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What is Good ROAS for Google Ads in Home Services

Welcome to a deep dive into maximizing Return On Ad Spend (ROAS) for home services like plumbing, HVAC, and roofing. This comprehensive guide integrates insights from our previous discussion on Target CPA…

Estimated Read Time:  7 minutes


Return on Ad Spend - Plumbing, HVAC, Plumbing

Welcome to a deep dive into maximizing Return On Ad Spend (ROAS) for home services like plumbing, HVAC, and roofing. This comprehensive guide integrates insights from our previous discussion on Target CPA and Target ROAS in Google Ads with Hook Agency’s specialized approach to digital marketing for home services. We’ll explore how to optimize ROAS specifically for the unique needs of the home services sector.

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Understanding ROAS in Home Services

What is ROAS?

ROAS, which stands for Return On Ad Spend, measures the revenue generated per dollar spent on an ad campaign. This metric is pivotal in gauging the efficiency of Google Ads campaigns. Unlike ROI, ROAS zeroes in on short-term advertising spend effectiveness, not long-term net profits.

Setting a “Good” ROAS Benchmark

The general benchmark for an effective ROAS in PPC Google Ads campaigns is around 400%, equating to a 4:1 return. However, this number is not set in stone and can vary based on several factors like industry, campaign effectiveness, and market competition.

Tailoring ROAS for Specific Home Services

  1. Industry-Specific Benchmarks:

    • Plumbing: For a plumbing business, where service calls might average around $1,000, the ROAS will differ from other home services.
    • HVAC: An HVAC company, selling units at approximately $8,000 each, requires a different marketing and ROAS strategy.
    • Roofing: For roofing services, where a typical job like roof replacement might cost about $15,000, the ROAS strategy needs to be adjusted accordingly.
  2. Category Maturity: The uniqueness or novelty of your service in the marketplace affects your marketing strategy. More unique services may require more educational marketing efforts, impacting ROAS.

  3. Advertising Channels: Your choice of advertising platforms, whether Google Maps, Search Network, or Display Network, can significantly influence your ROAS.

Enhancing ROAS: Strategies and Insights

  1. Targeting the Right Audience: Focusing on local markets is crucial. For instance, using Google’s Performance Max can effectively target local customers across multiple channels like Google Maps and YouTube.

  2. Managing Ad Costs: Continuously track and optimize your ad spend by eliminating underperforming ads and refining targeting strategies, including the use of negative keywords.

  3. Landing Page Optimization: The quality of your landing page is a significant determinant of conversion rates. Ensure that your landing pages are professionally designed, easy to navigate, and have compelling calls to action.

  4. Expertise in Digital Marketing: Collaborating with a digital marketing agency like Hook Agency can provide specialized knowledge in managing Google Ads for home service industries, offering a more nuanced approach to achieving a strong ROAS.

Plumbing Return on Ad Spend in Google Ads

Advanced Google Ads Tactics for Home Services

Building on the previous sections, let’s delve deeper into advanced Google Ads tactics that can significantly enhance ROAS for home services:

Advanced Bid Strategies: Target CPA and Target ROAS

  • Target CPA (Cost Per Action): This strategy is ideal for services where you can’t track the exact value of each conversion. For example, in plumbing, if you can’t track the exact revenue from each click that leads to a service call, Target CPA helps you control the cost per conversion.

  • Target ROAS (Return On Ad Spend): This strategy is best suited for services where you can assign a specific value to each conversion. For HVAC and roofing services, where high-value transactions are more common, Target ROAS allows you to optimize ad spend based on the revenue generated per conversion.

Incorporating Conversion Values in Google Ads

  • Assigning Conversion Values: It’s crucial to assign accurate conversion values in your Google Ads settings. For instance, if you know that each HVAC unit sold brings in $8,000, this value should be reflected in your Google Ads conversion tracking.

  • Tracking Revenue: Particularly for high-value services like roofing, where each job might bring in $15,000, tracking revenue against ad spend is critical. This allows you to accurately measure ROAS and adjust your bidding strategies accordingly.

Utilizing Google Analytics and Conversion Tracking

  • Google Analytics: Use Google Analytics to track key metrics and understand user behavior. This data can help refine your targeting and bidding strategies, ultimately improving your ROAS.

  • Conversion Tracking: Properly set up conversion tracking in Google Ads to measure the effectiveness of your campaigns. This includes tracking phone calls, form submissions, and, where possible, the revenue generated from each conversion.

