As global digitization accelerates, organizations realize the impending need to invest in digital advertising.
In 2018, the total national ad spend exceeded $125 billion – and it is predicted to continue to rise YOY:
With rising expenditure comes increased scrutiny.
With cutthroat competition, not every ad campaign can drive conversions and offer adequate ROI.
So, how do you know if the money you’re investing is generating revenue or not?
This is where ROAS comes in.
ROAS, or return on ad spend, is a metric for online advertisers, enabling them to track the money they make.
By calculating ROAS, you will know how many dollars you earn for each dollar spent. Additionally, it will determine which ad strategies and techniques work well so that you can apply those to your other ad campaigns.
ROI, or return on investment, is a business-centric metric used to evaluate the effectiveness of your marketing efforts as a whole.
It helps you understand how ads are contributing to your overall business finances and profit.
On the other hand, ROAS assesses the performance of specific campaigns, ad groups, or keywords.
As it focuses on individual advertising campaigns, ROAS is an ad-centric metric. It measures the gross revenue generated based on each dollar spent on ads. This way, you can learn which of your paid ad campaigns are useful and which ones you need to stop pouring money into.
To calculate ROAS for Pay-Per-Click (PPC) ads, you need to know the total PPC revenue generated by your ad strategy and the total cost of managing your ad strategy.
This includes revenue you earn from all different sources, such as product purchases and lead conversions.
Similarly, your cost includes all the expenses you incur when running your ads, such as Cost-Per-Click (CPC), management fees, software upgrades, and partner/vendor costs. Additionally, if you have purchased clicks and impressions, they will add to your expenses.
Now that you have these two figures, you just have to plug them into the ROAS formula.
There are two formulas you can use:
Divide the revenue you made from your ad campaign with the amount you spent to run your ad.
So, for example, you spend $200 on a PPC campaign and make $400 in return. Adding these values to the formula will give you a ROAS of $2. This means you’re making $2 for every $1 you spend.
However, calculating ROAS through this formula only gives you a general overview. It doesn’t tell you the overall profitability of your campaign.
So, for example, you spend $200 and make $400. But your vendor fees also cost $50. Then, the ROAS you calculate will not accurately depict the return you get.
For this reason, it’s better to use the second formula.
If you subtract your cost from the revenue before dividing the result by the cost, it will give you an adequate ROAS.
This formula doesn’t require you to evaluate any new values since it only needs the total revenue and cost. And plugging values in this formula will help you determine your marketing budgets effectively.
ROAS is a metric that needs to be tracked regularly. Ideally, you should track your ROAS throughout the ad campaign instead of at one particular time.
Although there are many indicators you can utilize to assess the success of your marketing campaigns, the end goal of your business is to earn more money.
This means tracking conversions and sales isn’t enough on its own; you need to fit them within your ROAS tracking mechanism.
But first, you need to calculate your revenue. And you can do it by following the two steps below.
The first step is to track your conversions. And you can easily do that on online advertising platforms like Google Ads, Facebook, Twitter, and Bing Ads.
All you need to do is use these platforms to set up an ad campaign and conversion tracking. If you’re using Google Ads, you can even track phone call conversions.
This way, you will know which clicks on your PPC ads led to which purchases. In addition, you will stay updated on your conversion rates and purchases that result from ad clicks.
The next step is to connect your online advertising platform to customer relationship management (CRM) software.
By doing this, you can tie all your marketing data to a new lead. Hence, when a lead converts into a customer, you’ll know exactly which marketing efforts led to the sale.
So, by tracking your conversions and sales, you get access to your revenue data. Simultaneously, the advertising software you use will detail your ad spend.
Now, all you need to do is plug the values in any of the two ROAS formulas, and you’ll know whether your money is being spent right or not.
ROAS enables you to gather valuable insights – based on which you can make informed marketing decisions.
Since the final goal of advertising is to make money, calculating ROAS should be a priority. Even though conversion rate and click-through rates are essential, they don’t guide you regarding changes to your advertising model.
