8 Differences Between Local Service Ads vs. Google Ads: What’s Better?

Local Service Ads (LSAs) and Google Ads represent two powerful advertising tools on Google, each tailored for different goals and strategies. Understanding these differences can dramatically impact your advertising success for plumbing, HVAC, electrical, and other home service businesses. This article breaks down the eight essential distinctions between LSAs and Google Ads, helping you make an informed decision for your business.

Local Service Ads vs Google Ads

Reach and Audience

Local Service Ads

Local Service Ads (LSAs) are a game-changer for local businesses in 2024. They allow you to connect with nearby customers who need immediate services like plumbing or HVAC repair. Using advanced geo-targeting, LSAs ensure your ads are seen by potential clients in your area who are ready to hire right away. This makes LSAs particularly effective for businesses that thrive on quick decision-making clients.

• Laser-Focused Leads: LSAs prioritize generating high-quality leads over building brand awareness or driving traffic. They capture the attention of customers urgently needing your services, significantly increasing conversion chances.
• Impact on Organic Search: According to Brightlocal, organic search results can see a 6.8% drop in clicks when LSAs are present, showcasing their effectiveness in grabbing user attention for local, immediate solutions.

In 2024, LSAs remain crucial for local service providers aiming to connect with ready-to-convert customers, delivering higher engagement and ROI. If your business needs immediate results, LSAs are the way to go.

Are you still confused about local service ads vs google ads?  Contact us today.  We're happy to help!

Google Ads

Google Ads, on the other hand, continue to be a versatile platform offering a broad reach. With various ad types, businesses can target global audiences and specific regions alike. Although Google Ads include location-based targeting, they don't offer the same hyper-local focus as LSAs.

• Versatile and Broad Reach: Google Ads' diversity allows businesses to extend their reach across different markets, making it ideal for objectives ranging from local customer targeting to global market expansion.

Whether your goal is to attract local customers or expand your reach, Google Ads offer the flexibility to meet various advertising objectives.

Ad Placement

Local Service Ads

Local Service Ads are featured at the top of Google search results, even above standard Google Ads and organic listings. This prime real estate is especially beneficial for service-based businesses like plumbers and electricians, ensuring your ads are the first thing potential customers see.

Google Ads

Google Ads offer diverse placements based on the ad type:



• Search Ads: Appear at the top or bottom of search results, using advanced machine learning to understand user intent better. These ads are personalized and engaging, often featuring rich snippets such as ratings, reviews, and pricing to attract more clicks.
• Display Ads: Shown on partner websites within the Google Display Network, these ads have become more sophisticated and visually appealing. They can feature interactive formats like carousels and banners, providing a more engaging user experience.
• Shopping Ads: Prominently display products with enhanced features like 360-degree views, video demonstrations, and integrated customer reviews. This gives shoppers detailed information to make informed decisions directly from the search results page.

• YouTube Ads: Offer various formats and targeting options on YouTube, including pre-roll, mid-roll, and post-roll ads, YouTube Shorts and community posts. These ads can feature shoppable elements and augmented reality tools, making them highly engaging.
• Local Inventory Ads: These ads connect online shoppers with local stores by showing product availability nearby. They appear in search results and on Google Maps, driving foot traffic to physical stores and boosting local sales.
• Video Discovery Ads: Designed to help advertisers reach potential customers on platforms like YouTube and Google Discover. These ads appear alongside content users are already interested in, encouraging them to explore new videos.

Each placement allows you to strategically position your ads for maximum effectiveness, depending on your business goals.

Bidding Strategy

In 2024, bidding strategies for Google Ads and LSAs are tailored to different advertising goals:

• Google Ads: Operate on a pay-per-click (PPC) model, charging for each click on your ad. This model is ideal for driving traffic and boosting visibility, tracking metrics like Click-Through Rate (CTR) and Cost Per Click (CPC) to measure engagement and cost efficiency.
• Local Service Ads: Use a pay-per-lead (PPL) basis, charging only when someone contacts your business through the ad, such as via a call or message. This model is perfect for generating high-quality leads, focusing on Cost Per Lead (CPL) to gauge the expense of acquiring new customer inquiries.

Google Ads offer broad reach and flexibility, while LSAs ensure your ads appear for users searching for nearby services, making them ideal for local service providers.

Google local service ads vs Google ads is a question every business owner asks themselves.  If you are confused, we’d appreciate the opportunity to help.  We’re glad to answer any questions you may have.  Click here to schedule a call now.

Cost

In 2024, the cost structure for Google Ads varies depending on the network and keywords used:

• Google Search Network: Average cost per click (CPC) ranges between $1 and $4, though competitive keywords in sectors like insurance or legal services can cost upwards of $50 per click. In some markets in the US, terms like "ac repair" can easily run over $90 per click.
• Google Display Network: Generally under $1 per click, making it a cost-effective option for broad visibility.

Local Service Ads are designed to generate high-quality leads, making them more expensive:

• Average Cost Per Lead (CPL): Ranges from $10 to $225, averaging around $23 per lead. This higher cost is justified by the quality and conversion potential of the leads generated.

In 2024, we've noticed an increase in average cost per lead with Local Services. Click here to use Google's budget estimator.

