When a pipe bursts in a Peterborough basement at 9 PM, the homeowner isn't scrolling Instagram. They're typing "emergency plumber Peterborough" into Google and calling whoever shows up first.

In 2026, there are two very different ways to be that business at the top of the page: Local Services Ads and Search ads. They look similar to a customer. They work completely differently for you. One charges you per lead. The other charges you per click. Pick the wrong one, or run only one when you should be running both, and you're leaving money on the table every week.

Here's how to choose.

What Local Services Ads are

Local Services Ads (LSAs) are the listings at the very top of Google for local service searches. They sit above the regular paid ads and above the map pack. They show your business name, review rating, and a Google Guaranteed badge.

Three things make them different from every other ad format:

You pay per lead, not per click. In Canada, that's roughly $20 to $80 per lead depending on your trade. You only pay when someone actually calls or messages you through the ad.
The Google Guaranteed badge builds instant trust. Google backs the work with a guarantee, and customers know it.
Reviews drive your ranking. Your Google Business Profile reviews and responsiveness matter more than your budget.

The catch: not every business qualifies, and you have to pass verification to run them.

What Search ads are

Search ads are the classic Google Ads format. Someone searches, your ad shows, you pay when they click. You control the keywords, the ad copy, the landing page, and the geographic targeting down to the postal code.

That control is the point. With a tightly built Search campaign you decide exactly which searches you show up for, filter out the tire-kickers with negative keywords, and send each searcher to a page built for what they typed. We break down what that looks like in practice in our post on why your Google Ads aren't converting.

The catch: you pay for every click, including the ones that don't call you. Sloppy campaigns burn budget fast.

The quick comparison

Local Services Ads:

Pay per lead (roughly $20 to $80 in Canada)
Top of the page, above everything else
Ranking driven by reviews and responsiveness
Limited targeting control, no landing pages
Only available to eligible categories

Search ads:

Pay per click, whether or not they convert
Below LSAs but above organic results
Full control of keywords, copy, and landing pages
Works for every industry
Needs active management to stay profitable

Who can run LSAs in Canada

As of 2026, eligible categories include HVAC, plumbing, electrical, roofing, locksmiths, garage door, pest control, cleaning, landscaping, and general contracting. Google keeps adding categories on a rolling basis, so it's worth checking even if you didn't qualify last year.

To get approved you need:

A verified Google Business Profile (now mandatory for LSA participation in Canada)
Proof of license and insurance on file
A passed background check

If you're a Peterborough trade in one of those categories and you're not running LSAs, you're almost certainly paying more per lead than your competitors who are.

When LSAs win

LSAs win when the search is urgent and the customer just wants someone trustworthy, fast. Emergency plumbing, furnace repair in January, a locksmith at midnight. The customer isn't comparing five websites. They're calling the top listing with good reviews.

The pay-per-lead model is hard to beat here. A $50 lead that becomes a $400 service call is simple math. And because you're only charged for real contacts, a badly configured LSA wastes far less money than a badly configured Search campaign.

When Search ads win

Search ads win everywhere LSAs can't go, and anywhere the customer does their homework before booking.

If you're in healthcare, wellness, or professional services, LSAs likely aren't available for your category. Search is your tool, and it works. We used tightly scoped Search campaigns to double a Peterborough massage clinic's bookings, adding 16 to 20 new appointments a week for Flow Spa. You can read the full numbers in the Flow Spa case study.

Search also wins when the job is considered rather than urgent. A kitchen reno, a new roof, invisible braces. Buyers compare, and a strong landing page moves them your way. LSAs give you no landing page at all.

The right answer for most Peterborough trades: both

For an eligible trade, this isn't really an either-or decision. The setup we recommend most often is:

LSAs as your lead floor. Cheap, trusted, top of the page for emergency and near-emergency searches.
A tightly scoped Search campaign underneath. It catches the searches LSAs miss, the comparison shoppers, and the specific jobs worth more money. Aggressive negative keywords keep it lean.
Both feeding the same phone number and tracking. So you know exactly what each channel costs you per booked job, not per click or per call.

That combination covers the whole page for your money keywords. Your competitors running only one format are visible half as often.

One warning: skip Performance Max until your Search campaign is proven. For a local service business, PMax without guardrails will happily spend your budget on low-intent YouTube and Display placements.

What about budget?

Most Peterborough service businesses see meaningful results starting between $500 and $2,000 a month in ad spend. Where you land in that range depends on your margins and how competitive your category is. We've written a full breakdown of how much a small business should spend on Google Ads if you want to work out your number.

Frequently asked questions

Can I run LSAs myself?

Yes. The verification process takes some paperwork, but setup is simpler than regular Google Ads. Where most businesses slip is review velocity and response time, which drive your ranking. If you're slow to answer the phone, your cost per lead climbs.

Do LSA leads cost the same for every trade?

No. Emergency trades like plumbing and HVAC pay more per lead because the jobs are worth more. Cleaning and landscaping leads tend to be cheaper. Either way, you can dispute and get credited for junk leads.

I'm not in an eligible category. Am I stuck?

Not at all. Search campaigns with call assets and location targeting do the same job, and they give you more control. That's exactly the playbook behind our Flow Spa results.

Should I stop my Search ads once LSAs are running?

Usually no. LSAs don't show for every relevant search, and they can't send anyone to a landing page. Keeping a lean Search campaign underneath means you own more of the page and capture the searches LSAs miss.

Get the right mix for your business

If you're a Peterborough business and you're not sure whether LSAs, Search, or both belong in your plan, that's exactly what we help with. Take a look at our Google Ads management in Peterborough service, or get in touch for a free audit of what you're running now. We'll tell you plainly which format fits your trade and what it should cost you per lead.

Local Services Ads vs Google Search Ads: Which Should Your Peterborough Business Use?