This case study is from 2018. A renovation contractor was trying to find ways to be more profitable. They had excess capacity in their work force and were considering laying off a couple of employees to trim operating costs. They were also considering cutting their modest Google Ads budget to save advertising costs. The business owner asked me how much they could save and still keep generating 75% of their current level of web traffic and leads. So we dug into the data. When we were done, we surprised the owner with a recommendation he did not expect.
There were two Google Ads campaigns running. One targeted to commercial renovation projects and one to residential. The commercial campaign received 65% of the total budget as this was their core business. Both campaigns were performing above industry average levels. The interesting statistics were that the click-through rate (3.85%) and the conversion rate (12.46%) of the residential campaign was extremely strong and trending upward.
Looking into their overall online performance in Google Analytics, by comparing user engagement and conversions across all traffic sources, we could see that Google Ads was performing as well as organic traffic sources and better than social media traffic sources. Over the past 6 months, their average monthly Google Ads campaign traffic looked like this: