If an LSA provider and a Google Ads advertiser compete for the same Maps search, Google does not simply give the placement to whoever spends more. The two formats are generally evaluated through different advertising systems, with eligibility, relevance, location, bid or budget signals, and the user’s search context affecting delivery.
An LSA may appear when someone is looking for a local service and is eligible to receive a call, message, or booking. A Google Ads campaign may appear through a Maps-enabled Search or Performance Max placement, often directing the user to a website, call action, or business location.
In practice, both ads can reach the same customer, but they are not necessarily competing in one shared auction. Compare them by qualified leads, cost per customer, booked jobs, and revenue rather than assuming the higher budget will always win.