Home | Technical SEO | Local Service Ads vs Search Ads: Which Drives Better Leads?

Local Service Ads vs Search Ads: Which Drives Better Leads?

Caleb Nation

President

What you'll learn?

For many businesses, page one of Google feels out of reach. You publish content, you optimize, but traffic still doesn’t flow.

Read time

4 Minutes

Published

December 17, 2025

Google’s ad landscape for local service businesses has split into two power players: Local Service Ads (LSAs) and Search Ads (Google Ads).

Both can generate high-quality leads—but the best choice depends on your industry, market size, and service model.

At Nation Media Design, we’ve run thousands of campaigns across both platforms. This guide breaks down what’s changing in 2026, what still works, and how to decide where to invest your next ad dollar.

Key Insight #1: What’s the Difference Between LSAs and Search Ads?

Feature	Local Service Ads	Google Search Ads
Payment Model	Pay-per-lead	Pay-per-click
Placement	Above all paid results	Below LSAs, above organic
Verification	Requires Google screening and license checks	No verification required
Ad Format	Call button, service area, reviews	Text ads with headlines & extensions
Control Level	Automated	Highly customizable

Bottom Line:

LSAs are perfect for service pros (plumbers, electricians, roofers). Search Ads give marketers full control over copy, targeting, and bids.

Key Insight #2: Cost and Lead Quality

Data from SpyFu shows average CPCs for local service industries range $8–$15 (roof repair, electrician, pest control). LSAs, however, charge per verified lead-often $25–$80.

Here is an example of typical campaign and CPC cost for Google Ads.

📊 Local Example (Florida Painter)

Keyword	Location	Search Volume	CPC (Est.)	Intent / Notes
painters near me in Citrus County Florida	Citrus County	12	$4.50	Local service intent — ideal for LSAs
professional painter near me Kissimmee Florida	Kissimmee	—	$6.25	Verified service intent; strong for call conversions
painters near me in Homosassa Florida	Homosassa	12	$4.10	Localized geo-lead; good for PPC ad targeting
auto painters near me Jacksonville Florida	Jacksonville	12	$5.80	Service variation; could expand to auto niche campaigns
mobile car painters near me Deerfield Beach Florida	Deerfield Beach	12	$5.20	Niche service keyword, suitable for LSAs expansion

Caption:

SpyFu keyword data illustrating regional CPC variation for painter-related search campaigns across Florida. These localized queries show why cost and ROI fluctuate by geography and service type.

But LSAs typically produce:

Higher call conversion rates (15–25%)
Lower spam lead ratio when reviews and profile strength are optimized
Better visibility on mobile SERPs

Meanwhile, traditional Search Ads let you:

Filter leads with custom landing pages
Use ad extensions (callouts, sitelinks)
Create remarketing funnels

💡 Nation Media Tip:

We use cross-platform tracking to measure actual booked jobs from LSAs and PPC — not just leads — revealing true ROI across ad types.

Key Insight #3: Control vs Automation

LSAs run on Google’s AI system. You can’t edit ad copy — it auto-generates from your business profile.
Search Ads give total control over creative, extensions, and targeting.

For high-ticket services (roofing, remodeling), Search Ads outperform LSAs because you can prequalify leads. For emergency response (plumbing, HVAC), LSAs dominate because immediacy beats branding.

Key Insight #4: SERP Behavior and Lead Flow

Customers searching “plumber near me” typically see LSAs first, click to call directly, and bypass websites entirely.

Search Ads capture those scrolling past LSAs or researching pricing.

Nation Media’s data shows 15–30% of leads overlap-meaning dual-channel coverage maximizes exposure.

Key Insight #5: ROI Framework for 2026 PPC Strategy

Metric	Local Service Ads	Google Ads
Cost per Lead	$25–$80	$50–$150 (estimated CPA)
Lead Quality	Medium–High	High (with filters)
Conversion Rate	15–25%	8–15%
Optimization Effort	Low	High
AI Influence	Very High	Moderate
Scalability	Limited by service area	Virtually unlimited

🔧 Nation Media’s Approach:

Our proprietary PPC system blends both:

LSAs for high-intent call leads
Search Ads for brand recall and retargeting
AI scoring to prioritize leads that turn into booked jobs

Key Insight #6: How to Choose the Right Mix

If you’re a verified service pro – start with LSAs for easy inbound calls.
If you want scale and data control – run both and integrate with CRM tracking.
If you serve multiple cities or services – Search Ads offer more flexibility for campaigns.

Our clients in roofing, HVAC, and electrical see 30–50% lower CPA when both channels are optimized together.

Bonus Section - What’s Changing in 2026

LSAs expanding into more categories (e.g., cleaning, landscaping)
Google Ads introducing AI ad copywriting features
Enhanced integration between LSAs + Performance Max
Voice search increasing local service demand

These trends mean data-driven agencies-like Nation Media Design-gain an edge by continuously syncing analytics between ad types.

Closing Thoughts

Both Local Service Ads and Google Ads have a place in your 2026 marketing mix.

But the key isn’t picking one — it’s orchestrating both strategically. Nation Media Design’s PPC framework blends automation and control, ensuring every dollar earns visibility and verified leads.

Action Step

Audit your ad mix this week:

Run LSAs for immediate call leads
Run Search Ads for conversion testing
Use Nation Media’s performance dashboard to track which campaign type drives booked jobs, not just clicks.

At Nation Media Design, we combine AI-driven automation with deep PPC strategy to optimize every lead funnel.
Our technology tracks, scores, and prioritizes leads from both LSAs and Google Ads—helping local service businesses grow smarter, faster, and more profitably.