How Much Should Home Service Businesses Spend on Advertising?

Tiered Advertising Budgets: What’s Right for You?

1. Maintain Your Market Share

Recommended Spend: 5–10% of Revenue

This tier is for businesses that are well-established in their market and just want to keep the phone ringing. You're doing some brand awareness, a little lead gen, and keeping your name top of mind.

⚠️ Warning: This tier only works if no one else is aggressively trying to take your market.
If a competitor enters your area with a 15% budget and an omnichannel strategy, your 5–10% won’t be enough to keep pace. You'll start losing visibility—and leads—fast.

2. Grow Your Market Share

Recommended Spend: 10–15% of Revenue

This budget range is ideal if you're actively trying to expand your customer base. You're investing in platforms that generate new leads consistently—like Google Ads, Meta ads, local SEO, and maybe even targeted video.

This is where smart, full-funnel strategies shine. You're reaching new prospects at the awareness stage and nurturing them until they're ready to call or book online.

🛠️ Example: You're a roofing company entering a new town or a plumbing business expanding to offer HVAC services.

3. Dominate the Market

Recommended Spend: 15–20% of Revenue

This tier is for home service brands that want to be everywhere. You’re not just maintaining or growing—you’re aiming to own the category in your service area.

At this level, businesses often:

• Run ads on multiple platforms (Google, Meta, YouTube, programmatic display, and even OTT)
• Invest in high-converting landing pages and automation
• Focus on building a legacy brand that customers search by name

💡 This is where true brand equity is built—and where your marketing becomes a competitive moat.

Why Conservative Budgets Can Be Risky

Many home service business owners default to a 5–10% marketing budget without considering what the competition is doing. The reality is:
If your competitor is spending 15% while you’re spending 7%, they’ll outbid you, outrank you, and outlast you.

In competitive markets, the cost of under-investing is steep:

• You lose visibility in search and social
• Your cost per lead rises as algorithms deprioritize you
• Competitors claim your repeat customers and referrals

So, What Should You Spend?