If you are a local service business, Google gives you more than one way to advertise. Two of the most common are Local Services Ads and regular Search Ads. They look different, work differently, and can complement each other. This article explains the differences so you can decide where to start.
A note: Google changes eligibility, categories, and features over time, and availability depends on your trade and location. Check Google's current requirements before you commit.
What Local Services Ads are
Local Services Ads appear at the very top of results for many local service searches, often above regular ads. They typically show your business name, reviews, hours, and a verification badge, with buttons to call or message. Businesses usually pay per lead, such as a call or message, rather than per click. Getting started usually involves a verification process, which may include background checks and license and insurance documents, depending on the category.
What Google Search Ads are
Search Ads are the text ads that show on results pages when someone types a query. You choose keywords, write the ads, set a budget, and send people to a landing page or a phone number. You usually pay per click. You have much more control over what you target, what you say, and where people land.
Side-by-side
| Local Services Ads | Search Ads | |
|---|---|---|
| How you pay | Typically per lead | Typically per click |
| Control over keywords and ad text | Limited | Extensive |
| Position on the page | Often at the very top | Below Local Services Ads when both appear |
| Verification | Required in many categories | Not required |
| Where people land | Google's listing, call or message | Your website or phone |
| Best for | Quick, trusted local leads | Control, scale, and specific offers |
When Local Services Ads tend to fit
- You offer a service that qualifies in your area
- You want leads quickly with a simple setup
- Reviews are a strength for you
- You can answer calls promptly, because the lead comes straight to you
When Search Ads tend to fit
- You want control over what you advertise and where people land
- You offer services that Local Services Ads do not cover, or in markets where they are not available
- You want to promote specific offers, seasonal campaigns, or higher-value services
- You want to build landing pages and measure the whole journey
Using both
Many businesses run both. Local Services Ads can bring in volume at the top of the page, while Search Ads fill gaps and support specific services. Track results separately so you know what each costs per customer.
Things to watch with either
- Lead quality. Not every lead is a customer. Track which become booked jobs.
- Disputes and credits. Local Services Ads have processes for disputing leads that are not a fit. Ask how that works.
- Speed. Unanswered leads are wasted money. Make sure someone responds fast, or use an AI voice assistant to catch calls you cannot take.
- Reviews. Strong reviews help in both formats and are especially visible in Local Services Ads.
How to decide
Start by looking at your goals and capacity. If you need leads fast and qualify, Local Services Ads are worth testing. If you want control, scale, and specific offers, Search Ads will be a core part of your plan. Compare cost per booked job, not cost per click or per lead.
You can use our free ROAS Calculator to check whether your ad spend is paying back, using your own margin and close rate.
Frequently asked questions
Yes. Just track them separately and watch for overlap so you do not pay twice for the same customer.
It depends on your market and category. Compare by cost per booked job, not just cost per lead or click.
Many of the interactions happen on Google's listing, but a good website still supports trust and conversions.
What to do next
If you want help deciding how to use Google's ad formats for your business, book a free strategy call. You can also read about our PPC advertising approach.
