LSAs vs Google Ads for Contractors: Real Lead Costs & What to Run First (2026)

Two types of Google ads. Two completely different models. And most contractors don't understand the difference well enough to know where their money should go.

Local Service Ads (LSAs) and Google Ads both show up at the top of Google when someone searches for your trade. They both cost money. They both produce leads. But the way they charge you, the leads they produce, and the control you have are fundamentally different.

Here's the breakdown — with real numbers, not theory.

How LSAs Work (The Quick Version)

Local Service Ads sit at the very top of Google — above regular Google Ads, above organic results, above everything. They show your business name, review rating, and a "Google Guaranteed" or "Google Screened" badge.

The model is pay-per-lead. You don't pay when someone clicks your ad. You pay when someone actually calls you or messages you through the LSA listing. Google sets the lead price based on your trade and market. You set a weekly budget cap, and Google serves your ad until the budget is spent.

Key characteristics:

Pay-per-lead — not pay-per-click
Google Guaranteed badge — builds instant trust with searchers
Limited control — you can't choose keywords, write ad copy, or build landing pages
Lead disputes — you can dispute junk leads (spam, wrong service, out of area) and get credit back
Review-dependent ranking — more reviews = more visibility in LSAs
Background check required — Google verifies your license and insurance before you can run LSAs

How Google Ads Work (The Quick Version)

Google Ads (formerly AdWords) appear below LSAs but above organic results. They're pay-per-click. You pay every time someone clicks on your ad, whether they call you or not. The upside? Full control over everything.

Key characteristics:

Pay-per-click — you pay for the click, not the lead
Full keyword control — you choose exactly which searches trigger your ads
Custom ad copy — you write the headlines, descriptions, and extensions
Landing page control — you send clicks to dedicated, high-converting pages
Negative keywords — you block irrelevant searches from wasting your budget
Geographic precision — you target specific zip codes, cities, or radius zones
Scalable — you can spend $1,500/month or $50,000/month

Real Cost-Per-Lead by Trade (2026)

This is what contractors actually want to know. Here's what we see across our accounts. These are cost-per-qualified-lead numbers — meaning a real person who wants your service in your area.

LSA Cost Per Lead

Plumbing: $25-$55 per lead
HVAC: $25-$60 per lead
Roofing: $35-$80 per lead
Electrical: $20-$45 per lead
Foundation Repair: $50-$120 per lead
Painting: $18-$40 per lead
Epoxy/Coatings: $30-$65 per lead
Landscaping: $15-$35 per lead
Tree Service: $20-$45 per lead

Google Ads Cost Per Lead

Plumbing: $35-$85 per lead
HVAC: $40-$100 per lead
Roofing: $45-$150 per lead
Electrical: $30-$70 per lead
Foundation Repair: $65-$200 per lead
Painting: $25-$60 per lead
Epoxy/Coatings: $40-$90 per lead
Landscaping: $20-$50 per lead
Tree Service: $25-$60 per lead

At first glance, LSAs look cheaper. And per-lead, they often are. But that's not the whole story.

Why Google Ads Cost Per Lead Is Higher (And Why It's Worth It)

Google Ads cost more per lead because you're paying for clicks, and not every click converts. A 10-15% click-to-lead conversion rate is normal. So if a click costs $25 and 1 in 8 clicks becomes a lead, your cost per lead is $200. Sounds bad.

But here's what you get for that money that LSAs can't give you:

Keyword control. You can target "emergency water heater replacement" instead of generic "plumber near me." Higher intent = higher close rate.
Landing pages. A dedicated page for "kitchen remodel electrician" converts 3-4x better than sending someone to your generic business listing.
Negative keywords. You block searches like "plumbing jobs hiring," "how to fix a toilet yourself," and "cheapest plumber." LSAs can't do this — you get whatever Google sends you.
Scale. LSA budgets have practical ceilings. Google Ads can scale to $10K, $20K, $50K/month in large markets. When you want volume, ads are how you get it.
Data. You see exactly which keyword produced which call. LSAs tell you almost nothing about why a lead came in.

