As an HVAC business owner, you’re working around the clock to generate leads, book more appointments, and keep your contractors busy. No matter what your digital marketing goals look like, reaching Google’s first page of search results is probably near the top of your list.
When homeowners search for local HVAC companies, they don’t want to scroll through pages of search results to find your company. They need a reliable contractor to repair their broken AC unit or replace their filters—and they need it fast. That’s why the top three Google search results get 75.1 percent of all clicks.
Maybe you’ve already tried search engine optimization (SEO), but your marketing efforts aren’t driving results yet. Truth is, ranking organically isn’t always easy for local businesses. But it’s still possible to show up on Google’s first page. The solution? Google Ads.
So, how do Google Ads work? And are they really worth it for HVAC contractors? Here’s how to craft an effective paid search campaign without burning a hole in your marketing budget.
Google Ads are advertisements that appear on Google’s search engine. You can promote your HVAC products and services through Google Ads by bidding on specific search terms (AKA keywords).
Google Ads operate on a pay-per-click system where businesses bid on keywords to have ads displayed when people search those terms. So, if a homeowner searches for AC installation, and you bid higher than the competition, you’ll show up at the top of the search results page…right?
Not exactly. The prize doesn’t always go to the highest bidder. Google’s Quality Score also plays a key role in determining which ad wins the top spot. If you can’t outbid the competition, you’ll need to do everything you can to optimize your Quality Score.
Google Ads might seem intimidating, especially if you’re a PPC newbie. But there’s good news: As long as you follow some basic Google Ads techniques, choose the right keywords, and finetune your bidding strategy, you’ll reach Google’s top spot in no time.
We hear the same question from clients all the time: How much should I spend on Google Ads? Well, it depends. Google Ads can be a powerful tool for any business—as long as you have a smart strategy.
Let’s start with some baselines. The average cost-per-click (CPC) of Google Ads ranges between $1 and $2 depending on the type of ad, customer lifecycle, industry, and current customer trends. The most expensive keywords can cost over $50 per click, but these keywords are usually reserved for highly competitive industries with high customer lifetime values (think: law and insurance).
The average return on ad spend (ROAS) for Google Ads is 200 percent, which translates to $2 revenue for every $1 spent. So, if you’re spending $2,000 per month on Google Ads, you can expect to earn around $4,000 back in revenue. Sounds pretty great, right?
Ready to get started with Google Ads? First, you’ll need to set your budget and calculate your ROI. Let’s use a real-life Google Ads scenario to guide your process.
You own an HVAC company in Cleveland, and you love AC installation jobs because they’re incredibly profitable for your business. You craft a Google Ads campaign that focuses on AC installation and maintenance.
Let’s assume these search terms range from $10 to $20, and the average cost is $15 per click. Let’s also assume you charge $5,000 for a new AC installation, and a new AC unit costs $1,000.
You’re optimizing your ads, so one in every four clicks converts into a lead (25 percent conversion rate). In other words, it costs $60 per lead. Then, every one in three leads books an appointment, so your cost per acquisition (CPA) is $180.
You charge a fee for service calls, so you make back half of your money if they don’t move forward. If you get through the door, your closing rate for installations is about 50 percent. So, you sell one out of every two houses that schedule an estimate. That’s an advertising cost of about $360 to make a $5,000 sale.
Now, to calculate your ROI, take the revenue from your ads, subtract your overall costs, and divide by your overall costs. In this scenario, your ROI is (5,000-(360+1,000)/(360+1,000), or 267 percent per sale.
Now that you know how much Google Ads cost, it’s time to answer the million-dollar question: Are they a good idea for your business? Obviously, the answer is yes. But again, you’ll need the right strategy to make the most of your hard-earned advertising dollars.
There’s a reason why HVAC companies pour so much money into Google Ads. It’s a smart way to get in front of local homeowners, especially if you’re new to search engine optimization.
You already know that the HVAC industry is a competitive one—and that’s where PPC can save the day. How? It’s simple: Google Ads put your business ahead of the competition. And, unlike SEO, they do it quickly. While SEO can take months (or even years) to take your business to Google’s first page, Google Ads can drive your business to the top spot within weeks.
But the benefits of PPC don’t end there. According to Wordstream statistics, HVAC enjoys one of the best Google Ads conversion rates (3.3 percent, on average) among all industries. So, what are you waiting for?
Google Ads can drive traffic to your website, but here’s the catch: Impressions and clicks don’t keep the lights on. If that were the case, everyone would be running a successful small business.
If you want to maximize your return on ad spend, you need high conversion rates and low costs per conversion. Without the right Google Ads strategy, you’re only going to send valuable ad dollars down the drain—all while losing mountains of customers to the competition. Here’s how to make Google Ads work for you.
Even if you’re spending thousands on Google Ads, you’re not going to drive conversions if you don’t target the right keywords.
That’s right: Keyword targeting is what sets you apart from the amateurs. We’ve seen HVAC clients target only a few keywords—and these keywords do nothing but eat away at their ad budget. Imagine targeting keywords for months and pouring thousands of dollars into Google Ads, only to drive a handful of leads. We’ve seen it.
If you’re already running a Google Ads campaign, it’s probably time to audit your keywords. Start by asking the following questions:
Your ad budget is precious, and you shouldn’t target keywords that are too general. Do your marketing homework, review your keywords regularly, and stay on top of industry trends to find the best HVAC keywords.
You’re advertising to local homeowners within a specific service area, so location targeting is pretty self-explanatory. After all, you don’t want to throw away money for clicks from searchers who don’t live in your service area (and will never convert).
If you’re not using location targeting, here’s your sign to start. Geo-targeting is one of the best ways to narrow your targeting options so you’re only serving ads to homeowners in your service area. It’s the tool you need to slash your advertising costs, amplify your ROI, and deliver ultra-personalized ad experiences to your target audience.
If you’re already using geo-targeting, make sure you’re serving ads to the right people by double-checking your location settings. Don’t ignore your advanced location settings, either. They’re called “location options,” and you can find them on the settings page at the campaign level.
Once you’ve mastered keyword and location targeting, it’s time to move on to the final piece of the puzzle: audience targeting. When you build audiences with Google Ads, you’ll get the most out of the unrivaled targeting features they offer.
If you’re just getting started, try creating a retargeting audience to recapture lost leads. By serving ads to people who have already visited your website, you can keep your business top of mind. Then, when they’re ready to book an HVAC appointment, you’ll be the first one they think of.
Already using target audiences? Take your audience segmentation to the next level with CRM data. When you tap into customer data, you can serve hyper-personalized ad experiences to different audience segments, which can make all the difference in your ROI.
Just like every other digital marketing solution, Google Ads are only one way to drive business and build brand awareness. It’s a worthwhile investment for any HVAC business, but you’ll need to spend your advertising dollars wisely to maximize your return on investment.
The best way to grow your HVAC business? Build a strong foundation. Your marketing strategy shouldn’t end with Google Ads. You need a holistic, long-term HVAC marketing plan that combines SEO, PPC, social media, and other solutions to dominate the competition.
When you’re ready to take your ad strategy to the next level, we’re here to help. Give us a call to ramp up your HVAC business with powerful paid search strategies.
