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; 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 Guaranteed / Screened | None |
| Lead disputes | Yes, for spam and wrong service | 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 guarantee. 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 weekly process that asks satisfied customers for Google reviews is the single biggest LSA lever. Then answer rate: calls that go to voicemail lower your ranking and cost you the lead. Then disputes: review every lead and dispute the spam and wrong-service ones inside Google's window, or you pay for them.
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