Google PPC vs. LSA: Which One Puts Up More Points?

Let's Get Familiar with LSA Ads and PPC Ads

First, a little terminology to make sure were all on the same page.

What is an LSA campaign?

• LSA campaign refers to a Local Services Ads campaign, which helps service-based businesses connect with local customers through top-of-search Google ads tailored to a specific geographic area.

What are LSAs in marketing?

• In marketing, LSAs (Local Services Ads) allow local businesses—like plumbers, electricians, and lawyers—to get direct leads from nearby customers. These ads show reviews, business details, and may include a "Google Guaranteed" badge.

What does LSA mean in advertising?

• In advertising, LSA stands for Local Services Ads. These are pay-per-lead ads, meaning businesses only pay when contacted through the ad—ideal for generating direct leads instead of just clicks.

What are PPC Ads?

• PPC (Pay-Per-Click) ads are a form of online advertising where advertisers pay a fee each time their ad is clicked. These ads appear on Google search results and across the web, and are commonly used to drive traffic to websites, landing pages, or online stores. PPC campaigns are highly customizable, allowing businesses to target keywords, demographics, locations, and devices.

What is the difference between PPC and LSA?

• While both are forms of online advertising, LSA and PPC differ in structure, payment models, and targeting. See the comparison below:

LSA vs PPC: A Side-by-Side Comparison

The difference between the cost of an LSA campaign vs. a Google Search Campaign comes down to the pricing model. Google is essentially charging different amounts for user actions that occur at different stages in the purchase funnel.

Let’s quickly frame this journey so we can understand where the money gets spent when users interact with the different ad options.

In Google’s case, the users logging on to the platform have already passed through the initial phases of the sales funnel (need identification and awareness) and are identifying / evaluating options to satisfy their need. We often refer to these individuals as “hand raisers” because they are here to buy.

To help users complete their mission, Google serves several different types of content on the search results page. At the very top of the page are Google LSA Ads and Google Search Ads. Let’s look at each path:

Clicking on a Search Ad
If users click on a Google Search Ad, they will be taken to the businesses’ website / landing page. When this click occurs, advertisers are charged…this is known ad “Cost Per Click (CPC)”. Once on the landing page, converting the lead into a phone call, email or form fill is up to the owner/manager of that site/page and Google is no longer involved in the journey.

Clicking on an LSA Ad
If users click on a Google LSA ad, they will be taken to the business profile for that business. At this point, the advertiser has not been charged. On the business profile, users will be presented with an option to “Call” or “Message” the business directly…meaning the user is never taken to the businesses website. When users complete one of these actions, Google considers it a “lead” and charges the advertiser…this is known as “Cost Per Lead (CPL)”. Essentially, Google’s business profile is serving the role of a landing page.

In both cases, the actual “lead” occurs when users send a message or place a phone call.

Explore the Performance Difference Using a Business Simulation

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