In addition, knowing your ROAS can help you do the following:
Using other metrics alone will not give you complete insights, so you will not make informed marketing decisions.
Think about click data – it tells you the best click-through rate (CTR) and the lowest cost-per-click (CPC). So based on this data, you might think you can evaluate which of your campaigns are successful. But that’s not possible because CTR and CPC don’t tell you the quality of clicks and the traffic you’re getting.
Similarly, conversion data helps you track conversions and point out areas of weakness in your strategy. But it will not determine the quality of traffic and leads you are receiving.
However, ROAS ties all these metrics together by providing you with actual numbers you’re earning and spending on each channel.
Additionally, various factors result in a lower CPC or conversion rate, but that doesn’t mean your campaign is unsuccessful. In fact, such campaigns can still have high profitability. But if you don’t calculate ROAS, you won’t know that.
And then you will make decisions that will cost more than you gain.
A good ROAS target depends on many factors, including your industry, average CPC, and profit margins. This means a satisfactory ROAS varies from business to business.
In addition, a good ROAS differs from campaign to campaign. For instance, campaigns that aim to raise awareness, grow subscriptions and build a following generally have a low ROAS.
But if you want to drive a greater number of conversions and sales, you should expect a higher ROAS.
Still, no general rule can determine how high your ROAS should be. But, most businesses do aim for an overall 4:1 ratio.
Getting $4 for every $1 spent gives you enough money to keep your business afloat or even make a profit.
Here is a breakdown of different ROAS targets you should be aiming for at different phases of your business:
Most businesses think if they make a sale that amounts as much as they spent on marketing, they will break even.
But that’s not true because when you factor in all your variable and fixed costs, you are likely making a loss.
So, making $1 for each dollar you spend on your PPC ad campaign is not enough.
Let’s say you spend $100 on marketing and make a $200 sale. It means you are earning $2 for every dollar you spend.
But, 2x ROAS is still low because fixed costs are generally high, resulting in a deficit.
As long as you get some consistent sales, you can break even with a 3x ROAS.
For example, you spend $50 on marketing, which results in a $150 sale. So, now, you have an added $100, which you can use to cover additional ad-running costs.
4:1 ROAS is where you start making a profit, which is why most businesses aim for at least a 4x ROAS.
When each dollar spent gives you $4 in return, you have enough money to make a profit. But ultimately, that depends on your business model and costs.
So, if you have very high variable and fixed costs, it may not result in a profit. But that is often not the case.
With a 5x ROAS, you can start using your marketing practices to grow your business.
At this stage, you’re making enough profit that you can afford to invest more in your marketing and customize various goal-specific ad campaigns.
In the end, the ideal ROAS for your business depends on your ROAS targets, business expenses, and marketing goals.
Also, if you have different PPC campaigns running simultaneously, set separate ROAS targets for each. Then, calculate their ROAS individually to see if they are bringing in enough cash.
But if your ROAS is still low, look into all other metrics and practices to identify the reasons behind it. Then, when you know which strategies are working, you can implement those across other campaigns.
Not being able to meet your ROAS target can be frustrating. But a low ROAS doesn’t always mean that your campaign is a complete failure.
Sometimes, you can make small changes to your current campaign to increase ROAS.
Some tweaks you can make are:
Placing an ad at the right location is key to attracting quality traffic. So if you have a low ROAS, consider changing the location of your ads.
For example, try placing them on e-commerce sites or social networking sites. Additionally, you can change the layout for your ad, such as converting a banner ad with a pop-up.
Your ad copy should gauge the user’s attention, resulting in the maximum number of ad clicks.
Similarly, your ad copy should be optimized for SEO so that your ad can show up organically in search results.
A helpful tip to follow is to use specific, long-tail keywords that are relevant to your brand.
For more detail, please visit our post outlining and weighing the difference between SEO and PPC.
Targeting 56.16% of all web traffic that comes through mobile phones can boost your ROAS.
