Unveiling the Power of Local Service Ads (LSAs): A Comprehensive Guide

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In today’s digital age, local businesses strive to connect with customers actively seeking their products and services. If you’re a local business owner, you’ve likely invested time and resources into optimizing your website and running Google Ads. However, there’s a vital component that you might be missing out on: Local Service Ads (LSAs). These ads offer a unique approach to online advertising that sets them apart from traditional Google Ads. In this comprehensive guide, we’ll explore four key ways LSAs differ from Google Ads and why you should consider integrating them into your digital marketing strategy.

Local Service Ads Use a Pay-Per-Lead Model

One key distinction between LSAs and Google Ads lies in their payment model. Google Ads are known as pay-per-click (PPC) advertising, meaning you pay every time someone clicks on your ad – even if they don’t contact you at all. On the other hand, LSAs introduce a pay-per-lead model, where you’re only charged when a prospective customer contacts you directly through the ad. This shift ensures that you pay only for genuine, high-quality leads, making your advertising budget more efficient and cost-effective.

Local Service Ads Are at the TOP of the Search Results

LSAs have a unique advantage: they appear at the top of the search engine results page (SERP), even above organic search results and traditional Google Ads. This prime real estate means your business can capture the attention of potential customers more effectively. However, Google determines the ranking of LSAs based on factors like the number of customers served and average review ratings. Typically, only the top three businesses with the highest ratings are displayed at the very top of the SERP.

Local Service Ads Can Significantly Lower Your Cost-Per-Lead

Pay-per-click ads, like traditional Google Ads, can become costly, with businesses paying for every click, regardless of its quality. In contrast, LSAs are more cost-effective, thanks to their flat-fee model. By switching to LSAs, you can reduce your advertising costs, resulting in a lower cost-per-lead and an improved return on investment (ROI).

Local Service Ads are a Seal of Approval from Google

Trust plays a significant role in customers’ decision-making processes. LSAs come with the Google Guarantee Badge, signifying that your business has undergone Google’s rigorous security checks and is backed by a guarantee. This badge provides potential customers with peace of mind, increasing trust and confidence in your business.

The Influence of Market and Search Volume on Google Rankings

Understanding the correlation between the market and Google’s search volume is crucial. Following the introduction of Panda, there were speculations about Google favoring retail giants like Home Depot, Lowe’s, and Walmart. However, it’s important to note that Google’s search results reflect the market’s search volume and trends.

Visibility alone is not sufficient for driving conversions. It’s crucial to build a reputable brand that resonates with potential clients. Even if a firm ranks well on Google, if people are unfamiliar with the brand, they may not choose its services. Google can detect a lack of engagement and user signals, which can impact rankings and conversions.

Brand recognition plays a role in the conversion process. While it is challenging to measure the exact impact, a strong brand presence can contribute to higher conversion rates.

Source: Dennis Yu at Blitzmetrics

The SEO Nature of Local Service Ads (LSAs)

Understanding that LSAs are more aligned with SEO than being a purely automated advertising solution is crucial for professionals in the personal injury (PI) field. Rather than a direct advertising approach, LSAs are influenced by external factors that shape their performance.

LSAs are comparable to SEO in terms of their characteristics. The correlation between website rankings and the success of LSAs is not necessarily strong. Instead, the focus should be on the external behaviors that influence LSAs, such as responding to customer needs, providing excellent service, and garnering positive reviews. These factors have little to do with merely activating an LSA campaign.

Source: Dennis Yu at Blitzmetrics

SEMrush Insights on LSAs

According to SEMrush, Local Service Ads (LSAs) have become a critical tool for businesses aiming to establish a strong online presence in their local markets. SEMrush emphasizes the importance of monitoring performance metrics in LSAs, including tracking leads over time. A flat or declining trend in leads serves as the first indication that the LSA campaign may not be performing optimally.

Source: SEMrush


The power of Local Service Ads is evident in their unique approach to cost-effective advertising and prime visibility in search results. As a local business, LSAs offer a distinctive opportunity to connect with high-quality leads and build a strong online presence. By understanding their nuances and incorporating the insights provided by reputable sources, you can elevate your digital marketing strategy to new heights. To harness the full potential of LSAs and drive growth for your local business, contact us at DevSpace, and let’s explore running LSA campaigns tailored to your unique needs.