Google LSA vs. PPC for Contractors
Local Services Ads vs. Google Ads, which delivers better ROI for your trade? A complete breakdown of costs, lead quality, targeting, and the right strategy for your business stage.
The Short Answer
For most home service contractors, LSAs deliver higher-quality leads at a lower cost per lead than Google Ads. But Google Ads offer more targeting control and broader reach. The best strategy for established contractors is to run both.
- Budget under $2,000/month
- You want pay-per-lead billing
- You have strong Google reviews
- You need specific keyword targeting
- You want to target service areas precisely
- You have budget for both channels
LSA vs. Google Ads, Full Comparison
| Attribute | Local Services Ads (LSA) | Google Ads (PPC) |
|---|---|---|
| Ad Format | Name, rating, reviews, phone number | Headline, description, sitelinks, callouts |
| Position on Page | Above all other results (including organic) | Above organic results, below LSAs |
| Billing Model | Pay per verified lead (call/message) | Pay per click (regardless of quality) |
| Targeting Control | Limited (trade, location, hours) | Extensive (keywords, device, audience, schedule) |
| Lead Quality | High (user has seen reviews before contacting) | Variable (depends on keyword and ad quality) |
| Setup Complexity | Low (Google manages most of it) | High (requires keyword research, ad copy, bidding) |
| Time to Launch | 2–4 weeks (background check required) | 24–48 hours |
| Dispute Process | Can dispute invalid leads for credit | No refunds for poor-quality clicks |
| Review Visibility | Star rating prominently displayed | Seller ratings (optional extension) |
| Best For | High-intent local service searches | Broader reach, specific keyword targeting |
The Right Strategy for Your Situation
New contractor, limited budget ($500–$1,500/mo)
LSAs require less management overhead and deliver higher-quality leads. With limited budget, focus on one channel and optimize it before expanding.
Established contractor, competitive market ($2,000–$5,000/mo)
LSAs capture the highest-intent searches. Google Ads fill gaps for keywords LSAs miss and allow retargeting. Combined approach maximizes coverage.
Seasonal business (roofing, landscaping)
LSAs maintain baseline visibility. Google Ads allow you to scale spend aggressively during storm season or spring rush when ROI is highest.
Multi-service contractor (HVAC + plumbing + electrical)
Set up separate LSA profiles per service category. Use Google Ads for high-ticket services (HVAC replacement, electrical panel upgrades) where the economics justify higher CPCs.
Average Cost Per Lead by Trade
| Trade | LSA Cost/Lead | Google Ads Cost/Lead | Avg. Job Value |
|---|---|---|---|
| Roofing | $25–$80 | $60–$200 | $8,000–$25,000 |
| HVAC | $20–$60 | $50–$150 | $3,000–$12,000 |
| Plumbing | $15–$50 | $40–$120 | $500–$5,000 |
| Electrical | $20–$55 | $45–$130 | $500–$8,000 |
| Landscaping | $10–$35 | $30–$90 | $1,500–$15,000 |
| Pest Control | $8–$25 | $20–$60 | $150–$800 |
| Painting | $12–$40 | $30–$100 | $1,000–$8,000 |
| Remodeling | $30–$90 | $80–$250 | $10,000–$100,000 |
* Averages based on national data. Competitive markets (major metros) typically run 2–3x higher.
Frequently Asked Questions
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