If your advertising campaign is limited to desktops and isn’t generating high revenue, you should consider running mobile ads.
Use your ROAS to eliminate campaigns that are performing extremely poorly. Instead, use that money and effort on campaigns that show growth potential.
At the same time, try not to get carried away with spending on ad campaigns. So, place a cap on your budget for PPC campaigns because lots of click-throughs are only beneficial if your budget supports them.
Return on ad spend (ROAS) is a valuable metric that businesses of all sizes can use. And it helps you allocate adequate budgets for numerous ad campaigns.
Globally, 31% of all online users click on ads, which means investing in online advertising has a good chance of increasing leads. But to make the most of your marketing efforts, you need to strategize accordingly.
By regularly tracking your ROAS, you will make informed, data-driven decisions that will eventually boost your revenue.
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When you’re a plumber relying on a steady flow of leads to be profitable, it’s not enough to get your leads through word-of-mouth alone. That may work if you’re only a two-person team, but if you plan to grow your business, you’ll need to start marketing your services, specifically with PPC advertising.
Pay-per-click (PPC) ads are a beneficial form of advertising, but they can be a source of leads or a money pit for plumbers. When done right, PPC helps plumbing companies generate targeted leads looking for services, but poorly-crafted PPC campaigns can burn through a budget without results. The good news is with smart targeting, strategic bidding, and continual optimization, plumbers can generate qualified leads at a cost that provides a positive ROI. Here’s how pay-per-click (PPC) advertising is done for lead generation for plumbing businesses.
The biggest mistake plumbers make is targeting a broad area rather than a specific local area. Hitting your target audience by demographic and location will be critical to be most efficient in your PPC ad spend. Even when your company serves customers throughout several counties, you’ll want to create ad campaigns that target each individual city or county. If your ads are reaching people outside of your service area, you’re paying for clicks that won’t turn into paying customers.
An easy way to prevent this problem is to use location targeting inside of your PPC account to set your target location by zip codes, cities, or a custom radius around your main location. This will ensure your ads will only be seen by leads you can actually convert.
You’ll also want to explicitly exclude areas you don’t serve. For example, you might serve a whole county with the exception of a couple cities or neighborhoods because of traffic congestion or licensing issues. Make sure to add these locations as exclusions in your ad campaign settings to avoid wasting money.
The keywords that will bring you the best leads are keywords that signal high intent to purchase. This includes terms like “emergency plumber near me,” “24-hour plumber,” “toilet overflowing fix,” or “fix for busted pipe.” The people who search for these terms aren’t just casual browsers. They’re people who need a plumber immediately.
This type of expert keyword research isn't necessarily rocket science, but it's critical for your rankings in search engine results pages.
Prioritize these keywords and increase your bid to capture more of these leads.
Avoid using the kinds of keywords that will attract people who aren’t likely to hire you for plumbing services. For example, terms like “DIY toilet repair” or “how to fix (fixture)” will rarely lead to calls. People who search for these phrases are usually just looking for ways to fix their own problem, so filter them out.
When people need a plumber, they want to call and get someone out fast, especially if their basement is flooding or they’re dealing with a busted pipe in the house. Google offers call-only ads that let users tap to call you immediately from search results rather than click to visit your website, where they’d need to search for a way to contact you. This ad type alone will increase your conversions.
It’s crucial to use ad tracking tools like Google’s call forwarding or third-party platforms that track which ads generate your phone calls. Knowing what ads are driving your best leads will help you do more of what works and eliminate what doesn’t.
Since most leads will want to call you immediately, only schedule your ads to run when you’ll be available to answer the phone. If you don’t offer 24/7 emergency services and don’t answer your phone at 2 AM, don’t schedule your ads to run until the start of your business day.
Depending on your location and services, you might get more calls on weekdays or weekends. To find out your peak, check your reports to see when you’re getting the most calls and then adjust when you run your ads based on your actual performance data.
