Why there's no single right number
You'll see posts that say an HVAC company should spend a set amount, or a set share of revenue, on Google Ads. We don't publish a number like that, because the right budget depends on things that change from town to town: what a click costs in your area, how many of those clicks call, and how many calls you book.
What a click costs isn't fixed. Google Ads runs an auction for each search. Google says your position depends on your bid, the quality of your ad and landing page, the search context (terms, location, device, time) and how competitive the auction is. It also says higher quality ads can often lead to lower costs per click. So two shops in the same town can pay different amounts for the same search.
Work it out backward from jobs
The simplest way to set a budget is to start with the result you want and work back. You need four numbers, all your own:
- Jobs you want from ads each month. Be honest about how many your crew can take on.
- Your booking rate. Out of every 10 calls, how many turn into a booked job? Your call log or your CSR can tell you.
- Your call rate from clicks. Out of every 100 ad clicks, how many call or fill out a form? You'll only know this once tracking is set up.
- Your cost per click. Get a starting estimate from Keyword Planner for your own keywords and towns.
Then the math is: jobs wanted, divided by booking rate, gives calls needed. Calls needed, divided by call rate, gives clicks needed. Clicks needed, times cost per click, gives your monthly budget.
| Step | Example (made-up numbers to show the math) |
|---|---|
| Jobs wanted per month | 20 |
| Booking rate | 50% of calls book, so 40 calls needed |
| Call rate from clicks | 10% of clicks call, so 400 clicks needed |
| Cost per click | $X from Keyword Planner, so budget = 400 times $X |
The numbers above are an example of the method, not a benchmark. Use your own. If you don't know your call rate yet, start smaller and measure for a month.
Use Google's own tools for your town
Keyword Planner, inside Google Ads, gives a forecast of the clicks, conversions and impressions you're likely to get for a budget. Google says the forecasts are refreshed daily, based on the last 7 to 10 days and adjusted for seasonality. You can change the average daily budget and watch the forecast move.
Set the plan to your real service area. Google lets you target by city, by postal code or by a radius around a location. It also warns that a very small radius or area can mean your ads show only now and then, or not at all.
How Google spends a daily budget
This trips up a lot of owners. In Google Ads you set an average daily budget. Google says on some days you won't reach it and on others you'll go over. For most campaigns, Google won't charge more than 2 times your average daily budget on any one day, and no more than 30.4 times it in a month (30.4 is the average number of days in a month).
So if you want to spend about $3,040 a month, the daily budget is about $100. A hot Tuesday in July might spend $180. A mild Sunday might spend $40. Over the month it evens out, and the cap protects you.
Stop paying for clicks that can't book
- Add negative keywords. Google describes negative keywords as search terms you exclude. For HVAC that often means "jobs", "salary", "school", "parts" and "DIY". Google also warns that too many negatives can shrink your reach.
- Track calls as conversions. Google Ads can count calls from your ads and calls to a forwarding number on your website, with a minimum call length you choose. Without this, you only see clicks.
- Answer the phone. A click that rings out is money spent for nothing. Missed-call text-back catches the ones you can't pick up.
- Plan for the season. The BLS notes HVAC techs often work overtime in peak heating and cooling seasons. Many shops raise budgets when the phones already ring and lower them in the shoulder months.
Want help setting it up? See how we handle Google Ads for HVAC, or compare it with Local Services Ads.
Free report card: your Google profile, reviews, website and listings graded against the shops near you.
Questions
How small a budget can I start with?
Enough to get a useful number of clicks each month, so you can learn your call rate and booking rate. Use Keyword Planner to see what that costs in your area.
Why did Google spend more than my daily budget?
Google treats the daily budget as an average. For most campaigns it can spend up to 2 times that on one day, but not more than 30.4 times it in a month.
Should I spend the same every month?
Not always. Many shops spend more in peak heating and cooling months, when more homeowners search, and less in mild months.
Sources
- Google Ads Help: About average daily budgets
- Google Ads Help: About Ad Rank
- Google Ads Help: Actual cost-per-click
- Google Ads Help: Using Keyword Planner
- Google Ads Help: Location targeting
- Google Ads Help: About negative keywords
- Google Ads Help: Phone call conversion tracking
- U.S. Bureau of Labor Statistics: HVAC mechanics and installers