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Research Outline
Prepared for Lauren B. | Delivered January 28, 2020
Media Spend in Plumbing
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Goals
To find the average marketing spend within California's plumbing industry to guide marketing efforts for a plumbing services client.
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Early Findings
Marketing Spend
According to DP marketing services, between
9-10%
of a plumbing company's revenue should be allocated to marketing. The Small Business Administration recommends that
7-8%
of revenue be ploughed back into the business towards marketing.
The size of California's plumbing and HVAC industry is
$19.7 billion
.
Ideally, the plumbing and HVAC industry in California should be spending $1.97 billion (10%*
$19.7 billion
) on marketing.
Digital Marketing Metrics
The average cost per customer acquisition for the professional services industry--electricians, contractors, plumbers, hair, etc.--in the United States (survey sample of United States, Canada, and Australia) is
$49.74
(without machine learning).
The cost per click for the professional
s
e
r
v
i
c
e
s
industry is
$3.55
without ML and
$3.25
with ML.
The professional services industry has a conversion rate higher than all other industries:
7.88%
without ML and
8.47%
with ML.
Based on the fact that the professional
s
e
r
v
i
c
e
s
industry has a higher digital marketing conversion rate than any other industry, and given that digital marketing has a
higher share
of media spend than traditional media, digital is the best media vehicle for marketing plumbing services.
Ninety-seven percent
of consumers search for plumbing services on the internet. A blog more than quadruples the chances of ranking high on search results.
Nearly two in three (
63%
) consumers engage with a company via its website;
30%
would not consider the services of a company that does not have a website.
Over two in three (
70%
) expect a company to have a social media presence.
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