What ROI Should You Expect From Paid Ads?

Paid ads can deliver strong returns, but success depends on tracking the right metrics and tailoring campaigns to your industry and goals. Here's what you need to know:

• ROI Benchmarks:
  • PPC (Google Ads): 250–300% ROI, break-even in 4–6 months.
  • Social Media (Facebook/Instagram): 180–220% ROI, break-even in 7–10 months.
  • SEO and referrals often yield higher returns but take longer to show results.
• Key Metrics:
  • Focus on Cost Per Qualified Lead (CPQL) to filter unqualified prospects.
  • Track LTV:CAC ratio (Lifetime Value to Customer Acquisition Cost) for profitability.
  • Use tools like Google Analytics and CRMs to connect ad performance with actual revenue.
• Challenges:
  • Long sales cycles (60–90 days) make ROI tracking harder.
  • Fragmented data between ad platforms and CRMs hinders insights.
• Tips for Success:
  • Use intent-driven platforms like Google Ads for immediate needs (e.g., "emergency repair").
  • Leverage social media for visually engaging campaigns and planned projects.
  • Combine platforms (PPC, social, YouTube) for better results and lower costs.

Tracking ROI accurately and aligning campaigns with your audience's behavior are essential to maximizing returns. Whether you're spending $1,500 or $15,000 monthly, focus on lead quality and contribution margin - not just clicks or impressions.

How to Calculate Your Marketing ROI

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ROI Benchmarks for Paid Ads in Construction and Service Industries

Setting clear ROI benchmarks is essential for shifting budgets away from underperforming channels. These benchmarks differ depending on the ad platform and the type of service offered.

PPC Advertising Benchmarks

For residential construction businesses, PPC campaigns typically deliver a return of 250–300%, meaning $2.50–$3.00 earned for every dollar spent. These campaigns usually reach their break-even point within 4–6 months, making PPC one of the quicker methods to generate returns.

PPC works so well because it targets people actively searching for solutions. For example, someone searching "emergency roof repair near me" is ready to act, not just browsing. This intent-driven approach helps boost conversion rates. To put this into perspective, construction businesses outperform the global Google Ads average ROI of $2 for every $1 spent (200%).

Costs vary by trade. Roofing leads, for instance, average $150–$300, while HVAC leads cost $100–$250, and plumbing leads run between $90–$200. Similarly, the cost per click (CPC) differs: roofing keywords range from $15–$35, HVAC keywords cost $12–$30, and plumbing averages $10–$25. These metrics help businesses estimate the investment needed to maintain a steady flow of leads.

While PPC excels at capturing high-intent leads, social media ads offer a unique set of benefits and timelines.

Social Media Advertising Benchmarks

Social media ads typically yield an ROI of 180–220% for construction and service businesses, with a break-even period of 7–10 months. While it takes slightly longer to see results compared to PPC, the profit margins remain strong.

Platforms like Facebook and Instagram operate differently than Google. Instead of targeting users actively searching, these platforms engage people as they scroll through their feeds. This makes social media ideal for planned projects, such as remodeling or landscaping, where visually appealing before-and-after photos can grab attention. Beyond generating leads, social media also helps build brand awareness and keeps your business in mind for future projects.

Another advantage is cost. Facebook Lead Ads, for instance, average $21.98 per lead - significantly lower than Google Ads, which often exceed $90 per lead. However, Facebook leads tend to close at a rate of about 8%, compared to Google Ads leads, which close at approximately 25%.

Marketing Channel Comparison

Each marketing channel offers distinct advantages, depending on your goals and timelines.

Marketing Channel	Average ROI	Break-Even Time	Best Use Case
PPC (Paid Search)	250–300%	4–6 months	Emergency services and high-intent leads
Social Media Ads	180–220%	7–10 months	Design-focused projects and brand building
SEO (Organic)	400–450%	12+ months	Long-term local visibility
Referral Marketing	480–520%	Immediate	High-trust leads from existing customers

While channels like SEO and referral marketing can deliver higher ROI, they often take longer to develop or depend on an established customer base.