Where LSAs Win

Credit where it's due. LSAs have real advantages:

Lower barrier to entry. No landing pages to build. No ad copy to write. No keyword research. You set up your profile, pass the background check, set a budget, and you're live.
The Google Guaranteed badge. That green checkmark matters. Consumers trust it. Click-through rates on LSAs are high precisely because of that badge.
Pay only for leads. No wasted clicks. If someone calls you from an LSA, that's a real lead. If it's spam, you dispute it and get your money back.
Top-of-page placement. LSAs appear above Google Ads. Above everything. That's prime real estate.

So Which Should You Run First?

If you're starting from scratch, here's the order:

Step 1: Set Up LSAs

Get the background check done. Get your profile up. Set a modest weekly budget ($100-$300/week depending on your trade). Start collecting leads. This takes 1-3 weeks to get approved and running.

LSAs are the quickest path to phone calls. Low setup cost. No landing page needed. Low risk because you only pay for actual leads. It's the closest thing to "plug and play" in contractor marketing.

Step 2: Launch Google Ads With Proper Infrastructure

While LSAs are running, build the infrastructure for Google Ads: dedicated landing pages, call tracking, negative keyword lists, and conversion tracking. This takes 2-4 weeks to do right.

Then launch Google Ads with $2,000-$4,000/month in ad spend. Focus on your highest-value services first. "Roof replacement" before "gutter cleaning." "Full kitchen remodel" before "outlet installation." Go where the money is.

Step 3: Optimize Both and Scale What Works

After 60-90 days of running both, you'll have data. Real data. Which channel produces leads that close? Which produces the highest job values? Which has the better ROI when you factor in close rates, not just lead costs?

Sometimes LSAs produce cheaper leads that close at 15%. And Google Ads produce more expensive leads that close at 35% because the targeting was tighter. The "cheaper" channel isn't always the more profitable one.

Why Most Contractors Should Run Both

Running both LSAs and Google Ads means you're showing up in two spots on the same search results page. Above-the-fold domination. A homeowner sees your name in the LSA section and again in the ads section. That double exposure builds trust before they even click.

It also means two independent lead sources. If Google changes the LSA algorithm (they do this regularly), your ads are still running. If CPCs spike on ads during peak season, your LSAs are still producing at a flat per-lead rate.

Diversification isn't just a stock market concept. It's a business survival strategy. The contractors who weathered the 2024 LSA algorithm changes without a revenue drop were the ones who had Google Ads (and SEO) running alongside.

If you're weighing this against organic search, read our SEO vs Google Ads breakdown for the full comparison. And for the complete picture of how all these channels fit together, check out the full contractor marketing system.

Common Mistakes We See

Running LSAs with 12 reviews. LSAs are heavily review-dependent. If your competitor has 200 reviews and you have 12, your LSA placement will suffer. Invest in your review strategy before pouring money into LSA budget.
Setting and forgetting. LSA budgets need regular adjustment. Google changes lead prices, demand fluctuates seasonally, and your weekly budget cap should reflect all of this.
Not disputing bad LSA leads. You have a window to dispute junk leads — spam calls, wrong service requests, out-of-area callers. Every undisputed bad lead is money you're handing to Google for nothing.
Running Google Ads without landing pages. Sending ad clicks to your homepage is burning 40-60% of your budget. Dedicated landing pages convert 3-4x better. This is non-negotiable.
Comparing raw lead costs without close rates. A $40 LSA lead that closes at 10% costs you $400 per job. A $100 Google Ads lead that closes at 30% costs you $333 per job. Stop comparing lead costs. Compare cost per closed job.

Ready to Run Both Channels Profitably?

We set up and manage both LSAs and Google Ads for contractors. Every lead tracked. Every call recorded. Every dollar tied to a job. No vanity metrics. No guessing.

Fill out the 2-minute application and we'll show you what both channels would look like for your trade and market — with projected leads, costs, and revenue. If one channel doesn't make sense for your situation, we'll tell you that upfront.