Guide to Pay Per Click Advertising for HVAC Companies
When it comes to demand, the early winter and summer seasons are a sweet spot for HVAC contractors. However, HVAC companies that are proactive and have a winning PPC strategy in place can enjoy the fruits of a booming year-round business.
According to Forbes, almost 50 percent of small businesses are already utilizing pay-per-click advertising (PPC). All of the top HVAC companies, whether they are commercial or residential, can benefit from incorporating PPC into their advertising strategy.
Continue reading our pay-per-click guide to learn more about HVAC PPC and how it can benefit your business.
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What is HVAC PPC?
Pay-per-click, or PPC, is a web advertising model that enables HVAC businesses to place ads online to promote products and services. With PPC, advertisers place bids on the value of a click. Once an ad has been published, every time an online user interacts with the advertisement, the publisher is responsible for paying a fee.
How It Works
Pay-per-click advertising campaigns consider user intent, relevance, and the location of a business. Specific search queries trigger PPC ads to appear in search results.
For example, if a user is searching for a “PPC company in Jacksonville,” Google will serve ads for PPC companies in the Jacksonville area at the top of the page. They will be placed above organic search results to entice the user.
Types of Pay-Per-Click Ads
HVAC ads come in a variety of different formats and can be published on an array of different websites. Below are seven of the most common types of PPC ads and how they can be used to grow your business.
Unlike search ads that are entirely made up of text, display ads can contain text and images. According to Thomas, display ads reach more than 90 percent of people who surf the internet. No wonder they are considered one of the most effective ad types.
In this instance, remarketing ads are your second chance to market to them once more with customized advertisements that are relevant to where they are in the conversion funnel.
Paid social ads
Video ads (instream ads)
Local Services Ads
Google Local Services Ads are online advertisements that appear in SERPs when a user located near your business conducts a keyword search for relevant products or services. These ads are typically the first thing a user typically comes in contact with. They can be displayed in several places on the first page, such as above organic results, the top of search results, or above pay-per-click Google Ads.
There are two types of Local Services Ads HVAC companies can leverage:
- Google Screened Ads – These advertisements are from a business that has successfully passed a Google screening.
- Shopping Ads – Shopping ads, also known as Google shopping ads, appear as a carousel of product images in search engines. These ads contain a title, description, price, and an image of the products offered by your business. While these ad types are ideal for e-commerce businesses since they primarily offer products, they are not as common for HVAC companies that predominantly offer services.
What HVAC Isn’t
HVAC PPC is not SEO.
Although SEO and PPC have a lot in common, these two processes are not the same. Search engine optimization (SEO) refers to the process of continuous techniques used to increase the quality and quantity of traffic to your website. The more your site aligns with Google’s algorithm, the greater the visibility your website can gain. With PPC, on the other hand, once your campaign ends and you no longer have a budget in place for your ads, they will no longer be visible. This is one of the biggest disadvantages to using PPC ads for your business, instead of SEO.
According to Neil Patel, 72 percent of small business owners would rather spend more money on PPC ads than on search engine optimization. Due to its stable placement and earning potential, many businesses see the earning potential PPC can offer. Unlike SEO, in which your company’s search engine ranking will fluctuate, placement in prominent areas on search engine results pages (SERPs) is guaranteed with PPC.
HVAC PPC is not an automatic profit generator.
Just because your HVAC ads were published automatically doesn’t mean you will immediately begin to see a profit. While the results may come pouring in, it isn’t a guarantee that the money will start coming in, too.
While some businesses do see conversions within a day or two, most may not have such instantaneous results. However, just because you don’t receive a profit immediately, doesn’t mean your PPC campaigns aren’t effective. Experts suggest using the data received during the first few months to further optimize your campaigns. This can increase your HVAC company’s chance of converting online users into customers much faster.
HVAC PPC is not a reputation management strategy.
PPC is a fast way for your business to boost its visibility. But unlike SEO, it’s important to remember that the instant high placement in search engines that PPC offers isn’t based on reputation or merit. So even though your advertisements are some of the first few users may come in contact with, they will ultimately end up going with the HVAC company that has the best reviews and ratings.
