The Pros and Cons of Paid Ads in Home Service Businesses

By Jordan Evans

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Paid advertising can be a game-changer for home service businesses like electricians, roofers, and HVAC companies. But before diving into paid ads, it's crucial to weigh the benefits against the potential downsides. Running ads might bring in more leads, but can it sustain long-term growth?

Let’s break down the pros and cons to help business owners make an informed decision.

Why Paid Ads Are Worth Considering

Home service businesses often need leads fast, and paid ads can deliver them. In the competitive world of home services, where word-of-mouth is no longer the only driver, digital ads on platforms like Google and Facebook can offer targeted visibility that’s hard to achieve with organic methods alone.

The Benefits of Paid Ads:

• Immediate Lead Generation
  One of the most significant advantages is speed. Once a campaign is launched, potential customers start seeing your business instantly. For businesses like plumbers or water damage specialists, where urgent services are often needed, this quick turnaround can be a huge win. One water damage restoration contractor in Florida launched new Google Ads a few weeks before some heavy storms and saw over 15 live calls come in within the month, in addition to their over 100 leads in their other Google ads accounts for neighboring cities.

• Precise Targeting
  Platforms like Google Ads and Local Service Ads (LSAs) allow you to target customers based on location, search terms, and even behaviors. For instance, an HVAC company could target homeowners searching for “emergency AC repair near me,” ensuring their ads show up right when the customer is looking for help.

• Scalability
  Paid advertising grows with your business. If you start as a one-location electrical service, but plan to expand, ads can be tailored for each new area. When handled well, the more you invest, the more leads you can generate. One local mobile mechanic in Georgia scaled from a single truck operation to a brick and mortar repair shop in under 3 months, largely thanks to effective pay-per-click (PPC) campaigns that brought in over 515 leads for an average of $10 each.

• Data and Analytics
  Every click, impression, and conversion can be tracked. Paid ads provide insights that help you see what’s working and what’s not. You can adjust your strategy on the fly, ensuring you're not wasting money. For example, a landscaping company may notice that ads targeting “landscaping services” perform better than those targeting “lawn care services” and shift their budget accordingly.

The Challenges of Paid Ads

While paid ads can deliver quick results, there are challenges that business owners need to be prepared for. Advertising costs money—often, more than small businesses expect. And without a smart strategy, it’s easy to lose out on a solid return.

Potential Downsides of Paid Ads:

Cost Can Add Up Fast

• For home service businesses, especially those just starting, PPC costs can skyrocket quickly. Cost per click (CPC) for highly competitive services like water damage restoration or roofing can run as high as $20 to $30 per click. If not carefully managed, a campaign can eat up your budget before generating enough leads to justify the cost. One local electrician saw his ad spend go through the roof during peak season—spending over $2,000 in just a month without landing a single new customer.

• Complex Management
  Managing paid ads is not a "set it and forget it" task. It requires constant monitoring, testing, and optimization. This can be a time drain for business owners already stretched thin by day-to-day operations. Hiring an expert or an agency to handle ads can help but adds another layer of expense. A busy roofing contractor may find they’re better off hiring an expert to manage their ads, so they can focus on running their crew.

• Unpredictable Results
  Paid ads don't guarantee success. Even with the best keywords and targeting, sometimes ads just don’t convert as expected. For example, a walk-in-tub business may run ads for weeks and receive a low conversion rate despite high traffic. Market fluctuations, seasonality, and ad fatigue can all impact performance, leaving business owners with inconsistent results.

• Over-Dependence
  Paid ads are great for driving quick results, but long-term success requires a more balanced strategy. A business that relies solely on paid ads can find itself in trouble if their ad account is suspended, CPC prices rise, or competition increases. A good balance of organic and paid strategies helps avoid this pitfall. In fact, one painting business that leaned too heavily on ads eventually realized they were neglecting reviews and SEO—key factors that could’ve reduced their ad dependency over time.

How to Make Paid Ads Work for Your Business

The key to successful paid ads lies in knowing how to approach them. While ads can get you in front of the right audience, there are a few tips that can maximize the benefits and mitigate risks.

• Start Small
  Begin with a modest budget to test what works. For Google ads, the minimum we recommend spending is $500-$1000/month depending on your industry.

• Use Data to Optimize
  Don't just set up ads and walk away. Left not managed, ads can run off the rails. Use the data from clicks, impressions, and conversion rates to tweak your campaigns regularly. Ads that perform poorly in one season might work well in another.

• Diversify Your Lead Generation
  Paid ads should complement, not replace, your other marketing efforts. SEO, Local Services Ads, and word-of-mouth referrals are essential to building a strong foundation for your business. One carpet cleaning company paired their PPC campaigns with SEO efforts and found that their reliance on paid ads decreased by 30% within a year.

Balance & Data are your Friends

Paid ads can deliver fast leads and increased visibility for home service businesses, but they’re not without their challenges. The costs can add up, and results are not guaranteed, but for those who manage their campaigns well, the benefits can be substantial.

Ready to make the most of paid ads? Start by evaluating your current needs, and consider a mix of paid and organic strategies to sustain long-term growth. By understanding both the upsides and the risks, you can craft a strategy that works for your business, delivering consistent leads without overspending.