Small Businesses · capability model · first paid media budget
Industry averages are the wrong planning input for a business running exactly one campaign
The published benchmark tables span a range wider than any optimisation a small budget can buy. The model spends the first month buying a measured baseline rather than acting on a number that describes an average of thousands of accounts and none of them precisely.
$131.63
Published cost per lead, the most expensive measured vertical
Modelled figure — not a client result
$75.19
Published cost per lead, industrial and commercial
Modelled figure — not a client result
7.33%
Published conversion rate, home services average
Modelled figure — not a client result
2.61%
Published conversion rate, general contracting
Modelled figure — not a client result
Modelled. Inputs: WordStream by LocaliQ, Google Ads Benchmarks 2026 (13,474 US search campaigns, April 2025 – March 2026); WordStream by LocaliQ, Facebook Ads Benchmarks 2025 (data April 2024 – June 2025); LocaliQ, 2025 Search Ad Benchmarks for Home Services (3,211 US search campaigns, April 2024 – March 2025). Modelled outputs are not a forecast or a guarantee of results. Cited: WordStream/LocaliQ 2026 (range width); BrightLocal *Local Consumer Review Survey*.
At a glance
The engagement in brief
Services
- Paid Search
- Paid Social
- Landing Pages
- CRO
- Reporting
- Booking Intake
Stack
- Google Ads
- Meta Ads
- landing pages
- call tracking
- conversion tracking
The situation
What we walked into
A small business planning its first media budget reaches for an industry average, and the published tables oblige. What the tables also show, read carefully, is how little an average constrains. Cost per lead runs from $75.19 in industrial and commercial up to $131.63 in the most expensive vertical measured across twenty-three industries. Inside a single sector the spread is wider still: home services converts paid search at a 7.33% average while general contracting, which most people would place in the same sector, converts at 2.61%. A business running one campaign in one geography does not experience an average of those. It experiences one number, and it will not know that number until it has bought it.
Home services converts at 7.33% and general contracting at 2.61%. A business planning against a sector average is planning against a figure that describes neither of them.
What we found
The diagnosis
01
The published spread is wider than any optimisation a small budget can buy
Between two of the measured verticals the cost per lead differs by roughly three quarters again. No amount of match-type tightening or negative-keyword work on a small account moves a number that far. The planning figure therefore has to come from the business rather than from the table, which means the first month is an instrument rather than a campaign.
02
Conversion rate decides whether a small budget works, not cost per click
A 2.61% rate and a 7.33% rate on the same click price produce entirely different businesses. Cost per click is the number small advertisers watch because it updates daily; conversion rate is the number that determines whether the account is viable at all.
03
A small budget supports one variable at a time
Two channels, three audiences and four landing pages on a small spend produces no cell with enough volume to read. The model runs one service, one geography and one offer until a baseline exists, then changes one thing.
04
Search and social answer different questions and the choice is not a split
Search captures demand that already exists; social creates awareness of demand that does not yet. At small scale, splitting a budget across both usually funds two campaigns that are each too small to learn from. The model reads the published Facebook benchmark set for the same vertical alongside the search set and commits to one, rather than dividing.
The number behind it
What this is built around
Published benchmark tables span a range wider than any optimisation a single small budget can buy; for local SMBs the binding constraint is the review gate (**57% only use businesses rated 4★+**, BrightLocal).
What we built
The system
The model starts by narrowing rather than by spending: one service, one geography, one offer, and a single channel chosen by comparing the published search and social benchmark sets for that vertical against whether the demand is already being searched for. Conversion tracking and call tracking go in before the first impression, because a month of untracked spend produces no baseline and cannot be repeated deliberately. Weeks one to four buy the baseline: the account's own cost per click, conversion rate and cost per lead, at whatever volume the budget supports. From week five the model changes one variable at a time against that baseline, and reports cost per booked job rather than cost per form fill, since a form fill is the metric that looks best while meaning least at this size.
The sequence
How it was delivered
Week 1
Narrow the scope
One service, one geography, one offer agreed and written down
Owner: OmniFlow + owner
Week 1
Channel decision
Published search and social benchmarks for the vertical compared, one channel committed to
Owner: OmniFlow
Week 2
Instrument
Conversion and call tracking live before the first impression
Owner: OmniFlow
Weeks 2–6
Buy the baseline
Own cost per click, conversion rate and cost per lead established at whatever volume the budget allows
Owner: OmniFlow
Weeks 6–12
Single-variable iteration
One change at a time against the measured baseline
Owner: OmniFlow
Week 12
Review
Cost per booked job against the baseline, not against the published table
Owner: OmniFlow + owner
Outcome
What the model produces
The model would expect the business's own first-month figures to sit outside the published range in at least one direction, and treats that as the expected result rather than as a failure of the plan. What it targets is a baseline that is real, measured on the account itself, and stable enough that a single change can be read against it. Every published figure quoted here is a framing device for the first four weeks and is discarded the moment the account produces its own. Nothing above is a forecast of what any particular account will produce.
Modelled. Inputs: WordStream by LocaliQ, Google Ads Benchmarks 2026 (13,474 US search campaigns, April 2025 – March 2026); WordStream by LocaliQ, Facebook Ads Benchmarks 2025 (data April 2024 – June 2025); LocaliQ, 2025 Search Ad Benchmarks for Home Services (3,211 US search campaigns, April 2024 – March 2025). Modelled outputs are not a forecast or a guarantee of results. Cited: WordStream/LocaliQ 2026 (range width); BrightLocal *Local Consumer Review Survey*.
