If you run a home service business, a law firm or another local service, you've probably noticed two kinds of ads at the top of Google. Local Services Ads show your business name, star rating and a Google Verified badge. Regular search ads look more like normal results, with a headline and a link. Both can bring in calls, and they work very differently.
Here's how we explain the difference to clients, and how we decide which one to start with.
How Local Services Ads Work
With Local Services Ads, you pay when a potential customer contacts you through the ad, by phone, message or booking request, not when someone clicks. Businesses that pass Google's screening can show the Google Verified badge. Depending on your category and location, that screening can include background checks and license and insurance verification.
You choose your job types, the areas you serve and a weekly budget. You don't write ad copy in the usual sense; the ad is built from your profile. Your reviews, how quickly you respond and whether your hours are accurate all affect how often you show up. Our Local Services Ads management page covers setup and verification in detail.
How Google Search Ads Work
With search ads, you choose the keywords, write the ads, pick the page each click lands on and set your bids and schedule. You pay per click, whether or not the person calls. That's more control and more responsibility: results depend a lot on how well the account is built and maintained, which is the work our Google Ads management team does every week.
Search ads are available to nearly every kind of business, which matters if your category isn't eligible for Local Services Ads.
When Local Services Ads Tend to Fit Better
They're usually a strong fit when your category is eligible in your area, your reviews are solid and someone answers the phone quickly during business hours. They also suit owners who would rather pay for contacts than for clicks and don't want to manage keywords.
When Search Ads Tend to Fit Better
Search ads make more sense when your category isn't eligible, when you want to promote specific high-value services, when you want to send people to a page built around one offer, or when you need more control over where and when your ads run.
Why Many Businesses Run Both
The two appear in different spots and catch different people. Local Services Ads often reach the person who wants someone to call right now. Search ads can reach people looking for a specific service or comparing their options. Running both covers more of the page.
Judge each by cost per lead and, better yet, by booked jobs. Impressions and clicks don't pay the bills. If you work in HVAC, plumbing or law, our industry pages show how these channels fit together for your field.
The Part People Forget: Answering the Phone
Both channels only work if someone picks up. Local Services Ads in particular reward businesses that respond quickly, and missed calls are lost money with either one. Before spending more, make sure calls during your ad hours reach a person.
Review your leads regularly too. Under its current policies, Google offers credit for some leads that don't fit its rules, such as spam or a job outside your service area.
Frequently Asked Questions
Is my business eligible for Local Services Ads?
It depends on your category and location. Many home services and legal services qualify, along with some other professional services. Google publishes the supported categories by country, and we check them for you before recommending the channel.
Do Local Services Ads replace my Google Business Profile?
No. Local Services Ads appear in their own sponsored spot, while your Business Profile powers the regular map results. Reviews matter in both places, and a well-kept profile helps either way.
Can I choose which leads I pay for?
Partly. You choose your service areas and job types, and you can request credit for leads that don't fit Google's rules. You can't pick and choose among valid leads.
Which one costs less?
Neither is cheaper by default. Local Services Ads can produce a lower cost per lead in some trades because you don't pay for clicks that never call. Search ads can be more efficient for specific high-value services. The reliable answer comes from testing in your own market.
