· Karson Lawrence · Marketing · 8 min read
Digital Marketing for Contractors: The Complete Lead Generation Playbook
Learn how successful contractors generate consistent leads through digital marketing. From Google Business Profile optimization to paid advertising, this guide covers everything you need to know.

Most contractors know they need better marketing. Few know exactly what to do. This comprehensive guide breaks down digital marketing into actionable strategies that actually work for home service businesses.
The Contractor Marketing Problem
Here’s what we hear constantly from contractors:
“I know I need to do more marketing, but I don’t know where to start.”
“I spent $5,000 on advertising and got nothing.”
“Everyone tells me something different.”
The truth? Marketing for contractors isn’t complicated—it’s just different from marketing for other businesses. What works for restaurants or retail doesn’t work for home services. You need strategies built for how customers actually find and choose contractors.
Understanding How Customers Find Contractors
Before spending a dollar on marketing, understand the customer journey.
The Decision Timeline
| Stage | Customer Mindset | How They Search |
|---|---|---|
| Unaware | Don’t know they need you | Not searching yet |
| Aware | Notice a problem | ”Why is my AC making noise?” |
| Considering | Looking for solutions | ”AC repair near me” |
| Deciding | Comparing options | Reading reviews, getting quotes |
| Acting | Ready to book | Calling, booking online |
Key Insight: Most contractors only market to “Acting” stage customers. The best contractors market to all stages.
How Customers Choose
Research shows customers prioritize:
- Reviews and reputation (68% check reviews first)
- Response time (48% choose first company to respond)
- Online presence (73% visit website before calling)
- Referrals (83% trust recommendations from people they know)
- Price (Actually less important than most contractors think)
Your marketing must address these priorities.
The Marketing Foundation: Your Online Presence
Before driving traffic anywhere, ensure your destination converts.
Google Business Profile (GBP)
This is the most important free marketing tool available. For local contractors, GBP often drives more leads than your website.
Optimization Checklist:
✅ Claimed and verified ✅ Accurate business name, address, phone (NAP) ✅ Correct business categories (primary + secondary) ✅ Complete service area ✅ Business hours (including emergency availability) ✅ All services listed ✅ High-quality photos (team, trucks, work) ✅ Q&A section populated ✅ Regular posts (weekly minimum) ✅ Active review response (every review)
Pro Tips:
- Add photos weekly (Google rewards fresh content)
- Use posts for seasonal offers and tips
- Add services with detailed descriptions
- Enable messaging for more contact options
- List attributes (women-owned, veteran-owned, etc.)
Your Website
Your website must do three things:
- Build credibility quickly
- Make contacting you easy
- Provide information customers want
Essential Website Elements:
| Element | Purpose |
|---|---|
| Professional design | Credibility |
| Clear phone number | Conversion |
| Service area/locations | Relevance |
| Service descriptions | Information |
| About page with team | Trust |
| Customer reviews | Social proof |
| License/insurance info | Credibility |
| Mobile optimization | Accessibility |
| Fast load time | User experience |
The 5-Second Test: A visitor should know within 5 seconds:
- What you do
- Where you serve
- How to contact you
Local Citations
Your business information should be consistent across the internet:
Priority Platforms:
- Google Business Profile
- Bing Places
- Apple Business Connect
- Yelp
- Better Business Bureau
- Angi
- HomeAdvisor
- Nextdoor
- Industry-specific directories
Consistency matters. Same business name, address, phone everywhere.
SEO: Being Found When Customers Search
Search Engine Optimization gets you found organically (without paying per click).
Local SEO Fundamentals
Target Keywords:
| Keyword Type | Example | Purpose |
|---|---|---|
| Service + Location | ”AC repair Dallas” | High intent |
| Service + Near Me | ”plumber near me” | High intent |
| Problem-based | ”no hot water” | Informational |
| Question-based | ”how often to service AC” | Awareness |
On-Page SEO:
- Include target keywords in page titles
- Write unique meta descriptions
- Use header tags (H1, H2, H3) properly
- Include location mentions naturally
- Add service-specific pages for each service
Location Pages:
If you serve multiple cities, create location-specific pages:
- /locations/dallas-ac-repair/
- /locations/fort-worth-ac-repair/
- /locations/plano-ac-repair/
Each page should have unique content relevant to that area.
Content Marketing
Blog Content That Works for Contractors:
| Content Type | Example | Purpose |
|---|---|---|
| How-to guides | ”How to reset your AC” | Attract searchers |
| Problem/solution | ”Why is my water bill high?” | Address concerns |
| Seasonal tips | ”Preparing your plumbing for winter” | Relevance |
| Local content | ”Water quality in [City]“ | Local relevance |
| Buying guides | ”How to choose a new AC system” | Decision stage |
Content Principles:
- Answer real questions customers ask
- Be genuinely helpful (not salesy)
- Target specific keywords
- Update content regularly
- Include clear calls to action
Paid Advertising: Immediate Leads
Unlike SEO, paid advertising generates leads immediately—when done correctly.
