A 2026 study of home services search results settled a question we get constantly: Google Ads or Local Services Ads? The honest answer is neither one, by itself, and the data explains why.
The study looked at real home services search results and found the Local Pack, the free map listing block driven by your Google Business Profile, showed up in 98% of searches. Local Services Ads appeared in about 28% of searches overall, but nearly 49% of city-specific ones. Google Ads results were less consistent than either. If you've been picking one channel and hoping it carries the whole load, that's the mismatch.
What each one actually is
- The Local Pack. The three-listing map block above the regular results. Free to appear in, driven by your Google Business Profile, reviews, and local relevance. No ad spend required.
- Local Services Ads. The "Google Guaranteed" listings at the very top of the page, above everything else. You pay per lead, not per click, and Google screens and backs the businesses that run them.
- Google Ads. Traditional search and display campaigns. You pay per click, you control the exact message, and you can retarget people who didn't convert the first time.
Why Local Services Ads aren't a given
Here's the part most businesses miss: Local Services Ads don't appear consistently everywhere. They showed up in roughly half of city-specific searches in the study, meaning in half they simply weren't there to compete for. Before committing budget, check whether LSAs actually appear for your priority searches in your specific Middle Tennessee market. If they show up reliably in Franklin roofing searches, for example, that's real estate worth claiming. If they rarely show, that budget is better spent elsewhere.
What it actually costs
National 2026 benchmarks give a useful baseline, though your actual numbers will move with trade and market competitiveness:
- Google Ads search: roughly $85 to $145 per lead
- Local Services Ads: roughly $35 to $70 per lead
- SEO (the Local Pack and organic results): roughly $30 to $80 per lead, without the per-click cost
Smaller markets often land closer to $30 per lead, while competitive metros push $90 or higher. Middle Tennessee submarkets vary the same way: Nashville proper runs hotter than the surrounding counties, so what your Brentwood competitor pays isn't necessarily what you'll pay in Murfreesboro.
The most visible feature in home services search is the Local Pack, and it's the one you can win without paying per click or per lead.
The layered approach that actually works
Rather than choosing one channel, the strongest setups in competitive markets run three things at once, each doing a different job:
- Local SEO anchors the Local Pack. This is your free, always-on baseline. We cover the mechanics in how to show up in Google's map pack.
- Local Services Ads claim the top spot when they appear. Set a budget, but only after confirming they actually show for your market and trade.
- Google Ads controls the message and retargets the rest. Use it to say something specific LSAs can't, and to stay in front of people who visited but didn't call.
The goal isn't spending on every channel at once. It's making sure you're present at whichever level the searcher actually sees, and not leaving free real estate on the table while you chase paid clicks.
Common mistakes we're seeing right now
- Running Local Services Ads on autopilot in a market where they barely show. Check the data for your specific city and trade before committing spend.
- Treating the Local Pack as free and therefore optional. It's free, not automatic. It still requires a complete profile and a steady flow of reviews.
- Running Google Ads with no retargeting set up. Most home services searches don't convert on the first visit; retargeting is where a lot of that spend gets recovered.
- Comparing channels on cost per click instead of cost per booked job. A cheaper lead that never closes isn't actually cheaper.
Want the fuller lead-generation picture? See our guide to getting more qualified leads, not just more traffic.
Frequently asked questions
Should I run Google Ads and Local Services Ads at the same time?
Often, yes, but not blindly. Check whether Local Services Ads actually appear for your priority searches in your specific market first. If they show consistently, run both. If they rarely show, that budget is usually better spent on local SEO and Google Ads instead.
Which is cheaper, Google Ads or Local Services Ads?
Local Services Ads typically cost less per lead, roughly $35 to $70 nationally versus $85 to $145 for Google Ads search campaigns, because you pay per lead rather than per click. Actual costs vary significantly by trade and by how competitive your specific metro is.
Do I need paid ads if my Google Business Profile is strong?
Not always. The Local Pack, which is driven by your Google Business Profile and reviews rather than ad spend, appears in the vast majority of home service searches. A strong free presence there reduces how much you need to lean on paid channels, though most competitive markets still benefit from a layered approach.