Don’t create complicated, wordy ads. Use simple, clear, and direct headlines that speak directly to the problems your leads may be dealing with. They’re going to be drawn to ads that promise to help them with real problems. For example, write headlines like “Broken water heater? Get 24/7 help,” “Clogged drains fixed fast,” and “Overflowing toilet? Get help now.”
In your ad copy, it helps to use location-specific phrases. For example, you might write “Serving Phoenix homes since 2001.” Doing this helps build trust and establishes relevancy.
For Google Ads that send visitors directly to your website, you’ll need to optimize your landing pages for conversion. The following elements are essential:
· Landing page copy that matches your ad. To create a seamless experience, don’t send leads to your home page. Send them to a landing page that matches your ad. For example, if your ad targets people with a clogged drain, ensure your landing page speaks to people with a clogged drain.
· An easy-to-find phone number. Your phone number should be readily visible on every page of your website, including all of your landing pages. The ideal place is in the top right corner of every page header.
· A click-to-call button. It’s easier for mobile leads to click to bring up your phone number in their dial pad rather than forcing them to write down a phone number they’ll need to then dial.
· A call-to-action (CTA). Leads need to be told what to do. Be direct and tell them to call you now for an estimate or to schedule a service call.
Your search ads will only bring you potential leads. Your landing pages are responsible for converting potential customers into paying customers.
To maximize your ROI without wasting money, you’ll want to set a realistic daily budget and scale it only when you know you’re ready. Most local service providers stick with a $10-$50/day budget, but it depends on the industry and your location.
Over time, you’ll find that some campaigns are working better than others. A varied performance can be caused by a variety of factors, and you’ll need to take a close look before making any changes. For example, underperforming keywords and plumbing ads that don’t get many clicks should be paused. However, if your ads are getting clicks, but limited conversions, you’ll want to tweak your landing page copy and/or your offer.
Sometimes irrelevant keyword searches will display your ads, so if you can come up with a list of keywords related to services you don’t provide, you can limit where your ads show up. For example, if you don’t offer sewer camera inspections, make “sewer camera” a negative keyword. If you don’t service septic systems, make “septic” a negative keyword. Doing this will prevent clicks from irrelevant leads.
Local Service Ads appear at the top of Google’s search results above the typical PPC text ads and organic listings. LSAs are pay-per-lead, not pay-per-click, which makes them even more profitable. With LSAs, you only pay when a lead contacts you directly through your ad, either by calling you or messaging you. This is a much safer way to manage your ad spend and generate qualified leads. It’s also an easier way to capture bottom-of-the-funnel leads who need emergency plumbing services.
To set up these ads, head over to Google’s LSA page and click “get started.” You’ll be prompted to go through the setup process, which includes confirming your business eligibility. To complete the process, you’ll need your business license, general liability insurance proof, and at least one Google Business Profile with positive reviews. The system will then ask you to choose the zip codes or cities you serve, list the types of services you provide, and set your weekly budget. Once you submit the form and pass Google’s screening process, you’ll start showing up in results for searches related to your business.
Try to get as many positive reviews on your Google Business Profile as possible since businesses with better reviews tend to rank higher with Local Service Ads. Also, keep in mind that Google tracks your response times, and the faster you reply, the better placement you’ll get. Unlike PPC ads, you can request refunds from leads that aren’t relevant, like leads requesting the wrong services or who are outside your service area.
It’s important to take advantage of these ads because it’s an easy way to get your business listed at the top of search results pages when people search for terms like “plumber near me.” It’s easier than waiting months for SEO to kick in, and it will bring you immediate leads. People will see your reviews and your Google Guaranteed badge, which will boost your credibility.
Getting your business verified by Google will give you a green checkmark next to your business name in your Local Service Ads. It tells customers that Google has personally verified your business, you’ve passed a background check, your insurance has been verified, and Google Ads will back your services with up to $2,000 in reimbursement if a customer isn’t satisfied with your services.
Getting this badge can boost your visibility and credibility, which can get you more clicks, leads, and paying customers. It will also help you rank higher in the list of LSAs.