Google Ads (Search)
How It Works: Your ad appears when someone searches your target keywords. You pay when they click.
Campaign Structure:
| Campaign | Ad Group | Keywords |
|---|---|---|
| AC Services | AC Repair | AC repair, AC not working |
| AC Installation | New AC, AC replacement | |
| AC Maintenance | AC tune-up, AC service |
Best Practices:
- Separate branded and non-branded campaigns
- Use location targeting strictly
- Implement negative keywords aggressively
- Create service-specific ad groups
- Use ad extensions (call, location, callout)
- Track calls as conversions
Budget Guidance:
- Minimum: $500/month to test
- Typical: $1,500-5,000/month for residential contractors
- Set daily budgets to control spend
- Start small, scale what works
Expected Metrics:
| Metric | Target |
|---|---|
| Click-through rate (CTR) | 3-5%+ |
| Cost per click (CPC) | $15-50 (varies by market) |
| Conversion rate | 5-15% |
| Cost per lead | $50-150 |
Google Local Services Ads (LSA)
How It Works: Pay-per-lead ads that appear at the very top of search results with Google Guarantee badge.
Advantages:
- Top placement in search
- Pay per lead (not click)
- Google Guarantee builds trust
- Typically lower cost per lead
- Background check = credibility
Requirements:
- Background checks for owner and technicians
- License verification
- Insurance verification
- Business registration
Tips:
- Respond to leads immediately (affects ranking)
- Request reviews from LSA customers
- Keep budget adequate to show consistently
- Monitor lead quality and dispute bad leads
Facebook/Instagram Ads
Best for: Brand awareness, retargeting, special offers
Less effective for: Direct emergency service leads
When to Use:
- Promoting maintenance agreements
- Seasonal campaigns
- New customer offers
- Brand building
- Retargeting website visitors
Ad Types:
- Lead form ads (capture info without leaving Facebook)
- Traffic ads (send to website)
- Video ads (tell your story)
- Carousel ads (show multiple services)
Retargeting
What It Is: Showing ads to people who already visited your website
Why It Works: Most visitors don’t convert on first visit. Retargeting brings them back.
Platforms:
- Google Display Network
- Facebook/Instagram
- YouTube
Best Practices:
- Segment by page visited
- Different message for different stages
- Frequency caps to avoid annoyance
- Compelling offers to return
Reputation Management: Reviews Drive Revenue
Reviews are marketing. Managing them actively is essential.
Building Your Review Strategy
Where to Focus:
| Platform | Priority | Why |
|---|---|---|
| #1 | Impacts local SEO and shows in search | |
| #2 | High visibility, social proof | |
| Yelp | #3 | Still influential, particularly for some trades |
| Industry sites | #4 | BBB, Angi, HomeAdvisor |
Asking for Reviews:
The best time to ask: Immediately after successful service
Methods:
- Text message with direct link
- Email follow-up with link
- Technician asks in person
- Receipt/invoice includes link
- Automated review request software
What to Say: “We really appreciate your business! If you were happy with our service, would you mind taking a minute to leave us a review? [Link] It really helps our small business. Thanks!”
Responding to Reviews
Positive Reviews:
- Thank them by name
- Reference specific service if possible
- Invite them back
- Keep it personal, not templated
Example: “Thanks so much, Sarah! We’re glad the AC installation went smoothly and you’re staying cool this summer. Don’t hesitate to reach out if you need anything else!”
Negative Reviews:
- Respond quickly (within 24 hours)
- Remain professional (everyone is watching)
- Apologize for their experience
- Take conversation offline
- Follow up after resolution
Example: “John, I’m sorry to hear about your experience. This isn’t the level of service we strive for. I’d like to personally make this right. Please call me directly at [phone] so we can address this. - [Owner name]”
Never:
- Argue publicly
- Get defensive
- Make excuses
- Ignore negative reviews
- Fake positive reviews
Review Volume Goals
| Business Size | Reviews/Month Target | Total Goal |
|---|---|---|
| Small (1-3 techs) | 5-10 | 50+ total |
| Medium (4-10 techs) | 15-25 | 150+ total |
| Large (10+ techs) | 25-50 | 300+ total |
Referral Marketing: Your Best Source
Referred customers convert at higher rates, spend more, and cost less to acquire.
