How CPC Has Changed for Property Management Since 2018
Spending on digital advertising has increased over the years. Advertisers have spent more on online ads than television ads since 2017. COVID-19 has only increased demand for online ads, and as more companies adapt to digital marketing, it makes sense that the platforms we use would undergo some changes.
But, how has the popularity impacted cost per click and Google Ads? What do these changes mean for property management lead generation? Are pay per click campaigns still worth it?
What the Data Says about CPC
To answer this question, we gathered some historical data from competitive property management cities across the U.S. We looked at cost per click rates in 2018, and again in 2020.
As you can see from the graph, there was a meaningful increase across all six of the cities we checked. Some were more significant than others. On the low end, the average cost per click for property management increased nine percent in Tampa. But in Honolulu, the average cost per click for property management increased by 372.97 percent.
The average across these cities was 117.2 percent over just two years.
Factors Influencing Campaign Costs
Many things increase the cost per click, including the campaign quality score and the budget. The most important factor, however, is competition. As competition increases overall, the spending will increase overall. With only three primary ad spaces to compete over, supply and demand will dictate the cost of getting those spots. That cost will keep increasing. It’s what we’ve seen with Google Ads.
Does this rising cost per click have an impact on leads generated?
Yes and no. Across these six cities, the average leads generated per month in 2018 was 6. In 2020, an average of 5.88 leads were generated per month.
Each individual client has their own budget and unique strategy. Again, many factors are in play when determining how many leads a campaign will generate in a month. Cost per lead is an important statistic and varies greatly depending on location.
While each individual campaign had different results over the two years, the overall number of leads was fairly consistent.
Are Property Management Ad Campaigns Worth It?
Your Google Ad campaign is not something to set and forget. Changes are constant and often without warning. Are these Google campaigns worth it? Absolutely. This is the best way to get in front of potential clients who are looking for your property management services.
But, there’s going to be a price.
Pick a budget that’s strategic for your location. Make sure you’re taking average cost per click for property management and competition into account. Check in on how your campaign is performing periodically so you can make sure the budget you have in place is still working for you. Be willing to adjust it as necessary.
That’s where Fourandhalf comes in. We’ve been helping property managers with online advertising and owner marketing since 2012. If you’re interested in exploring Google Ads, or need help with online reputation management and overall marketing to property owners, give us a call or send us an email. We can’t wait to hear from you!