Is Google Ads Worth It for Home & Home Improvement?
With a 5x average return on ad spend, Google Ads is a strong investment for home & home improvement businesses.
Verdict: Highly Recommended
With a 5x average return on ad spend, Google Ads is a strong investment for home & home improvement businesses. Here's what the data shows:
Home & Home Improvement Google Ads ROI Breakdown
Here's what a typical $5,000/month home & home improvement campaign looks like:
Pros and Cons of Google Ads for Home & Home Improvement
Advantages
Strong average ROAS of 5x means most campaigns are profitable
Industry conversion rate of 7.3% is achievable with optimized landing pages
High search intent — people searching for home & home improvement services are ready to buy
High customer lifetime values in home & home improvement justify the $91 cost per lead
Established market with proven demand — you know customers are searching
Challenges
Above-average CPC of $7.85 means mistakes are expensive
Typical 28% waste rate without proper campaign management
Intense competition drives up costs and requires expert management
$91 cost per lead requires sufficient margins and customer lifetime value
Requires ongoing optimization — set-and-forget campaigns will underperform
When Google Ads Works for Home & Home Improvement
Google Ads is most effective for home & home improvement businesses when:
- Your customer lifetime value exceeds $272.76 — At $90.92 per lead, you need customers worth at least 3x that to sustain profitable growth.
- You can commit to at least 3 months — The first month is data collection, the second is optimization, and by month three you should see the 5x ROAS benchmark.
- Your landing pages convert — The 7.3% industry average assumes decent landing pages. Poor pages can cut conversions by 50% or more.
- You track leads through to revenue — Knowing which keywords produce paying customers (not just leads) is what separates profitable campaigns from money pits.
Google Ads vs Alternatives for Home & Home Improvement
| Channel | Time to Results | Cost | Best For | Home & Home Improvement Fit |
|---|---|---|---|---|
| Google Ads | 1-3 months | $90.92/lead | Immediate high-intent leads | Excellent |
| SEO | 6-12 months | $2,000-$5,000/mo | Long-term organic traffic | Good (long-term) |
| Social Media Ads | 1-2 months | $15-$50/lead | Brand awareness, retargeting | Supplementary |
| Email Marketing | Ongoing | $500-$2,000/mo | Nurturing, retention | Complementary |
| Content Marketing | 6-18 months | $1,000-$5,000/mo | Thought leadership, trust | Good (long-term) |
How to Test Google Ads for Home & Home Improvement with Minimal Budget
Start with $1,364-$1,818/month
At $7.85 per click, this gives you 174-232 clicks and approximately 15-20 leads to evaluate quality and conversion rates.
Focus on 5-10 high-intent keywords
Start with your most specific, high-converting keywords rather than broad terms. For home & home improvement, prioritize keywords like “kitchen remodel” and “roofing contractors”.
Track everything from click to sale
Set up conversion tracking for form submissions, phone calls, and ideally track leads through to revenue. This data is essential for knowing which keywords actually produce paying customers.
Evaluate after 90 days
After 3 months, compare your actual cost per lead to the $90.92 benchmark. If you're close to or below 5x ROAS, scale up. If not, consider professional management to optimize performance.
Home & Home Improvement vs Overall Averages
More Home & Home Improvement Google Ads Resources
Cost Calculator
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Benchmarks
Compare CPC, CTR, CVR to industry averages
View benchmarks →Find Out If Google Ads Works for Home & Home Improvement
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Home & Home Improvement Google Ads Worth It? FAQ
- Yes, for most home & home improvement businesses. With an average ROAS of 5x, Google Ads typically generates $5 for every $1 spent. However, results depend heavily on campaign management — poorly optimized campaigns waste an average of 28% of their budget.
- The average home & home improvement Google Ads campaign achieves a 5x return on ad spend, with a cost per lead of $91 and a conversion rate of 7.3%. Well-optimized campaigns can exceed these benchmarks by 20-40%, while poorly managed campaigns often fail to break even.
- We recommend starting with $1818-$4546 per month for home & home improvement Google Ads. This provides enough data for 20-50 leads, which is the minimum needed for meaningful optimization. At $7.85 average CPC, this budget generates 232-579 clicks per month.
- Alternatives include SEO (longer timeline but lower ongoing cost), social media ads (better for awareness, lower intent), email marketing (great for retention), and content marketing. However, Google Ads provides the fastest path to leads for home & home improvement because it captures high-intent searches from people actively looking for your services.
- Most home & home improvement campaigns reach profitability within 2-3 months with proper management. The first month focuses on data collection, the second on optimization, and by month three you should see consistent results. The 5x average ROAS typically kicks in once campaigns are properly optimized with the right keywords, bids, and landing pages.
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