Inputs
What the model is built on
Every figure below is published research, not a client result. They are the inputs to the arithmetic above, listed so it can be checked rather than taken on trust. The bracketed number points to the full citation at the end of this page.
$131.63
[2]Published cost per lead, the most expensive measured vertical
April 2025 – March 2026
$75.19
[2]Published cost per lead, industrial and commercial
April 2025 – March 2026
7.33%
[1]Published conversion rate, home services average
April 2024 – March 2025
2.61%
[1]Published conversion rate, general contracting
April 2024 – March 2025
The published figures, side by side
Rates share a 0–100% scale. Costs and counts are scaled against the largest value shown.
- Published cost per lead, the most expensive measured vertical[2]$131.63
April 2025 – March 2026
- Published cost per lead, industrial and commercial[2]$75.19
April 2025 – March 2026
- Published conversion rate, home services average[1]7.33%
April 2024 – March 2025
- Published conversion rate, general contracting[1]2.61%
April 2024 – March 2025
Run the model on your own numbers
Change the volume and the target rate. Everything else is held at the published benchmark above, so the output is arithmetic you can check rather than a claim.
Fixed inputs, from the research cited on this page:
$132 — Published cost per lead, the most expensive measured vertical[2]
7% — Published conversion rate, home services average[1]
Media spend, unchanged
$3,949
People actually reached today
2
Reached after the fix
10
Gained on the same spend
+7
Cost per person actually reached falls from $1,796 to $411 — on identical media spend. The lead number does not move; the number of them you speak to does.
Arithmetic on the published inputs above. It describes what the model produces at those rates, not a forecast of any particular firm's result.
Reporting
What you would actually see
These are the surfaces this engagement is run and measured from, shown with representative figures built around the benchmarks cited on this page. Every account we run reports into views like these, and you keep ownership of all of them.
These are demo dashboards. They show the reporting surfaces this engagement is run and measured from, with representative figures generated around the published benchmarks cited on this page — not a client account and not a client result. Live reporting for your own account replaces every number here.
Google Analytics 4
Small Businesses · all web data
Sessions
5,617
+63.1%
Key events
412
+78.8%
Session key event rate
7.3%
+2.1%
Engagement rate
65.1%
+5.9%
Sessions by month
Dashed line marks the month the engagement started.
| Session default channel group | Sessions | Key events | Rate |
|---|---|---|---|
| Organic Search | 2,207 | 129 | 5.8% |
| Paid Search | 1,334 | 124 | 9.3% |
| Direct | 1,060 | 64 | 6.0% |
| Referral | 539 | 35 | 6.5% |
| Organic Social | 477 | 37 | 7.8% |
LinkedIn Campaign Manager
Sponsored Content · Small Businesses audience
Impressions
104,268
+33.5%
Clicks
632
+36.9%
CTR
0.6%
+0.16%
Cost per lead
$131.63
-17.3%
Impressions by month
Dashed line marks the month the engagement started.
| Campaign | Impr. | Clicks | Leads | CPL |
|---|---|---|---|---|
| Thought leadership — practice leads | 35,451 | 215 | 15 | $131.63 |
| Problem-aware — retargeting | 27,110 | 164 | 11 | $131.63 |
| Case study download | 22,939 | 139 | 9 | $131.63 |
| Webinar registration | 18,768 | 114 | 8 | $131.63 |
CRM pipeline
Small Businesses · inbound and outbound
Leads created
95
+86.4%
Qualified
42
+99.3%
Meetings booked
18
+103.6%
Answered on first attempt
74.0%
+7.4%
Leads created by month
Dashed line marks the month the engagement started.
| First-touch source | Leads | Qualified | Meetings |
|---|---|---|---|
| Google Ads — high intent | 29 | 13 | 6 |
| Organic search | 26 | 12 | 5 |
| Business Profile — call | 18 | 8 | 4 |
| LinkedIn outbound | 13 | 6 | 3 |
| Referral | 9 | 4 | 2 |
Method
How this is measured
Each figure on this page, the system it is read from, and the definition and window it is measured over.
| Figure | Read from | How it is defined | Status |
|---|---|---|---|
| Published cost per lead, the most expensive measured vertical | published benchmark | April 2025 – March 2026 | Published |
| Published cost per lead, industrial and commercial | published benchmark | April 2025 – March 2026 | Published |
| Published conversion rate, home services average | published benchmark | April 2024 – March 2025 | Published |
| Published conversion rate, general contracting | published benchmark | April 2024 – March 2025 | Published |
Honestly
What we would do differently
Not applicable — this is a modelled engagement. Its weakest input is selection: published benchmarks are drawn from accounts already running managed campaigns at meaningful scale, with conversion history and machine-learning signal behind them. A new account with neither should expect to perform worse than the table before it performs better, and the baseline phase exists so that expectation is set by the account's own data rather than by a number borrowed from advertisers who have been running for years.
Evidence base
2 sources, 2 publishers
Full citations for everything cited on this page, with the sample and period each study covers, so you can go and read the original.
Published research
- [1]
LocaliQ, 2025 Search Ad Benchmarks for Home Services
3,211 US search campaigns, April 2024 – March 2025
Supports: Published conversion rate, home services average · Published conversion rate, general contracting
- [2]
WordStream by LocaliQ, Google Ads Benchmarks 2026
13,474 US search campaigns, April 2025 – March 2026
Supports: Published cost per lead, the most expensive measured vertical · Published cost per lead, industrial and commercial
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