Whoever said HVAC marketing is a breeze must have been joking! If you’re in the HVAC business, you know that managing your marketing budget is as essential as keeping your customers’ homes warm in winter and cool in summer. This blog post is your one-stop shop for maximizing your HVAC marketing budget in 2024, and we’re going to walk you through it all – from determining your budget to tracking your ROI. So grab a comfy seat, and let’s dive right in!
DETERMINING YOUR HVAC MARKETING BUDGET
Setting a marketing budget for your HVAC business is like setting the temperature on a thermostat – you’ve got to find the sweet spot that keeps things running smoothly. And that sweet spot is influenced by factors like company revenue, business size, location, and your goals.
For instance, you’ll want to make sure you invest at least half of your marketing dollars in SEO, pay-per-click digital ads, and Google Local Services. Ads to maximize your online presence. Plus, let’s not forget the importance of a speedy response time – because everyone knows that lightning-fast service is the key to winning customers’ hearts.
And, of course, managing online reviews is crucial because positive feedback is like the cherry on top of your HVAC marketing sundae. So, are you ready to whip up the perfect HVAC marketing strategy?
Percentage of Revenue Approach
When allocating your HVAC marketing budget, one approach is to dedicate a percentage of your revenue. For small-to-midsize HVAC companies, the general rule of thumb is to invest between 7-10% of your annual revenue in marketing. But wait, don’t let those numbers scare you away! The cost of SEO for small-to-midsized HVAC companies ranges between $1500 to $5000 per month, while a social media marketing budget can be anywhere from $900 to $20,000 per month. So, by investing a percentage of your revenue, you can ensure you have enough funds to cover these expenses and make your online presence shine.
But what about your social media wallet size? It’ll depend on how many platforms you want to rock and whether you choose to go for social media ads. So, you might need to adjust your marketing budget percentage to suit your specific needs. Remember, the goal is to create a marketing strategy as hot as your HVAC services!
Competitor Analysis
Another way to determine your budget is by analyzing your competitors. By researching and analyzing their strategies, strengths, and weaknesses, you can gain insight into their products, sales, and marketing approaches.
In other words, you can learn from their successes (and mistakes) and find gaps in the market to swoop in and steal the spotlight. This can also help you determine an appropriate budget for your HVAC business.
So put on your detective hat, grab your magnifying glass, and start snooping around your competitors’ marketing budgets!
WHAT PERCENTAGE SHOULD GO TOWARDS MARKETING?
I know this seems like a simple question with a simple answer but ultimately it really does depend. Some sources state that most small businesses choose to spend around 2-5% of their sales on marketing. For a small business that doesn’t do a lot of money in revenue a 2-5% might only be $20,000-$50,000 a year.
Don’t get us wrong; that’s not a “small amount,” but that’s only if your company is already making 1 million in revenue. Don’t be intimated by these numbers, instead focus on what you and your company can do and what you can put that money towards.
BIGGER MONEY = BIGGER RESULTS
You’ve probably heard of multi-million dollar marketing campaigns, and might even know that having your name on a billboard can cost upwards of thousands of dollars. But when it comes to marketing, if you’re doing the right things, the more money you put towards it, the better result you’ll likely have.
Take ad-based spending, for example. The more money you spend on an ad that’s bringing in leads, the more leads you’re likely to get, although this doesn’t apply to every marketing practice.
WHAT TO SPEND YOUR MARKETING BUDGET ON
After determining how much you’ll spend on your company’s marketing, you can determine what that marketing spend will go towards. From paper to online advertisements, SEO, radio ads, truck wraps, and more. There are quite a few options down there and your choices should ultimately depend on what offers your company the best ROI.
Here are a few of the different options broken down and what might be a recommended spend for them.
Website
A good website will include quite a few different aspects. There’s good design, clear calls to action, as well as trust factors throughout the site. Other things that can help to make a good website include SEO, content strategy, and the copy that fills your website.
Your website also needs to be mobile-friendly and designed to encourage customers to reach out to you about the services you offer. You might not need to make any changes depending on when your website was designed and how often it’s been kept up to date. But if you find yourself at a loss and looking for something new, reach out to us! We’d be happy to help you build out a lead-generating HVAC website.
SEO
An SEO strategy will include ensuring that your website is easy to find on Google and up to standards so that search engines know what your site is all about. There should also be a content strategy where you regularly release blog content and other resources for your audience. By doing this, you help to both inform your readers on what’s going on within your industry, but it also helps to ensure that your website can easily be found on Google.
