Pay Per Click (PPC) Expectations
for a Generator Supercenter Franchise
While the home improvement industry averages a 1.8%-3% CTR, Generac generators hold a unique position. Their niche market and specific targeting allow for a more optimistic 2.5% CTR. Why? Generator buyers are actively searching, making Generac ads highly relevant and likely to click.
Conversion rates follow suit. The industry average is 2%-5%, but Generac’s higher-ticket generators require a longer consideration window. A realistic conversion rate of 2.5%-3% reflects this. Customers research and compare before committing to such an investment. Keep in mind that conversions occur over the course of a 3 month to 3 year time period. Lead nurturing is a key consideration for long-term growth.
Prepare for a higher CPC($5-$6) compared to the industry average of $2-$6. Keywords related to generators, especially specific brands like Generac, are fiercely competitive, driving up the cost. Avoid broad keywords like generator, since that will put you in competition with small generators that are gas powered.
Top ad positions are crucial for visibility and potential CTR. Aim for the top 3, but expect to bid competitively, especially against other Generac dealers.
With a $1,000 monthly budget and a $6 average CPC, you can expect around 166 clicks and 4 conversions/leads/sales. Remember, this is an estimate, and actual results can vary based on ad quality, seasonality, and market demand. If lead count needs to be higher to achieve your goals, please consider increasing your budget and discussing with a marketing professional.
By understanding these expectations and tailoring your Google Ads strategy accordingly, you can effectively target the right audience and maximize your ROI for Generac generators.
Click-Through Rate (CTR):
- Average CTR: The typical CTR for the home improvement industry is around 1.8% to 3%. However, given the niche nature of Generac generators and the specific targeting, we can expect a CTR closer to 2.5%.
- Why this Expectation: Generac generators cater to a specific audience. Not everyone clicking on a home improvement ad will be interested in generators, but those actively searching for one might find Generac-specific ads highly relevant.
Conversion Rate:
- Average Conversion Rate: The conversion rate for the industry can range from 2% to 5%. For a Generac dealer, given the higher ticket size and the need for more consideration, an initial conversion rate of around 2.5% to 3% is realistic.
- Why this Expectation: Generators are significant investments. Customers might click on an ad, but they’ll likely take time to research, compare, and then make a purchasing decision.
Cost Per Click (CPC):
- Average CPC: The home improvement industry sees an average CPC of $2 to $6. Considering the niche of Generac generators, anticipate a CPC on the higher end, around $5 to $6.
- Why this Expectation: Keywords related to generators, especially specific brands like Generac, can be competitive, driving up the cost.
Ad Position:
- Average Ad Position: Aiming for the top three ad positions is ideal, but this can vary based on the competition and bid strategy. For Generac-specific keywords, expect to be in the top three, given the right budget.
- Why this Expectation: Being in the top ad positions increases visibility and potentially CTR. However, it might require a higher bid, especially if other dealers or retailers are targeting the same keywords.
Monthly Traffic Estimate:
- Traffic: Given a budget of $1,000 per month and an average CPC of $6, expect around 166 clicks monthly. With a 2.5% conversion rate, this translates to approximately 4 conversions or leads/sales.
- Why this Expectation: This is a straightforward calculation based on the budget, CPC, and conversion rate. However, it’s essential to remember that these numbers can fluctuate based on ad quality, seasonality, and market demand.
It’s crucial to note that these numbers are based on industry averages and the specific nature of Generac generators. Actual results can vary based on various factors, including ad creatives, landing page quality, external market conditions, and specific regional demand. Regularly reviewing and optimizing the PPC campaign is vital to ensure it’s yielding the desired results.
Definitions and Details:
Click-Through Rate (CTR):
Details:
The CTR is the ratio of users who click on a specific link to the number of total users who view the ad (impressions).
A high CTR indicates that the ad is relevant to the search query and resonates with the audience.
Generac Specific Insights:
Generac generators cater to a specific need — emergency power supply, primary power in off-grid locations, or backup for critical systems. Thus, the ad copy should reflect this specificity to attract relevant clicks.
Using targeted keywords such as “Generac emergency power” or “Generac home backup” can increase ad relevance and potentially boost CTR.
Conversion Rate:
Details:
Conversion rate is the percentage of visitors who take a desired action, like filling a contact form, calling the dealer, or making a purchase.
It’s a direct indicator of ROI — how effectively your ads are driving actionable results.
Generac Specific Insights:
Given the high-ticket nature of generators, the sales cycle is longer. Hence, a conversion might not always be a sale. It could be a request for a quote, a product demo, or a consultation.
Crafting a clear call-to-action (CTA) relevant to the Generac brand, like “Get a Generac Quote Today” or “Schedule a Generac Installation Consultation”, can enhance conversion potential.
Cost Per Click (CPC):
Details:
CPC is the amount you pay each time someone clicks on your ad.
It’s influenced by the ad’s relevance, the bid amount, and the competition for the keyword.
Generac Specific Insights:
Given the brand’s reputation and demand, keywords associated with Generac might be more competitive, driving up the CPC.
To optimize CPC, consider using long-tail keywords, such as “Generac backup generator for homes” or “Generac dealer in [City Name]”.
Ad Position:
Details:
Ad position denotes where the ad appears on the search engine results page (SERP). The top positions are more visible and usually garner higher CTR.
Generac Specific Insights:
Being a recognized brand, Generac ads should aim for the top positions to capitalize on brand searches.
Ad extensions, like location (for local dealers), callouts (like “Authorized Dealer” or “Free Installation”), and structured snippets (showcasing different models), can enhance the ad’s visibility and improve its position.
Monthly Traffic Estimate:
Details:
This provides an estimate of the potential traffic the ad can drive, based on the budget, CPC, and CTR.
Generac Specific Insights:
Seasonal factors can influence traffic. For instance, regions prone to winter outages might see a surge in Generac searches as winter approaches.
Monitoring trends using tools like Google Trends can help in adjusting the ad strategy and budget allocation accordingly.
Remember, while these insights provide a more detailed look at PPC metrics for a Generac dealer, continuous monitoring, testing, and optimization are key. The PPC landscape is dynamic, and staying agile can help in maximizing ROI.
