How much does digital advertising cost?

In this video we're going to discuss how much does digital advertising cost? I'm going to break down the different options you have from a digital advertising perspective. And then I'm also going to break down how much a company like myself would charge someone to manage their advertising budget. So the first thing that we want to do is look at what are the options that we have for digital advertisements. So most people start at Google and so that's where I'm going to start at. And we're going to look at three, three different ways to advertise using Google and then one other way to leverage Google for advertising. So if you do a Google search in your area, you can type in whatever service that you offer near me. And if you see there's two different types of ads here. There's these which are called Google local service ads, LSAs are what people call them. And then here which are your typical Google AdWords Google search ads. And these are two different types of ads that Google runs. If you see up top here, they only show three, but these ones you only pay per lead. When someone clicks this button then they charge you for that lead. Whereas these ones you're actually bidding on keywords which are these. And these people are actually paying for me to see this right now. And if I click on it, it's going to give them a click through rate. So the first thing that we want to do is let's look at these Google Local service ads. I usually like to start people with Google Local service ads mainly because you only pay when someone clicks this button. So it's a pay per lead model and it's the number one prime real estate on Google. So the good thing is that you pay per lead, it's the number one spot on Google and you can get an actual amount of how much it's going to cost per lead. And I'm going to show you that the downfall is that if you see this has 10 plus H vac pros nearby but they only show 3. So you may set all this up but not get many leads because there's a lot of competition in your area. So like Google Reviews for example can help boost you in this, these three, these three things. But for some companies that are just starting out, it takes a little bit of time to get your traction on these. So there's some pros and cons. But let's just look at how much this costs. So if you just type in Google Local service ads cost, for example, it's going to give you a calculator here. So what you would do is put in your zip code, you'd put in how many leads you want. Let's just say you want one lead just to see how much it is per lead. And let's do H Vac because we're looking at that right now. So what this is telling us is that if we did this advertisement, Google Local Service ads, we would pay $25 to $38 per lead. So that means that this lead right here, if someone clicks this, they're going to be spending between 25 and $38 for this lead. So the beauty of this is that you could set your budget and say, okay, I want 10 leads. So if I want 10 leads, I'm probably going to be spending about $250 or to $380. So I might set my threshold at $400 a month or something like that. So it allows you to be flexible. Some Google Local service ads, they require you to do four to $500 per week. And so typically what we do with our clients is we just manage it on a weekly basis. That way we can track if we get a lead or a couple leads, then maybe we just pause it for the rest of the month or something like that. Typically companies that are digital marketing companies charge management fee for just the Google Local service ads. Typically they're charging anywhere from like $100 a month to $250 a month. That's for Google Local service ads specifically. And the reason that these are not as you don't need as much analytics behind it is because you really just kind of set it up and then manage it for the client. They do give you all the call history on the back end and, and you can do maneuvering on different zip codes and keywords and stuff like that. But it's a lot less intensive than this, which, these are your Google AdWords, which is you need to have your keyword research. You need to be looking at your copy here and seeing what's converting, what's not converting. It's an ongoing management process. So that brings me to the next part, which is your Google AdWords, your Google search ads. And what these ads are again is people are paying for this real estate. And if someone clicks on this, then it shows as a click through rate and it will register on the back end as a potential lead that's coming to their website. From this you can do like tag managers and track stuff that comes through your website from this specific area on Google Analytics and stuff. But the whole gist of it is that you can set a budget for these adwords and you can spend it every single month as if it's like a billboard for your business. And hopefully you get some business coming in. It's hard to say what a good click through rate is or what a good leads, how much a lead would cost for different businesses because every business is different. There's so many factors that go into this. For example, if you click on this, they go to a website, it's called a landing page or some part of your website. If that's not optimized correctly, then they might not convert into a lead. Same thing with your copy, like Instant Quote H Vac estimator. That might be a good copy. I probably wouldn't use that though. I would use something more along the lines of serving your area. Maybe even this one. 59 seasonal heating check. This is why someone should be monitoring this because we're in summer right now and they're saying that there's a $59 seasonal heating check. So this person clearly doesn't have anyone looking at their stuff because they're running heating ads in the middle of summer. So anyways, this is why you would pay a company to manage these things for you. So typically what. There's two different ways that people do this. Some people take a percentage of what you spend. So for example, if you spend $2,000 on these ads, they will take 10 to 20% as a management fee of. And the reason that they say that they charge a percentage is because if you have a large budget, you have a lot of keywords and you have a lot of moving parts that they have to manage. So if it's $2,000, you're gonna spend $400 on someone managing it. For example, um, where, where other companies typically they will just charge like a flat fee of like $300 or $400 to manage these adwords. That way it's not scaling up with your budget size. So that's what you could expect to pay with this. These can be very fruitful for your business. I tend to look more for what is the automatic lead flow, but again, it can be hard with this competitive 10 +H vac pros nearby. So that's how these two work. The other one that I want to show you is kind of a secret advertising cost. And a lot of local service businesses that I talk to, they kind of have maybe a sour taste in their mouth with Yelp, but I just want to show you why it's important and at least show you how much the advertising cost on Yelp so that you can see how this works. So you have your Google on this keyword, you have your local service ads, you have your adwords, then you have your off site SEO. This is your Google local service pack which is something that we focus on a lot with our clients. And typically within the first couple organic results, there's going to be Angie, which obviously this is another advertising platform and then also thumbtack, another advertising platform and Yelp. So a lot of times Yelp will be at the top. But I just going to show you how this works. So they curate the 10 best heating and air conditioning H Vac companies in Frederick, which is where I'm located. And you can see if you were to click on this, it's going to pull up the 10 best H Vac companies in Frederick. And and so you see it automatically pulls up the sponsor results or the people that advertise on Yelp. And so since this is about what is advertising cost, I'm just going to show you how this works on Yelp because it's a similar thing to Google. So on Yelp you go to biz.yelp.com you can go to the back end of your Yelp account and you can do click on Yelp ads and it's really quick. You can just click on let, let Yelp optimize. And I'm just going to do that just to show you let yo recommend. All right, so really quick, you can easily see here that if we do a $28 a day budget, which is about $900 a month, $840 a month, then we're protect we're projected to get 43 monthly clicks. And what a click is, it's estimated performance is based on similar businesses. Actual performances may vary. What a click is is someone that's clicking either onto your profile, messaging you, calling you, or connecting in through your going to your website. So you can see that if you spend 18 hours that you get 27 monthly clicks and this pulls from what you tell Yelp that you do. And you can obviously customize all of your keywords inside of Yelp. But the beauty is that you can kind of gauge how many clicks that you're going to get through where on your other Google Ads it might not be as you might not be able to say, okay, if I spent X amount of dollars, then I'm going to know that I'm going to get this many clicks. There is a way in AdWords that you can pull what your estimated click through rates are going to be, but it takes a little bit of a deeper understanding of Google AdWords. It's not just something that someone can just click on and go to Yelp ads. So we post videos about growing local service businesses, and if you're interested in learning more about that, I'll put some links down below. But be sure to hit like and subscribe and we'll see you in the next video.