According to Forbes, marketing experts have estimated that the average American is exposed to around 4,000 to 10,000 ads each day. At some point, they will begin to filter through these ads and make a decision based on how credible they feel each company is. If your HVAC business is lacking reviews, no matter how much money you’ve allocated towards your PPC campaigns, it won’t be as effective.
How much do PPC ads cost?
Since the cost of HVAC PPC ads can vary, there is no one-size-fits-all price tag that can be slapped onto all advertising campaigns. However, the average cost small to midsize businesses typically spend is somewhere around $5,000-$9,000 a year. Since demand for HVAC services can vary throughout the year, monthly expenses for HVAC PPC may also fluctuate throughout the year.
To truly understand just how much you are allocating towards customer conversions, you must know your CPA. Cost per acquisition, or CPA relates to the amount of money your company has allocated towards your HVAC marketing or advertising to attract and convert leads that have interacted with or taken action on your website.
To find out what your CPA is you can use the formula: CPA = cost/conversions.
For example, if your ad were to receive 2 conversions, one costing $2.00 and one costing $3.00, your average cost per acquisition, or CPA, for those conversions would be $2.50.
Can I Make Money from HVAC PPC?
According to Google, businesses generally make an average of $2 in revenue for every $1 they spend on PPC ads. To truly get the most value out of HVAC PPC, it is advised to integrate SEO Into your PPC efforts. The combination can boost your visibility in SERPs, increase conversions, and more.
Below are some of the best practices HVAC businesses can employ to assure that their landing page and HVAC ads convert.
- Write compelling ad copy – Consider what the user wants and make sure your target keywords are included in the copy.
- Don’t click your own ads – You click, you buy.
- Don’t place ads next to images on your website – Users often get confused by this, which can impact the landing page user experience.
Why It Matters
Why use PPC advertising? Since HVAC is a seasonal business, high online visibility and a strong lead generation strategy are required to make money. HVAC PPC helps achieve this by effectively distinguishing businesses online that want to be seen from the rest. To put it simply, HVAC PPC makes it easier to pinpoint which HVAC businesses are putting in the work and taking the necessary strides to make their business attractive to its consumers.
For HVAC businesses looking to launch campaigns that may require immediate results, pay-per-click would be the best option to leverage. Many marketers see PPC as an effective marketing tool that can provide more control over ad spending and customer targeting.
Lastly, PPC is a valuable lead generation tool for HVAC contractors and companies.
Advertising Commercial HVAC vs. Residential HVAC
Before getting into the major differences between managing PPC advertising for a commercial HVAC company versus a residential HVAC company, it’s important for us to define the major differences between these two types of HVAC businesses.
What is commercial HVAC?
Commercial HVAC refers to industrial or large-scale heating and cooling services and is typically performed for large businesses, schools, hospitals, etc. Commercial HVAC units are usually in higher places, like the rooftop of a building. These HVAC systems are also generally larger and require more power than residential HVAC systems.
What is residential HVAC?
Unlike commercial HVAC units that are usually located in hard-to-reach areas, residential HVAC systems are typically standalone units that can be found in an outdoor environment, either on the side or the back of a home.
While both types of HVAC businesses can benefit from PPC, each has its own unique audience and objectives. Commercial HVAC companies target larger corporations, therefore, they typically offer around-the-clock customer support. Residential HVAC companies, on the other hand, generally target local homeowners in need of HVAC services.
Due to the location and size of its tasks, commercial HVAC companies are in a more competitive and lucrative environment than residential HVAC companies. However, since a residential HVAC contractor’s job requires interacting with and entering the residences of their clients, it is safe to say that this type of HVAC business will require taking a more personable approach.
HVAC Advertising Best Practices
Create a Dynamic HVAC PPC Keyword List
The secret to a successful PPC campaign lies in which keywords are being used. In order to find the best keywords for your campaign, it’s important that you do your homework by determining which keywords are relevant to your company and if there is a chance you can rank for them. Below are some of the most popular keyword research tools used to perform keyword research:
- Moz Keyword Explorer
The best strategy to employ when performing keyword research is to identify which keywords have high volume and low competitiveness. Keywords with a keyword difficulty level of less than 50 are easier to rank for.
