When it comes to driving leads for local service businesses, two major options stand out: Google Ads (PPC) and Local Service Ads (LSAs). Both can be powerful, but they function differently.
LSAs put you at the top of search results and only charge for qualified leads, while Google Ads give you full control over targeting and budget but require ongoing optimization.
TL;DR – Key Takeaways for Scanners:
✔ LSAs show up at the very top of Google results, higher than PPC and organic listings.
✔ Best for urgent, high-intent jobs (like HVAC repair, roof leaks, or plumbing emergencies).
✔ Google Ads allow deeper targeting and scalability, but require ongoing optimization.
✔ LSAs are pay-per-lead, not per click, so less wasted spend on low-intent visitors.
✔ Smart home service pros combine LSAs (fast calls) + Google Ads (brand building) for best ROI.
✔ You don’t need an agency to set up LSAs, but you do need to stay on top of reviews, budget, and lead management.
Want the full breakdown of costs, pros & cons, and strategy tips? Keep reading! 🚀
1. Google Ads vs. Local Service Ads: What’s the Difference?
Local Service Ads (LSAs) and Google Ads are both designed to bring you leads, but they operate very differently.
LSAs place your business above standard PPC ads and organic results, featuring a “Google Guaranteed” badge and a call button, creating instant trust with homeowners. These are great for service calls where speed and trust matter most.
Google Ads, on the other hand, are flexible and allow full control over messaging, targeting, and budget, but you pay per click, not per lead. That means you could pay for traffic that doesn’t convert unless your campaign is dialed in.
Contractors who only rely on one or the other miss out. This isn’t either/or—it’s both/and when used strategically.
If you’re a local service business (roofing, HVAC, plumbing, etc.), you’ve probably wondered: Should I run Google Ads or Local Service Ads (LSAs)? Both platforms can drive leads, but they work differently.
In this guide, we’ll break down:
- How LSAs and Google Ads compare in cost, lead quality, and ease of use
- Which one is better for home services
- How to optimize each for the best ROI
2. Which One is More Cost-Effective?
LSAs can seem more expensive per lead, but you’re only paying for leads that actually call or message you. For newer contractors or those without a big marketing team, LSAs offer an easier entry point—no landing pages, no complex ad copy, no A/B testing.
Google Ads gives you scalability and control, but it’s easy to waste money if your targeting or bidding strategy is off. Without proper optimization, clicks can eat up your budget fast with little return.
Real-world tip: Set your LSA budget higher than you plan to spend. Google prioritizes profiles with larger budgets but rarely spends it all. If you want to spend $2,000/month, try setting your budget to $6,000. It signals you’re ready to take more leads, even if you won’t hit that ceiling.
- LSAs: Pay-per-lead, but limited control → You only pay for qualified leads, but Google decides who sees your ad.
- Google Ads: Pay-per-click, but scalable → You pay per click, but with the right targeting, you can control costs.
- Pro Tip: Run both if you can, LSAs for instant, high-intent leads, and Google Ads for consistent traffic and brand awareness.
3. Pros & Cons of Google Ads vs. LSAs
When deciding between Google Ads and Local Service Ads, it’s important to weigh more than just cost—you’re also choosing between control and convenience. Google Ads offers deep customization, allowing you to dial in exactly who sees your ad, when, and with what message. LSAs, on the other hand, are built for simplicity and speed. They remove much of the complexity, but that means giving Google more control over how your business is presented. Both platforms can be highly effective, but they work best when aligned with your business goals, internal capacity, and the types of leads you want to attract.
Google Ads Pros:
✅ Total control: Choose keywords, match types, and demographics.
✅ Can support branding and awareness in addition to lead gen.
✅ Great for seasonal promos or niche service campaigns.
Google Ads Cons:
❌ Higher learning curve, needs regular maintenance and optimization.
❌ May generate low-intent traffic unless refined.
LSAs Pros:
✅ You’re only charged when someone contacts you.
✅ Google Guaranteed badge builds instant credibility.
✅ Easier to manage without an agency.