Factors That Affect Paid Ad ROI

Getting a handle on what drives ROI can save you from pouring money into ads that just don’t perform. Several factors can determine whether your campaigns barely cover costs or deliver impressive returns.

Ad Platforms and Their ROI Potential

Each ad platform serves a different purpose, and choosing the right one can make all the difference. For instance, Google Ads targets people actively searching for solutions. If someone types in "emergency plumbing repair", they’re ready to act now. This kind of intent-driven targeting often leads to faster conversions, but the cost per lead is higher. On the other hand, Facebook and Instagram focus on interests and demographics, making them better suited for visually engaging campaigns, like promoting kitchen remodels or landscaping projects.

Here’s a comparison: Facebook Lead Ads average $21.98 per lead, while Google Ads for home improvement typically cost $90.92 per lead. However, Google leads tend to close at a much higher rate - around 25%, compared to Facebook’s 8% closing rate. Consider this example: A roofing contractor spent $3,000 on Google Ads in July 2025, generating 21 leads and closing 5 jobs worth $60,000 (a 1,900% ROI). The same budget on Facebook led to 147 leads, with 12 closed jobs worth $144,000 (a 4,700% ROI), despite Facebook’s lower closing rate.

YouTube is another option, offering cost-effective brand awareness through video content. Retargeting ads on YouTube can increase purchase intent by 20% compared to static ads, with costs per view ranging from $0.026 to $0.10. For the best results, many businesses combine platforms: social media builds awareness at the top of the funnel, while search ads help seal the deal at the bottom.

Target Audience and Campaign Goals

Your ROI largely depends on how well your campaign aligns with your audience. For example, a regional HVAC company reallocated 80% of its budget from "emergency repair" keywords (which had hit $120 per click) to "full system replacement" keywords in 2025. While total leads dropped by 30%, revenue increased by 22%, and profit margins jumped from 5% to 18%. The shift to high-margin services proved more profitable.

Similarly, a B2B management consulting firm redirected 50% of its $30,000 monthly budget from Google Search to LinkedIn. Although the cost per lead rose from $300 to $450, the lead-to-MQL (Marketing Qualified Lead) conversion rate surged from 20% to 65%. Over three months, they closed three contracts worth $50,000 each, raising their contribution margin from 15% to 42%.

"A high CPL is okay if the 'Cost Per Win' drops." - Flywheel

Your goals also shape your strategy. If you’re running ads for emergency services, you need quick conversions. For planned projects, like home renovations, it’s about building awareness and nurturing leads over time. Keep in mind that mobile traffic accounts for 53% of clicks, but for complex services, desktop often converts at twice the rate. Optimizing for the right device and user behavior is essential to maximize returns.

Key Metrics to Track

While many businesses focus on Cost Per Lead (CPL), it doesn’t tell the whole story. A better metric is Cost Per Qualified Lead (CPQL), which filters out unqualified prospects. Set a CPQL cap at 5%–10% of your average contract value, and pause campaigns that exceed this threshold for at least two weeks.

The LTV:CAC ratio (Lifetime Value to Customer Acquisition Cost) is another critical metric. For high-value services, spending $100–$200 to acquire a customer makes sense if their lifetime value exceeds $10,000. Also, track your payback period - how long it takes to recover the acquisition cost. In service industries with longer sales cycles (60–90 days), 60% of B2B revenue often comes from leads that clicked an ad 45+ days earlier.

Finally, Quality Score plays a big role in ad costs. Poorly optimized campaigns can cost 2–3 times more, while high scores - achieved through relevant ads and strong landing pages - lower costs. Businesses that connect their advertising tools directly to their CRM report 20% higher ROI than those relying solely on platform data, as this setup helps track which leads turn into paying customers. These metrics are the foundation for understanding and improving your ROI.

How to Calculate and Measure ROI for Paid Ads

Getting an accurate ROI calculation is crucial to fine-tuning your paid ad campaigns and ensuring profitability.

