Marketing ROI

Why paid leads underperform for contractors, and where in the funnel the money is actually lost.

Contractors are sold leads and measured on cost per lead, which is the wrong end of the funnel to look at. SearchLight Digital's analysis of $14.9 million in Google Ads spend across 816 HVAC and plumbing campaigns, and LocaliQ's of 3,211 US home-service campaigns, both describe the same shape: the cost of generating the call is knowable and controlled, and what happens to the call afterwards is neither. A lead that is paid for, delivered, and then not answered has cost full price and returned nothing, and it does not appear as a loss in any advertising report. That gap is where the money in this category actually goes.

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