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Why Digital Marketing Costs Are Rising for Home Service Businesses—And What to Do About It

Over the past few years, home service businesses—plumbers, HVAC contractors, electricians, and roofers—have noticed something frustrating: digital marketing is getting more expensive.

What used to be a few hundred dollars a month in Google Ads is now thousands. Once-quiet competitors are suddenly everywhere. And businesses that used to rank well in their local markets are struggling to stay visible.

So what changed? And more importantly—what can your business do to stay competitive without overspending?

The Home Services Landscape Has Shifted

1. More Competition Than Ever

From startups and franchises to gig-based contractors, your market is likely more saturated than it was even just a year ago. That means more companies are bidding on the same keywords in Google Ads, fighting for the same map spots on Google Business Profiles, and investing in social just to stay top of mind.

2. Google Ads Have Become Pay-to-Play

If your business wasn’t using paid ads in the past, you may feel like you *have* to now. And if you already are, you’ve likely noticed your cost-per-click (CPC) has gone up. As more contractors enter the ad space, auction-based pricing rises—especially for high-value keywords like “emergency plumber near me.”

Why Digital Marketing Costs Are Rising

Rising CPCs: In home services, Google Ads CPC has increased 20–40% since 2020.
AI-generated content is flooding the market: Standing out now takes strategy, not just content volume.
Consumers compare more: You need more than one click—you need a whole customer journey.

It’s Not About Spending More—It’s About Spending Smarter

Here’s what our clients at Redesign.co are doing to adapt:

Combining SEO and paid media for short- and long-term wins
Optimizing their Google Business Profile and review generation
Leveraging tools like RediAI Chat and Voice Answering to capture leads 24/7
Running smarter campaigns with full attribution and call tracking

What You Can Do Right Now

Audit Your Market: Know who you’re up against and how they’re spending.
Refine Your Strategy: Focus on conversion rate, not just traffic.
Improve Your Website: Speed, mobile usability, and service area optimization all matter.
Talk to a Team That Gets It: We help contractors build campaigns that grow *with* their business.

Final Thought

Yes, digital marketing costs have increased—but smart strategies still win.

At Redesign.co, we partner with home service businesses nationwide to help them build smarter, more sustainable campaigns that convert. Whether you’re new to Google Ads or ready to elevate your digital presence, we’ll help you make every dollar count.

🔍 Want to know how your market compares? Request a Free Marketing Audit today.