Comparison
Local Service Ads vs Google Search Ads — which to run first
Local Service Ads (Google Guaranteed) vs traditional Google Search Ads for trade contractors. The math, the use cases, and the right starting point.
TL;DR
For trade contractors: run LSA first. Pay-per-lead pricing, Google Guaranteed badge, top-of-search placement. Add Search Ads only after LSA is producing and you have remaining demand to capture. Search Ads is the better tool for higher-funnel queries and non-trade niches.
Local Service Ads (LSA / Google Guaranteed)
Pros
- Top of search — placement above the regular ad block AND above the map pack
- Pay per qualified lead, not per click — no wasted budget on bad clicks
- Google Guaranteed badge adds trust we cannot fake
- Higher intent than regular Google Ads — searchers ready to call right now
- Disputable leads get refunded (wrong number, out of area, irrelevant)
Cons
- Trades-only (HVAC, plumbing, electrical, roofing, GC, locksmith, garage door, lawn care, pest)
- Verification process: 2-4 weeks (background check, license, insurance)
- Less control over targeting (no keyword-level bidding)
- Higher per-lead cost than well-managed Search Ads at scale
Best for
Trade contractors with proper licensing + insurance. The first paid channel to run. Highest intent, highest trust signal.
Google Search Ads (regular paid search)
Pros
- Available for any business — not trades-only
- Granular targeting — keyword, location, device, time, audience
- Lower CPC for high-intent long-tail queries
- Direct attribution — every click traceable to its source query
- Scalable — turn up budget, get more clicks (within reason)
Cons
- Pay per click (not per lead) — wasted budget on bad-fit clicks
- CPCs climbing — what was $8 in trades in 2022 costs $20-25 in 2026
- Requires constant optimization — wasted spend creeps in fast
- No trust badge — competitors can outbid on the same query
- Below LSA + map pack in placement on trade queries
Best for
Non-trade businesses (real estate agents, attorneys, accountants). Trades that have already maxed LSA and need additional volume. Specific high-intent queries where LSA does not show.
Our recommendation
For trade contractors: start with LSA. Verify your business, get the badge, dial in service area + service mix, run dispute discipline. Once LSA is producing at acceptable cost-per-booked-job, layer in Search Ads for queries LSA does not capture. For non-trades: skip LSA (not eligible), run Search Ads with tight conversion tracking.
FAQ
Common questions.
How much does LSA cost vs Google Ads?
LSA: pay per qualified lead. HVAC averages $25-75/lead, plumbing $15-50, electrical $20-60, roofing $30-90. Google Ads: pay per click. Trade CPCs run $15-40 in most markets. LSA per-lead cost is typically 2-3x the per-click cost, but conversion is much higher because the lead has to call you (not click through and bounce).
Can I run both at the same time?
Yes, and most established contractors do. Run LSA as primary (top of funnel + trust). Run Search Ads on queries LSA does not show for or where you want more volume. Total ad spend across both: typically $1,500-4,000/mo for a single-location contractor; $5,000-15,000/mo for multi-location.
What if I do not qualify for LSA?
Most trade verticals qualify. Check eligibility: HVAC, plumbing, electrical, roofing, garage door, locksmith, lawn care, pest control, cleaning, GC, handyman, plus more. Real estate, legal, financial — different Google ad products. We confirm eligibility on the strategy call.
How do you handle disputable leads?
Bad leads (wrong number, out of area, asking for service you do not offer) can be disputed for credit. We file every disputable lead within 48 hours of receipt. Credit recovery typically runs 15-25% of monthly LSA spend — meaningful margin protection. Most contractors do not run dispute discipline tightly; we do.
Want help choosing?
Free 30-minute strategy call. We will run the math on your specific business and tell you straight which option fits.
Book a free call