Pest Control Case Study: Cost per Lead Cut From $250+ to Under $80
A St. Louis pest control owner was running three online campaigns at the same time. Two of them were bidding against each other. Here's how we found it, what we cut, and what replaced it.
By Joshua Ramsey, Fractional CMO
Three campaigns, one budget, and the client was bidding against himself
When I first reviewed this client's marketing, he was running three online campaigns at the same time. On paper, more campaigns looked like more reach. In practice, they were stepping on each other.
Two of the three campaigns ran both display ads and paid click ads. Because they targeted the same searches, the client was either showing up twice for the same search term or competing with his own ads for the same click.
Why that matters: when two of your own campaigns bid on the same keyword, you push up the price you pay for every click. It also drives up the cost for your competitors, so the whole local market gets more expensive.
Measure each campaign on its own before changing anything
Before cutting anything, I lined the three campaigns up side by side to see where they were the same and where they were different. That made it possible to calculate the cost per lead for each campaign separately, instead of one blended number that hid the problem.
- Where the campaigns overlapped, by ad type and by search term
- How many leads each campaign actually produced
- What each of those leads cost
Cut one campaign at a time, then rebuild around what worked
Remove the overlap
Over the first nine months, we cancelled one campaign at a time, so the effect of each change was visible on its own.
Face the numbers
By the end of those nine months, it was clear none of the three campaigns produced a low enough cost per lead.
One focused campaign
We replaced them with a single campaign running only in select, paid tactical locations, built to produce more leads per dollar.
Add partner lead flow
We used relationships with other companies in the same industry to bring in additional leads that didn't depend on ad spend.
Lower lead cost, and more than three times the revenue
Cost per lead
Over a 4-year engagement. Bars are to scale ($80 is 32% of $250).
Gross revenue
Year-to-date gross revenue as reported by the client.
Four checks for any local service business running paid ads
Know your cost per lead by campaign
A single blended number hides the campaign that's dragging the average up. Split it out before you add budget.
Check for campaigns bidding on the same terms
Two campaigns, or two agencies, chasing the same keywords means you pay more for every click.
Change one thing at a time
Turning campaigns off one by one shows what each was really contributing. Cutting everything at once teaches you nothing.
Don't rely on ads alone
Relationships with companies in your industry can send steady leads that don't rise and fall with ad prices.
About this case study
How did this pest control company lower its cost per lead?
By removing overlapping campaigns. The client was running three online campaigns, two of which competed for the same searches. Cutting them one at a time, then replacing them with one campaign in select paid locations plus partner referrals, brought the cost per lead from more than $250 to under $80.
Why is running several paid search campaigns at once a problem?
When campaigns target the same search terms, you end up bidding against yourself. You either show up twice for the same search or compete with your own ads, which raises the price of every click for you and your competitors.
How long did it take to see results?
The first nine months were spent cutting campaigns one at a time and measuring the effect. The full drop in lead cost and the growth from $1.2 million to $4.3 million in gross revenue happened over a four-year engagement.
Does this apply to businesses outside pest control?
Yes. Any local service business running more than one campaign, or working with more than one agency, can have the same overlap. The first step is the same: calculate the cost per lead for each campaign on its own.
Running more than one campaign? Find out what each one really costs you.
Josh will look at your campaigns, find where they overlap, and show you your real cost per lead.
