Google Local Service Ads vs. Google Ads: Which Works Better for Small Businesses?
By REESE PARSON
Director of Client Impact, Larison Media
Google Local Service Ads vs. Google Ads: Which Works Better for Small Businesses?
If you run a small business, you already know how overwhelming digital marketing can feel. Everyone says, “You need to advertise on Google!” but no one tells you which Google ads to use.
Two of the most common options are Google Ads (PPC) and Google Local Service Ads (LSAs). Both can help you get more customers, but they work in very different ways. Choosing the right one depends on your goals, budget, and how your business operates.
Let’s break it down so you can make the smartest choice for your business, without wasting money.
What Are Google Local Service Ads (LSAs)?
Google Local Service Ads are the listings you see at the very top of Google when you search things like “plumber near me” or “electrician in [your city].” They come with a green checkmark that says “Google Guaranteed.”
With LSAs, you only pay when someone contacts you directly, like a call, message, or booking request, not when they simply click on your ad.
They’re designed specifically for local service businesses such as:
Home services (plumbing, HVAC, cleaning, painting, etc.)
Professional services (real estate agents, accountants, photographers)
Wellness and personal care (massage therapists, salons, fitness trainers)
Why LSAs work well:
✅ You show up above regular Google Ads
✅ You only pay for real leads, not clicks
✅ They add credibility with the “Google Guaranteed” badge
Why LSAs can fall short:
❌ You get limited control over who sees your ads
❌ They’re only available in certain industries
❌ You can’t customize keywords or ad copy
What About Traditional Google Ads (PPC)?
Google Ads (formerly Google AdWords) are the more traditional pay-per-click ads that appear just below LSAs and above organic results.
You pick your keywords, write the ad copy, and send people to a specific landing page. You pay every time someone clicks your ad, whether or not they actually contact you.
Why Google Ads can be powerful:
✅ You control targeting, keywords, and messaging
✅ Works in any industry and location
✅ Lets you test and refine campaigns over time
But keep in mind:
❌ You’re paying for clicks, not guaranteed leads
❌ It requires ongoing management and optimization
❌ Competitive industries can get pricey fast
Which One Works Better for Small Businesses?
It depends on where you are in your business journey and what you’re trying to achieve.
If you’re a local startup or newer small business, start with Google Local Service Ads. They’re simpler to launch, give you immediate visibility, and help you connect with customers ready to buy.
If you’re an established business with a marketing budget, the best approach is to use both. LSAs can drive quick leads, while Google Ads help you reach customers higher in the funnel and build long-term brand awareness.
And if you’re running a multi-location business or franchise, traditional Google Ads are usually the smarter play. They give you more flexibility to target different service areas, analyze performance, and scale your ad campaigns with precision.
How to Decide What’s Right for You
Ask yourself these three questions before spending another dollar on Google advertising:
Do I want fast leads now or brand growth over time?
Am I in an industry supported by Google’s Local Service Ads?
Can I (or my team) commit to managing and optimizing campaigns regularly?
Your answers will tell you where to start, and when it’s time to combine both.
Final Takeaway
There’s no single “best” ad platform for every small business. The best one is the one that fits your stage, goals, and capacity to track results.
If you’re new to digital advertising, start simple with LSAs. If you’re ready to scale, invest in Google Ads (and ideally, both).
The key is to measure cost per booked job or sale, not just cost per lead. When you know which platform drives actual customers, not just clicks, that’s when marketing becomes an investment, not an expense.
