Local Services Ads vs Google Ads: Best for Home Services?

Google Local Services Ads vs Traditional Google Ads: Which Is Better for Your Home Service Business?

Google Local Services Ads are better for home service businesses that want to reach local customers looking for immediate services. They appear at the very top of search results with a “Google Guaranteed” badge, charge per lead instead of per click, and typically have higher conversion rates than traditional Google Ads. However, traditional Google Ads offer more customization options, broader targeting capabilities, and work well for businesses wanting to reach customers beyond their immediate service area.

Understanding Google Local Services Ads and Traditional Google Ads

When you’re running a home service business like plumbing, HVAC, or electrical work, getting found by local customers is super important. Google offers two main ways to advertise your business: Local Services Ads vs Google Ads. Let’s break down what each one is in simple terms.

What Are Google Local Services Ads?

Google Local Services Ads (LSAs) are special ads made just for local service businesses. These ads show up at the very top of Google search results when someone searches for services like “plumber near me” or “electrician in [your city].”

The cool thing about Local Services Ads is that they come with a “Google Guaranteed” badge. This means Google has checked your business and guarantees your work up to a certain amount. This makes customers trust you more.

With Local Services Ads, you only pay when someone actually contacts you through the ad. This is called “pay per lead” instead of “pay per click.” So you’re paying for potential customers, not just people clicking your ad.

What Are Traditional Google Ads?

Traditional Google Ads (formerly known as Google AdWords) are the ads you see at the top of search results with the little “Ad” label. These ads can appear for any type of search, not just local services.

With traditional Google Ads, you create campaigns that target specific keywords. When someone searches for those keywords, your ad might show up. You pay when someone clicks on your ad, even if they don’t become a customer.

Traditional Google Ads give you more control over your ad content, where your ads appear, and who sees them. You can create different types of ads including text ads, display ads (with pictures), and video ads.

Key Differences Between Local Services Ads and Google Ads

Now that we know what each type of ad is, let’s look at how they’re different from each other. These differences will help you decide which is better for your home service business.

Ad Placement and Appearance

Local Services Ads appear at the very top of search results, above everything else. They show your business name, rating, years in business, and that special Google Guaranteed badge. They look more like a business listing than an ad.

Traditional Google Ads appear below Local Services Ads (if any are showing) but still above organic search results. They look more like regular ads with a headline, description, and sometimes extra information like your phone number or location.

Payment Structure

With Local Services Ads, you pay per lead. This means you only pay when someone calls you, messages you, or books an appointment through the ad. You don’t pay for people who just see or click your ad but don’t contact you.

With traditional Google Ads, you pay per click (PPC). Every time someone clicks on your ad, you pay, even if they don’t contact you or become a customer. The cost per click depends on how competitive your keywords are.

Targeting Options

Local Services Ads are limited to specific service categories and locations. You can only advertise services that Google has approved for the program, and you can only target people in your service area.

Traditional Google Ads give you many more targeting options. You can target by keywords, location, time of day, device type, and even by the websites people visit. This gives you more control but also makes it more complicated.

Qualification Requirements

To use Local Services Ads, your business must pass Google’s verification process. This includes background checks, license verification, and insurance checks. Not all service categories are available in all areas.

For traditional Google Ads, there are no special qualification requirements. Any business can create an account and start running ads right away, as long as they follow Google’s advertising policies.

Pros and Cons of Each Advertising Option

Let’s look at the good and bad points of each type of ad to help you decide which might work better for your home service business.

Pros of Google Local Services Ads

• Top placement: Your ad appears above everything else in search results.
• Google Guaranteed badge: This builds trust with potential customers.
• Pay per lead: You only pay when someone actually contacts you.
• Simple setup: The ads are easier to create and manage than traditional Google Ads.
• Higher conversion rates: People who click on these ads are usually ready to hire someone.

Cons of Google Local Services Ads

• Limited availability: Not available for all service types or in all locations.
• Strict requirements: You need to pass background checks and verification.
• Less control: You can’t customize your ad content as much.
• Limited targeting: You can only target by service type and location.
• Lead quality issues: Sometimes you might get leads that aren’t a good fit.

Pros of Traditional Google Ads

• Available everywhere: Any business can use them in any location.
• More customization: You have control over your ad content, images, and landing pages.
• Advanced targeting: Target by keywords, demographics, interests, and more.
• Different ad formats: Create text, display, or video ads.
• Detailed analytics: Get more data about how your ads are performing.

Cons of Traditional Google Ads

• Pay per click: You pay for clicks even if they don’t become leads.
• Lower position: Your ads appear below Local Services Ads.
• More complex: Takes more time and skill to set up and manage effectively.
• Can get expensive: Competitive keywords can cost a lot per click.
• No trust badge: Doesn’t come with the Google Guaranteed badge.

Which Option Is Better for Your Home Service Business?

Now for the big question: which type of Google ad is better for your home service business? The answer depends on your specific situation and goals.

Choose Local Services Ads If:

• You offer services that qualify for the program in your area.
• You want to appear at the very top of search results.
• You prefer paying only when potential customers contact you.
• You want the trust that comes with the Google Guaranteed badge.
• You’re focused on getting local customers who need immediate service.

