When it comes to digital advertising, Google Ads offers two powerful options for businesses looking to attract new customers, including Google Search Ads and Local Service Ads (LSAs). Both are designed to increase visibility and drive leads, but they differ significantly in structure, targeting, and how businesses pay for results. Understanding these distinctions can help businesses make informed decisions that align with their goals and budgets.
What Are Google Search Ads?
Google Search Ads are part of the broader Google Ads platform. These ads appear at the top or bottom of search engine result pages (SERPs) when users search for specific keywords. They operate on a pay-per-click (PPC) model, where businesses bid on keywords relevant to their products or services.
Key Features of Google Search Ads:
- Keyword Targeting: Advertisers choose keywords that trigger their ads when users search for those terms.
- Customizable Ad Copy: You can create text-based ads with a headline, description, and URL to entice users to click.
- Flexible Budget Control: Advertisers set daily budgets and bids for each keyword.
- Ad Extensions: Options like sitelinks, callouts, and structured snippets increase ad visibility and effectiveness.
- Quality Score Factor: Google uses a combination of ad relevance, landing page experience, and expected click-through rate (CTR) to determine ad placement.
Benefits of Google Search Ads:
- Broad Reach: Ads can appear in front of users worldwide or be geo-targeted.
- Immediate Visibility: Ads display as soon as the campaign is live, assuming they are approved.
- Detailed Performance Metrics: Users can track impressions, clicks, conversions, cost per conversion and much more.
However, success with Google Search Ads requires continuous optimization, keyword research, and competitive bidding strategies.
What Are Local Service Ads?
Local Service Ads (LSAs) are a distinct type of ad designed to connect local businesses with nearby customers searching for specific services. These ads appear at the very top of SERPs, often above Google Search Ads, marked with a “Google Guaranteed” or “Google Screened” badge.
Key Features of Local Service Ads:
- Pay-Per-Lead Pricing: Unlike PPC, advertisers pay only for qualified leads, such as phone calls or form submissions.
- Limited Availability by Industry: LSAs are available for specific services like plumbing, electrical work, legal services, and real estate.
- Geo-Targeting by Service Area: Businesses define their service area rather than selecting keywords.
- Business Profile Creation: Advertisers fill out profiles with business details, service types, and reviews.
- Trust Badges: Google Guaranteed or Google Screened icons build consumer trust.
Benefits of Local Service Ads:
- Top-of-Page Placement: LSAs outrank traditional search ads.
- Trust and Credibility: Google’s verification badges increase user confidence.
- Budget Efficiency: Payment is based on leads rather than clicks.
The goal is to focus on local services, not necessarily an online store like in our example of Serach Ads above. Learn more on how to use LSAs.
Key Differences Between Google Search Ads and Local Service Ads
| Feature | Google Search Ads | Local Service Ads (LSAs) |
|---|---|---|
| Payment Model | Pay-per-click (PPC) | Pay-per-lead |
| Placement | Top or bottom of SERPs | Very top of SERPs |
| Targeting | Keywords and search intent | Service area and business type |
| Ad Format | Text-based ads | Business listings with reviews and badges (Google Business Profile) |
| Trust Indicators | None by default | Google Guaranteed/Screened badges |
Which Option Is Best for Your Business?
The choice between Google Search Ads and Local Service Ads depends on your business goals, industry, and budget.
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Choose Google Search Ads if you want flexibility in targeting a broad audience or need custom ad copy to highlight unique offerings. If you want to target specific keywords, based on your business services or products.
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Choose Local Service Ads if your business qualifies for Google’s service-based categories and you prefer paying for leads rather than clicks, targeting a snaller, more local area that is being served by your business.
Many businesses use a combination of both to maximize visibility and capture different types of traffic.
Conclusion
Both Google Search Ads and Local Service Ads offer unique advantages for businesses looking to grow their online presence. By understanding the key differences in targeting, cost structures, and ad formats, businesses can tailor their strategies for maximum effectiveness. Check out this video from Ben Heath to learn how to launch your first Google LSA.
FAQ – Difference Between Google Search Ads and Local Service Ads
Can I run both Google Search Ads and Local Service Ads simultaneously?
Yes, businesses can run both types of ads at the same time to maximize visibility and capture different types of customer interactions.
How do I qualify for Local Service Ads?
Businesses must meet Google’s eligibility requirements, complete the verification process, and maintain a positive customer review score to qualify for LSAs.
Are Local Service Ads available for all industries?
No, LSAs are only available for specific service-based industries such as home services, legal, and real estate professionals.
Which is more cost-effective: Google Search Ads or Local Service Ads?
Cost-effectiveness depends on your business model. LSAs offer predictable costs by charging per lead, while Search Ads provide flexibility with a pay-per-click model but may require higher keyword bids.
How can I measure the success of my local service ads?
Measure success by tracking key performance indicators (KPIs) such as the number of leads, cost per lead, conversion rate, and return on ad spend (ROAS). Use Google Ads reporting tools and Google Analytics for detailed insights.