Are Paid Ads Beneficial For Contractors?
Do paid ads work for contractors? Is PPC the right type of contractor advertising? How can I benefit from paid ads as a contractor? These questions are usually asked by people, who do a contracting business.
In fact, each contracting business is different. That’s why every contracting business has to be promoted differently. What is great about paid ads is that this advertising solution is very flexible. That means that you can set the budget for your ads, stop or suspend your advertising campaign anytime. It makes a lot of sense to test PPC ads to promote a contracting business.
Once your Pay per Click has been launched, it’s necessary to make some calculations. When you use paid ads, you’ll get numbers. With these numbers, you will manage to make important decisions about the efficiency of your paid ads. Today, we’ll explain how to figure if Pay-per-Click advertising is the right advertising solution for your business or not.
So, let’s get started.
Calculate the Average Cost of Getting a New Client
It’s crucial for you to calculate the amount of money that you have to spend on to land a new customer for your business. Your PPC advertising costs mainly depend on two main factors such as cost per click and your conversion rate.
The reality is, the cost per click is different for every contracting business. It depends a lot on your niche. Keep in mind that the competition in each industry is different. The more competitive your industry is – the higher rate you have to pay per click.
Also, you need to know your conversion rate. In other words, you should know how many clicks on average are generated to your website before you get a new client.
It’s pretty easy to calculate the average number of clicks per client. You have to run paid ads for a certain period of time. After that, you have to divide the number of clicks generated into the number of customers.
Calculate Your Earnings
Each client will generate some income to your business. A contractor has to estimate earnings as well as expenses (costs of materials, labor costs, and advertising costs).
You need to calculate how much income all customers have generated. After that, you should divide this amount into the number of clients. So, you’ll get average earnings per client.
Calculate the ROI of Your Paid Ads
Now, you know how much you have to spend on paid ads to get new clients. Also, you know the average earnings of a client. So, you have everything that’s required to see if your paid ads are profitable or not. Marketing experts say that on average contractors earn about $8 for every $1 they spend on paid ads.
Are Paid Ads Worth Considering for Contractors?
In most cases, paid ads work well for promoting contractors. This type of advertising allows contractors to reach the right audience easily and quickly. If done right, PPC ads will become a cost-effective online advertising solution for contractors.
Contractors should put a lot of focus on paid search ads. The ads of this type provide quick and effective results. Social media ads also work well for contractors. However, it takes more time to get results with social media ads. That’s why it’s recommended to use this type of paid ads with retargeting.
As a result, contractors get more calls and more clients. But most importantly, paid ads make it possible for contractors to increase their sales significantly. It goes without saying that contractors will find it easy to grow their businesses and increase their profits with paid ads.