How a Southern California HVAC Company Reduced Lead Costs by 60% and Achieved 19x ROI with Google Search Ads in 2025 – In Just 3 Months

Executive Summary

Competing for customers in California’s HVAC market is tough. With so many companies chasing the same homeowners, ad costs climb fast, and it becomes harder for smaller businesses to make a profit.

That’s exactly what happened to our client, a well-regarded HVAC company with a strong local reputation. By June of 2025, their Google Search campaigns were costing nearly $194 per lead, far higher than the industry average of $128. At that price, every new customer was cutting too deeply into their margins.

When they turned to EAX Media, the goal was simple: bring costs down and make advertising work like a true growth driver, not just another expense. Within three months, we cut their cost per lead to $78 and helped them generate more consistent inquiries. Even more impressive, the campaign produced a 19:1 return on ad spend, meaning for every dollar invested, the business earned nineteen back.

What started as a money drain quickly became one of their most profitable channels.

Cracking the Google Ads Code

Before we dive into the details, let’s clear up a few terms you’ll see in this case study. Google Ads is full of jargon, but here’s what actually matters for HVAC business owners:

Term	What It Means in Plain English	Why It Matters to You
CPL (Cost per Lead)	How much you spend in ads to get one new customer call or form submission.	Example: If you spend $1,000 on ads and 10 people call, your CPL is $100. The lower your CPL, the more calls you can generate with the same budget. This tells you if your ads are getting phones to ring, but not whether those calls turn into paying jobs.
CPA (Cost per Acquisition)	How much it costs to actually book a paying job (not just a call).	Example: If you spend $1,000 on ads, get 10 calls, and 5 of them book service, then each job cost you $200 to acquire. This is the true profitability metric. Even if your CPL looks good, a high CPA means your sales team is spending money on calls that don’t turn into jobs.
CTR (Click-Through Rate)	The percentage of people who saw your ad and clicked on it.	Higher CTR means your ads are catching attention and standing out from competitors.
CPC (Cost per Click)	The average amount you pay when someone clicks your ad.	If CPC is too high, your budget runs out faster and you miss chances for the phone to ring. But paying more per click can still be worth it if those clicks come from the right kind of customer who’s ready to book a job.
Impressions	The number of times your ad is shown on Google.	More impressions = more visibility, but impressions alone don’t guarantee calls.
Conversions	The actions that count as leads, like calls or form fills.	This is the end goal – the phone ringing with a real customer.
Conversion Rate (CVR)	The percentage of clicks that turn into calls or form fills.	A higher rate means your landing pages and ads are working effectively.
Quality Score	Google’s rating (1–10) of your ad relevance, landing page, and click performance.	A higher score lowers your ad costs and improves placement.
ROI (Return on Investment)	How much revenue you make compared to what you spend. Example: $1 spent = $5 earned is 5:1 ROI.	The ultimate measure: are your ads making money or losing it?
ROAS (Return on Ad Spend)	Similar to ROI, but only looks at ad dollars vs. revenue from ads. How much revenue you earn for every dollar you spend on ads.	Example: Spend $1,000, make $10,000 back = 10:1 ROAS. This shows whether ads are driving real profit.
Benchmark	The average results for businesses like yours.	Helps you see if you’re ahead of or behind competitors.
Negative Keywords	Search terms you block, like “DIY HVAC repair” or “HVAC jobs.”	Stops wasting money on people who will never become customers.

Now that we’ve got the basics out of the way, let’s look at the reality this HVAC company was facing.

Client Background

The client is a Southern California-based HVAC company providing heating, cooling, and ventilation services to residential and light commercial customers. Known locally for reliability and high-quality service, the company relied heavily on Yelp ads and customer referrals for years. While Yelp generated some consistent leads, it wasn’t sufficient to fuel growth or stabilize lead flow during seasonal slowdowns.

As the business grew, the client recognized the need to scale their digital marketing efforts. They turned to Google Search Ads to tap into high-intent searches from homeowners actively looking for HVAC repair, installation, and maintenance services.

The Challenge: Battling Sky-High Lead Costs in a Cutthroat HVAC Market 

The HVAC market in Southern California is one of the most competitive in the United States. Dozens of contractors, both large chains and local businesses, compete aggressively for the same pool of homeowners searching for repair or installation services. With limited online “real estate” on Google’s search results and an audience that often makes decisions within seconds during an HVAC emergency, companies are locked in bidding wars that drive advertising costs higher and higher.

Our client was caught in the middle of this landscape. When they first launched their Google Search campaigns, the numbers told a difficult story:

• Soaring Cost per Lead (CPL): In June of 2025, each lead cost them $194, which was nearly 50% higher than the national home services benchmark of $128 (LocaliQ). At that price point, customer acquisition was unsustainable so margins were squeezed, and every new lead came with significant risk of being unprofitable.
  
