TL;DR: LSA works best for general repair, delivering lower-cost, high-intent leads you only pay for if they’re valid. GSA offers full control and broader targeting, making it better for specialty work or areas LSA can’t reach. If you can, run both to capture more customers and maximize results.
Quick Update Before You Read
Google is making some changes you need to know about. The Google Guaranteed badge inside Local Services Ads is going away on October 20, 2025. It’s being replaced with something called Google Verified.
Here’s the deal: the new badge still means you’ve been vetted by Google, but it no longer comes with the money-back guarantee that “Google Guaranteed” used to have. Anytime you see Google Verified in this blog, just know we’ve updated the term, and the trust piece is a little different.
You don’t need a marketing degree to know when something’s not working. If your phone’s not ringing and your bays aren’t full, it doesn’t matter how “clever” your ad strategy is.
What matters is picking the right tool for the job, and when it comes to Google Ads, that means knowing the difference between Search Campaigns and Local Services Ads.
One gives you full control over keywords and targeting. The other fast-tracks high-intent customers straight to your shop. Both can work, but if you don’t understand how they’re different or how they complement each other, you’ll burn through your budget and wonder why the bays are still empty.
Let’s break this down in plain English so you can stop guessing and start getting results.
What Are These Two Ad Types and How Do They Work?
Google Search Ads (GSA, as we call them)
These are the traditional ads most people think of. You pick the keywords you want to show up for, like “brake repair near me” or “check engine light Hammond, LA.” Your ad shows up when someone types those exact words into Google, or a variation depending on the keyword type you’re using.
You control:
- The keywords and keyword types
- The landing page
- The ad copy
- The budget
It’s like programming a scan tool to only look at certain modules. You tell it where to go and what to look for.
When someone clicks your ad, they land on your website. You pay per click, whether or not that person becomes a customer.
Google Local Services Ads (LSA)
Now this is a different one. Instead of picking keywords, you choose from a list of pre-approved services. Your ad appears at the very top of the page above even the search ads. It includes a “Google Verified” badge (previously known as “Google Guaranteed” or “Google Screened”
You don’t get website clicks here. You get phone calls and direct messages. These are people who are ready to talk, not just search. And the best part? You only pay if that lead is legit. It’s pay per lead, not per click. If they don’t contact, you don’t pay. If it’s a wrong number or they ask for something you don’t offer, you can request a refund.
Imagine this like a customer walking straight into your service counter with a “check engine” light blinking and a worried look. They’re looking for someone to say, “We’ve got you.”
Quick Comparison: Google Search Ads vs. Local Services Ads
| Feature | Google Search Ads (GSA) | Local Services Ads (LSA) |
|---|---|---|
| Payment Model | Pay per click | Pay per lead |
| Control Over Content | Full control over keywords and ad copy | Limited to Google-approved categories and services |
| Customer Action | Clicks to your website or landing page | Direct phone calls or messages |
| Cost Efficiency | Higher cost per lead | Lower cost per lead |
| Review Impact | Helpful, but not critical | Direct impact on visibility and performance |
| Verification Process | Light: ID and business license | Strict: license, insurance, background check, Google reviews |
| Service Flexibility | Any service you want to target | Only what Google allows |
| Geographic Targeting | Radius, zip code, city, cross-state | Zip code and city only, no cross-state targeting |
| Best For | Specialty, high-ticket, or niche services | General auto repair shops and high-volume work |
Which One Brings in Better Leads?
Here’s what we’ve seen after running both types of ads for shops across the country.
Search Ads
More control means more precision. You can block junk traffic with negative keywords. You can use your keywords to target BMW owners, diesel drivers, or classic car enthusiasts if that’s your game. And you can show up in areas where LSA doesn’t work, like across state lines or for services that aren’t eligible under LSA.
It’s like having a scan tool that goes deeper, talks to more modules, and gets the data you need.
Local Services Ads
This is your best bet for general repair. People see the badge, trust the Google seal of approval, and pick up the phone. You only pay when someone calls or messages you. You even get credited for bad leads like spam, wrong numbers, or people asking for services you don’t offer.
