As the digital advertising landscape continues to evolve, staying ahead of market trends is essential for businesses looking to maximize their ad performance. Our in-depth analysis of Google Ads, Microsoft Ads (Bing), and Local Service Ads (LSA) reveals key shifts in cost per conversion, search volume, and ad performance across major industries.
This report provides a detailed breakdown of year-over-year trends, comparing 2024 predictions vs. actual performance and offering data-driven forecasts for 2025. With insights spanning HVAC, Plumbing, Electrical, Roofing, Garage Doors, and more, we uncover how ad costs, search behavior, and competition are shaping the industry – and what businesses can do to stay competitive.
Microsoft Ads (Bing):
For the first time, we are including Microsoft Ads (Bing) in our analysis, based on over $8 million in ad spend.
- Year-over-year cost per conversion increased by 21% (phone call, online booking, form fill or chat).
- The average cost per conversion increased from $65.10 to $79.12.
- Branded search conversions: $18.43.
- Non-branded, trade search conversions: $85.50.
Google Local Service Ads (LSA):
Our analysis of over $44 million in LSA spend across Home Services in 2024 versus 2023 reveals:
- Year-over-year increase of 23% in cost per lead (CPL) across all verticals.
- Average CPL rose from $49.33 to $60.60.
- Largest cost increases were seen in Garage Door and Roofing.
Google Ads
We analyzed just under $200 Million in Google Ads spend.
- Year-over-year increase of 19% in CPL, rising from $60.17 to $71.96
- Branded search conversions: $21.33.
- Non-branded, trade search conversions: $81.21.
Trade-Specific Insights
Plumbing
- 2024 Predicted Updates: Google projected a 4%-7% increase in Cost Per Conversion (CPC) and a 3%-7% increase in ad depth, with a slight decline in search volume for plumbing and drains in the second half of the year.
- 2024 Actual Data: Plumbing costs increased more than expected, rising by 12%. The most significant increase occurred between August and December, spiking as high as 28%.
- Search volume was strong in early 2024, with a significant year-over-year increase in the summer. However, searches declined sharply from August to December, aligning with predictions.
- Local Service Ads (LSA): Cost per lead increased by 20%.
- 2025 Predictions:
- Search volume is expected to stabilize with an 8%-10% overall increase, particularly in the second half of 2025, showing a 20% increase year-over-year (driven by the decline in the tail end of 2024).
- Click-through rates (CTR) are projected to rise slightly (4%-8%).
- Costs are expected to increase by approximately 10%.
Drain
- 2024 Predicted Updates: Google predicted a slight CPC increase and a small decline in search volume for drain-related terms.
- 2024 Actual Data:
- CPC and CTR remained nearly unchanged year-over-year, with only a 2% increase in CPC in Q4.
- Search volume increased year-over-year, but growth was concentrated in the first half of the year.
- August-December search volume was identical to 2023, though specific terms like “Roto-Rooter” saw slight declines.
- 2025 Predictions:
- Drain clearing costs are expected to rise by nearly 20% with the largest increases occurring after Q1.
- Search volume is expected to decline by 17% in the summer before stabilizing in Q4.
Water Heater:
- 2024 Predicted Updates: Google expected a 7% decline in search volume, with CPC remaining stable after an early increase.
- 2024 Actual Data:
- Search volume declined overall, though there was a small increase from August to October.
- Ad depth increased in Q4, and CTR rose slightly.
- 2025 Predictions:
- Ad Depth will remain high, with the largest increases in the first half of 2025.
- Search volume will see a modest 3% increase, but steady declines throughout the year – with a sharp year-over-year drop in June, July, and August.
- CPC is expected to rise by approximately 15%.
HVAC
- 2024 Predicted Updates:
- Google projected a 3%-10% increase in CPC
- Lower Click Through Rate
- 2024 Actual Data:
- Search volume increased 8% in the first half of 2024, with a major spike in June and July. However, volume for install and replacement search was down significantly.
- CPC increased by 7%, with specific terms like “AC repair” rising by 9-11%.
- Ad depth declined slightly in the first half but increased sharply in Q4 (48% increase).
- CTR declined year-over-year.
- LSA: Cost per lead increased by 16%.
- 2025 Predictions:
- Search volume is expected to increase throughout 2025, except in July, which is predicted to match 2024 levels. This is primarily for more general terms and overall. We anticipate Install and Replace terms will continue to remain stagnant with almost no growth and a suggested decline the second half of the year after the hot summer months of around 8% – 12%.
- The summer AC search spike is expected to occur later – spiking in July rather than June.
- CPC will closely match 2024 levels in the first half, but a 5% increase is expected in the second half.
- High-intent terms like “AC repair” could see cost spikes of up to 35%.
- CTR is projected to decline for the second consecutive year.
Electrical
- 2024 Predicted Updates: Google forecasted a 5%-9% rise in CPL, driven by a 6% decrease in search volume and increased ad depth.
- 2024 Actual Data:
- CPL increased by 11.7%, slightly higher than expected.
- Search volume increased unexpectedly during the summer but remained flat in Q1 and Q4.
- CTR declined, likely due to significant ad depth increase the second half of the year.
- LSA: Cost per lead for Electrical services increased by 23%.
- 2025 Predictions:
- Ad costs will remain at record highs through most of 2025, with a 8%-12% increase.
- Search volume will see slight increases in Q1 and Q4, but a decline in the middle of the year, especially compared to June-July 2024 spikes.
- CTR is expected to remain steady, with a small decrease in Q4.
Roofing:
- 2024 Predicted Updates: Google expected a 4%-9% increase in CPC and a 15% decrease in search volume, especially in Q4 2024 and Q1 2025.
- 2024 Actual Data:
- CPC increased more than expected, rising by 16.56%, with the largest increase in the second half of the year.
- LSA: Roofing saw a 19% increase in leads, with the biggest growth in the second half of 2024.
- 2025 Predictions:
- CPC is expected to increase by another 15%, mainly in the first half of the year.
- Search volume and CTR are both projected to decline, making 2025 significantly more competitive.
Garage Door:
- 2024 Predicted Updates: Google projected an 8%-12% CPC increase and an 8%-10% drop in search volume, with Q3 2025 expected to be the strongest period.
- 2024 Actual Data:
- CPC increased by 20%, higher than expected.
- CTR remained steady but dipped in the summer.
- LSA: Cost per lead increased by 20%, with the highest rise in the second half of 2024.
- 2025 Predictions:
- CTR is expected to remain stable, with another summer dip.
- CPC will rise at a slower rate (9%), mainly in the first half of 2025.
- Search volume is projected to stay flat overall, but with slight increases in Q1 and Q4, and a decline in May-July.
At CAMP Digital, we leverage these insights to develop data-driven strategies that combat rising costs and drive better results.
Want to optimize your ad spend for 2025? Let’s talk!
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