Local results are based primarily on relevance, distance, and prominence. These factors are combined to help find the best match for your search. For example, Google algorithms might decide that a business that's farther away from your location is more likely to have what you're looking for than a business that's closer, and therefore rank it higher in local results.
Paid search results are those in the top and bottom of the results page, indicated by the small “ad” icon. These are placements that businesses pay for to show up when users search specific keywords. Google Ads can be a very effective way of utilizing ad spend for those who are new or struggling to compete against businesses that rank higher in organic search results. It’s also great for businesses targeting keywords with high revenue potential.