Paid Ads Playbook

Google Ads vs.
Local Services Ads (LSA)

Where should you spend your first $1,000? We break down the pros, cons, and ROI of the two most powerful paid channels for service businesses.

By Matt Dean 6 Min Read

If you're a plumber, roofer, or chiropractor in Greenville, you know Google is where the money is. But seeing "Sponsored" results everywhere can be confusing. Should you pay per click? Or pay per lead? Let's clear the fog.

1. The Core Difference: Pay Per Click vs. Pay Per Lead

The fundamental difference lies in what you pay for. With Google Search Ads (PPC), you pay every time someone clicks your link, whether they call you or bounce immediately. With Local Services Ads (LSA), you only pay when a qualified customer actually contacts you.

2. Local Services Ads (Google Guaranteed)

LSAs are the listings at the very top of Google with the green "Google Guaranteed" checkmark. They are built specifically for trust-based service industries.

The Pros:

  • Pay Per Lead: You only pay for valid calls or messages. Spam calls? Dispute them and get your money back.
  • Top Position: LSAs appear above traditional ads and the Map Pack.
  • Trust Badge: The Google Guarantee builds massive consumer confidence.

The Cons:

  • Limited Control: You can't choose specific keywords or write custom ad copy. Google decides when to show you.
  • Strict Verification: You must pass background checks and insurance verification to get the badge.

3. Google Search Ads (PPC)

These are the traditional text ads labeled "Sponsored." They give you granular control over exactly who sees your business.

The Pros:

  • Precision Targeting: Target specific high-value keywords (e.g., "tankless water heater repair") while excluding low-value ones.
  • Immediate Scale: You can turn traffic on or off instantly and scale budget as needed.
  • Custom Messaging: Write your own headlines and offers to differentiate from competitors.

The Cons:

  • Cost Per Click: You pay for clicks, not results. A poorly optimized campaign can burn cash fast.
  • Complexity: Requires active management of keywords, bidding strategies, and landing pages.

4. The Verdict: Which One Wins?

"For most local service businesses starting out, **LSA is the clear winner**. It’s lower risk and builds trust faster."

Start with LSA to get the phone ringing with guaranteed leads. Once you max out your LSA capacity (Google will only show you so often), then layer in Google Search Ads to capture specific, high-ticket searches that LSA might miss.

Confused About Your Ad Spend?

I can audit your current ad strategy (or lack thereof) and tell you exactly where to put your next dollar for maximum return.

Get My Paid Ad Audit

Get a Free Website + SEO Audit

We'll show you exactly what's keeping customers from finding you—and how to fix it. See where you rank, what your competitors are doing, and the fastest path to more leads.

No obligation. 100% free. Results in 48 hours.