Choose Traditional Google Ads If:

• Your service category isn’t eligible for Local Services Ads.
• You want more control over your ad content and targeting.
• You’re looking to reach customers beyond your immediate service area.
• You want to advertise specific promotions or offers.
• You have the time and resources to manage a more complex ad campaign.

Consider Using Both Together

Many successful home service businesses use both Local Services Ads and traditional Google Ads together. This gives you the best of both worlds:

• Local Services Ads capture people looking for immediate service.
• Traditional Google Ads help you reach people earlier in their decision process.
• You maximize your visibility in search results by appearing in multiple places.
• You can test which approach works better for different services you offer.

Using both types of ads together can help you dominate the search results page and capture more potential customers.

Getting Started with Google Advertising

Ready to try Google advertising for your home service business? Here’s how to get started with each option.

Setting Up Google Local Services Ads

1. Check if your business category and location are eligible at Google’s Local Services Ads page.
2. Create a Google Local Services Ads account.
3. Complete the background check and verification process.
4. Set your service areas and weekly budget.
5. Create your business profile with photos and information.
6. Set up your booking preferences and working hours.
7. Launch your ads and start receiving leads.

The verification process can take a few weeks, so start early. Google will check your business license, insurance, and may do background checks on key employees.

Setting Up Traditional Google Ads

1. Create a Google Ads account at ads.google.com.
2. Set up your first campaign by choosing your goal (like getting calls or website visits).
3. Define your target locations and budget.
4. Create ad groups around related keywords.
5. Write your ad text, including headlines and descriptions.
6. Set your bid strategy (how much you’re willing to pay per click).
7. Add any extensions like your phone number or location.
8. Launch your campaign and monitor performance.

For traditional Google Ads, it’s often worth getting help from a professional if you’re new to it. The platform can be complicated, and mistakes can cost you money.

Maximizing Results from Your Google Ads

Whichever type of Google ad you choose, these tips will help you get better results and more customers for your home service business.

Tips for Local Services Ads Success

• Get more reviews: Ask happy customers to leave Google reviews, as these show up in your Local Services Ads.
• Respond quickly to leads: The faster you respond, the more likely you’ll convert the lead to a customer.
• Track lead quality: Report any bad leads to Google so you don’t get charged for them.
• Adjust your budget: If you’re getting too many or too few leads, change your weekly budget.
• Update your profile regularly: Keep your business hours, services, and photos current.

Tips for Traditional Google Ads Success

• Use specific keywords: Target terms like “emergency plumber in [your city]” rather than just “plumber.”
• Create dedicated landing pages: Send ad clicks to pages specifically about the service they searched for.
• Use ad extensions: Add your phone number, location, and callouts to make your ads bigger and more clickable.
• Test different ad copy: Try different headlines and descriptions to see what works best.
• Set up conversion tracking: Measure phone calls and form submissions to see which ads are working.

Measuring Success

For both types of ads, you should track these key metrics:

• Cost per lead: How much you’re paying for each potential customer.
• Lead-to-customer conversion rate: What percentage of leads become paying customers.
• Return on ad spend (ROAS): How much revenue you generate for each dollar spent on ads.
• Customer acquisition cost (CAC): The total cost to acquire a new customer.

By tracking these numbers, you can see which type of ad is working better for your business and adjust your strategy accordingly.

Frequently Asked Questions

How much do Google Local Services Ads cost?

Google Local Services Ads cost varies by location and service type. You pay per lead, not per click, with costs typically ranging from $5-$30 per lead. You set a weekly budget, and Google will limit your leads to stay within that budget. The actual cost depends on competition in your area and industry.

Can I use both Local Services Ads and Google Ads at the same time?

Yes, you can and often should use both Local Services Ads and traditional Google Ads together. They appear in different positions on the search results page and can help you capture different types of potential customers. Using both maximizes your visibility and can improve your overall results.

Which type of Google ad has a better return on investment?

For most home service businesses, Local Services Ads typically have a better return on investment because you only pay for actual leads, not just clicks. However, the best ROI depends on your specific business, services, and local market. Testing both options and tracking your results is the best way to determine which works better for you.

How long does it take to get approved for Local Services Ads?

Getting approved for Local Services Ads typically takes 2-4 weeks. The process includes background checks, license verification, and insurance verification. The timeline can vary depending on how quickly you provide the required documentation and how busy Google’s verification team is at the time you apply.

Do I need a website to use Google Ads?

For traditional Google Ads, you typically need a website where you can send people who click on your ads. For Local Services Ads, you don’t necessarily need a website since leads contact you directly through the Google platform. However, having a professional website is still recommended for building credibility with potential customers.

How do I know if my ads are working?

For Local Services Ads, you can track how many leads you receive and what percentage become customers. For traditional Google Ads, you should set up conversion tracking to measure actions like phone calls, form submissions, or chat initiations. For both, calculate your return on ad spend by comparing your ad costs to the revenue generated from those ads.

Turn to Professionals in Home Services Ads

Ready to boost your home service business with the right Google advertising strategy? At On Purpose Media, we specialize in helping home service businesses like yours get more leads and customers through effective digital marketing. Contact us today to schedule a free consultation and discover which Google advertising option is best for your specific business needs!