Local Services Ads (LSAs) are the newest ad type available. They work very differently from traditional Google Ads and may be a helpful addition to your paid ads strategy. Before you decide whether to add LSAs to your marketing mix, it helps to understand how each platform works and where they diverge.
How Google Ads Works
Google Ads (formerly Google AdWords) is a pay-per-click advertising platform that allows businesses to bid on keywords and display ads across Google Search, the Display Network, YouTube, and more. When someone searches for a term related to your business, your ad competes in a real-time auction against other advertisers targeting the same keywords.
Your ad’s position in the results depends on a combination of your maximum bid and your Quality Score. Your Quality Score is a metric Google uses to evaluate the relevance of your keywords, ad copy, and landing page experience. The better your Quality Score, the less you may need to bid to secure a top placement.
Google Ads gives advertisers an enormous amount of control. You can target by location, device, time of day, audience demographics, and dozens of other parameters. You write your own ad copy, choose your keywords, set your budget, and direct traffic to whatever landing page you choose. It’s a powerful and flexible tool, but it also requires ongoing management, optimization, and a solid understanding of the platform to get results.
How Google LSAs Work
Local Services Ads are a completely different product from Google Ads, built specifically for service-based local businesses. Plumbers, electricians, HVAC companies, roofers, lawyers, real estate agents, and similar trades and professional services all benefit from LSAs.
Instead of bidding on keywords and writing ad copy, businesses that use LSAs go through an extensive verification process with Google. Once approved, your business earns a Google Verified badge, which appears prominently in your listing. This badge signals to potential customers that Google has vetted your business, including verifying your license, insurance, and, depending on your industry, background checks.
LSA listings appear at the very top of Google’s search results, even above traditional Google Ads. They display your business name, star rating, number of reviews, hours, and service area. When a user clicks, they’re taken to a simple profile page rather than your website, where they can call you or send a message directly through Google.
Here’s an example of an LSA for plumbers in Apollo Beach, FL:
The entire experience is designed to generate phone calls and message leads, not website visits.
The Major Differences Between Local Service Ads and Google Ads
While Google Ads and LSAs both live within Google’s ecosystem, they serve different purposes and operate on different models. Understanding the key distinctions will help you decide which option is best for your business goals.
Pay Per Click vs. Pay Per Lead
As you evaluate whether LSAs are right for your business, you need to consider the different results each ad type offers.
With Google Ads, you pay every time someone clicks your ad, regardless of whether that click turns into a phone call, a form submission, or a sale. A searcher could click your ad out of curiosity, spend two seconds on your site, and leave, and you’d still pay for that click. Managing wasted spend is one of the primary challenges of running Google Ads campaigns.
With LSAs, you pay per lead, meaning you’re only charged when a potential customer contacts you directly through the ad by calling or messaging. If someone sees your listing and doesn’t reach out, you owe nothing. Better yet, if you receive a clearly invalid lead, such as a wrong number, a spam call, or a request for a service you don’t offer, you can rate it accordingly and potentially receive a credit.
For many local businesses, the pay-per-lead model is more intuitive and easier to manage. You know exactly what you’re paying for, and the costs are more directly tied to actual business opportunity.
Ads Keyword Research Strategies
Google Ads is built entirely around keywords. You select the search terms you want to trigger your ads, write copy that aligns with those terms, and build campaigns around keyword themes. Keyword research is a critical, ongoing aspect of finding the right balance among search volume, competition, and intent. Choosing the wrong keywords means wasted budget.
LSAs do not use keyword targeting. Google determines when to show your LSA based on your business category, the services you’ve listed, and the location you serve. You don’t choose keywords, and you don’t bid on search terms. This makes LSAs far simpler to set up, but it also means you have far less control over exactly when and where your ads appear.
For businesses that struggle with keyword research or don’t have the time to manage it, this simplicity is a genuine advantage. However, for businesses with very specific niche services or who want precise control over their targeting, it can feel limiting.
