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

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?

Understanding Google LSA and PPC can help you decide which to use for your business. We’ll break down the two ad types to help you learn more:

• What are Local Service Ads?
• What is Google Ads?
• Differences between LSA and PPC Ads
• Which Is Better: LSA or Google Ads?

Read on for more information!

Watch now: What Are Local Service Ads?

What are Local Service Ads?

Local service ads are businesses that appear at the top of 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.

Here’s an example 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.

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 completes a conversion, like signing up for a service or contacting your company.

Cost

LSAs are more expensive. For example, the average cost-per-click (CPC) for PPC ads in real estate is $2.10, while the average cost-per-lead (CPL) is $87.36. 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.

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 mostly location-based, Google will do the keyword research for you.

For LSA, you tell Google what kind of service you offer and what location you serve, and they research the best terms for your ads. 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. The keywords you use for PPC differ in cost, traffic, volume, and number from those used for LSA.

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.

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. Since these are local-specific, they rely on location keywords and appear for users researching companies exclusively in their area.

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

5. Google Guaranteed and Google Screened

Unlike PPC ads, LSAs can earn a “Google Guaranteed” and “Google Screened” badge.

The Google Guaranteed verification badge appears as a green tick on LSAs. This means that the listing has met certain criteria determined by Google and has been evaluated for its quality. “Google Screened” is another verification that shows that a professional service company has successfully passed Google’s licensing verifications.

Both of these verifications help build credibility for the advertiser and help searchers feel more secure in the results. Without these verifications, you can still build credibility, but it is much easier to have that extra layer of security from Google.

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.

Now that you understand both ad types, you can evaluate your own business needs to determine what option works best. And, if you still require help, look no further than WebFX!

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With help from WebFX, you can select the right ad campaign for your business and get a team of professionals to help you get started.

Our team has 150+ Google Ads-certified team members to give you the best ad campaign type for your business goals. You can improve your ROI as we plan, launch, and track your ad performance, whether for PPC ads or local service ads.

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