Quick answer: Building and renovation leads are expensive (LocaliQ’s 2025 data put construction and contractor leads at about $166) because projects are big and decisions are slow. Qualify hard with budget and timeline questions, show real projects, and nurture leads for months.
A kitchen, bathroom or extension is one of the biggest purchases a household makes. People research for weeks, compare builders and look for proof. Advertising here is about trust and qualification, not volume.
What ads cost for builders and renovators
| Benchmark | Avg. cost per click | Conversion rate | Avg. cost per lead |
|---|---|---|---|
| Google Search: Home & Home Improvement | $8.33 | 8.05% | $90.92 |
| Google Search: Construction & Contractors (LocaliQ 2025) | $5.31 | 2.61% | $165.67 |
| Facebook and Instagram lead ads: Home & Home Improvement | $2.23 | 5.22% | $41.26 |
Clicks are relatively cheap for general contractors, but conversion rates are low, which lifts cost per lead. One signed renovation can still cover months of ad spend.
Which channel to start with
Channel roles:
- Google Search for project-specific terms like “bathroom renovation” and “home extension builder”
- Facebook and Instagram for project walkthrough videos and design inspiration aimed at homeowners in target suburbs
- YouTube for longer project stories and client testimonials
- Remarketing and email for long decision cycles
Google Ads keywords for builders and renovators
Build campaigns around project types, not “builder” alone.
- “bathroom renovation”, “kitchen renovation”, “home extension builder”, “second storey addition”
- “custom home builder”, “knockdown rebuild”
- “basement finishing” (US), “loft conversion” (UK)
- “renovation cost”, “bathroom renovation cost”
Negative keywords to add on day one
jobs, apprentice, course, DIY, how to, ideas, Pinterest, Bunnings, IKEA, flat pack, cheap, free plans.
More on this in negative keywords explained and choosing keywords.
Example ads you can adapt
What the landing page needs
- Portfolio by project type with prices or budget ranges
- Process and timeline explained step by step
- Licence, insurance and warranty details
- Qualifying form: budget range, timeframe, project type, address
- Testimonials with full names and suburbs
Full list: landing page checklist.
Track the right things
- Consultation bookings as the main conversion
- Qualified leads (meets budget) vs unqualified
- Signed contract value per channel, imported back to Google Ads where possible
Platform rules that apply to builders and renovators
- If you offer finance, that is a regulated financial product; Meta requires the Financial Products and Services Special Ad Category for credit-related ads.
- Building is licensed in most places: show your licence where required.
Common mistakes
- No budget question, so sales time goes to $5,000 enquiries for $80,000 work
- Judging after one month on a three-to-six month buying cycle
- Generic “builder” keywords
- Stock photography
How much to spend
Work backwards from the number of enquiries you can handle. Monthly budget ≈ target leads × expected cost per lead. At the Home & Home Improvement average of $165.67 per lead, 15 leads a month is roughly $2,485 in ad spend before management fees.
Plan $3,000 to $10,000 a month for meaningful volume in a metro area, with at least 90 days before judging. Track signed contracts, not leads.
Frequently asked questions
Do Google Ads work for builders?
Yes, for project-specific searches. They work best with a qualifying form and a long enough test period to measure signed jobs.
Why are renovation leads so expensive?
Low conversion rates and long decision cycles. Most visitors are researching, not ready to sign.
How do I filter out low-budget leads?
Show starting prices or typical budgets on your page and ask for budget range in the form.
Sources
- WordStream by LocaliQ: 2026 Google Ads benchmarks (13,474 US search campaigns, Apr 2025 to Mar 2026)
- LocaliQ 2025 Home Services search benchmarks, trade-level figures as summarised by Webtonic
- LocaliQ 2025 Home Services benchmarks, trade CPC and CPL as summarised by PipelineOn
- WordStream by LocaliQ: Facebook ads benchmarks 2025 (lead campaigns)
- Meta for Developers: Special Ad Categories (housing, employment, financial products and services)
Want a second opinion on your building and renovation ads? Get a free ad review and you will get a short written breakdown of what to fix first.
Written by Gregory
20 years building websites and running lead generation, mostly with my own money on the line. Based in Sydney, working with clients worldwide. How I work →