Google Business Profile Optimization for Ads
Your Google Business Profile (GBP) and your Local Services Ads are more connected than most business owners realize. While LSAs run through a separate platform, Google uses the information and signals from your Business Profile when determining how to rank and display your ads. A neglected or incomplete profile can quietly hurt your LSA performance even if your ad budget is healthy.
The most important LSA ad factor is reviews. Your LSAs surface your star rating and review count directly in the ad listing, and Google’s algorithm favors businesses with more reviews and higher ratings when deciding whose ads to show. Make it a habit to ask satisfied customers for a Google review and respond to every review you receive, positive or negative. Engaging with reviews is one of the most impactful ways to improve LSA results over time.
Beyond reviews, complete your profile fully and accurately. This means selecting the right primary and secondary business categories, listing all the services you offer, keeping your hours current, and ensuring your name, address, and phone number match exactly what you’ve submitted in your LSA account. Inconsistencies between your GBP and your LSA profile can confuse Google and may affect how often your ads appear.
Photos matter more than most businesses give them credit for. Profiles with regular photo uploads, such as job site images, team photos, and completed work, signal to Google that the business is active and engaged. They also give potential customers a reason to trust you before they ever pick up the phone. LSAs allow you to customize ads with photos different from your standard GBP selection. Help your ads and your GBP stand out with beautiful images.
Finally, use the services section of your Business Profile to mirror the services listed in your LSA account. The more consistently Google can confirm what you do and where you do it, the more confidently it will serve your ads to the right people.
Ad Availability
Google Ads is available to virtually any business in any industry. Whether you’re selling software, running an e-commerce store, or promoting a local restaurant, you can run Google Ads campaigns. There are very few restrictions on who can participate beyond Google’s standard advertising policies.
LSAs are only available to specific business categories. Currently, LSAs primarily serve local service providers in trades, home services, legal, financial, health, and a handful of other verticals. Google continues to expand the eligible categories, but if your business doesn’t fall into one of them, LSAs simply aren’t an option for you yet.
Additionally, even if your category is eligible, you must pass Google’s verification process to run LSAs. This means submitting proof of licensing and insurance, passing background checks, and meeting Google’s standards. The process can take time, and not every business will qualify.
Ad Copy
With Google Ads, you have full control over your messaging. You write headlines, descriptions, and choose your calls to action. You can A/B test different versions of your copy, align your messaging with seasonal promotions, speak directly to your target audience, and differentiate yourself from competitors however you choose. Ad copy is one of the most powerful levers available in a Google Ads campaign.
LSAs offer very little control over ad copy. Google generates the listing from the information you provide during setup. You can’t write a headline, craft a value proposition, or run promotional messaging.
This means your reputation does the heavy lifting. Businesses with strong Google review profiles tend to perform much better with LSAs, because the review count and star rating are among the most visible elements of the listing. If your review game needs work, that should be a priority before investing in LSAs.
So, Are LSA Ads Right for Your Business?
LSAs are a compelling option for local service businesses that are Google Guaranteed or Screened-eligible, have strong review profiles, and want a simpler, more straightforward lead-generation channel. The pay-per-lead model reduces wasted spend, the placement above traditional ads offers great visibility, and the setup and verification are relatively low-maintenance.
However, LSAs are not always a replacement for Google Ads. They lack keyword control, custom messaging, and website traffic. For businesses looking to build brand awareness, drive users to specific landing pages, or run promotions, traditional Google Ads remains essential.
For many local service businesses, the best strategy is running both — using LSAs to capture high-intent leads at the top of the page and Google Ads to extend reach, control messaging, and drive traffic to your site.
Not sure which approach is right for your situation? Contact our team to get a free assessment of your current ad strategy.
At SMA Marketing, we help local businesses grow through smart, data-driven digital marketing. From Google Ads management to LSA setup and reputation building, we’ve got you covered.