When to Spend More on Google Ads

Your Guide to Investing into Google Ads the Smart Way

A woman begins a Google search prompting Google ads to come up

 

Managing your junk removal business’s finances isn’t always easy. Sometimes, it feels like you’re caught in the middle of a delicate balance, and if you disturb it, maybe the whole thing will topple over! For example, when should you spend more money on Google Ads? Sure, it’d be nice to have more outreach and book more jobs. At the same time, though, can you afford to push out more ads? And what will happen if the investment doesn’t pay off? Will your business fall flat on its face and leave you to do damage control?

Relax. There’s a method to the madness—and we’re prepared to teach it to you. So buckle up and get ready to learn a little, because we’re going to show you when to invest more money in Google Ads so your business can keep chugging along and continue to expand along the way.

Find Out Your Income and Expenses Per Job

Let’s do a little math together. First, calculate your average income per job. As an example, let’s say you earned $10,000 across 25 jobs last month. Average it out, and that’s $400 per job. 

That sounds pretty good—but wait, we still need to consider your expenses, too! Expenses can come in many forms, so be sure to consider all of them, such as:

  • Fuel
  • Labor
  • Disposal fees
  • Vehicle wear and tear
  • Tools and supplies

Let’s say that the average expenses per job are $250. Subtract that from our $400 of income, and we’re left with $150. Let’s call that $150 our allowable acquisition costs. In other words, we can spend up to $150 to get the job in the first place, and we’d still be breaking even. Now we know how much money we can spend on ads—but how much should we?

First and foremost, let’s make something clear: make sure you’re earning money on every job before you increase your ad spending. If your business is still young, there’s a chance you might be losing money on jobs as you try to find your place in the market. If that’s the case, you need to focus on increasing your market share in inexpensive ways. Good reviews, good word-of-mouth, and naturally high SEO rankings will help you at this stage. 

So work hard to earn the customers’ respect, and if you’re profiting on jobs consistently, then it might be time to consider more Google Ads spending.

Considering the Search Impression Share Percentage

Okay, so if you’re profiting on each job, and you’re making enough money to cover all your expenses and your current customer acquisition cost, then it’s time to check out your search impression share percentage. You can find it right on your Google Ads stats. But what does it mean?

Let’s say your search impression share percentage is fifty percent. That means every time your ads were eligible to be displayed, they showed up half of those times. Does this mean you can double your revenue if you double your ad spending? Well, theoretically, yes. But don’t go placing all your bets on a theory. There’s a safer way to go about it.

We recommend adjusting the amount of money you’re spending on Google Ads in increments of fifteen percent. Do the math, adjust your spending, then sit tight for a couple of weeks. Did the business you receive go up? Or did it not seem to change at all? Keep in mind, there is a natural flux to the amount of business you receive—sometimes, you’ll have busy weeks or slow weeks just because. You might feel obliged to wait four weeks, or even six weeks, to truly gauge the amount of business you’ve received after increasing your ad spending.

So, did you receive a noticeable uptick in business because of your ad spending? Are the profits still outpacing your customer acquisition cost? Then maybe it’s time to increase your spending by fifteen percent again. Rinse and repeat! Consistent monitoring of your ad spending and the amount of business you receive is the key to knowing when you should spend more money on Google Ads.

Long-Term Benefits of Google Ads

It’s good to check in regularly and see how your Google Ads are performing. However, it’s worth noting that a good Google Ads campaign has long-term benefits, too. 

We’ve seen for ourselves that clients who reach out to you because they saw your Google Ads can be among the best clients. That’s because they often exercise the “Three Rs”: repeating business, referring business, and reviewing. In other words, these clients become regulars, tell their friends about you, and leave good reviews as well. These are all great ways to get more jobs and expand your business without having to coax them in with an ad everything time. Your customer acquisition cost will go down as a result, meaning there’s more room for investing in and growing your business.

Grow Your Google Ads Campaign with JRA

Good news: you don’t have to be alone in working on your Google Ads campaign and business expansion. Junk Removal Authority can manage your ad campaign for you so you can focus on other facets of your business instead. Additionally, we can also help you get top rankings on Google. 

When we call the shots, you’ve got long-term experience on your side, so consider contacting us. We consult with junk removal businesses all across the country, and we’d love to help you out, too.