Google Ads vs Local Service Ads: What’s the Difference?

As a local business owner, deciding where to allocate your advertising budget can be challenging, especially with the plethora of ad options available. Two popular choices are Google Ads and Local Service Ads (LSAs). But which one is right for your business? At Five Star SEO, we’re here to break down the key differences to help you make an informed decision.

What Are Google Ads?

Google Ads, or PPC (pay-per-click) ads, are a versatile advertising tool that places your website at the top of Google search results. When you invest in Google Ads, your business appears above organic search results with a small “Ad” icon next to it. This increases your visibility to potential customers actively searching for services like yours.

However, it’s important to note that paying for Google Ads doesn’t guarantee the top spot for every relevant search term. Instead, it boosts your chances of reaching more prospective customers.

What Are Local Service Ads? – Google Ads vs Local Service Ads

Local Service Ads are explicitly designed for local businesses. These ads appear above Google Ads in a distinct box and showcase essential information like your business name, ratings, service area, and operating hours. LSAs are more targeted and connect you directly with qualified leads looking for your services. They also display your Google reviews and contact details, making reaching out easier for potential customers.

Key Differences Between Google Ads and Local Service Ads

1. Payment Model: Pay Per Click vs. Pay Per Lead

• Google Ads: You pay every time someone clicks on your ad, regardless of whether they contact your business.
• Local Service Ads: You only pay when a potential customer reaches out to your business through the ad. This pay-per-lead model often provides a better return on investment for service-based companies.

1. Ad Positioning

• Google Ads: These appear at the top of search results but below the Local Service Ads.
• Local Service Ads: These occupy prime real estate, appearing above Google Ads, and are more prominent with a “Google Screened” or “Google Guaranteed” badge, which enhances credibility.

1. Google Guarantee Badge

LSAs can feature a “Google Screened” or “Google Guaranteed” badge next to your business name. This badge is a sign of trust and reliability, giving your business added credibility. Google Ads doesn’t include this feature, so customers may need to do more research to determine the credibility of a company.

1. Keyword Management

• Google Ads: You need to conduct keyword research to ensure your ads reach the right audience.
• Local Service Ads: Google handles keyword selection for you, making the process more straightforward. You choose your business type and services, and Google does the rest.

1. Ad Availability

Local service ads are not available in every industry. They are specifically tailored to certain service-based businesses like plumbers, electricians, and HVAC companies. If your business doesn’t fall into one of these categories, Google Ads may be your only option.

1. Ad Copy

With Google Ads, you’re responsible for creating compelling ad copy that captures attention. On the other hand, local Service Ads include pre-determined information, simplifying the ad creation process.

Frequently Asked Questions

Which Is Better: Google Ads or Local Service Ads?

LSAs generally provide more value for local businesses that qualify due to their pay-per-lead model and prominent placement. However, if your goal is to reach a broader audience or target specific keywords, Google Ads might be the better choice.

Are Local Service Ads Worth It?

If your business is focused on acquiring local leads and you want to showcase your credibility with a Google Guarantee badge, LSAs are worth considering. You’ll only pay for the leads you receive, making it a cost-effective option.

When Should You Not Use Google Ads?

Avoid using Google Ads if:

• You’re unsure about performing your keyword research.
• You only offer local services and qualify for LSAs.
• You have a limited advertising budget.
• You’ve previously used the platform without success.

Final Thoughts About Google Ads vs Local Service Ads

Both Google Ads and Local Service Ads have unique advantages. Choosing the right platform depends on your business needs, target audience, and marketing goals. At Five Star SEO, we specialize in creating effective ad campaigns tailored to your business. Whether you’re considering Google Ads, Local Service Ads, or a combination of both, we’re here to help you maximize your ROI.

Ready to take your business to the next level? Contact us today to schedule your free marketing strategy consultation.