Google Ads for Contractors: Budget, Bidding, and Best Practices
By Charwin Vanryck deGroot
I've managed Google Ads accounts for contractors where $2,000 a month generated 40 qualified leads. I've also audited accounts spending $5,000 a month on clicks that never converted.
The difference isn't budget. It's setup.
The difference in cost-per-lead between a well-structured Google Ads account and a poorly managed one. I've seen it firsthand across dozens of contractor accounts.
This guide covers everything from campaign structure to bidding strategy. No theory. Just what generates jobs.
Why Google Ads Works Differently for Contractors
Standard Google Ads advice assumes you're selling nationally, competing on brand, and optimizing for online conversions. None of that applies to contractors.
Geography defines everything. Your service area is fixed. A roofer in Austin doesn't care about clicks from Houston. You need geographic precision that most advertisers don't think about.
Intent is immediate. Someone searching "emergency plumber" needs help now. Someone searching "roof replacement austin" is getting quotes this week. The buying cycle is compressed, which means your ads need to connect to a phone call fast.
Phone calls beat form fills. A homeowner with a broken AC isn't filling out a contact form. They're calling. Your campaigns need to be optimized for calls, not just clicks.
Trust barriers are high. You're asking someone to let strangers into their home and write a $5,000 to $15,000 check. Your ads and landing pages need to build credibility instantly.
These constraints shape everything that follows.
Contractor Google Ads requires location targeting, call tracking, and trust signals that standard e-commerce campaigns do not need. Generic PPC advice will waste your budget.
Campaign Structure for Contractors
The number one mistake I see: dumping all services into one campaign. This forces your emergency repair ads to compete with your installation ads for daily budget.
Most contractors either lump everything into one campaign or create an overcomplicated structure they can't manage. Here's what actually works.
Search Campaigns vs. Local Service Ads
Start with Local Service Ads (LSAs) if you haven't already. LSAs appear above standard search ads, include a Google Guarantee badge, and operate on a pay-per-lead model. You only pay when someone actually contacts you.
Max out your LSA budget before investing heavily in standard search campaigns. LSAs typically deliver leads at $35-75 each for contractors, while poorly managed search campaigns can hit $150+ per lead.
Standard search campaigns fill the gaps LSAs don't cover. Long-tail keywords, branded searches, and specific service combinations often get better coverage through search.
Campaign Organization by Service Type
Separate campaigns by service category. This gives you independent budgets and bidding for each service line.
For an HVAC contractor: - Campaign 1: AC Repair (high volume, emergency) - Campaign 2: AC Installation (high value, longer cycle) - Campaign 3: Heating Services (seasonal) - Campaign 4: Maintenance Plans (lower intent)
For a roofing company: - Campaign 1: Roof Repair (emergency, high intent) - Campaign 2: Roof Replacement (high value) - Campaign 3: Storm Damage (insurance work) - Campaign 4: Commercial Roofing (different audience)
Each campaign gets its own budget, so your emergency repair ads don't compete with your replacement campaigns for daily spend.
Within each campaign, create ad groups around specific keyword themes. "AC repair" and "AC not working" go in different ad groups with different ads tailored to each search intent.
Keyword Strategy
Keywords make or break contractor campaigns. The wrong keywords burn budget on clicks that never convert.
### High-Intent Keywords That Convert"I've audited accounts wasting 60% of their budget on informational searches that never turn into jobs. The fix took 30 minutes of negative keyword work."
These keywords indicate someone ready to hire:
Emergency and immediate need: - emergency [service] + [city] - [service] near me - 24 hour [service] - same day [service]
Service-specific with location: - [service] company + [city] - [service] contractor + [city] - best [service] in + [city]
Price and quote oriented: - [service] cost - [service] estimate - [service] quote - how much does [service] cost
For a plumber in Denver, high-intent keywords look like: "emergency plumber denver", "plumber near me", "water heater repair denver", "plumber cost denver".
These keywords cost more per click but convert at 3-5x the rate of informational keywords.
The Negative Keywords List
This is where most contractors hemorrhage money. Without negative keywords, Google will show your ads for searches that will never convert.
I reviewed an account last month where 43% of their clicks came from job seekers searching "plumber jobs near me" and "plumber salary." That is $2,100/month in completely wasted spend.
Employment seekers: jobs, careers, hiring, employment, salary, apprentice, license requirements, training, certification
DIY searchers: DIY, how to, tutorial, youtube, self, myself, own
Supply seekers: supply, supplies, wholesale, parts, materials, depot, lowes, home depot
Non-customers: free, cheap, complaints, lawsuit, scam, reviews (sometimes), images, pictures, videos
Competitors researching: franchise, start a business, marketing, software
Wrong services: If you're a plumber, add HVAC, electrical, roofing, and other trades you don't do.
A well-maintained negative keyword list can cut wasted spend by 30-40%. That is potentially $600-1,200/month saved on a typical $3,000 budget.
