Google Ads vs. Local Services Ads: which one should a contractor use?

Search for "plumber near me" or "AC repair" and you'll often see two kinds of ads at the top of Google. They look different, they're paid for differently, and they work best for different things.

Local Services Ads (LSA)

These are the boxes at the very top with a business name, star rating and a green check badge (often called "Google Guaranteed" or "Google Screened").

• You pay per lead, not per click. A lead is usually a phone call or message from a customer.
• Google checks your business first: licenses, insurance and background checks, depending on your trade and area.
• Your reviews matter a lot. More good reviews and fast replies help you show up more often.
• You control less. You choose job types and service area, but you can't write your own ad text.

Regular Google Ads (Search ads)

These are the text ads under or around the LSA boxes, marked "Sponsored".

• You pay per click, whether or not they call.
• You control everything: which searches you show up for, the words in the ad, the page they land on, the hours, the area.
• You can go after specific jobs, like water heater installs or panel upgrades, and send people to a page about exactly that.
• It needs more care. Without regular cleanup, budgets leak into searches that never turn into jobs.

So which one?

For most contractors the answer is both, set up so they don't fight each other.

• Start with LSA if you have good reviews, can pass Google's checks, and mostly want calls for common jobs.
• Add Search ads when you want more control: higher-value jobs, specific services, or more volume than LSA alone gives you.
• Lean on Search ads first if you're new and don't have many reviews yet, since LSA leans heavily on them.

Things to watch either way

• Answer the phone. Both kinds of ads reward businesses that pick up. Missed calls cost you twice: the lead, and how often Google shows you.
• Dispute bad leads in LSA. Wrong area or wrong job type? You can often get credited.
• Track calls back to the ad, so you know which one is actually paying for itself.

We set up and run both for HVAC, plumbing, roofing, electrical and garage door companies. If you're not sure which fits your business, get a free audit and we'll tell you straight.