Google LSA Vs. Google Ads: What’s the Difference?

Key takeaways

• LSAs are becoming a Performance Max campaign type with pay-per-lead goals inside Google Ads.
• LSAs only run on Google Search and Google Maps, don’t use keywords, and charge per valid lead.
• PPC ads typically charge per click and can reach more of Google’s networks.
• You can run both and compare them by cost per booked job.

Google Local Services Ads (LSA) and Google pay-per-click (PPC) ads are two common advertising formats for businesses. Both can help you target your audience, encourage conversions, and grow your business.

So, Google LSA vs. Google Ads — what’s the real difference?

The main difference is what you pay for and where your ads run. LSAs charge you for valid leads, like phone calls and messages, and they only appear on Google Search and Google Maps. PPC ads in standard Google Ads campaigns typically charge per click and can run across more of Google’s network, such as YouTube and the Display Network.

There’s one more thing to know. Google is moving LSAs into Google Ads as Performance Max campaigns with pay-per-lead goals, and it’s rolling out the change in phases through 2027. That means the real question is how LSAs compare with the other campaign types in your Google Ads account. We’ll cover how both setups work.

What are Local Service Ads?

Local Services Ads are pay-per-lead ads that appear at the top of Google search results when users search for location-based services. Like other ads, they have a “Sponsored” distinction with their listing, and they also appear on Google Maps.

LSAs don’t use keywords. Instead, Google builds your ads from the services you offer, the areas you serve, and your Google Business Profile. You only pay for valid leads, such as phone calls and messages.

Google is now delivering LSAs as a Performance Max campaign with pay-per-lead goals inside Google Ads. Until your account migrates, you’ll keep managing your campaign in the Local Services Ads dashboard. You can read more about how the migration works in our guide.

Here’s an example of the “Sponsored” distinction for real estate agents in Harrisburg, PA:

What is Google Ads?

Google Ads is an advertising platform that you can use to position your business’s website at the top of search results. These PPC ads can appear at the top of the search engine results pages (SERPs), in Google Maps, at the bottom of the page, and at other locations.

LSAs are now one campaign type inside that platform. Other Google Ads campaign types include Search, Display, Video, Shopping, Demand Gen, and standard Performance Max.

5 differences between LSA and PPC ads

LSA and PPC ads are unique in their approach and execution. Below, we will cover the main differences between LSA and PPC ads.

1. Bidding strategy and cost

The first differences to look at are how you pay for each ad, as well as how much they cost.

Bidding strategy

With PPC ads, you pay based on the number of clicks your ads receive. Google charges you every time someone clicks on your advertisement, regardless of whether they convert.

On the other hand, LSAs work on a pay-per-lead (PPL) basis. That means you only pay when a lead converts, such as booking an appointment, calling your company, or sending a message.

Bidding works a little differently now that LSAs are moving into Google Ads. Manual bidding and industry-level Target CPA go away, and a single campaign-level Target CPA takes their place. Your weekly budget also becomes a daily average, with a monthly cap of that daily average times 30.4. If you want different targets for different services, you can create a separate campaign for each one.

Cost

Pay-per-lead pricing means a single charge is usually higher than a single click. Google LSAs for home services typically run $35 to $60 per lead, though your cost will vary based on your industry, location, and competition. PPC clicks cost less on their own. For example, the average cost-per-click (CPC) for PPC ads in home and home improvement is $6.96, according to 2024 WordStream data.

However, since a lead is further down the sales funnel with LSA ads than a regular click on a PPC ad, you are paying for a more conversion-ready lead.

Not every PPC click turns into a lead, either. In that same data, the average cost-per-lead (CPL) for PPC ads in home and home improvement is $82.27. These numbers come from different sources, so treat them as a rough guide.

The best way to compare the two is cost per booked job. Divide your ad spend by the number of jobs each campaign books, then compare the results.

2. Keyword research

With Google Ads, you must do your own keyword research to determine what terms you want to target with your ad. For LSAs, which are location-based, you don’t choose keywords at all.

For LSA, you tell Google what kind of service you offer and what location you serve, and Google matches your ads to searches for those services in your area. This means you don’t have to do as much work, but you also have less control over what you target.

Google Ads gives you more customization over keyword targeting, and there are differences with the keywords specifically. With standard Search campaigns, you choose the keywords, set your bids, and write your own ad copy.