Match Types for Contractors
Exact match for your core high-intent keywords. [emergency plumber denver] only shows for that specific search or very close variants.
Phrase match for service + location combinations. "plumber in denver" captures "licensed plumber in denver" and "affordable plumber in denver."
Broad match with caution. Google's broad match has improved with smart bidding, but for contractors it still pulls in too much irrelevant traffic. If you use broad match, pair it with a robust negative keyword list and monitor search terms daily.
Start with exact and phrase match only. Add broad match later if you need more volume and have the tracking to measure quality.
Bidding Strategies
Bidding determines how much you pay for each click and how Google prioritizes your ads. Wrong bidding wastes money. Right bidding scales profitably.
Start with Manual CPC until you have at least 30 conversions per month. Automated bidding needs data to work. Switching too early lets Google's algorithm guess, and those guesses get expensive.
Manual CPC gives you direct control over max bids. Good for: new accounts without conversion data, testing new keywords, tight budget control.
Set manual bids based on estimated conversion value. If your average job is $3,000 and you close 10% of leads, each lead is worth $300. If you convert 5% of clicks to leads, each click is worth $15. Bid below that to maintain margin.
Maximize Conversions tells Google to get as many conversions as possible within your budget. Requires conversion tracking to be set up correctly. Good once you have 30+ conversions per month per campaign.
Target CPA (cost per acquisition) sets a target cost per conversion and lets Google optimize toward it. Best for mature campaigns with consistent conversion data. Set your target CPA at 20-30% below your maximum acceptable cost to give Google room to optimize.
Target ROAS (return on ad spend) optimizes for conversion value, not just volume. Requires conversion value tracking, which most contractors don't have set up properly. Skip this unless you're feeding closed job revenue back to Google.
Bid Adjustments That Matter
Location adjustments. Increase bids in your most profitable service areas. Decrease in areas with lower close rates or longer drive times. A +20% bid adjustment for your core city and -30% for fringe areas focuses spend where it performs.
Device adjustments. For contractors, mobile typically outperforms desktop. Emergency searches happen on phones. Consider +15-25% mobile bid adjustments for emergency services.
Time-of-day adjustments. If your office closes at 5pm and you can't answer calls, lower bids after hours. If you offer 24/7 emergency service, increase bids overnight when competition drops.
Ad schedule. Some contractors see lower quality leads on weekends. Test reducing weekend bids by 15-20% and measure if lead quality improves.
Budget Allocation
Budget determines your reach. Too little and you can't learn what works. Too much too fast and you waste money on unoptimized campaigns.
Starting Budgets by Business Size
Solo operator or small team (1-5 trucks): $1,500-3,000/month Start with LSAs at $50-75/day. Add one search campaign for your highest-value service at $30-50/day. Focus on exact match keywords for your core service area.
Mid-size company (5-15 trucks): $3,000-7,000/month LSAs maxed out. 2-3 search campaigns covering primary services. $50-100/day per campaign. Enough volume to test and optimize.
Larger operations (15+ trucks): $7,000-15,000+/month Full campaign structure across service lines. Geographic expansion campaigns. Competitor conquesting. Enough data for automated bidding to work effectively.
These are starting points. Scale based on performance, not arbitrary targets.
Seasonal Adjustments
Contractor demand fluctuates. Your budget should too.
HVAC: Peak summer (AC) and winter (heating). Increase budgets 30-50% during peak seasons. Reduce in shoulder months.
Roofing: Spring through fall in most markets. Storm seasons spike unpredictably. Keep budget flexible to capture storm demand.
Plumbing: More consistent year-round, with winter spikes for frozen pipes and water heater failures.
Don't maintain the same budget year-round if your demand is seasonal. You'll overspend when demand is low and underspend when it's high.
When to Scale
Scale budget when: - Your cost per lead is below your target threshold - You're capturing less than 50% impression share on converting keywords - You have capacity for more jobs
Don't scale when: - You can't handle more leads (answer rate drops, follow-up slows) - Cost per lead is at or above your threshold - You haven't optimized current campaigns
Scaling bad campaigns just loses money faster. Optimize first, then scale.
Ad Copy That Converts
Your ad copy is the first impression. It determines whether someone clicks or scrolls past.
Headlines That Work
Google now uses responsive search ads. You provide up to 15 headlines and 4 descriptions. Google tests combinations.
Effective headline formulas:
Service + Location: "Roof Repair in Austin" Urgency: "Same Day Service Available" Trust signal: "Licensed & Insured Since 2005" Benefit: "Free Estimates - No Obligation" Social proof: "500+ 5-Star Reviews" Price anchor: "Roof Inspections Starting at $99"
Mix headline types. Include at least one headline with your city name, one with a trust signal, one with a clear benefit.