Google Ads (PPC)
Google ads are another great way to get more traffic to your business and to your services. But, just like any other marketing campaign, there are a few things that you need to keep in mind. You have to be able to track your ads and know what they’re doing for your company. If you’re not careful, you can spend your entire budget without getting any results. PPC can be incredibly productive but also very expensive for those who aren’t experienced with it.
Radio/TV Advertising
Radio and TV can be a great way to reach a lot of people quickly. You can get some pretty good time slots for these and they’re not too expensive either which makes them perfect if you’ve got an allotted budget that won’t be touched by anything else.
The key with any marketing campaign, no matter what type it is, will always be the strategy behind it. Your company can spend all the money in the world but if you don’t know what you’re doing and how to get results then your marketing budget will be a total waste.
Social Ads
Social ads can be a great way to reach your audience even if you’re not doing anything with SEO or Google Ads. You still need to work on the strategy but social advertising is less expensive and more of an “organic” form of marketing that doesn’t require as much upkeep.
PHYSICAL MARKETING MATERIALS
It’s not just digital marketing that will help your company grow. You also need to have physical materials on hand to take them out into the world. Whether it be a flyer, business card, or postcard, these items will help people remember who you are and what services you offer when they see them. Here are a few ideas of different materials you can use.
Mailers
If you’re looking for a cheaper option, mailers are always great. These can be as simple as flyers that will go out in your local area or include some sort of offer or coupon to entice readers to contact you further if the information piques their interest. The best part about using mailers is that you can send them to specific and targeted areas. Perhaps an older area or a place that you think could use your services would be a good place to target your business based on the services you offer.
Newspaper Ads
Newspaper ads have been around since the first newspapers and are still effective today! You can advertise specials, deals, and sales or represent your brand in the local paper for a low cost. Not every homeowner is going to read the paper like they used to. This can be one of the downsides of advertising in the paper, but for the price, you’ll be able to reach lots of potential customers through the advertisement.
Billboards
Trying to make a statement and be seen by lots of people? A billboard might be just the thing you need! A billboard is a good idea for any larger company or business that can handle huge numbers of leads. You’ll need to know where you want your advertisement and where you’ll get the best exposure for your company.
Truck Wraps
Truck wraps can do the trick if you’re looking for a more permanent form of advertising. These are great if your company already has an image or is trying to promote its logo and other information about what it offers. Creating brand awareness is a good way to get your name into the minds of customers all throughout your community.
HOW TO BALANCE AN HVAC MARKETING BUDGET
If you’re not careful, spending your HVAC marketing budget without any results is easy. You need to balance different elements of the budget to see what is bringing in the most money and optimize your budget to get more of the things that are working.
When to Outsource
One way to “save” money is finding the right way to outsource your marketing work. Here’s a few examples of what will work well for outsourcing. Sometimes, hiring an outside company or freelance marketer will save you more money than it would cost to employ someone full-time.
Outsource Campaign strategy, promotion materials (flyers, postcards), radio advertising, website design, digital marketing and SEO, Pay-Per-Click (Google Ads).
Outsourcing most project-based work will be cheaper for you as a business owner. However, ongoing projects such as SEO and PPC will often be served well through outsourcing. Hiring a specialized team that works within digital marketing every day can be a huge advantage.
TIPS FOR SMALL COMPANIES
A small business has different needs than a large one so you’ll need to devise a plan based on how much time and attention you can give it. Callouts or social media posts might be enough if this applies to your company. Promotions or coupons can also be a good way to entice people to visit your website. As a small company, you won’t have a large enough budget to experiment with. Instead, try to find what offers the highest ROI and regularly use that process for your marketing.
As your company grows, you’ll be able to start investing more resources into different marketing efforts and hopefully find a long-term solution that works for you.
TIPS FOR MID-SIZED COMPANIES
Mid-sized HVAC companies have a lot of advantages because they don’t need to worry about being too small or having all the resources and needed management like a large company. This is an advantage when it comes down to marketing because you’re not in such direct competition with other HVAC businesses and can still get attention for what your business offers.
When finding success as a mid-sized company, look to find your nice and stay in that lane as best you can. There are a lot of ways you can take your HVAC company. But, instead of struggling with direction, find what works best for your company and use that to your advantage.
TIPS FOR LARGE COMPANIES
If you’re a large company, then there’s no reason to stop marketing just because of your size. You have the resources and time. One thing to consider is that you might want to focus on a specific type of service or product if your company offers more than one since it can be difficult for customers to choose from so many options. Additionally, while print ads are still around and can be a very efficient use of money, the real competition is in digital market.
