Google Local Services Ads vs. Google Ads: what's the difference | The Bulletin

The Bulletin Paid Ads

No. 062

Google Local Services Ads vs. Google Ads: what's the difference

They're both from Google, both show at the top of search results, and they work in almost entirely different ways underneath.

Google Local Services Ads and regular Google Ads (Search campaigns) both put a business near the top of a relevant search, and business owners frequently assume they're the same product with a different name. They're not, and the difference affects both how they're priced and who they're a good fit for.

How Google Ads works

Standard Google Ads (Search) runs on a pay-per-click, keyword-and-bidding model. You choose keywords, write ad copy, set a budget, and pay when someone clicks, whether or not that click ever turns into a customer.

How Local Services Ads works

Local Services Ads runs on a pay-per-lead model instead. You're verified and background-checked by Google (required for many service categories), and you pay when a qualifying lead actually contacts you through the ad, not for every click. It also displays a "Google Screened" or "Google Guaranteed" badge, which functions as a built-in trust signal regular search ads don't have.

Which categories qualify

Local Services Ads is limited to specific service categories Google supports, heavily weighted toward home services and local trades: plumbers, electricians, HVAC, locksmiths, and similar. Not every business type is eligible, unlike standard Google Ads, which is open to virtually any business.

Why the verification step matters

The background check and license verification required for Local Services Ads is a real barrier some competitors won't clear, which can work in favor of a business that does get verified, since it's advertising alongside a smaller, vetted pool rather than every competitor with a credit card.

They can run at the same time

The two aren't mutually exclusive. Some businesses run Local Services Ads for the trust badge and pay-per-lead model, and standard Search ads for broader keyword coverage Local Services Ads doesn't reach.

Questions

Is Local Services Ads cheaper than regular Google Ads?

It depends on lead quality and close rate, not just the sticker price. Paying only for qualifying leads instead of every click can make it more cost-effective, but that depends on how well the business converts those leads.

Do I need a landing page for Local Services Ads?

Less critical than for a standard Search ad, since Local Services Ads leads typically contact you directly through Google's own interface rather than clicking through to your website first.

How long does the verification process take?

It varies by category and location, and background checks can take anywhere from a few days to a few weeks, so it's worth starting the process before you need the ads running.

Sources

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