The short answer
Local Services Ads charge you per lead. Google Ads charges you per click. Local Services Ads put a Google Verified badge on your listing and leave you few settings to manage. Google Ads gives you full control over keywords, ads and landing pages. Most contractors do best when they match each one to the right kind of job, then use one or both.
How Local Services Ads work
Local Services Ads, or LSAs, are Google’s pay-per-lead ads for local businesses. They show at the very top of Google Search and Google Maps. A lead is a customer contact that Google counts as valid, such as a phone call or a message. You pay for valid leads, not for clicks.
You do not choose keywords. You choose your job types and the areas you serve, and Google matches those to searches. Before your ads run, Google screens and verifies your business. When you pass, your listing shows the Google Verified badge. You can read how we set this up on our Local Services Ads page.
How Google Ads work
Google Ads is the regular search advertising platform. You pay each time someone clicks your ad, whether or not they call you. You choose the keywords, write the ad text and send people to a landing page you control.
That control is the main reason many contractors use it for bigger or planned jobs. You can send roofing searches to a roofing page and kitchen remodel searches to a remodel page. Our Google Ads page explains how we run it.
What changed in 2025 and 2026
Many articles still describe the old setup. These changes come from Google’s own help pages:
- On October 20, 2025, Google replaced the Google Guaranteed, Google Screened and License Verified badges with one badge called Google Verified.
- The money-back guarantee tied to the old badge ended. Google said customers could still ask for reimbursement for services booked through Local Services Ads before December 7, 2025.
- Local Services Ads are moving into Google Ads as a special type of Performance Max campaign with pay-per-lead goals. Google says the rollout started in August 2026 for select home and storefront service categories in the U.S., expands to more advertisers later in 2026, and reaches the remaining categories and countries in 2027.
- With that move, Google is retiring manual bidding and industry-level target CPA, turning weekly budgets into daily averages, and no longer requiring insurance and license reverification. Better Business Bureau callouts are removed.
You still pay only for valid leads. Because the rollout happens in stages, check your own account to see which version you have today.
Which one fits which job
Local Services Ads usually fit best when:
- The customer needs help today, such as a burst pipe, a dead AC, a lockout or a power outage.
- Your trade and service area are available in Local Services Ads.
- You want to be at the top of the page without managing keywords.
Google Ads usually fits best when:
- The job is planned and customers compare companies, such as a roof replacement, a remodel or an addition.
- You want to control the message and send people to a specific page.
- Your trade or service is not covered by Local Services Ads.
These are guidelines, not rules. Your market, your crew size and the jobs you want more of decide the right mix.
How to choose in five steps
- List your three most profitable job types.
- Mark each one as urgent or planned.
- Check whether Local Services Ads are available for your trade and area.
- Start with the option that matches your best job type, with a budget you can afford to test for at least 60 to 90 days.
- Track every call and compare the cost per booked job. Cost per booked job is your ad spend divided by the jobs you actually booked from those ads.
Track the calls, not just the clicks
A click is not a customer, and a lead is not a booked job. Set up call tracking so you know which ads produce calls and which calls turn into work.
Local Services Ads let you dispute leads that do not match your services, such as a wrong job type or an area you do not cover. Review your leads each week and dispute the ones that do not fit.
Common mistakes
- Missing calls. A paid call you do not answer is money gone. Answer fast or call back within minutes.
- A wrong service area. Listing towns you do not want to drive to brings leads you will turn down.
- One budget for everything. Urgent jobs and planned jobs behave differently, so track them separately.
- Judging by clicks. Compare cost per booked job, not cost per click.
Frequently asked questions
Which is better, LSAs or Google Ads?
Neither wins every time. Local Services Ads suit urgent calls and charge per lead. Google Ads suits planned jobs and gives you more control. Many contractors run both and compare the cost per booked job.
What replaced Google Guaranteed?
Google Verified replaced Google Guaranteed on October 20, 2025. It is one badge for all Local Services Ads advertisers. The old money-back guarantee ended with it.
Do Local Services Ads charge per click?
No. Local Services Ads charge for valid leads, such as phone calls and messages. Google Ads charges when someone clicks your ad.
Can I run both at the same time?
Yes. Keep separate budgets and tracking for each so you can see which one books more jobs for the money.
Where Contractor Hawk fits
Contractor Hawk works only with contractors. If you want to know which ad type fits your trade and market, request a free audit and we will show you where your budget should go first. You can also see our full paid advertising services.
Sources
Google Local Services Help: About the Google Verified badge. Google Ads Help: Local Services Ads transition to Performance Max campaigns.