3. Reach and audience

LSAs target local buyers who have an immediate service need. These ads place your business in front of people who need your services in your area. They might search for “HVAC company in [city]” or “emergency vet open now.” Both searches are based on immediate need and location and would call for an LSA.

Location matters a lot here. In our 2026 study, searches that named a city, like “hvac repair dallas,” triggered LSAs in about 49% of searches, compared to about 25% for all other searches.

Google Ads can reach a much wider audience and need. For example, if you’re a shoe store, you can advertise your shoes in different locations and to people in different parts of the buyer’s journey, not just to people who want to buy shoes in your town.

4. Ad placement

LSAs appear at the top of the search results and on Google Maps. Since these are local-specific, they appear for users researching companies exclusively in their area. Pay-per-lead campaigns only serve on Google Search and Google Maps.

When they do show up, they take the top spot. In our study of 100 home services keywords, LSAs appeared in about 28% of searches and held position 1 every time. That rate ranged from 36% of garage door searches to 21% of roofing searches.

Google ads, however, have a much more diverse placement. They aren’t limited to one spot on the SERPs, so they can appear in more than one spot.

Types of Google ad placements include:

• Search ads
• Display ads
• Shopping ads
• YouTube ads

Standard Performance Max campaigns can also run across Google’s networks, including YouTube, Gmail, and the Display Network. Keep in mind that traditional Google Ads appeared in only about 8% of home services searches in our study, at an average position of 11.3.

5. Google Verified badge

Unlike PPC ads, LSAs can earn a “Google Verified” badge.

The Google Verified badge shows that a business has passed Google’s screening and verification process for LSAs. It replaced the Google Guaranteed, Google Screened, and License Verified by Google labels in October 2025. 

Google also discontinued the money-back guarantee that came with Google Guaranteed. You can read more about the change in our guide on Google Guaranteed and Google Verified.

This verification helps build credibility for the advertiser and helps searchers feel more secure in the results. With PPC ads, you can still build credibility, but it is much easier to have that extra layer of security from Google.

What changes for LSA advertisers as campaigns move into Google Ads?

Google is moving LSAs into Google Ads in phases, so what you see depends on where your account is in the rollout. Here’s what changes once your account migrates.

• Your dashboard redirects. After your account migrates, the Local Services Ads dashboard redirects to your campaign in Google Ads.
• Your leads move. Past leads, message history, and call recordings transfer to the Leads page in Google Ads.
• Your performance reports don’t transfer. Download your historical reports before you migrate, because impressions, clicks, and spend data won’t carry over automatically.
• Your verified status carries over. Google moves your badge and verification status to Google Ads, and you don’t need to reverify your insurance and licenses.

Phase 1 started in August 2026 for select U.S. home and storefront service businesses, with more businesses following through 2027. Locksmiths and garage door pros are scheduled for 2027, so check Google’s list of supported business verticals to see where your category fits.

One more thing to note. Right now, you can’t create a brand-new pay-per-lead campaign directly in Google Ads. Google says to start at g.co/localservices, and that campaign creation inside Google Ads will come later.

For a full checklist, read our guide on what to save before your account migrates.

Which is better: LSA or Google Ads?

LSA is better for local service providers, while Google Ads is better for creating a range of advertisement options. Both can benefit your business and garner more traffic, but you should use each for different purposes.

If you work with a local clientele, it might be more sensible to start with LSA and then expand to PPC ads as needed. For example, target search terms in your immediate area, and then use PPC ads for specific keywords that LSA might not reach.

If your business doesn’t have a strict location, LSA doesn’t make sense for your campaign. You can stick to Google Ads. LSAs are also only available for certain business categories, so check Google’s supported business verticals before you plan around them.

Not sure where to start? Lead with LSAs if you’re in a supported category, can complete Google’s verification, and want calls and messages from local customers. Lead with PPC ads if your category isn’t supported, you serve a wide area, or you want to reach people before they need to hire.

You can also run both. In the most competitive home services searches, all three of LSAs, PPC ads, and the Local Pack appeared together for 22 of 100 keywords, so a layered approach helps you show up at every level of the page.

To see what’s working, track each campaign by cost per booked job and compare the results over 60 days. Call tracking, like CallTrackerFX, can help you connect calls to booked jobs.

Now that you understand both ad types, you can evaluate your own business needs to determine which option works best.

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