It’s like the customer who comes in already pre-sold because their neighbor said, “Go to these guys.”
So, Which One Brings the Better Leads?
- If “better” means more specialized jobs, higher average tickets, and control over who you attract, Search Ads take the lead.
- If “better” means ready-to-book, phone-in-hand customers looking for everyday repair work, LSA wins.
In the end, the best leads are the ones that match your shop’s strengths. So ask yourself, are you trying to fill bays fast, or fill them with the right kind of work? That answer tells you which ad type is “better” for your goals.
Budget: Who Gets You More for Your Money?
Search Ads
Pay per click. Even if the person hits your site and bounces in two seconds, you still pay. And if you aren’t careful with your targeting, you’ll pay a lot for tire-kickers and job hunters who never intended to schedule anything.
Local Services Ads
Pay per lead. You only get charged if it’s a valid contact. And if it’s not, you can request a refund. No joke, we’ve had clients get hundreds of dollars refunded just by knowing what to flag.
Average cost per lead: $18 to $23
Search ads? Often two to three times more for the same type of work.
LSA wins the cost battle, especially for general repair shops that are targeting high-volume services like brakes, oil changes, and diagnostics.
Set Up Verification: Search Ads vs. LSA
If you like paperwork, you’ll love LSA. It’s not just about running ads, it’s about proving your shop is legit in Google’s eyes. And that makes sense. If they’re going to put their new “Google Verified” badge next to your name, they want to be sure you’re the real deal.
Google Search Requirements
Search Ads are pretty straightforward. All you need to get started is:
- Your business license
- A front and back photo of a government-issued ID
That’s it. Once submitted, Google runs a quick verification and, in most cases, you can have ads live within a few days. It’s like doing a quick scan and confirming everything is in spec. Simple, fast, and good enough to get rolling.
Local Services Ads Requirements
LSA, on the other hand, is more like a full inspection with a checklist that has zero room for error. Here’s what Google needs before your ad ever shows:
- Valid business license
- Certificate of insurance (yes, they check coverage and dates)
- DBA paperwork if you’re using a fictitious business name
- A Google Business Profile with at least one published customer review
- Payment method on file
- Background check completed by the owner, no way around it
That background check? It’s not a formality. Google takes it seriously, and it’s a required step that the shop owner must complete personally. It can take several days, and if anything is off, from mismatched info to missing paperwork, you’ll find yourself stuck in verification limbo until it’s all sorted out.
LSA doesn’t play. And once you’re in, staying compliant matters, too. If your insurance expires, your business license lapses, or your review rating drops, your ads can get pulled without warning.
Think of this process like prepping for a full-on audit. Every box needs to be checked, every doc needs to match, and there’s no skipping steps. But once you’re approved, you’re in a different league, and the quality of leads you’ll get reflects that.
Location Targeting
Here’s where things start to get interesting, especially if your shop is sitting near a state line or pulling in customers from neighboring cities.
GSA
Google Search Ads are much more flexible. You can target:
- A specific radius around your shop
- Certain zip codes
- Individual cities or counties
- Even cross-state markets with no problem at all
This gives you the freedom to go after the areas where your best customers live, not just the ones your paperwork limits you to. Want to pull in work from 30 miles out? No problem. Want to test different neighborhoods or expand slowly? Easy.
LSA
With Local Services Ads, you’re locked into targeting through zip codes, cities, or a radius and only within the state where your business is officially licensed and registered. That means if your shop is in Louisiana but you’re pulling in customers from Mississippi, Google won’t let you market to them using LSAs unless you have a physical location and a valid business license in that state.
It doesn’t matter if half your customer base is crossing the state line to get to you. If Google doesn’t see a verified location in that state, your ad won’t show up there.
How Your Reputation Affects Ad Performance
In GSA
Reviews help, especially when your Google Business Profile is connected to your ad. But ad performance still leans more on keyword quality, relevance, and landing page experience.
