Google Local Service Ads vs Google Ads: Which is best for builders, remodelers & contractors

LSA or Google Ads: What Contractors & Remodelers Need to Know

For contractors and remodelers looking to generate more leads, Google’s Local Services Ads (LSAs) often sound like the perfect solution. They sit at the very top of search results, carry the trusted Google Guaranteed badge, and charge you only when a homeowner actually reaches out. On the surface, LSAs feel like a no-brainer.

But the reality is more nuanced. Some businesses thrive on LSAs and see them as a reliable stream of calls. Others invest heavily only to find that the volume plateaus or the leads aren’t always aligned with the kind of projects they want. That’s why the real question isn’t just “should I use LSAs?” It’s “how do LSAs fit into my broader marketing system, and when should I look to Google Ads instead?”

Reviews: The Foundation of LSA Success

The first thing to understand is that LSAs run on reputation. Your placement depends heavily on reviews, ratings, and responsiveness. A remodeler with fifty glowing reviews and a 4.8 star average will almost always outrank a competitor with three reviews, no matter the budget.

If you’re just starting out and have only a handful of reviews, LSAs might not give you much traction. But if you’ve already built up a strong online reputation, they can quickly become a steady backbone of lead flow. For businesses in competitive markets, reviews are often the deciding factor between sitting at the top of the LSA pack or getting buried out of sight.

Results You Can Expect

So what happens when you flip the switch on LSAs? Typically, you’ll see high-intent leads. These are homeowners who are ready to hire now, which makes them valuable. And because LSAs are pay-per-lead rather than pay-per-click, you don’t have to worry about wasting money on irrelevant clicks.

But the limitations are real. Lead volume is capped, and no matter how much budget you pour in, Google will only deliver so many calls in your market. You can’t control keywords or targeting the way you can with Google Ads, and reporting is minimal. For many remodelers, LSAs produce 10 to 30 leads per month. For larger-ticket services like full remodels or custom builds, that volume may be far too low to support growth goals.

Which Services Shine in LSAs

LSAs tend to work best for urgent, homeowner-driven services: plumbing, HVAC, electrical, or smaller remodeling jobs. When a pipe bursts or someone needs a quick bathroom update, LSAs shine.

But for bigger projects like whole-home remodels or additions, LSAs rarely deliver the consistency needed to fill a pipeline. That’s where Google Ads step in. With Google Ads, you can build campaigns around specific services, tailor your messaging, and capture homeowners who are still researching — not just those ready to call immediately.

Budget and Scale

Because LSAs charge per lead, costs are predictable. Many contractors like the simplicity: you know you’re paying for calls, not clicks. But here’s the catch — LSAs often deliver only a fraction of the lead volume needed for serious growth.

Google Ads, when managed correctly, can scale far beyond LSAs. It’s not unusual for a well-structured campaign to generate 80 or more leads per month in the same area where LSAs produce 20. If your goal is predictable growth, you’ll need to invest in more than LSAs.

At B&G Growth Marketing, we usually recommend LSAs as a starting point or as one layer of a bigger system. They’re a great foundation, but businesses that want to double revenue or move into higher-value projects quickly outgrow LSAs alone.

Responsiveness Matters

Another factor to consider: LSAs track how fast and how often you respond to leads. Google rewards contractors who answer calls live, reply to messages quickly, and keep business hours updated. Miss too many calls, and your ranking can drop.

That operational pressure isn’t as strong with Google Ads. While responsiveness still matters for converting leads, your ad placement isn’t penalized for missing a call. For busy contractors, that difference can mean a lot.

So Which Should You Choose? - Which Local Businesses Are a Good Fit for LSAs?

Not every business will get the same results from LSAs. The platform is designed to capture urgent, bottom-of-funnel searches, which means some service providers thrive while others struggle to scale.

A plumber or HVAC technician, for example, is a perfect fit. Homeowners searching for those services usually need help immediately. LSAs put them right in front of someone ready to book, and the high search volume in those industries means contractors can often keep their calendars full with LSAs alone.

Remodelers, builders, and other high-ticket services face a different challenge. The kinds of clients searching for “kitchen remodel” or “home addition contractor” often spend weeks or months researching before they’re ready to hire. That makes LSAs less consistent in volume. A remodeler might get a few high-quality calls, but scaling to dozens of new projects per year is unlikely with LSAs alone.

That’s where Google Ads comes in. Search campaigns allow remodelers and builders to reach prospects earlier in the decision process, shape the narrative with tailored messaging, and consistently generate the lead volume needed to match larger revenue goals.

The bottom line: LSAs are an excellent backbone for businesses where speed and urgency drive demand. But for remodelers and builders, LSAs work best when paired with a Google Ads system that provides the scale, targeting, and predictability LSAs can’t deliver on their own.

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Key Considerations Before Investing in LSAs

Choosing whether LSAs are right for you isn’t just about the platform. It’s about how your marketing connects to your larger business goals.

Here are the big questions every business owner should ask:

• Q: What are my revenue goals?
  A: If you want to add $250K in booked projects this year, you need to work backwards. How many jobs does that mean, and how many leads will it take to get there?
• Q: What’s my close rate?
  A: If you typically close 1 in 5 leads, you’ll need five times as many leads as the jobs you want. LSAs may give you part of that volume, but Google Ads usually provides the scale needed to hit bigger goals.
• Q: What’s my marketing budget?
  A: Strong growth usually requires dedicating 10 to 15 percent of projected revenue to marketing. For example, if you want $1M in revenue, a $100K to $150K annual marketing budget (about $8K to $12K monthly) is realistic. LSAs can fit within that, but to maximize ROI, many businesses put the larger portion into Google Ads where targeting is sharper and returns are easier to measure.
• Q: Do I just want steady work, or do I want scale?
  A: LSAs are ok for steady work. If your goal is consistent phone calls and a solid baseline of projects, they fit. But if you want to grow aggressively, expand into higher-value jobs, or hit major revenue goals, a Google Ads system is better built for scale.
• Q: Am I ready for systems, not just leads?
  A: LSAs can get the phone ringing, but they don’t guarantee predictable growth. To truly grow, you’ll need intake processes, follow-up systems, and the ability to reinvest marketing dollars back into the business. That’s where pairing LSAs with a broader Google Ads strategy pays off.

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The bottom line: LSAs can be a great start, but if your goals involve consistent, predictable growth, they need to be paired with a Google Ads system and a marketing budget aligned with your revenue targets.

We help contractors and remodelers answer these questions, build the right strategy, and create a growth engine that matches their ambitions. If you're interested in getting started with LSAs or are ready to graduate from LSAs to a scalable Google Ads system, book a strategy call - we'll help you work through the numbers and put together a system that actually gets projects in the door.

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