Google Local Services Ads vs. Search Ads: Which Drives Better Local Leads?

When it comes to generating high-quality local leads, Google offers two powerhouse advertising options — Local Services Ads (LSAs) and Google Search Ads. Both can deliver results, but each works differently and suits different goals. Understanding how they operate — and when to use them — can help you spend smarter and attract better customers.

Getting Started with Google Local Services Ads

Google Local Services Ads (LSAs) are ideal for businesses looking for quick, verified visibility in local searches. These ads operate on a pay-per-lead model, meaning you only pay for actual customer interactions — such as calls, messages, or booked appointments.

LSAs are simple to set up and don’t require deep PPC knowledge. Once your business is verified, Google automates much of the process, including keyword selection. That said, reviewing your business information, service areas, and categories during setup is crucial to ensure accuracy.

Because Google automatically determines relevant keywords, you’ll need to rely on reviews and customer satisfaction to stand out. High-quality, verified reviews can dramatically improve ad performance.

Pro Tip: Integrate a basic CRM or lead tracking tool (like ServiceTitan or HouseCall Pro) to monitor the quality and conversion rate of incoming leads. Even though LSAs are low-maintenance, consistent tracking and dispute management for invalid leads can help you maximize ROI.

Getting More from Google Search Ads

If LSAs are “set it and forget it,” Google Search Ads are the opposite — they reward control, customization, and ongoing optimization.

Search campaigns let you:

• Create detailed ad copy and extensions
• Control bidding and keyword match types
• Use negative keywords to filter irrelevant traffic
• Conduct A/B testing for landing pages and messaging

While more complex, Search campaigns provide unmatched flexibility. They allow you to fine-tune your strategy to maximize conversions and lead quality.

Getting started tips:

• Begin with phrase and exact match keywords to maintain control.
• Use manual CPC bidding early to set your preferred max bid.
• Gradually switch to automated bidding (like Maximize Conversions or Target CPA) as you gather performance data.
• Continuously review metrics like click-through rate (CTR) and conversion cost to refine your campaigns.

Over time, Search Ads can become powerful lead-generation tools — particularly for service-based businesses targeting multiple neighborhoods or competitive markets.

Combining LSAs and Search Campaigns for Stronger Results

The smartest advertisers often run LSAs and Search Ads side by side to compare cost per lead and lead quality.

• LSAs usually appear at the very top of Google’s results page, above Search Ads.
• Search Ads offer more flexibility, but require tighter management.

To get the full picture, use CRM and call tracking tools (like CallRail or CallTrackingMetrics) to analyze the source and quality of your leads. Even though LSAs are pay-per-lead, not every inquiry is a valid customer — so be sure to dispute spam or irrelevant leads regularly.

By monitoring conversion data across both channels, you can allocate more budget toward the one that consistently produces high-quality leads.

Expanding Beyond LSAs and Search Ads

Once you’ve mastered LSAs and Search Ads, consider testing other campaign types to expand your brand visibility and lead funnel.

• Display & Video Ads: Great for awareness and long-term brand recall.
• Demand Gen Campaigns: Ideal for nurturing audiences before they’re ready to buy.
• Performance Max: Combines multiple Google ad formats for automated optimization across Search, Display, Maps, and YouTube.

These campaigns work best when connected to robust tracking systems like Google Analytics 4, helping you attribute conversions accurately across multiple touchpoints.

Test, Track, and Optimize

There’s no single “winner” between LSAs and Search Ads — both can drive profitable results when executed strategically. The key is testing, tracking, and comparing.

Start small, monitor performance carefully, and shift your ad spend toward the channel that consistently delivers better lead quality and ROI. Whether you’re a local service provider or a growing multi-location business, combining LSAs and Search Ads can be a powerful way to dominate your local market.

At Earn SEO, we specialize in helping local businesses maximize results through expert PPC management services in NYC. Whether you’re running Google Local Services Ads, Search campaigns, or both, our team ensures your ad spend drives measurable growth and qualified leads. From keyword strategy to conversion tracking, we handle every detail to boost your ROI.

Partner with us today and take your local advertising to the next level — reach more customers, spend smarter, and grow faster!