Paid media · Updated 6 September 2026

    Local Services Ads vs Google Ads.

    Local Services Ads cost $20 to $70 a lead. Search ads cost $40 to $60 well run, and up to $174 a lead at the 2026 median. So why would anyone run search ads? Because LSA now shows two businesses, demotes you for missed calls, and cannot target cabinet refinishing, commercial work or "how much does it cost" questions. Run LSA first. Add search ads for what LSA cannot reach. Then build the third channel that costs nothing per click.

    What is the difference between Local Services Ads and Google Ads?

    Local Services AdsGoogle Ads (search)
    What you pay forA lead. Call or message. Disputable if it is junk.A click. Whether or not they call.
    Cost per lead, 2026$20 to $70$40 to $60 well run. Up to $174 unmanaged.
    Where it showsTop of the page, above everything. Two or three businesses, and the count has been shrinking.Below LSA, above Maps. Up to four ads.
    Who gets shownBackground-checked, insured, Google Guaranteed. Ranked by reviews, response rate and proximity.Whoever bids and has a relevant ad and page.
    What it coversNear me style searches Google maps to your service category.Anything you choose: specific services, commercial work, cost questions, competitor names.
    Setup timeTwo to four weeks for background check and licence verification.Same day.
    Main riskGoogle tracks missed calls and shows you less. More businesses verify every month.Five leaks push cost per lead to the median. Needs managing weekly.
    Who owns itYour Google account. Reviews and rank are Google's.Your ad account, if it is in your name. Check.
    Running both

    How do you get the most out of each?

    Local Services Ads: four fixes

    1. 1Answer every LSA call live. Google measures it. Two rings, or a missed-call text-back within a minute.
    2. 2Set the service area tight. Wide areas dilute rank against businesses closer to the searcher.
    3. 3Dispute junk leads every week. Solicitations, wrong trade, out of area. Google refunds them.
    4. 4Reviews through the LSA link, not just Maps. LSA rank weighs its own reviews.

    Google Ads: four fixes

    1. 1Exact and phrase match with a negative list. Broad match buys DIY how-tos, job seekers and suppliers.
    2. 2A landing page per ad group. Cabinets go to the cabinet page, not the homepage.
    3. 3Call tracking on. Two thirds of local service leads come by phone. Form-only tracking optimises the wrong way.
    4. 4Interior and cabinet campaigns from October to March. Exterior in February is a donation.
    The third option

    What sits above both of them now?

    The AI answer. On a growing share of searches Google now writes an AI Overview above the Local Services Ads, and homeowners ask ChatGPT and Gemini directly. The answer names two or three businesses. No ad, no click charge, no bid. The business named there gets the call before the homeowner scrolls to either ad format. Getting there takes a site Bing has indexed, pages that answer the question, matching listings and recent reviews. The full playbook is on AEO for painting contractors, and the free check of what the engines say about you today is here.

    FAQ

    Questions owners ask about LSA and Google Ads

    Should I use Google Local Services Ads or Google Ads?

    Both, in that order. Set up Local Services Ads first because the lead cost is lower, you pay per lead, and the Google Guaranteed badge converts. Then add a search campaign to catch what LSA does not cover: specific high-ticket services, commercial work, and the long cost questions. Anyone running only one is leaving the other half of the page to a competitor.

    How much do Google Local Services Ads cost?

    $20 to $70 a lead in 2026, depending on metro. You set a weekly budget and pay only for calls and messages. Junk leads can be disputed and refunded.

    Why did my Local Services Ads stop showing?

    Three usual causes. Google shows fewer businesses at the top than it used to, so the bar rose. Google tracks your answer rate and shows you less when you miss calls. And more businesses in your area verified, which pushes rank toward review count, response rate and proximity.

    Is Google Guaranteed worth it?

    Yes. The badge means Google verified your licence, insurance and background check, and the homeowner gets a money-back guarantee up to a limit. It converts better than a plain ad. The verification takes two to four weeks, so start it now, not the week you need leads.

    Can I run Google Ads without a website?

    You can, and you will pay for it. Google scores your landing page, and a click to a Facebook page or a bare homepage costs more and converts worse. A single service page with cost, timeline, photos and a four-field form is the minimum. Local Services Ads do not need a website at all, which is one reason to start there.

    What is a third option beyond LSA and search ads?

    AI search. Homeowners now ask ChatGPT, Gemini and Google AI for a local business and get two or three names with no ad on the page. Nobody pays per click. The work is a site Bing has indexed, pages that answer the question, matching listings and recent reviews. It is the cheapest lead on the page once it lands, and it takes 30 to 90 days.

    Keep reading

    Sources

    • LSA cost per lead: BeKindLocal and LeadsuiteNow 2026 home-services benchmarks.
    • LSA slot count and missed-call effects: Base Coat Marketing, 2026 trends for painting contractors, the trade with the most published LSA data.
    • Search cost per click and cost per lead: Web Tonic and 99calls 2026 painting benchmarks; Growth Recon AI client accounts.

    Google, Google Ads, Local Services Ads and Google Guaranteed are trademarks of Google LLC. Not affiliated with or endorsed by Google.