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Local Services Ads vs. Google Ads: which is right for your trade?

How Google's pay-per-lead and pay-per-click ads work for HVAC, plumbing and roofing companies, what they cost in 2026, and when to use each.

By Nic VitarellaUpdated Oct 29, 20266 min read

Google gives home service companies two main ways to buy leads: Local Services Ads, where you pay per lead, and regular Google search ads, where you pay per click. They show up on the same results page and work very differently. Here's how each one works, what they cost in 2026, and how to decide.

The short answer

If you qualify, start with Local Services Ads and answer every call. Add Google search ads when you want more of a specific, high-value job, like AC replacement or a full roof, and send those clicks to a landing page built for that job. Most established HVAC, plumbing and roofing companies end up running both.

How Local Services Ads work

Local Services Ads (LSAs) can show at the very top of Google for searches like "plumber near me" in the areas you choose 2. Businesses that pass Google's screening, which may include background, registration, insurance and license checks 2, show a Google Verified badge. It replaced the older Google Guaranteed, Google Screened and License verified badges in October 2025 5.

You pay for valid leads, not clicks 1. Google counts these as leads 1:

  • A call you answer, or a call back where you reach the customer
  • A missed call during business hours where the customer stays on the line more than 20 seconds
  • A text message, email or voicemail
  • A booking request (US and Canada)

Repeat contacts from the same number or email within 15 days aren't charged again, and Google may automatically credit leads its models later judge to be low quality 1.

Read that missed-call rule twice. If nobody picks up during business hours, you can pay for the lead and still lose the job. LSAs only work if someone answers the phone, or calls back within minutes.

How Google search ads work

With regular search ads you choose the keywords, write the ads, set your bids and pick the page people land on. You pay each time someone clicks, whether they call or not. For the Home & Home Improvement category, WordStream's 2026 benchmarks put the average at $8.33 per click, an 8.05% conversion rate and $90.92 per lead 4.

What they cost in 2026

LSA prices vary by trade, town and lead type. One lead-generation company's Q1 2026 data from its own contractor campaigns averaged $76.45 per lead for HVAC, $65.80 for roofing and $56.90 for plumbing 3. Treat both sets of numbers as ballpark averages, not quotes; your market can be well above or below them.

Side by side

Local Services AdsGoogle search ads
You pay forEach valid lead 1Each click
Where people goYour LSA profile, then a call or messageYour website or landing page
What you controlServices, areas, hours, budgetKeywords, ad copy, bids, landing page, schedule
Trust signalGoogle badge and reviews 2Whatever your landing page shows
Best forSteady calls for core servicesTargeting specific, high-value jobs
Biggest riskPaying for calls you missPaying for clicks your page doesn't convert

When to choose which

Start with Local Services Ads if

  • You can pass Google's screening and your reviews are solid.
  • Someone answers the phone during business hours, every time.
  • You want calls for your main services without managing keywords.

Add Google search ads when

  • You want more of one profitable job, like system replacements, repiping or roof replacements.
  • You have a landing page for that job with booking and an instant reply to every form.
  • You track which clicks become calls, forms and booked jobs.

The part both have in common

Ads buy you a shot at the job; your website and follow-up decide whether you get it. Search ads send people to your site, and even LSA shoppers often check your website before they call. A site that books online and answers every lead in minutes makes every ad dollar go further.

For Raleigh, Cary and Triangle contractors

Lead prices depend on how many companies bid on your trade in your ZIP codes, so Raleigh, Cary, Durham and Apex can each look different from the national averages above. Two moves help in a crowded market like the Triangle:

  • Keep your LSA service area tight. Pick the towns your trucks can reach fast. A lead from Wake Forest you can't get to until Thursday is money spent on someone else's customer.
  • Run search ads by job and by town. "AC replacement Cary" or "roof replacement Apex", each with its own landing page, usually beats one broad campaign for "HVAC Raleigh".

BizNerds is based in Cary and builds websites and ad landing pages for Triangle home service companies. See how we work with Raleigh and Cary contractors.

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