Our Ads Stopped Generating Remodeling Leads, Now What?
Every successful Remodeling Company or General Contractor knows that paid ads are a great way to attract new leads and generate new business, without the wait required by some traditional marketing strategies.
How can you go wrong with being in the right place, at the right time, with the right message?
Paid ads are a thing of beauty when they are working effectively… but what if the ads that were generating new remodeling business simply stopped producing leads?
If you have advertised your remodeling company online for any length of time, this has likely happened to you, and if you depend on these lead channels it can make your palms sweat when the lead flow dries up.
So where do we start?
We do not live in a static world…
Whether you’re advertising on Google, Facebook, Instagram, TikTok, LinkedIn, or some other platform, the only real constant is that things rarely stay the same.
Algorithms, policies, and best practices are guaranteed to change, so what worked yesterday may not work today.
Digital advertising leaves you at the mercy of the platform to a certain extent, but there are factors you can control that may give you clues as to why your ads have stopped producing remodeling leads.
Let’s dive into some key questions you need to ask to help narrow down the reasons why your ads have stopped producing leads like they used to.
Have you made any changes to your ad campaigns?
It’s common to want to change up the wording in your ads, even if they’ve been producing quality leads. After all, marketing is all about testing and tweaking to help improve your margins, and one of the easiest things to change is the wording in your ads.
Ad campaign changes generally require at least a month to acquire enough data to determine if that change was positive or negative.
Google Ads Help Center – Understand the basics and best practices for Google Ads, especially beneficial for companies in the remodeling or contracting industry that may not be familiar with the platform. Google Ads Help
Why does it take so long?
Because we’re relying on an algorithm to determine where your ads fit within their platform.
If you’ve made a change and it’s been less than a month, it’s best to wait a full 30 days to get a clearer picture of the effect your change has had on your ad’s performance.
Is it recommended that you make changes at all?
If you do decide to make changes to your ads, it’s best to run an A/B Test (also known as a “split test”) rather than changing what worked in the past.
Why?
Because there could be other underlying issues at play, and having a backup to test against provides you with the ability to revert if needed.
What changes should you test?
Your ads should be as engaging as possible and speak directly to your target audience. For best results, test your ad campaigns using the following components:
- Headings
- Ad Copy
- Ad Creative/Images
- Target Keywords
- Target Audience
In most cases, those that see your ads are likely already looking for the remodeling services you provide, so don’t over-complicate this. Your ads should be about them, and not about your business.
But what if you haven’t changed your ads but noticed a drop in remodeling leads?
Keep reading…
Have impressions dropped?
Running ads online is simply a numbers game. If you show your message to a large targeted audience, it should produce results.
When the bottom of your marketing funnel (remodeling leads) slows down, we should start by evaluating the top of your funnel (impressions).
Let’s break this down further…
In order to get a new remodeling lead from online ads, you need a lot of impressions/eyes to see those ads.
If your ad impressions have noticeably dropped, it is likely impacting your lead flow.
So why would impressions drop?
We have ordered these potential issues from most likely to least likely:
- Ad fatigue: Over time, audiences may become desensitized or unresponsive to your ads, causing a decline in impressions. When the same or similar ads are repeatedly shown to the same audience without variation, it can lead to diminished engagement and decreased impressions.
- Budget Constraints or Bid Strategy: Adjustments in your advertising budget or bidding strategy can directly affect the number of impressions your ads receive. If there have been changes in your budget allocation or bidding approach, it might lead to a decrease in ad exposure.
- Quality or Relevance Issues: Ad relevance and quality are crucial for ad impressions. If there are issues with ad quality, landing page relevance, or your overall ad content, it could result in a decreased ad rank or visibility, impacting the number of impressions your ads receive.
Market shifts such as high inflation or an economic depression can impact buyer intent. Ask other remodeling companies or general contractors in your local market if they are experiencing the same downturn.
If others in your local market are not experiencing issues acquiring leads online, but your impressions have dropped, you may be the victim of an algorithm change on your advertising channel.
Every platform offers several different ad types. Take Meta as an example: They offer Messenger Ads, Lead Form Ads, and Conversion Ads, just to name a few.
