When it comes to online visibility for local businesses, Google provides two powerful tools: Google Local Services Ads (LSAs) and Google Ads (formerly AdWords). While both platforms help businesses appear at the top of Google search results, they function very differently — and choosing the right one could drastically impact your leads, ROI, and overall digital strategy.

In this post, we’ll break down the core differences, benefits, drawbacks, and use cases of Google LSAs vs. Google Ads so you can make the best decision for your local business.

What Are Google Local Services Ads (LSAs)?

Google LSAs are pay-per-lead advertisements that appear at the very top of the search results, above traditional Google Ads and organic listings. These ads are designed specifically for local, service-based businesses, such as plumbers, locksmiths, HVAC technicians, and realtors.

🔎 How They Work:

• When someone searches for a service like “electrician near me,” Google displays a list of Google Screened or Google Guaranteed professionals.
• Users can call or message you directly through the ad.
• You’re only charged for valid leads — not clicks.

✅ Key Benefits:

• Pay-per-lead model (not pay-per-click)
• Appear above all other ads in search
• Google Guaranteed or Google Screened badges boost trust
• Ideal for local intent searches (e.g., “near me” or geo-specific queries)
• No need for a website

What Are Google Ads (Search Campaigns)?

Google Ads are pay-per-click campaigns that allow businesses to target specific keywords. You create ads that show up in search results, Google Display Network, YouTube, Gmail, and more.

🔎 How They Work:

• You bid on keywords related to your business (e.g., “kitchen remodeling in Boston”).
• Your ad shows up when users type those keywords.
• You’re charged each time someone clicks on your ad.

✅ Key Benefits:

• Total control over targeting, keywords, and messaging
• Can send traffic to custom landing pages (great for conversions)
• Great for brand awareness, eCommerce, and broader campaigns
• Retargeting options and advanced audience targeting
• Works for all types of businesses, not just local services

Google LSA vs Google Ads: Key Differences

Pros and Cons

✅ Google LSA Pros:

• Cost-effective for lead-based businesses
• Trust factor with Google Guaranteed
• Minimal setup required
• You pay only for qualified leads
• Easy to manage for busy owners

❌ Google LSA Cons:

• Only available in select industries and locations
• Limited ad customization
• Less control over lead quality
• Harder to scale beyond local

✅ Google Ads Pros:

• Scalable for growth and expansion
• Powerful targeting options
• More data insights and conversion tracking
• Works across search, display, video, and more
• Can support complex sales funnels

❌ Google Ads Cons:

• Higher learning curve
• Clicks don’t always equal customers
• Requires active management or an agency
• Potential for wasted ad spend if not optimized

Which One is Right for Your Business?

Let’s break it down based on your situation:

👉 Choose Google LSA if:

• You’re a local service provider (e.g., plumber, cleaner, HVAC)
• You don’t have a full website yet
• You want calls and leads, not clicks
• You operate in a supported industry
• You want a low-maintenance ad solution

👉 Choose Google Ads if:

• You need more control over your message, keywords, and strategy
• You have an optimized website or landing page
• You want to run branded, retargeting, or promotional campaigns
• You serve a broader area or offer eCommerce
• You want to scale aggressively

The Power of Using Both

For many local businesses, the best strategy is not choosing one over the other — it’s using both.

Here’s how:

1. Use LSAs for immediate lead generation from high-intent local searches.
2. Run Google Ads for branded keywords, competitor targeting, or promoting special offers.
3. Retarget website visitors from Google Ads using display ads or YouTube.
4. Dominate the SERP by appearing in both LSA and traditional ads — increasing your visibility and credibility.

Cost Comparison

💡 Tip: Google LSA can be more cost-effective if your lead quality is strong, but Google Ads can bring higher volume if managed well.

Real-World Example

Let’s say you own a plumbing business in Chicago.

• With LSAs, your business appears first when someone searches “emergency plumber Chicago.” They see your Google Guaranteed badge and click to call.
• With Google Ads, you can run ads for “water heater replacement,” “drain cleaning,” or even “how to unclog a sink” (great for intent-based landing pages).

Running both together allows you to catch high-intent leads and nurture long-term traffic with targeted campaigns.

Final Verdict

There’s no one-size-fits-all answer — but here’s the takeaway:

Ready to Maximize Your Local Visibility?

If you’re unsure where to start or want expert help managing both platforms, working with a Google Ads agency that specializes in local business can save you time and boost ROI. At Kismet PPC, we build custom strategies to help local service businesses dominate Google.