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Which Is Best for Small Businesses: Google LSAs or PPC Ads

As a local business in North Carolina, you want to connect with local clients looking for the services or products you provide. No doubt you have invested time and money into optimizing your website, and you may have even paid for Google Ads.

But you could miss out on some of the most highly qualified leads by not focusing on or considering Google Local Service Ads (LSAs).

In this post, we will look at the following:

  • What are Google Local Service Ads and Google Ads
  • Pros and Cons of Google Local Service Ads and Google Ads
  • What Industries Can Use Google Local Service Ads
  • What Cities and Regions Can You Use Google Local Service Ads

What are Google Local Service Ads and Google Ads

Google Local Services Ads can help you connect with users searching for the services you provide. Your ads will appear at the top of the page for customers in your area. Clients only see your company name and the rating of your Google Business Profile (formerly Google My Business).

Google PPC Ads can help you connect with users searching for the services you provide; however, your ads appear at the top of the page but below Local Search Ads. You can create a short description of your company and services using Google PPC Ads.

Example of Google Local Service Ads and a Google PPC Ads

Pros and Cons of Google Local Services Ads

Pro: Lead Disputes

Are you dissatisfied with an unqualified lead from Local Services Ads (LSAs)? You have the option to dispute it and have Google refund your money. You can review each call on the native platform and challenge it if it fits under any of Google’s listed dispute categories.

Dispute CategoryExamples
Solicitation
  • Call was from a wrong number.
  • Caller was trying to sell you a product or service.
  • Call was from someone seeking employment at your business.
Spam
  • Call was pre-recorded.
  • Call was otherwise not from a live human.
Location Not Served
  • The customer communicated their location, the location wasn’t listed on your profile, and you declined the job.
Service Not Offered
  • The customer communicated their service type, the service wasn’t listed on your profile, and you declined the job.
  • Caller was looking for a physical store, or looking to buy something other than a service (for example, parts).

Cons: Ranking Factors

Reviews and location are essential ranking factors if you want to be one of the top three businesses shown. Because you have fewer reviews than most of your competitors, you may not generate enough qualified leads to meet your objectives. Similarly, suppose you live in a large North Carolina City (i.e., Raleigh or Charlotte), and a homeowner searches for your service from the other side of town. In that case, your small business may not be displayed due to competitors located closer to where the user searches.

Pro: Cheaper Leads

Leads are charged on a pay-per-lead basis, which is one of the many advantages of LSAs. Compared to Google Ads’ pay-per-click model, this results in a lower cost per lead. The actual cost-per-lead varies by industry, but on average, Local Services will generate more qualified leads than Google Ads.

Cons: Optimization

It is critical in advertising to keep optimizing your ads for the best performance. Because LSAs are heavily automated, many features you would like to see in an advertising dashboard do not exist. This results in fewer qualified leads or, in some cases, fewer clients.

Pro: Ease of Use

Finding the time needed to maximize results can be difficult with a busy schedule. Google made LSAs user-friendly and straightforward. While there are some easy things to check on, there is less maintenance once set up when compared to Google PPC Ads, which require continual attention to enhance efficiency and avoid wasted ad spend.

Cons: Google Screening

Before the ads can begin, businesses must pass comprehensive background and license checks conducted by Google and the Local Services Ads. This is time-consuming and may be a problem for some companies if your service isn’t already listed in LSAs.

Pros and Cons of Google Ads

Pro: Manage Customer Intent

Your ideal client may be looking for a specific need within the scope of your services. You can customize your ad copy based on the user's intent with Google PPC Ads and have a dedicated landing page on your website for that specific service.

Cons: Takes Time To Master

When running PPC ads through Google Ads, it’s critical to understand what to look for. Scenarios may arise that leave you scratching your head, unsure of what to do. You may face costly learning curves if you do not have enough time and experience.

Pro: Budget Allocation

If you want to focus on a specific type of job, you can set budgets for each service you provide. Similarly, you can exclude specific keywords or phrases that aren’t relevant to your campaign (or business) goals.

Cons: Multiple Marketing Strategies

Because Google Ads isn’t a heavily automated platform, you have an infinite number of strategies to try with your campaigns. While this idea helps optimize your ads, it might be difficult to determine what is required to move the needle in your business.

Pro: Collect Advertising Data

You’re not getting the number of leads you want, and you’re not sure why. Through the Google Ads dashboard, you can delve into the data of your campaigns and make the necessary changes to generate more leads. Within Local Services, no such data repository exists.

Cons: Competitiveness

It’s fantastic that you can bid on your competitors’ names. But doesn’t that mean they can also bid on your company name? One disadvantage of Google PPC ads is their ever-increasing cost due to competition. Because of competition, the cost-per-click for a general search term or even your brand name has increased slightly year over year.

Bottom Line Between Google Local Service Ads and a Google Ads

Now that I’ve shown you some of the differences between LSAs and PPC ads, you may be wondering which one you should invest in.

LSAs appear to be a win-win situation for businesses and clients, providing improved targeting, increased security checks, and higher positioning on Google’s search results pages. However, you might want to start with a Local Service Ads campaign and then run your Google Ads campaign to retain your advertising presence while you figure out which paid search strategy works best for you.

What Industries Can Use an LSA

When it comes to Google Local Service Ads, until you get into the process, it is hard to tell if your industry is allowed to utilize them before going down the rabbit hole. Fortunately, Blue Corona has an updated list, however here are a handful of what I would consider the best industries:

  • Appliance Repair Services
  • Carpenters
  • Carpet Cleaning Services
  • Child Care
  • Child Care Center
  • Countertop Services
  • Dance Instructor
  • Electricians
  • Fencing Services
  • Financial Planning Services
  • Flooring Services
  • Foundations Services
  • Garage Door Services
  • General Contractor
  • HVAC (Heating or Air Conditioning)
  • Handyman
  • Home Inspector
  • Home Security
  • Home Theater
  • House Cleaning Services
  • Junk Removal Services
  • Landscaping Services
  • Language Instructor
  • Lawn Care Services
  • Locksmiths
  • Moving Services
  • Pest Control Services
  • Pet Adoption
  • Pet Boarding
  • Pet Grooming
  • Pet Training
  • Plumbers
  • Pool Cleaner
  • Pool Contractor
  • Preschool
  • Roofers
  • Roofing
  • Sewage System
  • Siding Services
  • Snow Removal
  • Tree Services
  • Water Damage Services
  • Window Cleaning Services
  • Window Repair Services

Note: Not all services are supported in all markets

What Cities and Regions Can You Use an LSA

Unfortunately, Google Local Service Ads are unavailable in all areas and regions. However, most major metropolitan regions in the United States do. For those of us in North Carolina, that is (Charlotte-Concord-Gastonia, NC-SC). If you are looking for a good list, check out WordStream’s Guide to Google’s Local Service Ads.

Conclusion

No matter if you choose to go with LSAs or PPC ads, they both have their place and I am here to help you identify which ones are best for you and your service area business. Reach out to me today to see how I can help you and your business!

Image of the author - Adam Bennett

Written By: Adam Bennett |  Wednesday, October 12, 2022

Adam is the president and founder of Cube Creative Design and specializes in private school marketing. Since starting the business in 2005, he has created individual relationships with clients in Western North Carolina and across the United States. He places great value on the needs, expectations, and goals of the client.