Building a Referral System
Passive Referral Tactics:
- Excellent service (table stakes)
- Branded vehicles and uniforms
- Leave-behind materials with cards for neighbors
- Ask happy customers to spread the word
Active Referral Programs:
| Program Type | Offer | Tracking |
|---|---|---|
| Simple referral | $25-50 credit for referrer | Ask on booking |
| Dual-sided | $25 for referrer + $25 for new customer | Referral code |
| VIP referral | Higher rewards for repeat referrers | Tier system |
| Partner referral | Commission to real estate agents, etc. | Tracking codes |
Implementation:
- Make the program clear and simple
- Remind customers regularly
- Fulfill rewards quickly
- Thank referrers personally
- Track referral source on every job
Strategic Partnerships
Potential Partners:
| Partner | Opportunity |
|---|---|
| Real estate agents | Move-in inspections, new homeowner referrals |
| Property managers | Maintenance contracts, tenant service |
| Home inspectors | Found issues need fixing |
| Insurance agents | Claim-related repairs |
| Other contractors | Complementary services |
Measuring Marketing Success
You can’t improve what you don’t measure.
Key Metrics to Track
Lead Metrics:
| Metric | What It Tells You |
|---|---|
| Total leads | Volume of opportunity |
| Lead source | Where leads come from |
| Cost per lead | Acquisition efficiency |
| Lead quality | Are they real opportunities? |
Conversion Metrics:
| Metric | What It Tells You |
|---|---|
| Lead to estimate | Qualification rate |
| Estimate to job | Sales effectiveness |
| Overall conversion | Marketing + sales efficiency |
| Revenue per lead | Full value of marketing |
ROI Metrics:
| Metric | Calculation |
|---|---|
| Customer Acquisition Cost (CAC) | Marketing spend ÷ New customers |
| Return on Ad Spend (ROAS) | Revenue from ads ÷ Ad spend |
| Marketing ROI | (Revenue - Marketing cost) ÷ Marketing cost |
Attribution Tracking
Know Where Leads Come From:
- Dedicated phone numbers by channel
- UTM parameters on URLs
- “How did you hear about us?” (with specific options)
- Call tracking software
- Lead source field in CRM
Monthly Marketing Review:
| Channel | Spend | Leads | Cost/Lead | Jobs | Revenue | ROI |
|---|---|---|---|---|---|---|
| Google Ads | $2,000 | 40 | $50 | 15 | $12,000 | 500% |
| LSA | $1,500 | 35 | $43 | 18 | $14,400 | 860% |
| $500 | 12 | $42 | 3 | $2,100 | 320% | |
| SEO | $800 | 25 | $32 | 10 | $8,500 | 962% |
| Referral | $200 | 15 | $13 | 12 | $11,200 | 5500% |
Use data to shift budget toward best-performing channels.
Building Your Marketing Plan
Budget Guidelines
Rule of Thumb: Invest 5-10% of revenue in marketing
| Revenue | Marketing Budget | Monthly |
|---|---|---|
| $500K | $25-50K | $2,000-4,000 |
| $1M | $50-100K | $4,000-8,000 |
| $2M | $100-200K | $8,000-17,000 |
| $5M | $250-500K | $20,000-40,000 |
Startup Phase: May need 10-15% while building awareness Established: Can often reduce to 5-8% with strong referral base
Budget Allocation
Typical Split:
| Category | % of Budget |
|---|---|
| Paid advertising | 40-50% |
| SEO/content | 20-25% |
| Website maintenance | 10-15% |
| Reputation management | 10-15% |
| Referral incentives | 5-10% |
The 12-Month Marketing Calendar
| Month | Focus Area |
|---|---|
| January | New year specials, planning |
| February | Off-season offers |
| March | Spring maintenance push |
| April | Pre-season tune-ups |
| May | Peak season preparation |
| June | Peak season service |
| July | Replacement campaigns |
| August | End-of-summer offers |
| September | Fall maintenance |
| October | Heating season prep |
| November | Holiday scheduling |
| December | Year-end reviews, planning |
Getting Help
Marketing done right requires ongoing attention. Options for support:
DIY: You do everything
- Best for: Very small operations, tight budgets
- Requires: Time commitment, willingness to learn
Marketing Manager (Hire): Full-time employee
- Best for: Companies with $2M+ revenue
- Requires: Ability to manage marketing person
Marketing Agency: Outsourced experts
- Best for: Mid-size companies wanting expertise
- Requires: Budget ($2-5K+/month) and good agency selection
Consultant: Strategic guidance
- Best for: Companies wanting direction but managing execution
- Requires: Some internal capability
Start Generating More Leads Today
Marketing isn’t magic—it’s systematic effort in the right places.
This Week:
- Optimize your Google Business Profile
- Ask your last 5 customers for reviews
- Verify your website loads fast on mobile
This Month:
- Set up call tracking
- Launch or optimize Google Ads
- Create a review request process
This Quarter:
- Build your content strategy
- Implement referral program
- Analyze and adjust based on data
Ready to build a lead generation machine? Let’s develop your marketing strategy →
At The KPS Group, we help contractors build marketing systems that generate consistent, qualified leads. Because great service deserves to be found.
Marketing is one piece of building a successful contracting business. Explore our complete resource library for more insights.
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