Return on investment (ROI) is a key metric in marketing, but what counts as a “good” ROI?
- 45% of people are NOT MEASURING ROI? This is a wild stat.
- At least get your basic ROI for all of your marketing total.
- Then figure out what your return is on individual marketing methods.
This article will help you do that, but will also explain what good ROI is and when to double down, along with a bunch of graphs and statistics for the topic.
This guide explains what a good ROI looks like, how to measure it, and why accurate tracking can improve marketing performance. Plus, we’ll highlight several third-party validation tools to help with digital marketing attribution and ROI tracking.
How to Calculate ROI for Marketing
The basic formula for ROI in marketing is:
ROI = ((Gross Profit Generated – Marketing Cost) / Marketing Cost) x 100%
Gross Profit = Revenue from marketing-driven sales – Cost to provide the service.
For example, if an HVAC company spends $5,000 on a digital ad campaign and generates $25,000 in revenue from leads acquired, with a service cost of $10,000:
Gross Profit = $25,000 – $10,000 = $15,000
ROI = (($15,000 – $5,000) / $5,000) x 100% = 200%
This means for every dollar spent, the company made back $2 in profit.
What Is a Good ROI in HVAC, Roofing, and Plumbing?
According to industry benchmarks:
- 5:1 ROI (500%) is a solid target for most home services.
- 10:1 ROI (1,000%) is considered excellent but rare.
- 1:1 ROI (100%) means breaking even—anything below this is a loss.
That said, ROI expectations vary by business goals. If a campaign focuses on long-term brand awareness, the immediate ROI may be lower but still valuable.
What should you do if your ROI is over 5:1?
Spend more!
Especially if your Google ads, Local Service Ads, or SEO efforts are ramping up into that 6 or 7x territory.
Don’t just count your chips.
Double down.
Now is not the time to be shy. If your ROI is high, push in to that particular marketing method.
Industry-Specific ROI Benchmarks
According to HubSpot, companies in the home services sector typically aim for an ROI between 3:1 and 5:1. However, businesses that have a strong digital presence and invest in SEO tend to achieve higher long-term ROI compared to PPC-driven strategies. A well-optimized roofing or HVAC website that ranks in Google’s top three search results can see organic lead acquisition costs that are 70% lower than paid leads.
A CallRail report on lead tracking found that businesses implementing call tracking software saw a 37% improvement in lead-to-sale conversion rates by understanding which marketing channels delivered the highest ROI.
How to Measure Marketing ROI Effectively
1. Track Every Lead Source
- Use call tracking and CRM tools to link leads to marketing channels.
- Google Analytics and UTM parameters can track website conversions.
2. Calculate Customer Lifetime Value (CLV)
- A plumbing company that gains a customer through an ad might see repeat business over time. The first job might generate a 200% ROI, but CLV increases that significantly.
3. Implement Multi-Touch Attribution
- Many home service businesses run ads, SEO, and email campaigns simultaneously. Instead of crediting one source, businesses should use multi-touch attribution models to track the entire customer journey.
Third-Party Tools for ROI Validation and Attribution
Marketing attribution is crucial for proving ROI. The following tools help track and validate digital marketing performance:
- CallRail: Tracks phone calls from marketing campaigns and assigns them to the correct lead source.
- Google Analytics: Measures website traffic, lead conversions, and multi-touch attribution.
- Searchlight Digital: Helps HVAC, roofing, and plumbing companies attribute ROI across multiple marketing channels, offering deeper insight into customer behavior.
- HubSpot Marketing Hub: Offers detailed campaign tracking and automated reporting to monitor ROI over time.
- WhatConverts: Tracks calls, chats, and form submissions to attribute revenue to specific campaigns.
Using these tools ensures marketing efforts align with revenue generation, not just clicks and impressions.
Why Multi-Channel ROI Tracking Matters
Marketing today spans multiple channels—Google Ads, SEO, email, and social media. A roofing customer might see an ad, check reviews on Google, and visit your website before calling. If you only measure last-click ROI, you might overlook key marketing channels that played a role in the sale.
According to Forrester Research, companies that utilize advanced attribution models can see a 15-35% increase in marketing efficiency by reallocating budgets to high-performing channels.
How long does marketing last? (Marketing ROI Statistics)
Doing SEO – your R.O.I. lasts long after your investment.
Doing PPC – still there is some but not as much lingering effects of that marketing after ads are done.
- SEO Longevity: According to Ahrefs, it takes 3-6 months for a new SEO campaign to start showing significant results, but well-optimized content can drive traffic for 2-3 years or more with minimal updates.
- Google Ads Impact: WordStream reports that Google Ads provide immediate results but stop delivering leads as soon as the budget is paused. However, 65% of small businesses that maintain a consistent Google Ads presence for 6+ months see a significant increase in branded searches.
- Facebook Ads Effectiveness Over Time: AdEspresso found that Facebook ad performance declines by 20-30% after 5-7 days due to ad fatigue. This means businesses must refresh creatives regularly to maintain engagement.
- Content Marketing Lifespan: HubSpot reports that compounding blog posts generate 38% of total blog traffic, meaning older content can continue to drive results for years, whereas social media posts have a lifespan of only a few hours to a few days.
- Paid vs. Organic Longevity: Search Engine Journal states that while SEO traffic is 5.66 times more cost-effective than paid search, PPC provides instant visibility but stops working immediately once the campaign ends, whereas top-ranking organic pages can sustain traffic for 2+ years.
These insights highlight the trade-offs between short-term impact (PPC and social ads) and long-term growth (SEO and content marketing).
The Bottom Line: Define Your Own ‘Good’ ROI
While a 5:1 ROI is often cited as a strong benchmark, the best marketing ROI depends on business goals, industry, and campaign strategy. By combining SEO, PPC, and call tracking with data-driven attribution models, HVAC, roofing, and plumbing companies can maximize every dollar spent.
If you need a custom digital marketing strategy that relentlessly pursues results, Hook Agency specializes in SEO, PPC, and web design for home service businesses. We focus on transparent, measurable, and high-performing marketing—because you deserve more than just vanity metrics.
🚀 Ready to improve your marketing ROI? Contact Hook Agency today.