• Insufficient Lead Flow: Despite the high spend, the campaigns only generated 7 leads in June, far too low to meet monthly revenue targets or to keep technicians’ schedules full. A service business depends on a steady pipeline, and with fewer than 2 leads per week, the company was struggling to maintain predictable growth.
  
• Seasonal Volatility: Like many HVAC providers, this business faced sharp seasonal swings. In the cooler months, demand naturally slowed down, yet their CPL remained high. That meant they were paying more to acquire fewer leads, a double blow that made the situation even more precarious.
  
• Competitive Benchmark Pressure: With industry averages at $128, the client wasn’t just above benchmark; they were at a dangerous disadvantage. Competitors acquiring leads at or below benchmark could reinvest savings into more aggressive campaigns, expand service areas, or undercut pricing. Staying at $194 CPL meant falling behind in a crowded marketplace.
  

The problem wasn’t simply about costs; it was about long-term viability. A high CPL combined with low lead volume meant the company couldn’t scale, couldn’t confidently invest in growth, and risked losing market share to competitors who were more efficient with their digital ad spend.

Their challenge was clear but critical:

• Lower CPL/CPA significantly, ideally beating the industry benchmark.
  
• Increase lead volume, particularly high-intent, qualified leads that convert into paying jobs.
  
• Stabilize ROI, creating a predictable and sustainable source of revenue in one of the most expensive and fast-moving advertising markets in the country.

No More Leaks: How EAX Media Sealed the Gaps in Their Digital Advertising

1. Campaign Setup Built for Efficiency

We set a $1,600/month budget and put it to work exclusively on Google Search Ads, where customers actively search for HVAC services. Instead of spreading the budget thin across multiple platforms, we concentrated spending where it mattered most.

To make that budget stretch further, we used Smart Bidding, letting Google’s AI optimize bids in real-time for the best chance of conversions. This ensured the client wasn’t wasting money bidding too high on irrelevant clicks or too low to miss valuable opportunities.

2. Smarter Targeting and Keyword Selection

Generic targeting leads to wasted spend. We narrowed the focus to the client’s most profitable service areas, down to the zip code level, so ads only appeared to homeowners they could actually serve.

We then built campaigns around high-intent keywords – searches that signal someone is ready to act, like “AC repair near me” or “emergency furnace installation.” At the same time, we created a comprehensive negative keyword list to block irrelevant searches like DIY tutorials, job seekers, or people outside the service radius. This single step saved hundreds of dollars a month by ensuring the ads only reached people who were genuine prospects.

3. High-Impact Ad Copy and Testing

Getting clicks requires more than showing up; it requires standing out. Our ad copy was written to combine three elements customers care about most: urgency (“Same-Day AC Repair”), price clarity, and reliability.

We strengthened visibility with Promotion Assets, Call Assets, and Business Name extensions, which made the ads more clickable and credible. To refine performance, we tested multiple variations continuously. Poor performers were paused quickly, while strong performers were scaled, creating a feedback loop that improved messaging month after month.

4. Landing Pages That Converted Visitors Into Leads

Sending traffic to a generic homepage is a common mistake that wastes ad spend. Instead, we designed custom landing pages for each campaign, tailored to the service being promoted. These pages included clear calls-to-action, trust-building elements (like guarantees and reviews), and easy click-to-call buttons.

We tracked every conversion, whether it was a call or a form submission, and implemented call tracking to confirm lead quality. This ensured we weren’t just counting clicks, but measuring the real business outcomes: homeowners ready to schedule HVAC service.

5. Relentless Optimization for Continuous Improvement

The campaign wasn’t a “set it and forget it” effort. Our team reviewed performance weekly and monthly, pruning underperforming keywords, reallocating budget to top performers, and fine-tuning bids.

This hands-on optimization steadily improved the conversion rate from June through August of 2025, driving costs down while generating more leads. Every adjustment was measured against real results, which allowed us to compound improvements over time and deliver sustainable growth.

The Three-Month Turnaround Results: Lower Ad Costs, More Leads, Higher Profits 

The impact of the new campaign structure was both immediate and dramatic. The turnaround wasn’t just about small tweaks; it was about transforming a campaign that was draining money into one that consistently produced profitable customers. Here’s what happened:

Lead Costs Dropped Sharply

Back in June, the company was paying $194 for every new lead. At that price, advertising was simply too expensive to make sense long-term. By July, after changes were made, the cost dropped to just $75.40 per lead. In August, it stayed low at $78.38, proving that the savings weren’t temporary.

Think of it this way: if each lead were a ticket to a new job, the company went from paying nearly $200 for every ticket down to around $75. That’s a 60% savings, which freed up a big chunk of budget.

More Leads Came In Without Spending More

While the cost per lead was falling, the number of leads was rising. In June, only 7 people reached out through the ads. In July, that number grew to 10, and in August it climbed again to 13.

