How to Measure and Maximize Construction Marketing ROI

As a contractor, you’re the expert at building houses — but what about building results-driving online marketing campaigns? How do you know if the time and money you’re investing in your advertising are paying off?

The answer is that you look at your return on investment (ROI). ROI is essentially a measure of how much money you earn for each portion you invest. You want your ROI to be positive — in other words, you want to earn more money than you spend — and ideally, you want it as high as possible.

But how do you measure construction marketing ROI? Moreover, if it’s not as high as you’d like for it to be, how do you improve it? We’ll answer both of those questions below, so read on to learn more.

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How to measure your ROI

In order to know how much your marketing is benefiting you, you first have to figure out how to calculate your ROI. But while you may think that calculating construction company ROI is as simple as plugging numbers into a formula, that’s not entirely true.

Is there a formula for construction marketing ROI? Well, yes and no. You can express contractor ROI in terms of a simple formula, but that formula looks different for different businesses.

For example, here’s a simple formula you can use for calculating construction company ROI:

((total earned - initial investment)/initial investment) X 100

Simply input the total amount you earned from a campaign and the amount you invested in it. Then work the formula, and the resulting number will be your ROI as a percentage.

For example, if you invest $100 in a campaign and make $600 from it, the result would be (600 – 100)/100  100 = 500%, meaning you earned five times what you invested.

But it’s not that simple. What qualifies as part of your investment and earnings? In a paid advertising campaign, do you only count how much you spent on your ads, or do you also include the salary you paid over that time? What about your Ahrefs subscription? Is that included?

You’ll have to consider these sorts of questions — and at the end of the day, it’s up to you what you include in your ROI calculations. You’ll have to set the parameters for which campaigns to use, which time periods to look at, and which costs to include in your calculations.

Once you know how you want to calculate it, though, ROI becomes relatively simple to determine — and from there, you can start assessing just how well your marketing campaigns are performing.


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How to improve construction ROI

Now that we’ve covered how to measure it, we arrive at the question of how to improve construction ROI. What can you do to bring that percentage up to a higher number?

Fortunately, there are many ways to give your contractor ROI a boost, and we’ll cover several of them below. Here are five tips for increasing your return on investment!

1. Monitor paid ad campaigns

One of the simplest ways to keep your ROI moving upward is to monitor your campaigns, particularly your paid advertising campaigns. You can do this fairly easily in most cases — in Google Ads, for instance, you can view metrics like click-through rate (CTR) and conversion rate.

Key advertising metrics allow you to see how well your ads are performing. When you see an ad attracting plenty of clicks but driving no conversions, you know your landing page probably needs to be better optimized.

As you rework your underperforming ads and promote your high-performing ones, your overall campaign will grow more efficient, drastically increasing your ROI.

2. Harness social media

Another way to improve construction ROI is to simply take advantage of social media. The average user spends 28% of their Internet time on social media sites, and creating an account is free, so there’s no reason not to start marketing there.

rize construction twitter post

In addition to running your free account, you can launch paid ads. For best results, take advantage of the targeting settings offered by most platforms. You can direct your ads to specific demographics to ensure that you’re reaching the most relevant possible audience.

3. Experiment with your marketing

Something you should do with your marketing whenever possible is experiment. The ads you’re running now might be effective, but if you settle for them and never try anything new, you’ll never have a chance to do better.

In addition to running your tried-and-true campaigns, always have a few new ads running at a time to see if you can find something that works better than what you already have. To aid in this, perform A/B tests, where you run two versions of an ad to see which performs better.

The results of your experiments will tell you what you can do to better your campaigns, allowing you to drive more conversions and acquire more revenue.

4. Focus on user search intent

When it comes to online marketing, particularly through Google, user search intent is essential. People will only click on an ad if it can offer them something they want. If someone searches for “home construction services” and finds an ad for office construction, they won’t click on it.

To gain clicks and drive conversions, all your marketing materials need to give users exactly what they’re looking for. With paid search ads, for instance, you can look at existing search results to see what kind of content ranks the highest and then model your ads after that.

5. Ignore vanity metrics

A final construction company ROI tip is to ignore vanity metrics. Vanity metrics are metrics that might look good or make your business feel popular online but don’t actually drive revenue.

Vanity metrics are most commonly an issue on social media. They take the form of things like follower count and number of likes on a post. Having 3000 followers and 500 likes on each post might feel great, but those things aren’t earning you money.

Instead, pay attention to the metrics that actually matter, like conversion rate. Conversions directly earn you revenue, so that metric is highly relevant to your ROI.

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Let WebFX give your contractor ROI a boost

Ready to give your ROI a much-needed boost? WebFX can help! With over 500 testimonials, we’re the agency clients trust to drive results. We know how to improve construction ROI, and we’d love to show you firsthand.

With our digital marketing services, you’ll get help optimizing a variety of marketing strategies, from paid advertising to social media. You’ll also receive a dedicated account representative to keep you closely informed and involved in everything we do.

To get started with us, just give us a call at 888-601-5359 or contact us online today!

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