If your reviews are weak or outdated, fixing that should be step one before running either ad type.
In LSA
Your Google reviews directly impact your ad performance. Fewer stars and a low review count mean fewer impressions and calls. It’s not optional here. It’s critical.
What Happens If Your Card Declines?
This is one of the biggest silent killers of ad performance.
- GSA will shut off your ads when your payment fails. They’ll send you a notice. If you don’t catch it, your ads just stop.
- LSA does the same, but without the warning. You have to manually check the billing tab to even see what’s happening.
When ads go on and off like that, both platforms start to penalize your account. You lose momentum, your impressions drop, and your rankings slip. It’s like disconnecting a battery on a car with a finicky computer; it resets everything.
Should You Run Both at the Same Time?
Absolutely. And if you can afford to, you should.
Here’s how it works best:
- Use GSA to target specialty work, cover more ground, and show up where LSA can’t
- Use LSA to dominate local, high-intent searches for general services
One client of ours started running both, but the call volume got so high that we shifted the GSA campaign to drive online bookings only. Now the LSA ads bring in phone calls, and the Search Ads fill the schedule digitally.
That kind of balance is what leads to predictable, scalable growth.
What If I Can Only Afford One?
Let’s be honest, most shops aren’t ready to throw money at both ad types right out of the gate. If you’ve got to choose, the smart move is picking the one that lines up best with the kind of work you do and the kind of leads you want.
Here’s the simple breakdown:
If You’re a Euro, Diesel, or Performance Shop:
Go with Search Ads.
LSA won’t let you target specific makes, models, or niche services, but Search Ads will. You can get laser-focused, build campaigns around high-ticket work, and filter out the stuff you don’t want. It takes more time to dial in, but the quality of the leads will usually make up for the higher cost.
If You’re a General Repair Shop:
Start with Local Services Ads.
It’s lower cost, has less competition in most markets, and the leads are high intent. People searching in LSA usually have a problem and want to talk to someone now. That urgency works in your favor. You’re only paying for actual leads, and Google even refunds the bad ones. It’s a great way to get momentum and book more work without risking a big budget.
The Smarter Play
Start with the one that fits your current needs and lets you grow. Track your ROI, keep your campaigns tight, and when the returns start stacking up, reinvest into the second platform. Most of our best-performing shops eventually run both, but they started with one and built from there.
It’s not about spending more. It’s about spending smarter.
Frequently Asked Questions
What is the difference between Google PPC and LSA?
Google PPC charges you per click and lets you target custom keywords. LSA charges per lead and focuses on calls or messages, not website clicks.
What are Local Services Ads?
Local Services Ads are Google ads that appear at the top of search results with a “Google Verified” badge (previously “Google Guaranteed”) and focus on direct calls or messages from potential customers.
How to rank higher on Google Local Services Ads?
Keep your reviews high, respond quickly to leads, update your profile, complete verification, and maintain an active budget.
How does pay-per-click differ from pay-per-lead?
Pay-per-click means you pay each time someone clicks on your ad, regardless of whether they contact your business. Pay per lead means you only pay when someone takes a qualifying action, like calling or messaging you through the ad.
Ready to Get More of the Right Cars in Your Bays?
Look, we’re not here to sell you fluff. Google Ads can work if they’re set up the right way and backed by a smart strategy that fits your shop.
We’ve seen too many shops waste money on ads that go nowhere. Not because Google doesn’t work, but because someone clicked “publish” and hoped for the best. That’s not how we operate.
If you’re ready to bring in high-quality leads, fill your schedule, and attract the kind of customers who actually value what you do, let’s have a conversation. No pressure, no fluff, just real talk about what’ll work for your shop.
Book a free discovery call and let’s see if this is the right fit.
Brian Walker
“Digging in and figuring out why a business’ marketing isn’t working is a lot like it was when he was elbows deep into a car that no one else could fix. When you figure it out, there’s nothing else like it.”
To get to do this for auto repair shop owners combines his passions, and he couldn’t be more excited about helping shop owners.