Guide · Ad management

Local Services Ads vs Google Search Ads

Local Services Ads charge you per lead (a call, message or booking) and show your business with Google’s verification badge for local service searches. Google Search Ads charge per click and give you far more control over keywords, ads and landing pages. Many local service businesses run both: Local Services Ads for ready-to-call customers and Search Ads for wider reach and specific services.

Key takeaways
  • Local Services Ads: pay per valid lead, set a weekly budget, little control over targeting.
  • Search Ads: pay per click, full control of keywords, ads and landing pages.
  • Local Services Ads depend heavily on reviews and fast responses.
  • Running both, with good tracking, usually covers more of the market.

How Local Services Ads work

Local Services Ads are built for service businesses. According to Google’s help page on how leads work, you pay for valid leads related to your business, such as answered calls, messages, voicemails and, in the US and Canada, booking requests. You set an average weekly budget, and Google reviews leads, so invalid or low-quality ones aren’t charged and charged leads can be credited. Businesses go through Google’s verification to appear, and the ads show prominently for relevant local searches.

Search Ads appear for the keywords you choose, and you pay when someone clicks. You write the ads, choose the landing pages, set bids and budgets, and decide which searches to exclude. Google’s help page on managing spend explains that you set an average daily budget; on a given day spend can be up to twice that, but monthly charges are capped at the daily budget times 30.4.

Side-by-side comparison

Local Services Ads and Google Search Ads compared
Local Services Ads Google Search Ads
You pay for Valid leads: calls, messages, bookings Clicks
Budget Average weekly budget Average daily budget
Control Categories, services, areas and hours Keywords, ads, landing pages, bids, audiences
Trust signal Google verification badge and reviews Your ad copy, extensions and landing page
Eligibility Supported service categories and locations Most businesses
Best for Ready-to-call local service customers Specific services, offers and wider reach