Why Doing Local Service Ads Is Not “Doing Google Ads”

Jan 15, 2026

If you’ve been told you’re “doing Google Ads” because you’re running Local Service Ads (LSAs), we’re sorry to tell you — you’ve been misinformed. That’s a little like saying you gave Rover a full bath—when really, he just ran through the sprinkler once or twice. 

Sure, the dog got wet. 

And, yeah, he came out smiling. 

But it’s a limited version of what you actually intended to do. 

Don’t get us wrong: Local Service Ads absolutely have value. They can drive high-intent leads and do wonders for many local service businesses. But LSAs are not what people think of as “Google Ads” — and when they’re treated as a complete strategy, businesses leave a significant number of leads on the table. 

Local Service Ads vs. Google Ads: Completely Different Animals 

At a high level, the biggest difference between LSAs and Google Ads is relatively straightforward: 

Google Ads = Pay Per Click (PPC) 

Local Service Ads = Pay Per Lead (PPL) 

This single distinction changes how campaigns are built, how leads are generated, how much control you have — and how much scale is possible. 

Local Service Ads: Pay Per Lead (PPL) 

With Local Service Ads, you pay only when someone contacts your business — most often through a phone call, though text messages and emails may also be enabled. 

These ads: 

  • Appear at the top of Google search results. 
  • Are tied to your Google Business Profile. 
  • Rely heavily on proximity, availability, reviews, and response time. 
  • Are designed to be simple, hands-off, and high intent. 

With LSAs, there’s no copy to write and no keywords to manage. Google uses the services you choose, and information from your Business Profile—such as reviews and years in business — to determine when your ad appears. 

Leads occur primarily as phone calls, and response time plays a direct role in LSA ranking. Businesses that can answer quickly (or operate around the clock) tend to perform best. 

LSAs also require a third-party verification process, including licenses, insurance, and other documentation. Each physical location must have its own LSA account. 

Are LSAs appealing? No doubt. But they’re also, by definition, limited. 

Google Ads: Pay Per Click (PPC) 

With traditional Google Ads — including Search Ads and Performance Max—you pay when someone clicks on that ad, not when they contact you. 

Search campaigns are intent-driven, keyword-targeted ads that appear in Google Search results based on the exact terms people are looking for. Ad copy is written intentionally and meticulously to match user intent and encourage action. 

This strategic approach unlocks: 

  • Full control over keywords, targeting, and messaging. 
  • Advanced geographic and audience targeting. 
  • Multiple ad formats across Search, Display, YouTube, and more. 
  • The ability to scale volume aggressively. 

This is where true lead volume comes from. 

Google Ads require expertise and a ton of work, but they offer far more flexibility and growth potential than LSAs alone. 

The Biggest Difference That Matters: Lead Volume 

We want to be crystal clear: LSAs generate far fewer leads than Google Ads. 

We’re not trash-talking LSAs in any way; in fact, we use them. They can generate good leads—but they are limited by: 

  • Available impression share. 
  • Geographic proximity. 
  • Competition within a small ad block. 
  • The number of businesses Google chooses to show. 

Google Ads, on the other hand, are built for scale. 

Take a look at the following charts outlining lead sources, including LSAs. Note just how few of the leads come from LSAs, and how those leads are dwarfed by calls and forms (generated from traditional Google Ads like search, display, and Performance Max). 

Graph depicting Google Ad Leads for a Suburban Connecticut Facility for local-service-ads-vs-google-ads blog.

Chart showing Google Ad Leads for a Suburban Philadelphia Facility for the local-service-ads-vs-google-ads blog.

Chart showing Google Ads Leads for a Suburban Atlanta Facility for the local-service-ads-vs-google-ads blog.

If your goal is steady, predictable growth — not just a handful of calls — relying solely on LSAs hinders how much your marketing can realistically produce. 

Limited approaches produce limited results. 

So Why Do Some Agencies Push LSAs (and Avoid Google Ads)? 

It’s an uncomfortable truth in the digital marketing world: Local Service Ads are very easy to run. Google Ads are very difficult to run well. 

Local Service Ads: 

  • Require no ad copy. 
  • Require no keyword research. 
  • Require minimal optimization. 
  • Can be set up and managed by business owners. 

Google Ads, on the other hand: 

  • Require strategic keyword selection. 
  • Require strong ad copy. 
  • Require constant ongoing optimization. 
  • Require significant expertise to avoid waste. 

Because of this, some agencies quietly avoid Google Ads altogether and push LSAs as a “complete” Google solution. The truth? You’re not getting a full Google strategy. And you’re missing out on a massive amount of potential leads. 

So, here’s the takeaway worth hammering home: 

If your Google approach is limited, so is your growth. 

Using LSAs alone can cap your visibility, lead flow, and ability to scale. As is almost always the case, a holistic approach is best. Businesses that combine Local Service Ads with Google Search Ads (and often Performance Max) consistently see: 

  • More total leads. 
  • Better control over acquisition costs. 
  • Less reliance on a single channel. 
  • Stronger, more predictable growth. 

LSAs should support your Google strategy — not replace it. 

LSAs Are a Tool, Not a Strategy 

Local Service Ads absolutely have their place. They’re simple, high-intent, and effective within their limits. 

But Google Ads are where businesses go when they’re serious about growth, scale, and a commanding market presence.  

If your current setup only scratches the surface of what Google Ads can do, you’re leaving a ton of leads on the table. And guess what? Your competitors are more than happy to take them. 

IMPACT Marketing & Public Relations, LLC

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