In addition to search volume and keyword difficulty, the cost per click is another component that must be considered when you are developing an HVAC PPC campaign. The cost per click can range in prices. Depending on your budget and the audience you are targeting, some keywords may be worth the high cost.
Here are 12 of the most searched keywords that HVAC companies should consider targeting:
|Keyword||Search Volume||Cost Per Click CPC||Keyword Difficulty|
Air conditioning repair
AC repair near me
Air conditioning installation
Air conditioning repair near me
HVAC services near me
HVAC repair near me
Heater repair near me
Geo-targeting, also known as local PPC, allows HVAC companies to develop advertising campaigns that target audiences based on location. For example, if a user were to search for “HVAC companies near me” and the search was conducted in a radius that you are currently targeting in your campaign, it will trigger your HVAC ads to appear.
Geo-targeting enables HVAC businesses to boost user engagement, increase brand awareness, and provide the local authority HVAC businesses need to grow their local customer base.
Start Retargeting Campaigns
According to Emarketer, 30 percent of users have a positive reaction to retargeted ads. Retargeted campaigns display targeted ads to online users that have previously interacted with your website. These users have visited your website and probably looked around, but they did not result in a conversion. The relevancy of retargeted ads is what entices users.
HVAC businesses that leverage retargeted ads can:
- Increase brand awareness
- Provide user data that can improve conversions
- Reach their target audience
- Improve their bottom line
- Boost ROI
- And more
Use PPC Automation Software
PPC Automation refers to a technology used that can automatically manage and optimize your HVAC PPC campaigns. This enables HVAC business owners to leverage AI machine learning, so they can allocate more time towards other pressing tasks.
Below is a list of some of the most popular PPC automation software:
Include Long-Tail Keywords
Keywords are ideas and topics that define what your content is about to search engines. Long-tail keywords are queries consisting of keywords that have three or more words (typically 3-5 words). They are essential to the success of a PPC campaign because they are easier to rank for and they can help boost your conversion rate.
Short-tail keywords, or head terms, are short phrases or keywords. Unlike long-tail keywords, short-tail keywords are highly competitive as a ranking factor, but there are a few instances where they would be the best option.
Below is a table comparing the benefits of using long-tail keywords vs. short-tail keywords for your HVAC PPC campaign.
Long-Tail Keywords vs Short-Tail Keywords
Add Negative Keywords
Don’t waste your ad spend by failing to identify which keywords you do not want your HVAC ads to rank for. Keywords that you are not interested in targeting in your campaign are called negative keywords.
According to SpyFu,5 percent to 20 percent of search ad budgets are allocated towards keywords that perform poorly. By establishing a list of negative keywords, you can optimize your campaigns so they are more cost-effective and prioritize the most impactful keywords for your campaign.
Tracking and Reporting HVAC PPC Campaigns
If your HVAC business is not tracking the progress of its HVAC ads, it’s missing out on the opportunity to optimize campaigns for better conversions. A conversion is the process of a user performing activities, such as responding to a call-to-action, that can confirm their interest in your products or services.
According to Popupsmart, a good conversion rate is generally higher than 10 percent. It is crucial to monitor conversion to determine just how effective your PPC efforts have been.
Some of the most common types of conversions tracked are:
- Phone call conversion tracking
- Thank you page conversion tracking
- Adding UTM parameter strings to track URL conversions
- Google Hosted conversions for local campaigns
If the conversion rates from your landing page are lower than the standard, it may be time to perform a few optimization tasks. Be sure to monitor your progress with reporting tools that can help you catch issues early.
Types of PPC reporting tools
There are several PPC reporting tools that can be used to monitor your HVAC PPC campaigns. Below are some of the most popular options available.
Hierarchy of Ad Ranking Factors
When getting started with HVAC PPC, it’s important to know what will be influencing the placement of your advertisements. Based on how well your business can abide by these factors, each of your ads will be ranked accordingly.
