WHAT IS AVERAGE COST PER CLICK HOME IMPROVEMENT CONTRACTOR? Understanding advertising costs is a critical part of growing your home improvement business. One of the significant digital advertising expenses is the cost per click (CPC). It is what you will pay each time a potential customer clicks on your online ad. It can highly differ from industry to industry, city to city, and how many other companies you compete with. As a home improvement contractor, you need to know your average cost per click to execute more effective marketing campaigns. This article explains what cost per click is and how it is calculated.
AVERAGE COST PER CLICK HOME IMPROVEMENT CONTRACTOR
CPC is a principal component of online advertising, particularly concerning Google Ads. To put it simply, CPC is the amount of payment you will process when someone clicks on your digital ads. Home improvement contractors will end up in a situation where they pay for the clicks to their website. Their customers can click the ads to order services like remodelling, roofing facilities, plumbing services, etc.
So why do you need to examine the cost per click? This is a significant factor when calculating your advertising expenses and return on investment. A higher cost per click usually implies there is more competition in your city or even a country. It also is affected by a niche service you are offering or a less competitive market.
Factors Affecting Average Cost Per Click
Among all the factors that may influence cost per click, there are:
- Location: Urbanised and overcrowded places are much more expensive to advertise in;
- Type of facilities: Common services like roofing or bathroom remodelling frequently have higher costs per click than other services in the niche, e.g., closet overhaul.
- Competition: The more companies bid on the same keywords, the higher the cost per click they get.
- Keyword relevance: General keywords consider “home improvement” to cost more than the more specific events like “bathtub tile replacement based in LA”
- Ad quality: Google Ads Quality Score is higher.
The average cost per click is a critical element for any home improvement contractor seeking to effectively allocate their marketing budget. Here are the figures for the commonly used services:
- General Home Improvement: $2.50 – $5.00 per click
- Roofing Services: $3.00 – $7.00 per click
- Bathroom Remodeling: $4.00 – $8.00 per click
- Kitchen Remodeling: $5.00 – $9.00 per click
- HVAC Services: $3.50 – $6.50 per click
- Plumbing Services: $2.00 – $4.50 per click
- Flooring Installation: $3.00 – $5.50 per click
- Window Installation: $3.50 – $7.50 per click
- Landscaping: $2.50 – $6.00 per click
- Painting Services: $2.00 – $4.00 per click
Please remember that these figures are only estimates and can change based on your location, competition level, etc.
How to Calculate Your Advertising Budget with CPC?
To effectively implement an advertising budget, home improvement contractors should use their average cost per click and number of clicks they need to meet their objectives. Here is a simple example:
- Set a Monthly Budget: Decide how much you are willing to spend per month.
- Estimate Clicks: If you want to reach 100 potential customers and you know that 5% of your clicks lead to leads, estimate the amount of clicks needed to reach the target.
- Calculate Costs: Multiply the cost per click by the number of clicks.
Example
- Monthly Budget: $1,000
- Average CPC: $5
- Estimated Clicks: $1,000/$5 = 200 clicks
Tactics to Reduce CPC for Home Improvement Ads
Having a lower CPC would positively affect your overall budget, meaning you will be able to reach more prospective customers without exceeding your set limits. Here are some of the tactics you could consider.
- Make sure your ad closely aligns with the keyword: Ads highly relevant to the search query can result in higher quality scores, and higher quality scores can result in lower CPC.
- Refine your target audience: There are several targeting options to reach the most relevant people possible. In particular, use location-based targeting if your business is local to a certain area.
- Use negative keywords: Negative keywords ensure your ads do not show up when people search for terms with which you don’t want to be associated. For example, a contractor who specializes in high-end work might add “cheap” as a negative keyword.
- Optimize landing pages: The page to which your ad links is one of the factors in the calculation of the Quality Score. In general, ensure landing pages are fast, have relevant content, and are mobile-friendly.
How CPC Affects ROI?
The way your cost per click affects your return on investment can be a bit complex. On the one hand, if a high cost per click can still be worth it if the clicks are valuable and feed to leads who turn into clients. On the other hand, if your cost per click is hitting you in the wallet with no signs of letting up, it might be time to retroactively change your strategy.
- Conversion rate: the percentage of clicks that result in leads or customers.
- Cost per lead: the cost each lead represents.
- Customer Lifetime Value: How much revenue a customer represents over their entire life cycle.
Tips to Maximize CPC ROI in Home Improvement Advertising
- Performance analysis: Make sure to keep track of key performance indicators by using Google AdWords and Analytics.
- A/B Testing: Try different ad copies and landing pages to see which of them perform the best. Sometimes small changes have a high impact on CTR and CPC.
- Adjust Bids According to Performance: You need to constantly review the bids you have placed on various keywords. If a keyword is generating no leads, try to bid lower for the keyword and invest more in the keywords that seem to generate promising leads.
- Invest in Re-targeting: You can invest some amount of money in showing ads to the visitors who visited your website previously but have not taken any action. They could be reminded and informed of the second chance to contact the company and convert.
Common CPC Myths in Home Improvement Marketing
There are some misconceptions related to cost per click that we would like to get rid of:
- Myth 1: High Cost Per Click Always Means Higher Lead Quality
Though there is a chance that higher CPC will lead to better quality homes, that doesn’t happen always. Sometimes focusing on lead quality could help more rather than the cost per click.
- Myth 2: A Low Cost Per Click Rate Is Always Advantageous
Having a low CPC rate could benefit your organization but having a very low CPC rate could lead you to irrelevant clicks. It seems beneficial at first but later, will tend to cost much more.
- Myth 3: More the Clicks Better the Results
More clicks could lead to sales also
It may lead to increasing the presence and reputation of the business at the same time. But, concentrating only on the number of clicks is not fair, the quality of the clicks is also important.
Conclusion:
Thus, the factor that influences the cost per click for home improvement contractors is the target audience. A good CPC for home improvement ads is one that allows you to effectively achieve profitable conversions. Some ways of increasing the ROI on CPC advertising are tracking performance, A/B testing, and retargeting.