Tampa, FL · nationwidePaid search
Local Services Ads vs Google Ads
How the two formats differ, what each costs per lead, and how to split the budget.
Published · Updated · 2 min read
Key takeaways
- Most local service businesses should run both Local Services Ads and Google Ads.
- Local Services Ads charge per lead and sit above every other ad, but their volume is capped by ranking rather than budget.
- Google Ads costs more per lead but gives you volume and full control of keywords, audiences and landing pages.
- Fund Local Services Ads until leads plateau, put the rest of the budget into Search, and revisit the split monthly.
- Reviews, answer rate and rating every lead in the dashboard are what make Local Services Ads work.
Run both. Local Services Ads deliver cheaper, higher-intent leads with almost no control over targeting or message, and their volume is capped by your ranking. Google Ads delivers volume and control at a higher cost per lead. In the local service accounts we run, LSA typically produces 20 to 40 percent of the leads at roughly half the cost per lead of Search, and Search produces the rest. LSA alone leaves volume on the table, and Search alone leaves the cheapest leads on the table.
How they differ
| Local Services Ads | Google Ads (Search) | |
|---|---|---|
| You pay for | A lead (call or message) | A click |
| Position | Above all search ads | Below LSA, above organic |
| Ranking driven by | Reviews, response rate, hours, proximity, budget | Bid, Quality Score, relevance |
| Targeting control | Service area and job types | Keywords, audiences, schedule, devices, everything |
| Landing page | Google's profile | Your page |
| Badge | Google Verified (replaced Guaranteed and Screened in 2025) | None |
| Bad-lead credits | Automated by Google for spam and invalid leads; geo and job-type mismatches alone are not credited | No |
The economics
A personal injury LSA lead might cost $200 to $500; the same firm's Search cost per lead is often two to three times that, because a $150 click has to be multiplied by a conversion rate. A plumbing LSA lead might be $25 to $60 against $80 to $150 from Search. LSA leads also convert better, because the caller chose you from a short list with stars and a verification badge. The catch: you can't buy more LSA volume with budget past a point; ranking decides it.
How to split the budget
Fund LSA to the point where it stops delivering, which you find by raising the weekly budget until leads plateau. Put the rest in Search, structured by intent. Revisit monthly; LSA share grows as reviews grow. LSA management, Google Ads management.
What makes LSA work
Reviews first. A consistent process that asks your customers for a Google review at the right moment is the biggest LSA lever we control, because reviews now live on your Google Business Profile and feed LSA ranking directly. Then answer rate: calls that go to voicemail lower your ranking and cost you the lead. Then lead feedback: Google retired manual disputes in 2024, so rate every lead in the dashboard, keep service areas and job types exact, and check the credits Google's automated review issues.