Headlines to avoid:
Generic: "Quality Service" (everyone says this) Vague: "We're the Best" (prove it instead) Clickbait: "You Won't Believe Our Prices" (kills trust)
Extensions to Use
Extensions make your ads bigger and more clickable. Use all of them.
Sitelinks: Link to specific service pages. "AC Repair", "New Installation", "Emergency Service", "Financing Options"
Callouts: Short trust signals. "24/7 Service", "Licensed & Insured", "Locally Owned", "Free Estimates"
Structured snippets: Service types. "Services: Repair, Installation, Maintenance, Inspection"
Call extensions: Phone number that shows on mobile. Critical for contractors.
Location extensions: Connect to your Google Business Profile. Shows address and map pin.
Ads with extensions get 10-15% higher click-through rates on average.
Call-Only Ads
For emergency services, consider call-only campaigns. These ads show only on mobile and clicking calls you directly. No landing page in between.
Call-only ads work well for: - Emergency plumbing - AC repair in summer - Furnace repair in winter - Lockouts
The trade-off: no landing page means no pre-qualification. You may get more calls but lower quality. Test against standard mobile ads.
Landing Pages for Contractors
Your landing page determines whether clicks become leads. A bad landing page kills even the best campaigns.
What to Include
Above the fold: - Headline matching the search intent - Phone number (click-to-call on mobile) - Clear call-to-action button - Trust signals (reviews, certifications, years in business)
Below the fold: - Service description matching the ad - Before/after photos of your work - Pricing guidance (ranges are fine) - Process explanation (what happens when they call) - Full testimonials - FAQ section
What not to include: - Navigation to other pages (keeps them focused) - Stock photos (customers can tell) - Walls of text (nobody reads them) - Multiple competing CTAs
Mobile Optimization
Over 70% of contractor searches happen on mobile. Your landing page must work perfectly on phones.
Requirements: - Page loads in under 3 seconds - Phone number tappable at the top - Form fields are large enough to tap - Buttons are thumb-sized - No horizontal scrolling - Images compressed for fast loading
Test your landing pages on your own phone. If anything frustrates you, fix it.
Build dedicated landing pages for each major campaign. Don't send all traffic to your homepage. An ad for "emergency roof repair" should go to a page about emergency roof repair, not a generic roofing services page.
Tracking and Optimization
Running Google Ads without proper tracking is gambling. You need to know which keywords, ads, and campaigns generate actual customers.
Conversion Tracking Setup
Track these actions: - Phone calls from ads (use Google forwarding numbers or call tracking) - Phone calls from website (requires call tracking software) - Form submissions (Google Ads conversion tracking or Google Analytics) - Chat initiations if you use live chat
Set up conversion tracking in Google Ads, not just Google Analytics. Google Ads needs this data to optimize bidding.
Call tracking implementation:
Use CallRail, CallTrackingMetrics, or WhatConverts. These services provide tracking numbers that record which marketing source generated each call.
Dynamic number insertion shows different tracking numbers to visitors from different sources. Visitors from Google Ads see one number. Visitors from Facebook see another. Organic visitors see another.
This tells you exactly which campaigns and keywords generate calls, not just clicks.
Call Tracking Integration
Connect your call tracking to Google Ads. This allows: - Call conversions to feed back to Google for optimization - Call duration filtering (only count calls over 60 seconds as conversions) - Keyword-level call attribution
A 15-second call is usually a wrong number or tire kicker. A 3-minute call is a real lead. Track call duration and set minimum thresholds for what counts as a conversion.
Key Metrics to Monitor
Weekly checks: - Cost per conversion (should stay below your threshold) - Search terms report (add negatives for irrelevant terms) - Impression share (are you losing to budget or rank?) - Quality scores (below 5 needs attention)
Monthly analysis: - Conversion rate by campaign - Cost per lead trend over time - Device performance comparison - Geographic performance - Day and hour performance
Quarterly review: - Overall ROI calculation - Campaign structure adjustments - Budget reallocation based on performance - Seasonal adjustment planning
The Reality Check
Google Ads for contractors works. But it requires ongoing attention. This isn't set-and-forget marketing.
Budget reality: Expect to spend $2,000-5,000 to learn what works before you're profitable. Consider the first month or two as data gathering.
Time reality: Managing Google Ads properly takes 3-5 hours per week. If you're not willing to invest that time, hire someone who will.
Results reality: Well-managed contractor campaigns generate leads at $30-100 each depending on your market and service. Close 20-30% of those leads and the math works out. If your close rate is low, the problem might not be your ads.
The contractors who succeed with Google Ads treat it as a system. They track everything. They optimize continuously. They connect ad spend to actual jobs closed, not just leads generated.
If you want help setting this up right the first time, we build these systems for contractors. Full tracking, proper campaign structure, ongoing optimization. You'll know exactly which keywords generate which jobs.
But if you're doing it yourself, this guide is the playbook. Follow it step by step, track your results, and optimize based on data. That's how you turn Google Ads from a budget drain into a lead machine.