Local Service Ads vs Google Ads for Contractors: Which Actually Wins?
CPL data from 19 contractor accounts running both LSA and Google Ads. The winner depends on your trade, your reviews, and your zip code.
I pulled 12 months of ad data from 19 contractor accounts that run both Local Service Ads and Google Ads side-by-side. The answer to 'which is better' is genuinely 'it depends,' but the variables that decide it are predictable.
The headline numbers
- LSA median CPL across the sample: $34
- Google Ads median CPL: $58
- LSA close rate: 31% (calls that became jobs)
- Google Ads close rate: 22%
- Median LSA spend: $2,800/mo
- Median Google Ads spend: $4,200/mo
When LSA wins outright
Established trades with 100+ Google reviews, 4.6+ rating, and Google Guaranteed badge. Emergency services (24/7 plumbing, locksmith, garage door). Markets where competitor count is under 8 LSA advertisers. In those conditions LSA hits sub-$25 CPL routinely and Google Ads can't compete.
When Google Ads wins outright
High-ticket services where the search query is informational ('how much does a new roof cost in Dallas'). Services not yet supported by LSA in the local market. Brand-defense campaigns where you need to outrank competitors bidding on your name. Anything requiring landing-page-level control over the offer.
Running both without bidding against yourself
Don't bid on the same emergency-intent keywords in Google Ads if LSA is active in the same metro — you'll cannibalize CTR and pay more for both. Use Google Ads for top-of-funnel ('how much does X cost,' 'X vs Y,' brand defense) and LSA for bottom-of-funnel ('X near me,' 'emergency X').
The reputation flywheel
LSA cost-per-lead drops 30–50% once you hit 100 reviews at 4.7+. That means review automation isn't just an SEO move — it directly reduces your paid CPL. The contractors winning paid in 2026 are the ones who treat reviews as a paid-channel optimization, not a brand-fluffy 'nice to have.'
Frequently asked questions
Should new contractors start with LSA or Google Ads?
Neither, until you have at least 25 Google reviews. Without reviews, both channels burn cash. Spend month one on review generation.
Is Google Guaranteed worth the badge fee?
Yes — the badge alone lifts call-through rate roughly 18% in our data. It's effectively free since LSA charges per lead, not per impression.