In the ever-evolving landscape of Google advertising, staying ahead of trends is crucial for businesses, especially in the home services industry. As we transition into 2024, we’ve observed significant shifts in Google advertising dynamics, particularly across PPC and Google Ads, impacting both cost-per-click (CPC) and conversion rates amongst our home service clients’ campaigns.
In this blog, we’ll delve into the data behind these trends, outline what they mean for contractors who advertise on Google, and offer strategies to adapt your campaigns effectively.
CPCs Remain Stable Amid Google Ads Turbulence
Contrary to broader industry reports indicating a surge in Google search CPCs, our data from within the home services sector paints a different picture.
Over the course of 2023, we observed remarkable stability in CPCs, specifically on Google, with fluctuations well within a manageable range.
For instance, in January 2023, the average CPC stood at $7.91, gradually decreasing to an average of $7.09 throughout the year and settling at $7.12 by year-end.
Even more promising is the trend we’re witnessing in 2024, with CPCs hovering around $6.30 on Google. This stability offers a ray of hope amid the economic uncertainty brought about by the pandemic aftermath.
Conversions Are Trending Down
While CPCs have remained relatively steady, our analysis reveals a concerning trend in conversion rates specifically on Google.
Beginning 2023 at a healthy 9.34%, the conversion rate steadily declined throughout the year, ending at 7.85%. This decline has persisted into 2024, with rates averaging 7.19% and showing no signs of reversal.
Understanding the factors driving this decline on Google is crucial for home services businesses looking to optimize their Google advertising efforts.
Navigating the Impact of a Repair-First Market & Economic Uncertainty
One of the primary drivers behind the dwindling conversion rates on Google is the prevailing economic uncertainty.
As we emerge from the pandemic, consumers are exhibiting a cautious approach toward investing in home services, particularly on Google. Homeowners across the country are clinging to their wallets, and higher interest rates made it more expensive for homeowners to invest in their home compared to the previous two to three years.
The fluctuating economic landscape, coupled with concerns over job security and disposable income, has led to a hesitancy among potential customers to pull the trigger on service investments specifically through Google. We’re in a repair-first market because it’s cheaper (and for most) makes more financial sense.
This shift in consumer behavior underscores the importance of reassessing Google advertising strategies to align with evolving market dynamics.
Why You Should Care
For home services businesses, staying ahead of the curve is imperative for sustained growth and profitability, especially on Google. Understanding the nuances of shifting consumer behavior and market dynamics is essential for crafting effective Google Ads strategies.
Strategies To Stay Ahead
Focus on Targeted Google Advertising
In a climate of economic uncertainty, precision targeting is the key to winning on Google.
By homing in on high-intent keywords and refining audience segmentation specifically on Google, businesses can maximize the efficiency of their Google advertising spend.
Know what drives results and focus your dollars there.
Optimize Google Landing Pages
A seamless user experience is paramount in driving conversions on Google. Ensure that your landing pages are optimized for both relevance and functionality, providing visitors with the information they need to make informed decisions and book service, particularly on Google.
Invest in Google Remarketing
Retargeting campaigns on Google can be instrumental in re-engaging potential customers who may have shown interest but not yet converted on Google. And remember, retargeting is a tactic that can be employed within any channel, it’s not just a tactic for display advertising.
Leverage audience insights to craft compelling Google remarketing messages tailored to specific stages of the customer journey.
Helping Home Service Businesses Adapt to the Shift
As we navigate the uncertainties of a post-pandemic economy, adaptation becomes the cornerstone of success for home services businesses, particularly on Google. By leveraging data-driven insights and proactive strategies, companies can weather the storm and emerge stronger on Google.
At Blue Corona, we remain steadfast in our commitment to empowering our clients with the knowledge and resources needed to thrive in a rapidly evolving Google advertising landscape.