Although LSAs are generally more costly than standard Google Ads, they tend to produce more immediate and actionable leads. Google offers a cost estimation tool for LSAs, allowing businesses to set their budget based on the number of leads desired per week, with the flexibility to adjust as needed.

For example, in Texas, the cost to generate 10 leads per month through LSAs can vary significantly depending on the service. A dentist might spend between $114 and $171 per lead, while a carpenter could pay between $39 and $59. This variability underscores the importance of understanding your specific market and adjusting your budget accordingly to maximize the return on investment from LSAs.

Google Local Service Ads vs Google Ads

Keyword Research
The main difference between LSAs and Google Ads lies in keyword handling:

• Google Ads: Requires careful research to find the right keywords that match what your potential customers are searching for. This offers a broad range of keyword options, allowing for extensive customization. Effective keyword research can significantly enhance your campaign’s performance by targeting the most relevant and high-converting terms.
• Local Service Ads: Simplify the process by having Google select the keywords for you. You describe your business and services, and Google matches your ad to relevant local searches. This automated approach ensures that your ads are shown to users with a high intent to convert, though it offers less control over specific keywords.

While Google Ads offer more flexibility and a wide range of keyword possibilities, LSAs focus on delivering high-quality leads by handling the targeting for you. This makes LSAs particularly advantageous for businesses that want to streamline their ad management process and focus on converting leads.

Google Guaranteed and Google Screened

LSAs can display “Google Screened” and “Google Guaranteed” badges, providing a significant credibility boost:



• Google Guaranteed Badge: This badge shows that the business has passed background checks and meets Google's quality standards. Marked with a green check, it can greatly enhance trust and attract more local clients, as it assures potential customers of the business’s reliability and service quality.

• Google Screened Badge: Confirms that a professional service provider has verified their licenses and credentials. This badge is particularly useful for industries like law and real estate, where credentials and trustworthiness are paramount.

These badges, exclusive to LSAs, enhance trust and attract more local clients. Google Ads do not offer these badges, making LSAs more trustworthy for local service providers. These badges can significantly boost your business's credibility and increase the likelihood of converting high-quality leads.

Lead Quality

Local Service Ads (LSAs) are highly effective at attracting quality leads, as they target users who need immediate services and are ready to make quick decisions. This makes LSAs particularly beneficial for local service providers looking to convert these users into paying customers efficiently.

In contrast, Google Ads can generate significant traffic, but the quality of leads varies. To ensure high-quality leads, businesses must optimize their campaigns carefully, considering that users might be at different stages of the buying process, from initial research to making a final purchase. Effective optimization includes selecting the right keywords, crafting compelling ad copy, and using negative keywords to filter out less relevant traffic.

Flexibility and Control

Local Service Ads

Designed for simplicity, LSAs are managed by Google, limiting customization but offering ease of use. This approach is ideal for businesses that prefer less hands-on management of their ads but might be a drawback for those wanting more control over their campaign details.

Google Ads

Offer extensive flexibility, allowing advertisers to customize every aspect of their campaigns. Businesses can control keyword selection, ad placement, and budget settings to align precisely with their advertising goals and target specific audience segments. This level of control enables businesses to craft detailed, highly targeted campaigns that can meet a wide variety of objectives.



Google Ads' flexibility makes them suitable for businesses with diverse marketing goals, from local outreach to global brand awareness campaigns. This flexibility also allows for continuous optimization and adjustment based on performance data, ensuring that campaigns can be fine-tuned for maximum effectiveness.

Conclusion

Understanding the key differences between Local Service Ads and Google Ads is crucial for making informed decisions about your advertising strategy. For local service businesses, LSAs provide an excellent way to connect with nearby customers and secure high-quality leads. For broader advertising goals, Google Ads offer the flexibility and reach needed to achieve success in a competitive marketplace.

By carefully assessing your business objectives and target audience, you can choose the platform that best aligns with your goals and helps you achieve the desired results.

Call to Action

Ready to maximize your advertising impact? Contact Levergy today to learn how we can help you manage both Local Service Ads and Google Ads for your plumbing, HVAC, roofing, or home service business. Our expertise in PPC and LSA management will ensure you get the best return on your advertising investment.

Google Ads vs Local Service Ads FAQ

1. Local Service Ads vs Google Ads: Which is more effective?

Local Service Ads are highly effective for local service providers needing immediate, high-quality leads. Google Ads offer more versatility and a wider reach, suitable for diverse advertising goals. The best choice depends on your business type and advertising objectives.

2. Can I use both Local Service Ads and Google Ads in a campaign?

Absolutely. Many businesses successfully use both platforms, leveraging LSAs for local lead generation and Google Ads for broader marketing campaigns to maximize their advertising impact.

3. Is investing in Local Service Ads worth it?

Investing in Local Service Ads can be worthwhile for businesses aiming to connect with local customers and generate high-quality leads. Although more expensive than some other ad types, LSAs often yield a high return on investment due to their targeted nature and lead quality.

4. What are the Google Guaranteed and Google Screened badges?

These badges indicate that a business has been verified by Google. The Google Guaranteed badge ensures the business meets certain quality standards, while the Google Screened badge verifies professional services.

By leveraging the strengths of both Local Service Ads and Google Ads, you can create a comprehensive advertising strategy that addresses immediate local needs and broader marketing objectives. Contact Levergy to get started on optimizing your advertising strategy today!