Remember, the budget never increased – it remained fixed at $1,600 per month. What changed was efficiency. The same dollars were working harder, bringing in more people each month who were ready to book HVAC services.

For the client, this meant their technicians had fuller schedules, and their pipeline of new business was no longer unpredictable. Imagine buying more groceries each week without spending extra – that’s exactly what happened with their advertising.

Profits Skyrocketed: Every $1 Spent Returned $19

The most striking outcome came in August: for every $1 spent on advertising, the company earned $19 in revenue. This return on ad spend (ROAS) wasn’t just good; it was exceptional, even by home services standards.

To illustrate how powerful this was, one lead alone converted into a $20,000 HVAC installation job. That single customer more than covered several months of ad spend, turning what used to be a risky expense into a high-performing profit center.

Lead Quality Was High Across the Board

Often in digital advertising, companies struggle with “junk leads” – calls from job seekers, people outside the service area, or individuals looking for DIY advice. That wasn’t the case here.

Because the ads were carefully targeted and call tracking was in place, the client could confirm that every single lead was a genuine prospect – real homeowners in need of HVAC services. This not only increased the likelihood of turning leads into paying customers but also saved the staff from wasting time on irrelevant calls.

Beating Industry Benchmarks by a Wide Margin

According to LocaliQ’s data, the average cost per lead in the U.S. home services industry is $128. By August, this HVAC company was securing leads for just $78 each.

That’s nearly 40% lower than the national average. In practical terms, while competitors were paying industry-standard rates, this company was getting more customers for far less. This advantage freed up cash flow they could reinvest into growth, giving them a competitive edge in their local market.

The Big Picture

By August, the company was no longer worrying about whether their advertising spend was worth it. Instead, they had a system that reliably:

• Cut lead costs by more than half.
  
• Delivered a steady increase in qualified leads.
  
• Produced nearly twenty times the return on every dollar spent.
  
• Put them ahead of competitors still stuck paying higher-than-average costs.
  

What began as a campaign costing nearly $200 per lead turned into a profitable growth engine – predictable, sustainable, and scalable.

Business Impact: How the Results Changed the Client’s Operations

The improvements in cost efficiency and lead flow were not just numbers on a report. They had a direct and meaningful effect on how the HVAC company managed its business, served customers, and planned for growth.

1. Predictable Flow of High-Quality Leads Stabilized Revenue

Before the campaign, the company dealt with unpredictable weeks where inquiries were either too few or inconsistent. This made it difficult to plan technician schedules or project revenue. After the new strategy was in place, the business began receiving a steady stream of qualified leads each month. That predictability gave them confidence in their pipeline, allowed them to keep technicians’ schedules full, and helped them balance out seasonal slow periods.

2. Lower Costs Created Room for Reinvestment

High lead costs had previously eaten into profit margins, leaving little money to reinvest in the company. By cutting the cost per lead by more than half, the client suddenly had additional budget available. Instead of overspending on inefficient ads, they could now put money toward initiatives like training new staff, upgrading equipment, or expanding service areas. In practice, every dollar saved on advertising turned into an opportunity to grow the business further.

3. Sales Team Efficiency Improved

Before optimization, the sales team often wasted time on calls that went nowhere. Some callers were job seekers, others were outside the service area, and some were simply not ready to buy. After the adjustments, every lead that came through was a real homeowner looking for HVAC services. This shift meant the sales staff could concentrate their time on genuine prospects, which increased their close rates and made their workday more productive.

4. One Lead Paid for Months of Advertising

The true value of higher-quality leads became clear when one campaign-generated customer booked a $20,000 installation job. That single project alone covered several months of advertising costs. It demonstrated how even one well-targeted lead could deliver a major return and reinforced the company’s confidence in the campaign strategy.

5. Client Confidence and Satisfaction Increased

The client’s own words summed it up best:
“These guys are smart. The leads are finally coming in consistently, and at a cost that makes sense.”

What had once felt like a risky expense now felt like a predictable, profitable system they could rely on to drive steady business growth.

Your Ads Should Fill Schedules, Not Drain Budgets 

Think about it: are you spending money on ads but still not booking enough jobs to keep your HVAC team busy? How many of the “leads” you pay for end up being people outside your service area, job seekers, or tire kickers who never schedule an appointment? And the real question: how much longer can you afford to spend thousands each month without seeing real, steady business growth, while other HVAC companies in your area keep getting the calls?

This California HVAC company was in the exact same position. They were paying almost $200 per lead, barely getting a trickle of new customers, and watching their budget vanish every month. Three months later, they had cut their lead costs to just $78, doubled their monthly leads, and turned a single campaign lead into a $20,000 installation job.

If your crews are sitting around waiting for work or your schedules are full of gaps, the problem isn’t your team – it’s your digital marketing. At EAX Media, we make sure your advertising dollars bring in the right calls, the right customers, and enough steady work to keep your business growing.

Stop paying for bad leads. Start booking real jobs. Talk to EAX Media today.