Update: Get the latest home services search advertising benchmarks here! The home service industry in the US faces stiff competition, despite a vast customer base. This makes paid advertising crucial for plumbers, roofers, landscapers, and other businesses in this sector to stand out. To accurately gauge your success, it’s vital to understand how your ads measure up against competitors. Benchmark data provides insights into questions like:
- What constitutes a good conversion rate for home service ads on social media?
- What’s the typical click-through rate for home service business ads?
- What’s considered a reasonable cost per lead in home services advertising?
To address these questions, nexus-security and LOCALiQ have collaborated to provide advertising benchmark data for the home services industry. This data encompasses:
- Average click-through rate
- Average cost per lead
- Average conversion rate
- Average monthly budget These metrics are analyzed across eight key home service subcategories, covering search, display, and social ads. Utilize these averages to evaluate your ad performance and shape your home services marketing strategy for 2021 and beyond.
Home services advertising benchmarks: Search advertising
| Subcategory | Average Cost Per Lead | Average Click-Through Rate | Average Cost Per Click | Average Cost Per Call | Average Monthly Spend |
| Air Conditioning Services | $55.15 | 3.11% | $8.94 | $59.15 | $1,620 |
| Air Conditioning Sales | $50.91 | 3.28% | $6.62 | $54.60 | $1,500 |
| Heating & Furnaces | $62.18 | 3.05% | $7.92 | $68.03 | $1,800 |
| Plumbing | $48.91 | 2.87% | $8.67 | $51.94 | $2,500 |
| Roofing & Gutters | $101.49 | 3.02% | $9.03 | $121.51 | $1,875 |
| Pest & Rodent Control | $39.25 | 4.31% | $6.55 | $51.94 | $1,250 |
| Landscaping | $38.47 | 4.52% | $4.10 | $40.85 | $1,000 |
| Pools & Spas | $29.08 | 5.71% | $2.94 | $31.50 | $710 |
Search advertising is known for its fierce competition, especially within the home service industry. The average cost per click across all categories falls between $2.94 and $9.03, while the average cost per lead ranges from $29.08 to $101.49. Pools & Spas occupy the lower end of both ranges, while Roofing & Gutters sit at the higher end. Average click-through rates fluctuate between 2.87% and 5.71%, with Pools & Spas boasting the highest rate and Plumbing the lowest. Generally, these subcategories demonstrate significant ad engagement at a relatively low cost per lead, hinting at a favorable return on investment for their search advertising campaigns. For example, the average plumbing job amounts to $175 to $400, translating to a return on investment between 257% and 717%. Enhance your account’s performance with our complimentary Google Ads Performance Grader.
Home services advertising benchmarks: Display advertising
| Subcategory | Average Cost Per Lead | Average Click-Through Rate | Average Cost Per Click | Average Cost Per Call | Average Monthly Spend |
| Air Conditioning Services | $160.77 | 0.27% | $2.69 | $160.77 | $1,000 |
| Air Conditioning Sales | $59.74 | 0.14% | $4.14 | $59.74 | $300 |
| Heating & Furnaces | $68.03 | 0.13% | $5.47 | $66.02 | $1,000 |
| Plumbing | $116.75 | 0.15% | $3.63 | $116.75 | $1,000 |
| Roofing & Gutters | $114.43 | 0.14% | $4.10 | $114.43 | $1,000 |
| Pest & Rodent Control | $66.69 | 0.09% | $5.42 | $70.11 | $300 |
| Landscaping | $108.85 | 0.14% | $4.48 | $109.95 | $1500 |
| Pools & Spas | $46.53 | 0.15% | $3.49 | $46.53 | $200 |
Display ads generally experience lower engagement compared to search ads, and this holds true for the home services industry based on the benchmark data. The average CTR for display ads varies from 0.09% to 0.27%, contrasting with 2.87% to 5.71% observed in search ads. However, this doesn’t diminish the value of display campaigns. They play a crucial role in building brand awareness, particularly in a highly saturated market like home services. Moreover, they contribute to improved conversion rates across other advertising channels. Considering the typical monthly spend on display campaigns within the home service sector, it becomes evident that this represents a relatively small investment for potentially substantial returns.
Home services advertising benchmarks: Social ads
| Subcategory | Average Cost Per Lead | Average Click-Through Rate | Average Cost Per Click | Average Monthly Spend |
| Air Conditioning Services | $62.80 | 1.28% | $1.92 | $500 |
| Air Conditioning Sales | $116.75 | 0.96% | $1.09 | $500 |
| Heating & Furnaces | $72.97 | 1.22% | $1.55 | $500 |
| Plumbers | $72.97 | 1.11% | $1.92 | $600 |
| Roofers & Gutters | $116.75 | 1.25% | $1.68 | $1,000 |
| Pest & Rodent Control | $70.11 | 1.51% | $1.23 | $350 |
| Landscaping | $58.56 | 1.79% | $1.13 | $750 |
| Pools & Spas | $70.11 | 1.31% | $0.92 | $300 |
Social media platforms like Facebook, Instagram, and YouTube might not be the first choice for home service marketing, but their relevance becomes clear when considering how homeowners utilize them. Videos and photos on these platforms are valuable resources for inspiration, troubleshooting, and DIY projects related to home improvement. Home service businesses advertising on social media see an average CTR ranging from 0.96% to 1.79%, with an average cost per click between $0.92 and $1.92. Many of the subcategories examined exhibit a promising cost per lead, particularly when compared to the previously mentioned average yield of $175-$400 per job. Leverage our free Facebook Ads Performance Grader to discover ways to optimize your Facebook ad campaigns.
Improve your home services advertising results
Advertising costs and ROI fluctuate depending on your specific niche within the home services sector—plumbing, HVAC, pools and spas, landscaping, or others. Costs also differ based on budget, location, and various other factors. However, these home services advertising benchmarks offer a general understanding of your position relative to similar businesses, allowing you to identify campaigns worth leveraging and areas for improvement. You might also find these interesting:
- Search advertising benchmarks for 2022 covering the top 23 industries
- Real estate advertising benchmarks for 2021
- Healthcare advertising benchmarks for 2021
Data sources
This report draws from a sample of 4,595 LOCALiQ client accounts in North America operating within the home services vertical. These clients were actively running search, display, and/or social media advertising campaigns between May 1, 2020, and June 25, 2021. Each subcategory includes data from at least 10 distinct active clients. Averages presented are technically median figures to mitigate the impact of outliers. All monetary values are in USD.