Google Search Ads and Local Services Ads are both powerful tools for businesses to appear on Google Search,but they are fundamentally different in how they operate, who they serve, and how they charge advertisers.
Google Search Ads
Google Search Ads are a form of pay-per-click (PPC) advertising that allows businesses to display text-based ads within Google’s search results. These ads are triggered by user queries and appear at the top or bottom of the Search Engine Results Page (SERP), marked as “Sponsored.” Advertisers have full control over the campaign setup—including keyword selection, ad copy, audience targeting, and bidding strategies—making it a highly customizable tool suitable for virtually any industry. Google Search Ads are ideal for businesses looking to reach a wide audience, drive traffic to their website, and test various marketing messages. However, they require consistent monitoring and optimization to ensure return on investment, as costs can escalate quickly in competitive sectors.
Pros:
- Highly customizable: Control over ad copy, keywords, bidding strategies, and targeting
- Scalable: Suitable for both local and national/international campaigns
- Advanced targeting: Demographics, devices, locations, audiences, etc
- A/B testing: Easily test creatives and landing pages
Cons:
- Pay-per-click model: Can become expensive with high-competition keywords
- Time-consuming: Requires constant optimization and management
- Click-only billing: Clicks may not always result in qualified leads
Local Services Ads
Local Services Ads (LSAs) are a specialized ad format designed for local, service-based businesses like plumbers, electricians, cleaners, etc. Unlike traditional search ads, LSAs appear at the very top of the SERP and showcase a business profile that includes a phone number, operating hours, star ratings, and a Google Guarantee badge—a trust-building signal for consumers. Instead of paying per click, businesses pay per lead, meaning they’re only charged when a potential customer contacts them directly through the ad. LSAs are easy to set up and largely managed by Google, making them an excellent choice for small businesses focused on lead generation without the need for complex ad management.
Pros:
- Pay-per-lead: Only pay when a customer reaches out
- Trust factor: Google Guarantee increases consumer confidence
- Minimal setup: Google handles most of the optimization and ad delivery
- Top visibility: Often appears above all other ads and organic results
Cons:
- Industry-specific: Only available to certain service categories
- Lead quality varies: Not all leads may be relevant or ready to buy
- Fewer testing opportunities: Less flexibility for optimization or experimentation
When to Use Which?
Both ad types are effective but serve different purposes. Google Search Ads offer deep customization and broader reach, ideal for businesses with in-house marketing teams or agencies. Local Services Ads, on the other hand, simplify lead generation for local service providers by leveraging Google’s trust ecosystem and pay-per-lead pricing.
Use Google Search Ads if:
- You need full control over your campaigns
- You’re marketing non-service products or national/international offerings
- You want to scale and test multiple audience segments
Use Local Services Ads if:
- You’re a verified service provider in a supported industry
- You’re focused on driving qualified local leads
- You want to minimize ad management and prioritize phone call leads