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Does Google Ads Work for Real Estate?

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When developing your real estate inbound marketing strategy, it can feel like the possibilities are endless. Keywords, social media, blogs, digital ads, and backlinks all are valuable tools that create a thorough and effective digital marketing strategy.

Google Ads is another option that can be an important component to your digital marketing plan. These customizable digital ads use the pay-per-click (PPC) model, meaning a business pays for its ad based on the number of times it is clicked.

But does Google Ads work for real estate? What exactly is Google Ads? And can you manage?

We’ve got your answers!

What is Google Ads?

Have you ever invested in billboard advertising? It’s expensive, the ad goes in one location, and you cross your fingers hoping to connect with the right person driving by. Overall, not very effective.

Wouldn’t it be great if you only paid for an ad that got results?

That is how Google describes its digital ad service. Google Ads can help businesses grow by getting its ads in front of people who need it.

With PPC, a business only pays for the ad when it leads to an actionable item, for example, a person clicking on a link to a website or a phone number to call.

The idea is to get your ad in front of someone who is searching for the type of service or product you offer.

If a person pops “local realtor in Charlottesville, Virginia” into their search bar, Google Ads will serve them an ad designed to meet that need. Google Ads gets your business on the search engine results page when it matters most.

Google Ads allows you to set your goals, budget, and the geographic location in which your ad will appear. The ads can be designed for both desktop and mobile, ensuring that you hit the right audience on the right platform at the right time.

Does Google Ads Work for Real Estate?

Google Search and Google Ads are well established and widely used. It’s rather mind blowing—Google processes more than 40,000 searches a second! Google Ads, previously Google Adwords, has existed since 2000, providing over 20 years of helpful data:

  • The Google Display Network reaches 90% of internet users worldwide.
  • Google estimates that for every $1 spent, a business receives $8 profit through Google Ads and Google Search.
  • Searches for “where to buy” and “near me” have grown 200% since 2019.
  • 65% of small- to medium-sized businesses are using PPC campaigns.

Google Ads has a broad reach and provides businesses with an engaged audience. It works for real estate because it puts your business in front of home buyers and sellers in your area. It gives you the tools to schedule and budget ads that work for you.

As a real estate agent, you are able to create an ad that is served to people who are already looking for your services, which leads to a higher return on investment.

How Much Does Google Ads Cost?

What is the cost of Google Ads? The short answer is you choose your budget based on how many clicks you want on your ad. There is no contract and the budget can be adjusted as you go.

The long answer is there are several factors that impact that cost.

Google Ads works as a bidding system. There are two important considerations when bidding on an ad: how much you bid and your quality score.

First, the more you bid for a click on your ad, the higher you are placed on the search engine results page (SERP). The average cost-per-click in real estate is $2.37.

The most expensive keyword in real estate is $95 CPC but we find that most client CPCs in real estate range between $1 – $3 per click

Second, it’s important to have a good quality score to gain a higher ranking. Your quality score is determined by the quality of your ad, keywords, landing page, and previous search results.

Your quality score and how much you want to bid on an ad for placement on the SERP determine your cost.

Google Ads provides an estimate for your monthly spend based on how many clicks you want on your ad. Or, you can enter a budget amount and Google will share approximately how many clicks you will receive based on that amount.

There also are plenty of PPC services available that can determine all this for you! For a monthly service fee, a digital marketer who specializes in PPC will manage your keywords, ad copy, location, audience demographics, analytics, and more.

PPC services can be charged as a flat fee, monthly fee, or as a percentage of your ad spend. Many agencies charge 10–15% of your ad spend each month.

Google Ads vs. Local Service Ads

Local Service Ads are another digital advertising tool offered by Google. Local Service Ads (LSA) still operate as PPC, but cater directly to your local service area by using your Google business profile.

For a typical Google Ad, you choose your target audience and area, preferred keywords, and what you want to bid on an ad. LSAs operate differently. All of the content is pulled from your Google business profile.

Businesses can take advantage of LSAs if they have a physical location or provide a service area in the business profile.

Google determines when to show your LSA based on your service area, business hours, and special features of your business. Be sure you are thorough when completing the information in your business profile!

LSAs are easy to set up. Because these ads are meant for a very localized market, they appear above organic and paid content on a SERP.

Are LSAs better than Google Ads? Not necessarily! They both serve a purpose. Using both for your inbound marketing strategy will yield stronger results and more traffic overall.

How to Get Started with Google Ads for Real Estate

It’s absolutely doable to manage Google Ads yourself. But as with most services, it’s time vs. money. If you have time or staff to devote to creating, tracking, and managing Google Ads, go for it! Google provides guidance, tips, and support.

If the bidding structure or keyword research is sounding overwhelming, there are PPC companies that can do the work for you. PPC services with Logical include keyword management, ad copy and optimization, location and demographic targeting, reports, and more.

Contact Logical to discuss how our PPC services can benefit your business! We can show you how Google Ads works for real estate.

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