Ultimately, make sure your marketing dollars are working for you and not against you. There are plenty of ways to spend money throughout the HVAC marketing world, but only a few of them are actually going to pay off.
UNDERSTANDING YOUR AUDIENCE
How will you know what your audience wants if you don’t study them? In order for HVAC companies to be effective with their marketing, they need to understand who they’re trying to reach and where. Understanding the demographics of your area might help narrow down a specific group that you can target with the marketing and ad campaigns. Learn what they need, what they want, and what they respond best to.
The best way to get to know and understand your audience is to talk to them. Take time to get to know who they are as homeowners or business owners, and find a way to solve their problems with your business model. What they need, can be what you offer, but only if you take the time to get to know them.
CASE STUDIES: SUCCESSFUL HVAC MARKETING BUDGET ALLOCATION
Now that we’ve covered the ins and outs of HVAC marketing budget allocation, let’s examine some real-life examples of HVAC companies that have successfully allocated their marketing budgets to achieve growth and increased revenue.
These case studies show how proper budget allocation can significantly improve your business’s bottom line.
Company A
Company A is a shining example of successful HVAC marketing budget allocation. They started by investing 7-10% of their annual revenue in digital marketing. By doing this, they could cover the costs of SEO and social media marketing, ranging from $1500 to $5000 per month and $900 to $20,000 per month, respectively. This investment paid off, as Company A saw a significant growth in leads and revenue.
In addition to their digital marketing efforts, Company A also took a chance on traditional marketing channels like radio and print advertising. This well-rounded marketing approach allowed them to reach a broader audience and boost their brand recognition. The result? Company. Company. A’s business took off like a rocket, proving the effectiveness of a carefully planned and executed HVAC marketing budget.
Company B
Company B took a different approach to its HVAC marketing budget allocation by diversifying its investments across various marketing channels. They invested in both digital and traditional marketing methods, such as website design, SEO, Google Ads, HVAC marketing videos, and direct mail marketing.
By spreading their marketing budget across these channels, they were able to reach a wider audience and increase brand awareness. The result? Company B’s HVAC business flourished, and its brand became more recognizable within its target market.
This case study demonstrates the power of diversifying investments in marketing and the potential for growth when the budget is allocated effectively.
TIPS FOR MANAGING YOUR HVAC MARKETING BUDGET
As we wrap up our HVAC marketing budget journey, let’s review some top-notch tips for managing your budget like a pro. First, regularly review and adjust your budget based on performance data and changing market conditions. This will help you stay on top of your marketing game and adapt to any changes that may arise.
Regularly Review and Adjust
One of the most important aspects of managing your HVAC marketing budget is regularly reviewing and adjusting it based on performance data and changing market conditions. This means keeping a close eye on your KPIs and adjusting your budget as needed. By doing this, you can ensure that your marketing budget is being used effectively and that you’re getting the most bang for your buck.
Remember, the key to a successful HVAC marketing budget is to stay flexible and adapt to changes. So don’t be afraid to adjust and experiment with different strategies – it’s all part of the process!
Collaborate with Experts
Secondly, collaborate with influencers and marketing professionals or agencies. These experts can provide invaluable insights into the best strategies to reach your target audience and access top-notch tools and resources. They can help you optimize your budget and improve campaign results, ensuring that you get the most out of your marketing investment.
When searching for an agency to collaborate with, please do your due diligence and investigate their experience and track record. Look for an agency with experience in the HVAC industry and a proven track record of successful campaigns. By working with experts, you can give your HVAC marketing budget the boost it needs to achieve the best possible ROI.
Whatever it is for your company, we’d be happy to help you find the right marketing solution. One that keeps your business ahead of the competition and on track for healthy growth.
Hook Agency
At Hook Agency we work hard to provide the right marketing solutions for our clients. Every business is different and we want to take the time to get to know your business, how it works, and what’s going to be the best fit when it comes to your marketing strategy. Sometimes, a new website is a great tool. Other times, you may need leads fast, so you’ll turn to PPC. SEO is an excellent long-term solution with ROI that can continue to be seen for decades.
Whatever it is for your company, we’d be happy to help you find the right marketing solution. One that keeps your business ahead of the competition and on track for healthy growth.
In Conclusion
Managing your marketing budget is no easy feat – but with the right approach, you can make your marketing efforts more effective and maximize your ROI. By determining your budget, understanding the essential components of an effective HVAC marketing strategy, allocating your resources wisely, and tracking and measuring your ROI, you can set your HVAC business up for success. So, whether you’re a seasoned HVAC pro or just starting in the industry, take these tips to heart and watch your HVAC marketing take off like a rocket!
