What are Local Service Ads?
Local Service Ads (LSAs) are pay-per-lead ads that appear at the very top of Google search results for local service queries. They show your business name, rating, hours, and a green "Google Guaranteed" badge — and you only pay when a potential customer contacts you, not when they click.
Instead of choosing keywords, you tell Google your services and service area, and Google decides when to show you. When someone calls or messages through the ad, that's a billable lead. If a lead is clearly not genuine (wrong number, spam, out of area), you can dispute it and often get credited.
What are Google Search Ads?
Google Search Ads are pay-per-click text ads that appear at the top of search results, just below any Local Service Ads. You choose the keywords you want to show up for, write the ad, set your budget, and pay each time someone clicks through to your website or landing page.
They give you far more control — over keywords, locations, schedules, landing pages, and messaging — and they work for any industry, not just local services. The trade-off is that you pay per click whether or not that visitor becomes a customer, so the quality of your landing page matters a lot.
Local Service Ads vs Google Ads: side-by-side
| Factor | Local Service Ads | Google Search Ads |
|---|---|---|
| Position on page | Very top (above everything) | Top, below LSAs |
| You pay for | Each lead (call/message) | Each click |
| Google Guaranteed badge | Yes ✓ | No |
| Industries | Select service & professional fields | Any industry |
| Keyword control | None (Google decides) | Full control |
| Setup difficulty | Simple, but needs verification | More complex, more flexible |
| Best for | Trust + top spot for local services | Reach, control, any business |
What is the Google Guaranteed badge?
Google Guaranteed is a green checkmark badge shown on Local Service Ads after a business passes Google's background, license, and insurance checks. It signals trust to customers — and if someone is unhappy with a Google Guaranteed job, Google may refund them up to a coverage limit. This badge is only available through Local Service Ads; you can't get it with regular Search Ads.
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Get My Free Audit →Which industries qualify for Local Service Ads?
LSAs aren't available to everyone. They mainly cover:
- Home services — plumbers, electricians, HVAC, cleaners, locksmiths, roofers, landscapers, garage door, pest control
- Professional services — lawyers, real estate agents, financial planners
- Select healthcare in some regions
Availability varies by country and city. If your business type isn't eligible — or LSAs aren't live in your area yet — Google Search Ads are the way to go, since they work for any industry.
Which is cheaper, Local Service Ads or Google Ads?
Local Service Ads can be more cost-effective because you only pay for real leads and can dispute fake ones — but in competitive cities the cost per lead can climb. Google Search Ads charge per click, but give you the levers (keywords, landing page, targeting) to lower your true cost per customer over time. The "cheaper" option is whichever delivers paying customers at the lowest cost for your market — which is why measuring results matters more than the pricing model. (See our guide on how much to budget for Google Ads.)
Should you use Local Service Ads or Google Ads?
For most eligible local service businesses, the best approach is: start with Local Service Ads for the top placement, trust badge, and pay-per-lead simplicity — then add Google Search Ads to cover the searches LSAs miss and to gain more control. Together they let you own more of the page. If you don't qualify for LSAs, Google Search Ads are your primary option.
Key takeaways
- Local Service Ads = top of page, Google Guaranteed badge, pay per lead, select industries, no keyword control.
- Google Search Ads = below LSAs, pay per click, any industry, full control.
- The Google Guaranteed badge only comes with LSAs and requires verification.
- Eligible businesses often get the best results running both.
- Judge either by cost per customer, not the pricing model alone.
Frequently asked questions
What is the difference between Local Service Ads and Google Ads?
LSAs sit at the very top with a Google Guaranteed badge and charge per lead; Google Search Ads sit just below, charge per click, work for any industry, and give full keyword control.
Are Local Service Ads cheaper than Google Ads?
Often, because you pay only for genuine leads and can dispute fake ones — but cost per lead varies by market. Search Ads give more control to optimize cost per customer.
What industries qualify for Local Service Ads?
Mainly home services (plumbers, electricians, HVAC, cleaners, roofers), plus some professional services (lawyers, real estate, financial planners) and select healthcare. Search Ads work for any industry.
Should I use Local Service Ads or Google Ads?
If eligible, start with LSAs for the top spot and trust badge, then add Search Ads for reach and control. If not eligible, use Search Ads.