Post-pandemic inflation has sent a shockwave throughout the national economy. One of the industries hit hardest has been the construction industry. Contractors across the country have felt the effects. One of the many ways contractors are impacted is through Google Ads. Believe it or not, experts believe inflation has also impacted Google Ads!
What’s Going On?
Google Ads is one of the best ways to advertise your business. On average, contractors see an average 200% return on investment! That’s why it’s one of the most popular and competitive paid advertising channels across the industry.
That’s why advertisers need to stay on top of their performance. However, recent studies show that cost per lead has increased for 91% of all industries year over year. That means it’s more important now than ever.
Cost Per Lead Has Increased
Recent studies show that 21 of 23 industries have seen an increase in cost per lead (CPL) year over year. On average, there is an average overall increase of 19%. This is higher than the 5% increase we saw in 2021.
Some of the industries that saw the biggest increase were arts and entertainment, travel, and furniture. There have been some industries that have seen a decrease, such as education and instruction, and finance and insurance.
Inflation Could be the Reason
Experts believe that inflation could be a big reason why Google Ads aren’t as effective for contractors as they once were. The consumer price index is at its highest level in 40 years. On top of that, the price of running a business has increased dramatically.
This means consumers are much more conservative with their spending, saving their money for essential services and goods. Another key piece of evidence that inflation could be the culprit is the fact that click-through rates (CTR) have remained stable. So consumers are finding your content, they’re just not interested in spending the money.
How Can You Combat This?
There are several different strategies you can deploy to combat this issue. One of the best strategies is to better strategize your keywords. This means only using keywords that you feel will attract the best audience possible.
Broader matching, a newer feature on Google, means more potential consumers will find your content. While it’s great to get more attention on your website, these aren’t necessarily the most quality leads. Although more people will check out your website, fewer of them will be converted into customers.
Focus Your Content
If you want to improve the quality of leads you receive, you need to focus on your keywords. Focus on the content you think your potential customers will want to see. By doing so, you can ensure the people you want to see your content are the ones who see your content.