Episode 165 of the Marketing Lyfe Podcast. This is Taylor Timothy, your host. And today we’re going to be talking about how much money you should be spending on ads for service based companies. So let’s not waste any more time and dive right in
So guys, I get this question to us all the time. How much should I spend on Facebook? How much should I spend on Google? How much should I spend? What do you recommend the truth is I recommend spending whatever you feel comfortable with and also how many leads do you want is another thing you have to take into consideration. Now I will say with service-based companies, what we’re kind of talking about today, more so is the service-based industry. So like roofing carpet cleaning. Let’s just say they’re not what I call sexy products. They’re not the most attractive looking product. Do people need this service? Yes. Do they need to be in the industry? Yes. Like do they need to be running ads? Yes, yes. To all of the above, but I will say with Facebook and Instagram running these types of ads in my own given experience and opinion in a 20 to 50 mile radius for this type of product, you can’t spend more than $50 a day on Facebook and Instagram.
If you’re targeting the nation and you have a massive home service company and you have locations everywhere that you can send leads to. Yeah, you can spend more, but if you’re literally 20 to 50 mile radius around a given location, you can’t spend more than $50 a day. Now. Here’s why your product’s not sexy. People. Don’t love seeing those types of ads. Their search intent on Facebook is, is different, right? They’re scrolling to see mom and dad’s new car, or they’re looking to see their friend’s new whip, whatever it is. They’re looking for those types of things and you’re interrupting their flow. So with that being said, you need to make sure your ads look professional and they need to be very clear and concise on what you’re actually offering. And 95% of the time, it’s got to be some sort of a very attractive offer, compelling offer.
If you’re not running some sort of flash sale or a discount or this month promo or a free inspection or something, the ads aren’t gonna work. If you’re just running an ad, that’s just like, Hey, check us out. It’s not going to work. So that’s like, what I believe with the 50 mile radius kind of thing is no more than $50 a day a day. And then you’re going to have to change all your ads extremely fast. Now on the flip side with Google, with home service based stuff, if you want to have good success over on Google, you’ve got to be willing to compete against all of your competitors and feel comfortable spending that type of money. So you just have to make sure the numbers work, but all in all like in service-based industries, I would be shocked to say that you would pay less than $10 per click.
So then you got to make sure your website’s converting and that, that math can, that can add up real quick. So if you’re spending, you know, $30 a day and it’s 10 bucks a day, I mean, sorry, $10 a click, that’s three clicks. And so more than likely, you know, if your website’s converting it 10%, which is like almost unheard of you can do the math there. So you’re, I’m guessing your cost per conversion is like 50 bucks. Let’s just call it 50 bucks a perform fills. So now how well is your followup process? Because more than likely, they’re clicking on tons of different ads and tons and tons of different links. So like immediately they fill out that form, you’ve got to follow up. So those are some things that take into consideration. Do you have those systems and processes in place to actually follow up and spend that money to go after these, these people that are looking for your types of services?
So bare minimum with what has been said, I would recommend at least spending $50 a day on both platforms, at least. Um, so you can start getting better results over there. So I would easily say plan on spending more than that. On some industries you might spend $25 a click, it might go up and up and up, right? But that’s what I recommend for you guys, all your home service-based companies. If you guys have any questions, feel free to reach out to me at Taylortimothy.com or localdma.com. And we’d love to chat with you guys, figure out how we could work together and be a good fit for each other. And we can help you get more leads and sales coming in and have a better online presence and just look better professionally across the board. So thanks guys for watching this video and listening to the podcast as well. That’s gonna wrap up this episode. Peace.