The short version
- Google Ads: you pay per click, you can be live within days, and the calls stop when you stop paying.
- Local Services Ads: you pay per lead, they sit at the very top of Google, and they're only open to certain service businesses.
- Local SEO: no cost per click, takes months to build, and keeps working after the work is done.
- Most local businesses do best with SEO as the base, plus ads while it builds or to fill quiet months.
When someone in your area searches "plumber near me" or "accountant Milton," three different kinds of results can show up on the first screen. At the very top, sometimes, there are Local Services Ads with a badge and star ratings. Below those are regular Google Ads, marked "Sponsored." Then comes the map with three businesses, and then the normal (organic) results.
The map and the organic results are where SEO lives. The other two you pay for. Here's how each one actually works, so you can decide where your money should go first.
Google Ads (pay per click)
Google Ads is the classic one. You pick the searches you want to show up for, write the ads, set a budget, and pay each time someone clicks.
What's good about it
- It's fast. A well set up campaign can be bringing in calls within days.
- You control a lot. Which searches, which towns, which hours, how much per day.
- It works for almost any business, including ones that can't use Local Services Ads.
- It's measurable. With proper call and form tracking, you can see what each lead costs.
What to watch out for
- You pay for clicks, not customers. A click from someone who bounces off a slow or confusing page still costs you.
- It needs managing. Left alone, campaigns drift toward irrelevant searches. Checking the search terms and adding negatives is ongoing work.
- It stops when you stop. The day the budget runs out, so do the leads.
Google Ads suits businesses that need leads now, have a clear service to sell, and have a page that turns visitors into calls.
Local Services Ads (pay per lead)
Local Services Ads (LSAs) are a separate product built for service businesses. They show at the very top of the results with your star rating and, once you've passed Google's checks, a badge such as Google Guaranteed.
How you pay
Instead of paying per click, you pay per lead: a call, a message, or a booking request that comes through the ad. Google's rules say some contacts aren't charged, like spam, duplicates, and repeat calls from the same number shortly after a charged lead. Google also reviews charged leads after the fact and credits ones it finds were invalid, rather than relying on you to dispute them.
What's good about it
- Top of the page, above the regular ads and the map.
- You only pay when someone actually contacts you.
- The badge builds trust with people who've never heard of you.
What to watch out for
- Not every business qualifies. LSAs are open to a set list of service categories, mostly home services like plumbing, HVAC, electrical, roofing, locksmiths and cleaning, and availability varies by category and city in Canada.
- Getting verified takes time. Expect checks that can include your business registration, insurance, licences and background checks on owners and staff.
- Reviews and responsiveness matter. Answering leads quickly and having good reviews helps you show up more often.
- Less control than Google Ads over exactly which searches trigger you.
If you're a trade or home service business and you qualify, LSAs are often the best value paid option. See our Local Services Ads page for how we set them up.
Local SEO (getting found without paying per click)
Local SEO is the work that gets you into the map results and the organic results for searches in your area. It's mostly three things: a well built Google Business Profile, a website with a clear page for each service and area you cover, and a steady flow of genuine reviews.
What's good about it
- No cost per click. Once you rank, every call from the map or organic results is free.
- It builds on itself. Pages, reviews and links keep working long after the work is done.
- The map pack gets a lot of attention for local searches, and many people trust it more than ads.
What to watch out for
- It's slow. In a competitive town it can take months to see real movement.
- There are no guarantees. Anyone promising you a #1 spot by a certain date is guessing, or worse.
- It depends on your website. An old, slow, thin site holds everything else back.
Side by side
| Google Ads | Local Services Ads | Local SEO | |
|---|---|---|---|
| You pay for | Each click | Each lead | The work, not the clicks |
| Time to first leads | Days | Days to weeks, after verification | Usually months |
| Who can use it | Almost any business | Eligible service categories only | Any business with a real location or service area |
| When you stop paying | Leads stop | Leads stop | Rankings fade slowly, if at all |
| Biggest risk | Paying for useless clicks | Not qualifying, or slow lead response | Waiting too long without a plan |
So which should you start with?
It depends on where you are right now. Here's how we usually think about it:
- New business, need work now: start with Google Ads (or LSAs if you qualify) to get the phone ringing, and start local SEO at the same time so you're not paying for every lead forever.
- Trade or home service, qualifies for LSAs: LSAs first, then Google Ads for the services or areas LSAs don't cover, with SEO building underneath.
- Established business, decent reviews, busy enough: SEO first. Use ads only to fill quiet months or push a specific service.
- Old or slow website: fix that before spending on any of the three. Ads send people to your site, and SEO depends on it. Our free website audit will tell you if this is you.
- Regulated health practice: check your college's advertising rules first. Some ad claims and review requests that are fine for a plumber aren't fine for a clinic.
Whatever you pick, make sure the ad accounts and Google Business Profile are in your name, not your agency's. If you ever part ways, you keep the history and the data.
Not sure where your budget should go?
Tell us what you sell, where you work and what you're spending now. We'll give you an honest take on which of the three makes sense first, even if the answer is "don't spend on ads yet."See how we run Google Ads →