Below are some of the most common ad ranking factors associated with HVAC PPC ads:
When it comes to HVAC PPC, the landing page experience is one of the most important ad ranking factors. But in order for your landing page to be effective, some decisions must be made. Does your HVAC PPC campaign require a long or short landing page? Both long and short landing pages can benefit your business. Depending on your company’s objectives, one may be more advantageous to use than the other.
Long landing pages are best for generating trust and credibility, while short landing pages are best for increasing leads. Long landing pages are best to use when generating trust and credibility. Short landing pages, on the other hand, can be effective for a low commitment offer.
Rule of thumb: When it comes to PPC for HVAC, the bigger the ask, the longer the page. With short landing pages, fewer distractions on the page can make it easier for your business to convert leads.
Successful, high-converting landing pages typically contain the elements listed below.
- A compelling headline – Headlines for HVAC PPC landing pages should be around 20 words maximum and it should include your main keyword.
- Effective copy – Copy that converts can entice a user to take action and purchase a product or service.
- Persuasive subheadings – Subheadings help better organize large blocks of information.
- Key benefits – Benefits displayed in a bulleted form, or an unordered list, helps draw attention to important information users may want to know.
- Engaging visual content – Since 65 percent of individuals are visual learners, there are several forms of visual content that can be used in a PPC ad. This can be anything from an image or infographic to a video.
- Social proof – This includes reviews, testimonials, ratings, or some form of expert approval.
- Lead capture form – Around 62 percent of landing pages use forms to capture lead information.
- Strong calls-to-action – The most effective CTA’s contain a sense of urgency.
The higher the bid, the greater your chances are of having your HVAC PPC ads rank high in search engines. However, a high bid alone will not be effective enough to increase your ad ranking.
Auction-Time Ad Quality
Auction-Time Ad Quality refers to how practical your HVAC ad will be for search. This ad ranking factor considers the expected click-through rate, ad relevance, and landing page experience. Based on these characteristics, a Quality Score will be assigned to each of your ads. A good Ad Quality score can result in higher ad rankings and a lower cost-per-click.
Search intent plays heavily into the effectiveness of your HVAC PPC campaigns. Search intent is the driving force behind a user’s intentions when entering a query into search engines. According to Business 2 Community, 33 percent of users click on a PPC ad because it directly answers their search query.
Below are the four different types of search intent.
- Informational intent – A search performed by a user when they have a specific question or an interest in a certain topic.
- Navigational intent – A search performed by a user to visit a particular website.
- Transactional intent – A search performed by a user when they are interested in purchasing an item.
- Commercial investigation – A search performed by a user when they may be interested in making a purchase in the future.
DIY vs. Agency
Now that you have a better idea of how HVAC PPC works, it’s time to determine who will be handling this very important task for your business. Each option has its own benefit that HVAC businesses may find to be appealing.
Handling HVAC PPC on Your Own
As you learned, PPC for HVAC is not for the faint of heart. So if you decide to do it yourself, there are a few things you should know beforehand. For starters, one of the most valuable actions you can take when getting started with PPC for the first time is to familiarize yourself with your audience.
Another important step you must take beforehand is to perform strong keyword research–these keywords will be the foundation for your new campaign. Lastly, a landing page is required to direct traffic from your HVAC ads. However, if you lack experience with web development and PPC, getting started can be a major learning curve that beginners may have to face.
Hiring an HVAC PPC Agency
If you decide to hire a professional, it could save you from a great deal of time and stress. When you decide to leave it up to the experts, one of the greatest benefits is that you can leverage their expertise to manage your HVAC PPC ads, increase the visibility of your business, and boost your ROI according to the best and most up-to-date standards. However, one of the greatest disadvantages is that it can be costly.
- The average monthly cost for PPC management is between $250–$5,000 per month.
- The average amount businesses typically allocate towards their PPC budget is under $50,000 a month.
- The average cost to build a landing page ranges from $75–$3,000.
If you are interested in cost-effective HVAC PPC management, Dagmar Marketing might be a great option for you. Dagmar has an experienced team of PPC managers that are dedicated to keeping your PPC campaigns competitive, in addition to generating the best leads and results for your HVAC business.