Google Business Profile vs. Paid Ads: Where Contractors Should Spend First

You've probably asked yourself this question at least once: “Should I be paying for ads, or should I just focus on getting more reviews?” Maybe you've seen competitors dominating Google Maps while you're stuck on page two. Or maybe you've burned through ad budget with disappointing results and wondered if there's a better way.

Here's the short answer: Start with your Google Business Profile, then layer in paid ads once you have a solid foundation. It sounds simple, but most contractors do it backward and waste thousands of dollars in the process.

Think of it this way. Running paid ads without a strong Google Business Profile is like putting up a billboard that points to an empty parking lot. You'll get people to look, but they won't stick around. In this post, we'll break down exactly why GBP should come first, when to add paid ads, and what realistic budgets look like for each. No fluff, just the numbers and strategy you need to make smart decisions about your contractor marketing.

Google Business Profile: Your Free Lead Machine

Your Google Business Profile is the listing that shows up when someone searches for contractors in your area. It appears in Google Maps and in the local search results, often called the “Map Pack.” This is that box with three businesses that appears above the regular search results.

Here's why this matters more than you think. The Map Pack gets 42% of all clicks for local searches. That means nearly half of all homeowners looking for a contractor click on one of those three map listings before they even scroll down to see paid ads or regular websites. Your GBP is often the first impression potential customers get of your business.

So what makes a Google Business Profile rank high enough to appear in that top three? Google looks at several factors. Review quantity and how recent they are matter a lot. A contractor with 50 reviews from the past six months will outrank one with 50 reviews from three years ago. Photos make a difference, too. Profiles with recent project photos get more engagement. Complete information (services, hours, service areas) helps Google understand what you do. Regular posts about projects or tips show you're active. And your response time to messages and reviews signals that you're reliable.

The best part about GBP? It's completely free. You're getting traffic without spending a dime on ads. It also builds trust in a way ads can't. When homeowners see dozens of real reviews from real customers, they feel confident calling you. And unlike paid ads that stop the moment you stop paying, a strong GBP compounds over time. Each new review makes you stronger. Each new photo adds credibility.

But there are downsides. Building a strong profile takes time. You can't snap your fingers and have 50 five-star reviews tomorrow. You're also competing with contractors who've been building their profiles for years. If you're just starting, it might take six months to a year to see serious results from local SEO for construction businesses.

Paid Ads: Instant Visibility

While your GBP builds slowly, paid ads give you results right now. For contractors, there are two types of Google ads that actually matter: Local Services Ads and Google Search Ads.

Local Services Ads are the ones at the very top of search results with the green "Google Guaranteed" checkmark. These are pay-per-lead, meaning you only pay when someone actually contacts you through the ad. Google vets your business, checks your license and insurance, and gives you that badge. Homeowners trust it because Google is putting their reputation behind you. You'll typically pay $50 to $150 per lead depending on your trade and location. Plumbers and HVAC usually pay more than painters or handymen.

Google Search Ads appear below Local Services Ads but above regular search results. These are pay-per-click, so you pay every time someone clicks your ad, whether they contact you or not. The advantage here is more control. You can target specific services like "kitchen remodeling" or "emergency plumber," and you can focus on specific neighborhoods or zip codes. You can also control your ad copy and which page people land on.

The upside to paid ads is obvious. You get immediate visibility. Launch a campaign today and you could have phone calls by tomorrow. Ads are also scalable. If you're getting good results, you can increase your budget and get more leads. And everything is measurable. You know exactly how much you spent and how many leads you got.

The downsides? It costs money, sometimes a lot of it. Google ads for contractors aren't cheap, especially in competitive markets. Ads also require ongoing management. You need to adjust bids, test ad copy, and track which keywords convert. And the moment you stop paying, your visibility disappears. There's no compounding effect like with GBP.

The Right Order: Foundation First, Accelerant Second

Now that you understand both options, here's the strategy that actually works. Don't try to do everything at once. Follow these steps in order.

Step 1: Fix your Google Business Profile. If your profile is incomplete, has no photos, or has only a handful of old reviews, your ads won't convert well. Why? Because homeowners don't just click an ad and call. They research you first. They look at your reviews. They check your photos. They compare you to competitors. If your GBP looks weak, they'll call someone else even if your ad brought them there.

Step 2: Build review momentum. Your goal should be to get to at least 20 reviews with a 4.5-star average or higher before you spend heavily on ads. This typically takes three to six months if you're actively asking satisfied customers. At this level, you look legitimate. You're not the brand-new guy with two reviews. You're established enough that homeowners feel comfortable choosing you.

Step 3: Layer in paid ads. Once your GBP is strong, now your ads have a powerful landing spot. When someone clicks your ad and checks your profile, they see dozens of positive reviews, recent photos, and an active business. Your conversion rates go way up because the whole picture looks professional.

Why does this order work? Your Google Business Profile is the foundation of all your online presence. Running ads without that foundation is like building a house on sand. Sure, you might get some calls, but you'll pay way more per lead because fewer people convert. Your cost per customer acquisition goes through the roof.

Think of GBP as the credibility that makes everything else work better. It helps how to rank on Google Maps, it makes your paid ads convert better, it gives homeowners confidence when they find you organically. Once that foundation is solid, paid ads become the accelerant that pours gasoline on an already-burning fire.

Budget Reality Check

Let's talk actual numbers, because you need to know what this really costs.

Google Business Profile optimization: If you're hiring help, expect to spend $500 to $1,500 per month for someone to manage your profile, get reviews, post regularly, and respond to messages. If you're doing it yourself, it costs time instead of money. Plan on spending five to ten hours per month to do it right.
Local Services Ads: Budget $50 to $150 per lead depending on your trade and market. Plumbing and HVAC tend to be on the higher end. General contracting, remodeling, and painting are usually in the middle. If you want 10 leads per month, budget $500 to $1,500.
Google Search Ads: This is where it gets expensive. To see meaningful results, you need a minimum budget of $1,500 to $5,000 per month. Anything less and you're spread too thin across keywords and won't generate enough data to optimize. In competitive markets like major cities, you might need even more.

Here's the ROI math that makes it worth it. Let's say you're a kitchen remodeler and your average project is $15,000. If you spend $2,000 per month on marketing and close just one job, you've paid for six months of marketing with one customer. Most contractors close one out of every three to five qualified leads. So if your marketing generates 15 leads per month, you're likely closing three to five jobs. The numbers work.

The key is building your GBP for contractors first so your paid ad dollars convert at the highest possible rate. A strong profile might give you a 30% conversion rate on leads, while a weak one might only convert at 10%. That difference determines whether your marketing is profitable or not.

Ready to Build Your Foundation?

You don't need to choose between GBP and paid ads. You need both, but in the right order. Build your Google Business Profile first. Get those reviews, add those photos, fill out every section. Once you're ranking in the Map Pack and have strong social proof, then add paid ads to scale up your lead flow.

The contractors winning in 2026 aren't the ones spending the most on ads. They're the ones who built a strong foundation first, then used paid ads to amplify what was already working. Start with your Google Business Profile, and you'll get better results from every marketing dollar you spend after that.

Stop guessing what works and start following the proven path that turns your marketing dollars into actual jobs.