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Online Advertising for Home Services

9/29/2021

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Tips & tricks to help you get the most out of your online advertising.

Even with the millions of homes in the US, the market for home service businesses is a saturated one-- making paid promoting an important marketing method for HVAC, plumbers, roofing professionals, landscapers, and more who want to complete.  However to get a true measure of success, it's crucial to know how your advertisements are carrying out with regard to other businesses like yours. With criteria data, you can answer concerns like: What's an excellent conversion rate for home service advertisements on social media? What's the typical click-through rate for home service company advertisements? What's an excellent cost per lead for house services advertising?

To assist you address these concerns, research was completed for the home services market.  For eight different home service subcategories, we're sharing key metrics for search, display, and social ads, consisting of: Average click-through rate  Typical cost per lead  Typical conversion rate  Typical month-to-month budget plan

Use these averages to see where you stand in your ads' performance and to notify your home services marketing technique for 2021 and beyond.

​​House services promoting standards: search advertising

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The search advertising space is notoriously competitive for house service companies.  Across all categories, the average cost per click varieties from $2.94-$ 9.03, while the typical expense per lead ranges from $29.08 to $101.49.

For both of these ranges, the Pools & & Spas subcategory was at the low end with Roofing & & Gutters at the high end.  Typical click-through rates vary from 2.87% to 5.71%. The highest rate going to Pools & & Spas, the lowest to Plumbing.  Overall, each of these subcategories has high engagement with their advertisements at a reasonably low expense per lead, with regard to the total ROI from their search marketing campaign. For example, the typical plumbing job amounts to $175 to $400, which would be a return on investment of 257-717%.


​Home services marketing standards

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​Display advertising  For any market, show advertisements normally have lower engagement rates than search ads, and we see this in the home services benchmark information.

The typical CTR for display advertisements varies from 0.09% to 0.27%  which is low if you are not using a 10X marketing strategy.  Typical click through rates for cold traffic is  0.006% on a national average.   

The CTR varies on type of campaign. Is it a retargeting campaign or cold traffic campaign?  Are the ads split tested?  Are you targeting with at least 10 different ads to cover your target market.  Most advertising companies do not even know how to do this.

Our strategy is proprietary and unique and this is why we get higher that average click through rates. 

But that does not make this project type any less valuable. Not just do display ads drive brand name awareness-- which is specifically important in such a highly saturated market-- however they also improve conversion rates on your other advertising channels. Most importantly you can retarget your customers to keep your business top of mind and in front of them when they are ready to buy. 

And provided the average regular monthly spend on display screen campaigns for house service organizations, we can see that this is a relatively small financial investment for something that can have such a big impact.  Home services advertising standards: social ads

Social network platforms like Facebook, Instagram, and YouTube might not be the first that jump to mind for house service company marketing-- till you consider the number of property owners use videos and pictures on these platforms to get ideas for, troubleshoot, and fix things in their homes.

For house service companies promoting on social networks, the average CTR ranges from 0.96% to 1.79%, with typical cost per click varying from $0.92 and $1.92.  In addition, a number of the subcategories we examined see a promising cost per lead, particularly when compared to the typical yield of $175-$ 400 per task that was discussed above.  Enhance your house services marketing results  Marketing expenses and ROI will vary according to whether your business falls under plumbing, HVAC, swimming pools and health spas, landscaping, or another classification. Expenses will also differ within those classifications depending on your spending plan, location, and other aspects.  However with these house services marketing standards, you can still get a basic idea as to where you stand in relation to other companies like yours, and determine projects that should be utilized and those that could use some improvement.  You may also be interested in these real estate advertising benchmarks or search advertising standards for the top 20 industries.
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Information sources  This report is based on a sample of 4,595 North American-based LOCALiQ client accounts in the house services vertical who were running search marketing, display advertising, and/or social media marketing in between May 1, 2020, and June 25, 2021. Each subcategory includes at minimum 10 special active customers. "Averages" are technically mean figures to account for outliers. All currency values are posted in USD.



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