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Comparisons

Local Services Ads vs Google Ads: pay per lead or pay per click?

Both put you at the top of Google. They charge differently, look different and suit different businesses.

Updated September 17, 2026 2 min read

Search for a local service on Google and you will often see two kinds of paid results. At the very top, a row of business cards with photos, review stars and a badge. Below that, the familiar text ads. The first are Local Services Ads. The second are Google Ads. They are separate products with separate rules.

How each one works

Local Services Ads (LSAs) show a card with your name, reviews, hours and the Google Verified badge. You do not choose keywords. You tell Google which jobs you take and where, and Google decides when to show you. You are charged when a customer contacts you through the ad.

Google Ads are the text ads. You choose the searches, write the ads, pick the landing page and pay each time someone clicks.

Local Services Ads Google Ads
Position Above everything else Below LSAs, above organic results
You pay for Leads (calls and messages) Clicks
Keywords None. Google matches by job type You choose and manage them
Badge Google Verified None
Requires Passing Google’s verification A Google Ads account
Sends people to A call or message, straight from the ad Your landing page
Available to Selected service categories Almost any business
Control Low: budget, job types, areas High: every detail

A note on the badge

You may know this program as Google Guaranteed. In October 2025 Google merged its Google Guaranteed, Google Screened and License Verified badges into a single Google Verified badge. We explain the change in this guide.

What decides who shows up in LSAs

You cannot bid your way to the top with keywords. Google says ranking depends on things like how close you are to the customer, your review score and count, how quickly you respond, your hours and your budget. In practice, businesses that answer every lead and keep earning reviews rise.

Which should you run?

  • Run LSAs if your category is eligible. Paying per lead with a trust badge beside your name is hard to beat.
  • Run Google Ads when your category is not eligible, when you want to choose exactly which searches you appear for, or when you need to send people to a page that explains a higher-priced service.
  • Run both if you can handle the volume. They appear in different parts of the page, so you take up more of it.

The bottom line

LSAs are simpler and often cheaper per lead, but you have less control and not every business qualifies. Google Ads give you control and reach. We set up and manage both: see Google Verified and Local Services Ads and Google Ads.

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