To get this green checkmark, you need to get approved for Google LSAs. Once you’re approved for LSAs, you’ll get the “Google Guaranteed” checkmark badge automatically. Just make sure you renew your insurance policy on time, maintain a high review rating, and keep responding to leads quickly. If you don’t maintain these things, Google Ads might remove your badge.
You can’t improve what you don’t track. Track your critical metrics, including call tracking, form tracking, and chat tracking. Run regular reports and check in with your ad campaign performance on a regular basis. It will take a little bit of time to gather enough data to make informed decisions, but the sooner you catch underperforming ads, the sooner you can make necessary changes.
It’s important to split test ads to see what elements drive the most conversions. Split testing, also called A/B testing, is where you run two nearly identical ads, but with one small difference between them. The difference could be a headline, colors, an image, the main copy, or the CTA. Once you run the ads long enough, take the winning ad and change one more element to test. Repeat this process by changing just one element at a time to see which version performs better. Use Google keyword planner to help navigate this. When done correctly, your clicks should increase over time.
Getting satisfied customers to review you is crucial, and as previously discussed, it can impact how your Local Service Ads show up. Reviews can also impact how you show up in the Local Pack. The more high-quality, genuine, recent reviews you have, the more likely you are to show up in search results. You’re also more likely to get clicks.
Positive reviews act as social proof that helps customers choose which business to call. You could have the best ad copy in the world, but if your competitor has 150 five-star reviews and you only have 6 reviews from 2019, customers will choose them over you.
It’s easy to get clicks, but getting real leads from search engines– the kind that book your plumbing services – takes work. For plumbers, a strong PPC strategy can make the difference between getting steady jobs or wasting cash. By targeting high intention search terms, targeting narrow service areas, and optimizing your ads, you can create high-performing ads that deliver real results without burning through your marketing budget.
Lead generation is critical for your plumbing business, but when done without a positive return on investment, it's foolish.
Whether you’re new to PPC ads, or you’re tired of wasting money on ads that don’t generate calls, we’d love to help you get real results. Our PPC experts specialize in helping local service businesses in the plumbing industry just like yours attract high intent plumbing leads, reduce wasted ad spend, and grow predictable revenue.
Contact us now for a free evaluation for your lead generation strategies, PPC campaigns and search engine optimization services – we’d love to help.
Pay-per-click (PPC) advertising is the lifeblood of modern digital marketing, a finely tuned machine designed to separate serious advertisers from those who enjoy setting their money on fire. At its core, PPC is about buying attention—whether it’s from Google Ads, Facebook (or should we say Meta?) Ads, LinkedIn’s overpriced clicks, or whatever ad network is currently promising “unprecedented results.” The trick, of course, is making sure that the attention you’re paying for actually turns into conversions, and not just a collection of clicks that lead nowhere.
This guide is for marketers who already know the basics and are ready to squeeze every last drop of ROI from their PPC campaigns. If you’re looking for a “Beginner’s Guide to Google Ads,” this isn’t it. But if you’re tired of watching your ad spend disappear into the void and want to start running PPC like a ruthless efficiency machine, read on.
There’s nothing quite as tragic as a PPC campaign with no clear objective. Running ads without goals is like throwing darts blindfolded—sure, you might hit the board occasionally, but mostly you’re just making a mess. Before you even think about setting up a campaign, define what success looks like. Are you driving leads? Pushing e-commerce sales? Increasing brand awareness (ugh, we’ll get to why that’s usually a waste of money later)? If your goal is just “more clicks,” congratulations—you’ve just fallen for the ultimate PPC scam: paying for traffic that doesn’t convert.
Every campaign should have a quantifiable, measurable outcome tied to business KPIs. That means actual revenue, leads that don’t ghost you, or at the very least, cost per acquisition (CPA) that doesn’t make your CFO break out in hives.
