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 work best for urgent, high-intent leads (like emergency repairs).
✔ Google Ads are better for scalable, long-term lead generation and targeting.
✔ LSAs charge per lead, while Google Ads charge per click—which can mean wasted spend if not optimized.
✔ To dominate your local market, use both: LSAs for fast, ready-to-book calls, Google Ads for brand awareness & traffic control.
✔ HVAC, plumbing, roofing, and other home service businesses should test both and track ROI to see what works best.
Want the full breakdown of costs, pros & cons, and strategy tips? Keep reading! 🚀
Google Ads vs. Local Service Ads: What’s the Difference?
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. Google Ads (pay-per-click) allows for precise targeting, while LSAs (pay-per-lead) give you top placement with Google’s trust badge.
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
1. Google Ads vs. LSAs: Quick Comparison Table
Feature | Google Ads | Local Service Ads |
---|---|---|
Cost Model | Pay-per-click (PPC) | Pay-per-lead (PPL) |
Lead Intent | Can be lower intent | Higher intent (customers ready to book) |
Setup Difficulty | Easy to start but requires optimization | Requires Google screening & background checks |
Visibility | Appears below LSAs in search results | Top of Google search above PPC |
Best for | Businesses wanting scalable, targeted ads | Service businesses needing immediate leads |
2. Which One is More Cost-Effective?
- 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
Google Ads Pros:
✅ Full control over targeting, keywords, and budget.
✅ More traffic potential if optimized properly.
✅ Can work for both local and national campaigns.
Google Ads Cons:
❌ Requires ongoing optimization to prevent wasted spend.
❌ Lower lead intent—some clicks may not convert.
LSAs Pros:
✅ Pay only for qualified leads (verified by Google).
✅ Displayed at the top of search results for maximum visibility.
✅ Easier to manage with fewer settings to tweak.
LSAs Cons:
❌ Limited control over targeting—Google decides who sees your ad.
❌ Strict verification process (background checks, insurance proof, etc.).
4. When Should You Use LSAs vs. Google Ads?
✔ 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.
Test Both and Track Your R.O.I.
Both Google Ads and LSAs have their place in a local service business’s marketing strategy. LSAs give you top placement and higher-intent leads, while Google Ads provide more control and scalability. The best move? Test both and track your ROI.
🚀 Need help running LSAs & Google Ads for your home service business? Hook Agency specializes in lead generation for roofers, HVAC, and contractors. Let’s chat about how we can get more leads on your calendar—faster!