LSAs Cons:
❌ Reviews from LSAs don’t stay if you stop advertising, so consistency matters.
❌ Limited control over who sees your ad.
❌ Setup requires background checks, insurance, and a Google Business Profile in good standing.
4. When Should You Use LSAs vs. Google Ads?
Use LSAs when:
- You want ready-to-book leads fast.
- You serve emergency needs (burst pipe, roof leak, no AC).
- You operate in a smaller city or underserved zip code (easier to rank).
Use Google Ads when:
- You’re running promotions or targeting long-tail keywords.
- You want to control ad copy and landing page experience.
- You need a scalable system to generate ongoing traffic.
Pro tip: Mark leads in LSA as “Booked” or “Archived” accurately. Google uses this data to shape what kinds of leads they send you. If you get unqualified leads often, be sure to archive them to improve your future results.
✔ If you want immediate, high-quality leads: Run LSAs.
✔ If you want long-term, scalable ad campaigns: Run Google Ads.
✔ Best strategy? Use both for a well-rounded lead gen system.
✅ Example Use Case:
- HVAC company: LSAs for emergency repair calls, Google Ads for seasonal tune-ups.
- Roofing business: LSAs for storm damage leads, Google Ads for full roof replacements.
- Plumbing company: LSAs for urgent leaks, Google Ads for remodel projects.
5. Google Guaranteed Requirements Checklist
Before you can start running Local Service Ads and get that coveted Google Guaranteed badge, you’ll need to complete a few key steps. Google uses this process to protect homeowners and maintain trust in the platform.
Here’s what you need to qualify:
✅ A verified Google Business Profile
✅ Business license (as required by your local/state regulations)
✅ General liability insurance
✅ Background check for business owners (and sometimes key employees)
✅ A real local address in your service area
✅ A 3.0-star average rating or higher on your Google reviews
To check your eligibility and begin the setup process, go to:
👉 Google Local Services Ads: Get Started
This process can take a few days to a couple of weeks depending on your documentation and industry, so don’t wait until peak season to get started.
6. Common Local Service Ad Mistakes to Avoid
LSAs are one of the most beginner-friendly ad types for contractors, but that doesn’t mean they’re foolproof. Here are some of the biggest mistakes we see home service businesses make with LSAs:
❌ Listing too many services. If you don’t want leads for small jobs (like leaf cleanup or minor repairs), don’t list them. Declining too many leads hurts your ranking.
❌ Setting hours you can’t actually respond during. Google tracks responsiveness. If you list 24/7 and miss calls at 10 PM, your rankings will take a hit.
❌ Failing to mark leads as “booked” or “not a good fit.” Google uses this data to determine what leads to send you. Don’t skip it—it directly affects your future lead quality.
❌ Letting your average review rating slip. Fall below 3.0 stars and Google will stop showing your ads altogether. Reputation matters.
❌ Not setting a high enough budget. LSAs often under-spend, so setting a budget that’s 2–3x higher than your target can help you stay competitive in the ad rotation.
By avoiding these common issues, you’ll improve your lead quality, stay visible, and get more ROI from every dollar you spend.
Test Both and Track Your R.O.I.
You won’t know what works best in your market until you test. Use call tracking, CRM integration, or even simple spreadsheets to track:
- Which platform brings better-quality leads?
- What’s your cost per booked job?
- Are certain services better for LSA vs. PPC?
Bonus Tip: Set realistic service hours. Don’t put “open 24/7” if you’re not available—Google penalizes slow responses. Set hours where your team can actually answer.
🧠 Smart Contractors Use Both, Here’s Why
Both Google Ads and LSAs can be powerful tools in your marketing arsenal—but they serve different purposes. LSAs help you capture high-intent leads ready to call now, while Google Ads give you long-term control, visibility, and the ability to scale with precision.
The smartest contractors? They’re testing both, tracking performance, and doubling down on what works.
🚀 Want support setting this up the right way? Hook Agency specializes in lead generation for home service pros—roofers, HVAC techs, plumbers, and more. Book a quick intro call and let’s talk about getting more qualified leads on your calendar (without wasting your budget).
