2026-08-11
Local Services Ads vs Google Ads — Which Should an HVAC Contractor Run First?
LSAs cost $45 to $85 per lead against $149 for non-branded search. Here is when each one wins and why most contractors should start with LSAs.
Short answer: start with Local Services Ads, add search ads once you need control. LSAs cost $45–$85 per lead against ~$149 for non-branded Google Ads search, and you pay per lead rather than per click. Search ads buy you targeting and messaging that LSAs cannot.
Most residential HVAC contractors should be running both, in that order.
The cost comparison
| Channel | Cost per lead | You pay for |
|---|---|---|
| Local Services Ads | $45 – $85 | a lead |
| Google Ads — branded | ~$34 | a click |
| Google Ads — Performance Max | ~$72 | a click |
| Google Ads — blended | ~$104 | a click |
| Google Ads — non-branded | ~$149 | a click |
Compare LSAs against non-branded search, since both reach people who do not know you. $45–$85 against ~$149 is not close.
The branded figure at $34 looks cheapest and is the most misleading number in the table — those are people typing your company name. You are paying to keep customers who were already coming to you. Useful defensively, not growth.
Where LSAs win
Position. Above search ads and above the Map Pack. The literal top of the page.
Trust delivered before copy. Your rating, review count, and the Google Guaranteed badge appear together, in the moment a stressed homeowner is deciding fast. No ad copy achieves that.
Pricing model. Per lead, not per click. You are not paying for research browsing.
Disputes. Wrong numbers, spam, out-of-area calls, and job types you do not do can be disputed and credited. Most contractors underuse this — a weekly review of leads is real money.
Where search ads win
Message control. You write the headline. You can lead with financing, same-day service, or a specific brand you are certified on. LSAs give you none of that.
Keyword targeting. LSAs let you pick job types. Search ads let you pick exact queries — so you can bid hard on “ac replacement cost” and avoid “ac filter” entirely.
High-value job targeting. If replacements are your margin, search lets you concentrate spend on replacement intent. LSAs will send you whatever comes.
Landing page control. You choose where the click goes and what it says. LSA leads arrive as a call or message with no page in between.
The honest weaknesses of LSAs
Ranking rewards responsiveness. Missed calls and slow responses hurt placement. A contractor who does not answer the phone will do badly here — fairly, but worth knowing before buying.
Your rating is most of your differentiation. With no copy, review score and volume carry the competitive weight.
Verification takes time. Licence, insurance, background checks. Days to weeks. Start before you need it — signing up during the first heat wave means being verified around September.
Limited control generally. You cannot A/B test your way out of a weak position.
The sequence that makes sense
- Local Services Ads. Cheapest reliable leads. Turn on first.
- Reviews and Google Business Profile in parallel. These feed LSA ranking directly, so the work compounds across both channels rather than sitting in one.
- Search ads on top, once you want message control or want to concentrate on replacement work.
- Organic and map visibility underneath everything, because it is the only layer that keeps producing after you stop paying.
Budget split
A reasonable starting point for a contractor spending $3,000 a month on paid:
- $1,800 LSAs — volume at the lowest cost per lead
- $1,200 search — concentrated on replacement and high-intent emergency terms
Then let the booked-job numbers move it. If search is producing replacements at an acceptable cost per booked job, shift toward search. If LSAs are producing volume you can actually service, shift there.
The number that decides it
Not cost per lead. Cost per booked job, and ideally cost per dollar of gross margin.
At $65 per LSA lead and a 40% booking rate, that is about $163 per booked job. At $149 per non-branded search lead and the same rate, about $373 — but if those search leads are replacements averaging $9,000 and the LSA leads are $350 service calls, the expensive channel is the better buy.
Neither channel is good or bad in the abstract. Both are good or bad against your ticket, and you cannot know which without closing the loop between your ad platform and your CRM.
Sources: Analysis of $14.9M in HVAC Google Ads spend across 816 contractors, January 2026; published Local Services Ads cost-per-lead reporting; Google Local Services Ads eligibility and ranking documentation.