Google Ads is the undisputed king of PPC, but let’s not pretend it’s the only game in town. Depending on your audience and objectives, Meta Ads (Facebook and Instagram) can still be a goldmine—if you’re willing to put up with Meta’s ever-changing rules and the occasional algorithmic meltdown. LinkedIn Ads? Great if you enjoy paying $12 per click for someone who will never fill out your lead form.
And then there’s the rising trend of alternative ad platforms. TikTok Ads are fantastic if you’re targeting Gen Z and have the budget to experiment. Microsoft Ads (formerly Bing Ads) may be the underdog, but they offer cheaper CPCs and a surprising number of high-intent users. If you’re in e-commerce, don’t ignore Amazon Ads—they print money for sellers who get their targeting right.
Google would love for you to just use broad match keywords and let their algorithm “figure things out.” Spoiler alert: this is a terrible idea. Broad match means your ad could show up for searches so unrelated to your business that it’s practically performance art.
Instead, focus on high-intent keywords—the ones that indicate users are actually ready to buy. Long-tail keywords often convert better because they signal more specific intent. The goal is not just to drive traffic, but to attract users who already have their wallets half-open.
Want to know what works? Look at your competitors. Tools like SEMrush, SpyFu, and Google’s Auction Insights let you see what keywords they’re bidding on, which ones they’re ranking for, and—most importantly—where they’re burning money so you don’t have to.
If a competitor is bidding on specific high-intent keywords, that’s your signal to investigate. Either they’re seeing a positive ROI, or they’re making an expensive mistake that you can learn from. Either way, it’s free intelligence.
Great PPC ads aren’t just about catchy headlines—they’re about aligning with search intent, making a compelling offer, and convincing users that clicking your ad is the smartest decision they’ll make today. A well-optimized ad uses clear, persuasive language with a direct CTA, because vague CTAs like “Learn More” are about as useful as a screen door on a submarine.
A/B testing is non-negotiable. Your gut instinct is probably wrong, so test different headlines, CTAs, and descriptions to see what actually drives conversions. If you’re not actively testing, you’re just guessing.
You have about three seconds to convince visitors that they made the right choice clicking your ad. If your landing page loads slowly, looks like it was designed in 2008, or makes users hunt for the CTA, they’re gone.
Your landing page should have a singular focus: conversion. That means no distractions, no unnecessary links, and definitely no autoplay videos that scare people away. A strong landing page aligns perfectly with the ad copy, ensuring a seamless experience from click to conversion.
Nothing kills conversion rates faster than misleading ad-to-landing page alignment. If your ad promises “50% off running shoes” and your landing page is a generic homepage with no mention of that discount, expect a bounce rate that makes your campaign ROI cry. Every landing page should reinforce the ad message, use clear headlines, and make it painfully easy for users to complete the desired action. If a user has to think, they’re already gone.
If you’re still using manual CPC bidding across all campaigns, congratulations—you’re officially working harder, not smarter. Google’s automated bidding strategies have their place, but blindly trusting the algorithm is like handing your credit card to a stranger and hoping for the best.
Smart bidding, when done correctly, can optimize conversions and lower CPA, but it requires constant monitoring. Target ROAS (Return on Ad Spend) and Maximize Conversions can be effective, but only if you have historical data to feed the algorithm. If you’re running a new campaign, manual bidding still gives you more control.
Running PPC without proper tracking is like driving blindfolded and hoping you’ll reach your destination. You need to track not just clicks, but actual conversions, customer lifetime value (CLV), and return on ad spend (ROAS). Google Ads’ built-in tracking is decent, but combining it with Google Analytics, heatmaps, and call tracking will give you a full picture of what’s working.
Scaling PPC isn’t as simple as increasing your budget and watching conversions skyrocket. If you scale too fast, you’ll tank your ROI. The right approach is incremental scaling—gradually increasing spend while monitoring CPA and conversion rates. If your CPA starts climbing faster than your revenue, it’s time to reassess. And if your PPC manager insists that “everything is going great” while your ROAS tells a different story? It might be time for a new PPC manager.
