The short version
Both show at the top of Google. Both can bring in calls. The big difference is what you pay for and how much you control. Google Ads (search ads) charge when someone clicks. Local Services Ads charge when someone calls, messages or books.
Side by side
| Google Ads (search) | Local Services Ads | |
|---|---|---|
| You pay for | Clicks. Your actual cost per click is usually below your max bid. | Valid leads: calls, messages and bookings. |
| Badge | None | Google Verified, after verification checks |
| What decides position | Bid, ad and landing page quality, search context, auction competition and ad assets | Bid, how likely you are to get the lead, responsiveness, profile quality (ratings, reviews, photos, verification) |
| Where the click goes | Your website or a call | Your Local Services profile, a call, message or booking |
| Control | Keywords, negative keywords, ad text, landing pages, locations, schedules | Services, service areas, budget, bid mode |
| Bad traffic | You pay for the click, so negatives and tracking matter | Invalid or low-quality leads aren't charged and may be credited |
| Budget | Average daily budget, up to 2 times on one day, 30.4 times per month cap | Weekly or monthly budget you can change any time |
When Google Ads makes more sense
- You want to push one service. Google Ads lets you bid on exact searches, like heat pump installation, and send them to a page about that one service.
- You have a strong website. Google says landing page quality is part of Ad Rank. A fast page that matches the search can lower your costs.
- You want to control the message. You write the ad, pick the offer and choose the hours your ads run.
The catch is that you pay for every click, including ones that don't call. That makes negative keywords and call tracking a must. See how we run Google Ads for HVAC.
When Local Services Ads make more sense
- You have good reviews. Google says ratings and review count are part of profile quality.
- You answer fast. Google says regularly missing calls or messages may hurt your ranking.
- You don't want to manage keywords. You pick services and areas, and Google matches searches to them.
The catch is less control. You can't write ad text or choose keywords, and the price of a lead varies by location, job type, lead type and bid mode.
Running both
Plenty of shops run both. That's fine, with two rules. First, track every call so you know which one booked the job. Google Ads can count calls from ads and calls to a forwarding number on your site; Local Services Ads show leads in your account. Second, look at cost per booked job, not cost per click or cost per lead. A cheap lead that never books is not cheap.
Neither one moves your spot in the map pack. Google says you can't pay for a better local ranking. That work happens on your Google Business Profile and local SEO.
We manage both: see Google Ads and Local Services Ads.
Free report card: your Google profile, reviews, website and listings graded against the shops near you.
Questions
Which is cheaper, Google Ads or Local Services Ads?
It depends on your town, your services and how well you answer and book. Compare cost per booked job, from your own tracking, after a month or two.
Can I run both at the same time?
Yes. Track calls from each so you know which one is booking jobs.
Do I need a website for Local Services Ads?
The ad sends people to your Local Services profile, a call or a message. A good website still helps homeowners who look you up before they call.
Sources
- Google Ads Help: About Ad Rank
- Google Ads Help: Actual cost-per-click
- Google Ads Help: About average daily budgets
- Google Ads Help: Phone call conversion tracking
- Google: Local Services Ads overview
- Google Local Services Help: How you're charged for leads
- Google Local Services Help: About ad rankings
- Google Business Profile Help: Tips to improve your local ranking