Maximizing Tow Ads Budget & Profitability: Know What You’re Paying
Running an effective and profitable online tow ads campaign takes a significant amount of time and effort. Not all online opportunities are equal. It is vital to do the math to know if it’s worth it. In the midst of a 24/7 towing world, finding ample time to manage a paid ads strategy can prove challenging. It makes sense to partner with a company like us that can handle the work on your behalf—watching your cost-per-click and cost-per-call metrics while driving a steady stream of cash calls.
Do Towing Companies Have to Buy Ads?
Not necessarily. But research shows that about 25% of mobile search clicks are on paid results. Do you want to miss out on a quarter of the potential clicks? If you allow us to maximize your tow ads spend, it can be very profitable to have a monthly paid ad budget.
Our Recommendation: Google Ads
Why? Here are three quick reasons we typically recommend towing companies use Google Ads:
1. Google gives us the lowest marketing cost per call, which ultimately means more profit for you.
2. While Google isn’t the only company providing paid tow ads, 90% of online searches happen on the search engine giant – we want to fish where the fish are.
3. The Google Ads dashboard provides a significant amount of user control that allows us to manage important aspects of our ad campaign toward providing a low marketing cost – maximum cost per click, ad schedule, negative keywords, etc.
Tow Ads Math: Google Ads Real-Life Example
We’ve experienced a full range of tow ads averages from just over $0.50 in non-competitive markets for light towing to over $10 in highly competitive markets for heavy towing and hauling. Following is a real-life example based on 30 days of light towing tow ads activity for one of our clients in a major metropolitan area:
- Our client’s monthly budget was $175
- Google auctions their ad slots for every search and offers no guarantees
- Based on the settings we set up, their ads appeared in 2,550 searches (called Impressions)
- Those searches resulted in a 4% click through rate (CTR)—4% of 2,550 is 102
- About 75% of clicks resulted in completed calls, or 76 calls
- About 75% of calls resulted in completed tows, or 57 tows
- For $175, our client averaged nearly two tows/day at just over $3 per tow on ads
Tow Ads Math: Sold by Impressions
Our clients often say something like, “So-and-so called and said they can get me 500 impressions for $400. It sounds too good to be true. What do you think?”
While those numbers might seem enticing, we do the math to get a clearer picture of the actual value provided. Here’s an example calculation of how $400 for 500 impressions (your ad appearing in a search) could break down using the same multipliers from the Google Ads example:
- $400 for 500 searches is $0.80 per impression
- Assume 4% click-through-rate (CTR) from impressions to clicks (4% of 500), or 20 clicks
- Assume 75% clicks result in completed calls, or 15 calls
- Assume 75% of calls result in completed tows, or 11 tows
- Investing $400 is predicted to yield 11 tows at roughly $36 per tow on ads
Hire Us to Manage Your Tow Ads
Partnering with a company who has experience in a variety of online marketing opportunities can save you money by only investing in the most productive marketing channels. Contact us today and ask us to manage ads so you can manage servicing the new business they generate.