Answers · PPC
Local Service Ads vs Google Ads — which should a Colorado contractor use?
Updated April 30, 2026 · Honest answer from a Colorado agency that does this work daily.
Short answer
Use both. Local Service Ads (the Google Guaranteed badge at the top of search results) typically produce the cheapest cost-per-lead for Colorado home service businesses — often $25–$60 per lead. They're capped by demand. Google Ads gives you control over messaging, landing pages, and broader keyword coverage but costs more per lead. The optimal strategy: max out LSAs first, then layer Google Ads to capture additional volume.
- LSAs: cheapest cost-per-lead, limited to home services, capped by demand
- Google Ads: broader keyword coverage, more control, higher cost-per-lead
- Run LSAs first, then layer Google Ads on top
- LSAs require Google Guarantee verification (background checks, insurance)
- Common combined budget: $2,000–$8,000/mo across both
Why LSAs win on cost-per-lead
LSAs charge per lead (not per click), so unqualified clicks don't cost you anything. The pricing model alone makes them cheaper than Google Ads for most home service businesses.
They also display the Google Guaranteed badge prominently, which lifts conversion. And their position above all other ads means they capture searchers before they see anything else.
Why you still need Google Ads
LSAs are limited to specific service categories (mostly home services and a few professional services). They don't show for every relevant search. They cap your daily lead volume and you can't bid more to capture more.
Google Ads fills the gaps: branded campaigns to capture people searching for your business name, niche services LSAs don't cover, geographic expansion beyond your LSA radius, and remarketing to people who visited your site.
Follow-up questions
How do I qualify for LSAs?
Submit business license, liability insurance, and pass a background check (you and your team). Verification takes 1–3 weeks. Some categories require additional certifications.
Can I dispute LSA charges for bad leads?
Yes. Google refunds verified bad leads (wrong service, wrong area, spam). Dispute every legitimately bad lead — refund rate runs 5–15% for active accounts.
What if I'm not in a category Google offers LSAs for?
Google Ads is your primary paid channel. Many professional services (consulting, B2B) aren't eligible for LSAs.
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