To complicate things further, these advertising platforms constantly test and add new ad types all the time.
If this is the case, you may need to adjust your advertising strategy to fit a new ad type that the platform may be pushing without your knowledge.
But what if your impressions look consistent month-over-month?
It’s time to dive further down your marketing funnel…
Has your CTR (click-through rate) dropped?
When it comes to running ads online, clicks are the name of the game.
In comparison, impressions are just a vanity number; without clicks, you will have no conversions (leads).
How do we measure this?
We use a measurable KPI called click-through rate, otherwise known as CTR.
So if your impressions are consistent, what could impact your CTR?
These potential issues have been ordered from most likely to least likely:
- Seasonal changes can impact search volume and buyer intent. These changes tend to affect the remodeling and general contracting industry hardest between back-to-school season and the start of tax season (August-February).
- Algorithm updates on advertising platforms occur EVERY DAY and they can directly impact campaign performance. These changes are typically posted as documentation in the platform’s release notes.
- Market shifts such as high inflation or an economic depression can impact buyer intent. Ask other remodeling companies or general contractors in your local market if they are experiencing the same downturn.
- Platform or campaign bugs can occur without warning. We recommend contacting your advertising channel’s support to determine if this is an issue.
- New competition can impact your ability to reach the same number of eyes at your previous budget. If you notice your CPL (cost-per-lead) going up, that could be an indication that you have new competition online.
Ok, but what if your impressions and CTR appear to be consistent?
This is where the expertise of Remodeler Digital can make all the difference. Our team specializes in advertising strategies for remodeling companies and general contractors, and we can help you navigate these complex issues to optimize your online presence.
Has your CPC (Cost-per-click) gone up?
Let’s propose this scenario: Your impressions and CTR appear to be consistent, it’s early Spring, and no one else in your market is having issues acquiring new business… so now what?
We have one final KPI to evaluate — your cost-per-click, otherwise known as CPC.
Your CPC is impacted by supply (target audience size) and demand (competition).
If you notice the amount you’re paying for clicks has suddenly gone up, new competition has likely entered your local market, or an algorithm change could be to blame.
If new remodeling companies or general contractors enter the marketplace with a higher bid strategy, your CPC for the same target audience will rise.
If this happens to you, you may want to consider raising your advertising budget, or simply pivot your strategy to target a blue ocean.
What is the Blue Ocean Strategy?
Instead of targeting general “full-house remodeling” which every other remodeling company or general contractor is after, you may consider targeting a smaller niche, such as “bathroom renovations” or changing your Ideal Customer Profile (otherwise known as ICP) altogether.
In other words, identify a less competitive market, and put your advertising budget there.
Seasonal changes can also impact your CPC as your target audience size does shrink during winter.
We have ordered the most likely scenarios to impact CPC below:
- Local Market Trends and Events: Changes in local market dynamics, events, or trends can impact CPC. For instance, sudden industry-relevant events, local promotions, or shifts in consumer behavior specific to certain geographic areas can affect the demand for ad space and consequently alter CPC rates in those regions.
- Environmental and Societal Issues: Public sentiments around environmental or societal issues might impact CPC. Brands that are perceived as not aligning with prevailing societal values or lacking in environmentally friendly practices might face challenges in their ad campaigns, potentially affecting CPC due to consumer sentiment.
- Shifts in Content Consumption Habits: Changes in how people consume content can affect CPC. For instance, if there’s a significant increase in video consumption compared to traditional text-based content, the costs associated with video ad placements might be influenced, impacting CPC.
- Technological Advancements and New Ad Formats: Innovations in technology and the introduction of new ad formats can affect CPC. For example, emerging formats like augmented reality (AR) or interactive ads might alter user engagement and influence the costs associated with these novel ad types, impacting CPC accordingly.
If you are still unsure after evaluating all of these possibilities, it may be time to call the experts…
Contact Remodeler Digital to fix your ad campaigns
If you notice a drop in remodeling leads from your ad campaigns, it’s important not to panic.
If solving these issues alone did not produce results, we recommend scheduling a free strategy call with our ad campaign experts.
