ads in an auction that weighs your bid against the quality of your profile. Its help page lists your rating and number of reviews, how quickly you respond, completed verification, and how well your services match the search. It also says missed calls can hurt your responsiveness. Businesses with the Google Guaranteed or Google Screened badge rank above those without one.
In 2024 Google said the distance from your business is often not a key factor, which surprised a lot of owners. What matters is that the customer is inside the service area you set.
Lead credits changed in 2024
Owners used to dispute bad leads one by one. Since July 2024 Google reviews every lead automatically and credits the ones it considers invalid, and it stopped crediting leads for job types or areas you don’t serve. A careless profile now costs real money, so your job types, hours and service area should match the work you want, not every job you could do.
When search ads matter more
- You want more of one kind of job. Water heaters instead of drain clogs, replacements instead of repairs, personal injury instead of general questions. Only search ads let you choose.
- Your reviews are still thin. A new profile with few reviews ranks low in Local Services Ads, while search ads can compete from day one.
- You need control over hours and areas. Search ads can run by hour, ZIP code and device, with budgets that follow the weather or the season.
What I recommend by industry
HVAC, plumbing and roofing: Local Services Ads first for steady calls, search ads next to them for the high-value work. Law firms: Local Services Ads as the first step in most practice areas, with tight search campaigns per practice area. In every case, the profile only ranks if someone answers the phone, which is where most of the money is lost.
Questions owners ask
- Are Local Services Ads cheaper than Google Ads?
- Per lead, often yes, because you pay only when someone calls, messages or books. But you can’t choose which searches you show for, so the cost per good job depends on how well your profile is set up and how fast you answer.
- How do I rank higher in Local Services Ads?
- According to Google, position comes from your bid and your profile quality: rating, number of reviews, response time, completed verification and how relevant your services are to the search. Missed calls can hurt your responsiveness. Answering fast and asking every customer for a review are the two levers you control most.
- Can I get my money back for bad LSA leads?
- Not by disputing them. Since 2024 Google reviews leads automatically and credits the ones it finds invalid. It no longer credits leads for job types or areas you don’t serve, so those settings have to be right.
- Can law firms use Local Services Ads?
- Yes, in many practice areas, with the Google Screened badge instead of Google Guaranteed. Bar advertising rules still apply to the profile, and in Florida some ads must be filed with the Bar.
Both, set up and watched
I set up Local Services Ads and search ads side by side, track every call to the job or case it became, and move the budget to what pays. Flat monthly fee, never a percentage of spend.