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Facebook ads can offer home service companies enormous potential to scale. If you have a machine that you can put in a thousand dollars and get ten thousand dollars back, why not put in ten thousand dollars and get a hundred thousand dollars back or put in a hundred thousand dollars and get a million dollars back? But as you might have guessed, it's not quite that simple. With Facebook ads, you have to be really careful how you scale in a small local market so that you're not just burning through cash, but you're actually getting more leads, more appointments, and more sales.
So in this video, we're gonna talk about the nuances and limits of scaling Facebook ads for a local service company so that you can use it as the powerful tool it is to scale your business. Let's dive in. First, we need to talk about market demand. In your local service area, there are a limited number of homeowners and there's a limited number of those homeowners who are currently in the market for a new HVAC system.
So let's say there's about a hundred thousand people in your local market and let's say you're spending three grand a month on your ads. Now, you might be getting a good amount of leads with that and a good amount of sales and you might say, okay, well let's boost that to six grand. But the problem is if your market doesn't have enough demand for spending that much money, all that's gonna happen is your frequency of the ads is gonna go up, so you're gonna be showing ads more and more to the same people, but you're not actually gonna get more leads. So, twice as much ad budget, same amount of leads, it's not really gonna do you any good.
Now, if you suspect you might have hit that ceiling but you're not quite sure and you do wanna find out if there's more budget that you can spend, a good rule of thumb is to walk up your budget by about twenty percent every week. That gives the algorithm time to learn and it gives you time to test it out to see if raising the budget is actually gonna work to get more leads. And if it works, great. Raise it another twenty percent the next week and keep going until you hit that ceiling.
Next thing you'll wanna look at is running a variety of different offers.
So, think of the people responding to your ads as being divided into these different segments. Some people are more maintenance minded and for that group of people, a tune up offer is going to be really appealing. On the other hand, some people just want to get the best deal possible on a new system and so for them, a zero percent APR offer might be more attractive. So if you're only running one campaign, you're only advertising to the segment of the market that that campaign is gonna be attractive to.
And that means you're greatly reducing your potential for how high you can scale your budget in your market. If you've already hit the ceiling in your market with one campaign, add in a few other offers into the mix. The next thing you can do is to expand your audience size. Now some contractors make the mistake of being really narrow with their targeting on Facebook.
So, they'll target only people who are married, only people who are female, only people who are over the age of fifty and what happens is you make your audience size really, really small. Facebook's AI is actually really good at taking an ad and showing it to the type of person who's most likely to respond to that ad. So your best bet is usually to leave the targeting open and then just use really good messaging in your ad copy to make sure that it's appealing to the right person. Another way you can increase your audience size, of course, is to expand the geographical territory that you cover.
Now of course, that is extra drive time for your technicians and your salespeople. Now that might not be smart to do in your crunch time right in the middle of summer. But on your shoulder seasons, if your comfort advisors, if your technicians are sitting around with nothing to do, then then it's probably better they run those calls than do nothing at all. And depending on how much expanding that geography is gonna allow you to scale, it may just be time to open up some new locations.
Last thing I'll mention is that when you're scaling your Facebook ad budget and testing out changes, you need to give it some time. Results can really fluctuate on a day to day basis, and that's why usually you'll want to give it at least a week to properly determine the effectiveness of the changes you've made. That's all I got. Thank you so much for watching this video. If you found value in it, like, comment, subscribe, and I'll see you in the next video.
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