Optimizing Campaigns for Maximum Efficiency

  • Refining Keywords and Audiences: Regularly review and refine your keyword strategies and audience targeting to ensure that your ads reach the most relevant and profitable customers.

  • A/B Testing: Conduct A/B testing on your ads and landing pages to determine the most effective elements that drive conversions.

  • Continuous Monitoring and Adjustment: The digital advertising landscape is dynamic. Continuously monitor your campaigns and make necessary adjustments to stay ahead of market trends and competition.


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Mastering Google Ads for Home Services: Essential Strategies for Plumbing, HVAC, and Roofing

When it comes to leveraging Google Ads for home services such as plumbing, HVAC, and roofing, the key to success lies in a strategic approach that tailors ad campaigns to specific service offerings and customer needs. By integrating the insightful tips from our previous discussions on Target CPA and Target ROAS with additional strategies, businesses in the home services sector can significantly enhance their ROAS.

Advanced Strategies for Effective Google Ads in Home Services

1. Emphasize Proper Tracking

  • The Foundation: Tracking is the cornerstone of any successful Google Ads campaign. It allows you to identify which ads are effective and which are not. For home services, tracking should encompass phone calls, web forms, and, where applicable, text inquiries.
  • Call Tracking Solutions: Implement call tracking to determine the source of phone inquiries – whether they come from Google Ads, SEO, or other channels.

2. Optimize Landing Pages

  • Service-Specific Pages: Create separate landing pages for each service (e.g., furnace installations, repairs, and tune-ups). Avoid directing ad traffic to your homepage.
  • Mobile-Friendliness and Clarity: Ensure landing pages are mobile-friendly and have a clear call to action. Focus on the specific service offered in the ad, avoiding unnecessary links or multiple promotions.

3. Conduct Thorough Keyword Research

  • Finding the Gems: Look for long-tail, less competitive keywords that are still highly relevant and likely to convert. Tools like Google Keyword Planner or SEMrush can aid in this process.
  • Balancing Cost and Volume: Opt for keywords with a lower cost-per-click (CPC) to stretch your budget and achieve a lower cost per lead.

4. Understand and Utilize Keyword Match Types and Negative Keywords

  • Refining Targeting: Choose appropriate keyword match types to improve quality scores and ensure your ads appear for the most relevant searches.
  • Negative Keywords: Implement negative keywords to prevent your ads from showing up for irrelevant searches, thereby saving budget and improving campaign effectiveness.

HVAC Return on Ad Spend, Heating ventilation and air conditioning google ads

5. Structure Campaigns and Ad Groups Effectively

  • Maintain Focus: Keep ad groups focused and thematic, with about 5 to 20 keywords each. Ensure they are aligned with the specific services you’re advertising.

6. Be Patient and Continuously Optimize

  • Optimization is Key: Regularly monitor and tweak your campaigns. Understand that effective Google Ads require time to optimize and yield results.
  • Conversion Rate Awareness: Know your website’s conversion rate to gauge the expected performance of your ads.

Additional Tips for Home Services Google Ads

  • Seasonal Adjustments: Home services such as HVAC might see seasonal fluctuations in demand. Tailor your ads to capitalize on these trends.
  • Promotional Offers: Highlight timely promotions or offers in your ads and landing pages to encourage immediate action.
  • Local SEO Integration: For services like plumbing and roofing, local SEO can complement your Google Ads efforts, ensuring a robust online presence.
  • Customer Reviews and Trust Signals: Incorporate customer testimonials and trust signals on landing pages to build credibility.
  • Budget Allocation: Allocate your budget wisely between various services and ad groups, focusing more on the services that bring higher returns.
  • Use of Visuals: Employ compelling visuals and videos in your ads and landing pages to enhance engagement.

Tailoring Your Campaigns and Having Patience for Success

Mastering Google Ads for home services requires a combination of well-researched strategies, tailored approaches for each service, and the patience to see through the optimization process.

By focusing on proper tracking, landing page optimization, keyword research, and campaign structuring, businesses can significantly improve their ROAS. Additionally, understanding the nuances of your specific services, from plumbing to roofing, and adjusting campaigns to local market demands and seasonal trends will further enhance the effectiveness of your Google Ads campaigns. 

For best results – work with a home service niched marketing agency like Hook Agency who understands ROAS, and how to get significant return from your Google ads. 

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