ROI Calculation Formula

The basic formula for ROI is:
(Total Revenue – Total Expenses) / Total Expenses × 100.

For example, if you spend $10,000 on ads and generate $30,000 in revenue, your ROI is 200%. But don't forget to include all related costs like agency fees, software, or landing page development. If you add $1,500 in management fees and $500 for tools, your total expenses rise to $12,000. This reduces the ROI to 150%. Unlike ROAS (Return on Ad Spend), which focuses solely on ad spend, ROI provides a broader view of profitability by accounting for all expenses.

For lead-generation businesses, you can estimate the value of each SQL (Sales Qualified Lead) using your closing rates and average project values. For instance, if an HVAC company closes 20% of qualified leads and the average contract value is $8,000, each SQL is worth $1,600.

This approach also helps account for delayed revenue in industries with longer sales cycles.

Attribution and Sales Cycle Considerations

Businesses like construction or home services often have sales cycles lasting 60–90 days. This means that revenue from a February ad click might not materialize until April. To capture delayed revenue, extend your attribution window beyond the standard 30 days.

Your attribution model should match your customer journey. For example:

• A first-click model gives credit to the ad that introduced the customer.
• A linear model spreads credit evenly across all touchpoints.
• A data-driven model uses machine learning to identify which interactions had the most impact.

To track revenue back to specific ads, use tools like Google Click ID (GCLID) to link clicks to your CRM. UTM codes on campaigns and landing pages make it easier for your CRM to identify which ad generated each lead.

Using these tracking methods ensures you’re capturing the full picture of how your ads perform.

Tools for Tracking Paid Ad ROI

Tools like Google Analytics 4 (GA4) and Google Tag Manager can help you monitor user behavior and manage conversion tracking. Set up tracking for key actions like phone calls, form submissions, or quote requests. For service industries, using unique tracking phone numbers in PPC campaigns can help you capture leads from customers who prefer calling.

Your CRM - whether it’s HubSpot, Salesforce, or another platform - should act as your central data hub. Sync it with ad platforms like Google Ads or Facebook to import offline conversion data. This allows ad platform algorithms to optimize for higher-quality traffic.

"ROAS alone isn't enough. You need to understand where the gaps are in Google's model and how to rebuild your performance lens around real outcomes, not just what the ad platform says." - AttributionApp

To maximize ROI, create dedicated landing pages tailored to specific services, such as "roofing repair" or "new installation." Businesses with more than 40 landing pages generate 12 times more leads than those with just 1 to 5 pages.

How BrodyFilmedIt Improves Paid Advertising ROI

BrodyFilmedIt takes a multi-channel approach to help construction and service-based businesses get more from their advertising budgets. By combining paid ads with video production, SEO, and retargeting, the agency creates a ripple effect that can increase overall ROI by 15–20%.

High-ROI Channel Strategies

To get the most out of paid advertising, BrodyFilmedIt suggests dedicating 28–32% of your marketing budget to PPC campaigns. This budget allocation supports consistent ad spend across Google Ads, Meta Ads, and YouTube Ads, each serving a distinct purpose:

• Google Ads: Perfect for capturing high-intent searches like "emergency plumber" or "roof repair near me."
• Meta Ads: Ideal for visually engaging campaigns targeting planned projects like kitchen remodels or landscaping.
• YouTube Ads: A cost-effective way to build brand awareness, with an average cost per view ranging from $0.026 to $0.10.

Running campaigns across multiple platforms simultaneously has proven to be more effective than relying on just one. BrodyFilmedIt’s data shows that combining social media and search ads can lower cost per lead by 3–29%. This integrated strategy ensures that each platform complements the others, delivering better results overall.

Combined Marketing Solutions

BrodyFilmedIt doesn’t stop at ad placement. They integrate paid ads with additional marketing tactics to maximize long-term returns. For example:

• Custom Landing Pages: These are tailored to align with ad campaigns, boosting lead generation.
• Video Retargeting Ads: These ads can increase purchase intent by 20% compared to static ads, making video a must-have for high-performing campaigns.
• SEO Integration: While paid ads deliver quick wins, SEO provides lasting stability. For trades, SEO offers a 19.9x ROAS, far outperforming the 4.4x ROAS of paid ads.

This combined approach is especially effective for businesses with longer sales cycles. Retargeting plays a crucial role here, as users who see retargeted ads are 70% more likely to convert than first-time visitors.

Case Studies and Success Stories

BrodyFilmedIt’s methods are designed to tackle common challenges in the service industry. For example, they link ad tools directly to CRM systems, which can boost ROI by 20% compared to relying solely on platform data. This approach solves the fragmented data tracking issues many businesses face.

The agency also helps clients implement value-based bidding (VBB), which focuses on targeting leads with higher predicted contract values rather than just click potential. This strategy is expected to be adopted by 75% of B2B service firms by late 2026.

"Google Ads doesn't respond well to cautious spending or short-term thinking. It rewards consistency, competitive presence, and enough data to learn what actually converts in your market." - Adrian Garcia, Ad Strategist

To stay ahead in competitive markets, BrodyFilmedIt encourages creative refresh cycles every 4–6 weeks. These updates can reduce cost per lead by 15%. Considering that 46% of marketers cite creative improvement as the key to better ROI, BrodyFilmedIt’s video production services give their clients a clear advantage. By addressing ROI tracking issues and adapting to long sales cycles, the agency ensures its strategies deliver measurable results for construction and service-based businesses.

Conclusion

Looking at the ROI benchmarks and key factors, here's the takeaway: setting realistic expectations is crucial for success. For instance, construction and service businesses often see a median ROAS of 4.37x, with top performers hitting over 10.24x. Achieving this level of success depends on accurate tracking, well-optimized campaigns, and solid lead management - especially when 78.2% of advertisers struggle to make Google Ads profitable.

But it’s not just about ad platforms. Operational efficiency plays a huge role. Quick response times, turning inquiries into high-value jobs, and tracking the right metrics are just as important as the ads themselves. By 2026, businesses that focus on contribution margin (revenue minus ad spend, sales costs, and delivery costs) rather than just ROAS will have a clearer picture of their campaign profitability.

"The 2026 scene for paid ads in services isn't about who spends most. It's about who measures best." - Flyweel.co

BrodyFilmedIt addresses these challenges by combining paid ads with video production, SEO, and retargeting. They connect ad platforms to CRMs and refresh ad creative every 4–6 weeks, tackling both operational and strategic inefficiencies.

The key to making paid ads work? Set clear goals, track the right metrics, and align your marketing strategy. Whether your budget is $1,500 or $15,000 a month, focusing on contribution margin and lead quality - not just quantity - is what drives sustainable growth.

FAQs

What’s a “good” ROI for my specific trade and market?

A "good" ROI in your trade or market generally ranges between 4.37x and over 10x. For instance, the median ROI benchmarks for HVAC Google Ads hover around 4.37x, while the best-performing campaigns can achieve over 10.24x. However, actual results depend on factors like the advertising platform, the type of campaign, and the strategies implemented.

How do I track ROI when sales take 60–90 days to close?

Tracking ROI for a 60–90 day sales cycle means you need to adjust your tracking methods to match the extended timeline. Tools like conversion tracking or CRM integrations are essential for keeping tabs on leads as they move from the first point of contact to a finalized sale. Set clear goals - whether it's capturing leads or securing signed contracts - and consistently review your data throughout the entire sales cycle. This approach ensures accurate attribution and helps you make the most of your ad budget.

What’s the simplest way to connect my ads to real revenue in my CRM?

To connect your ads directly to revenue in your CRM, focus on tracking lead attribution and assigning conversion values that reflect the revenue generated by each campaign. This can be achieved using tools like UTM parameters, CRM integrations, and conversion tracking features in platforms such as Google Ads or Facebook Ads Manager. Take it a step further by adjusting conversion values based on factors like location or lead quality. This helps fine-tune your bids, targeting more profitable leads and improving your overall ROI.