HVAC Demand Trends: Google LSA Revenue Performance - February 2025
👋 Hey, Jon here! This week, we’re reviewing Google LSA performance for February. This data set required a minimum spend of $1,000 / mo on GLSA, so while averages can be helpful, there’s a big range of performance. The lowest closed ROAS in this sample was just 2.0x, versus the highest at 47x. Spend volumes are high, meaning the businesses in this sample experienced high demand from GLSAs - that may not be you or your market, which is why it is so critical to track this data for your business.
As a refresher, below are the performance metrics (YoY) for January 2025 GLSA:
Spend: +71% YoY
Unique Leads: +60% YoY
Cost per Unique Lead: $57.85 (+7.4% YoY)
Customer Acquisition Cost: $275.80 (+3% YoY)
ROAS Potential: 17.1x
ROAS Closed: 8.2x
Closed Revenue per Business: $173,687 (+23% YoY)
Note: GLSA spend increased 48% year-over-year in February.
Unique Leads from GLSA Increased by 77% Year-over-Year
2025 is off to a much stronger start in terms of GLSA lead volume than 2024, with spend up 48% year over year and unique lead volume up 77% year over year.
Although, unique lead volume was down from the prior 28 days of January (-27%) on a 27% spend decrease.
The booking rate of those unique leads did increase from the prior 28 days (+8%) and year-over-year (+5%).
The cost per unique leads from GLSAs also came down 16.7% YoY:
The number of run jobs increased 78% year-over-year, and the number of paying customers increased 77% year-over-year, both substantial increases.
On average, the businesses in this sample spent ~$3,592 more on GLSA in February 2025 than in February 2024.
That additional spend drove 84 more unique leads per business on average (from 119 unique leads each in 2024 to 203 unique leads each in 2025).
Of the active customers in February 2025 from GLSA, roughly 21% became paying customers.
Because of that, we can estimate that 17 of those 84 additional unique leads converted to paying customers, driving $51,510 in additional revenue at an average ticket of $3,030.
That’s a 14.34x ROI for every additional $1 spent vs. 2024, making that additional spend worth it.
Average tickets were also up 10% YoY, resulting in $303 more spent per paying customer, which covered the paying customer acquisition cost as we’ll see down below.
It Cost $261.82 to Acquire a Paying Customer from Google LSAs in February 2025
In this expanded sample, customer acquisition cost (CAC) from GLSA was $313.10 in February 2024.
This is impressive considering the 48% spend increase YoY, but is in line with Google’s Local Service Ad model where you pay per lead. It’s still up to your teams to close those leads, but generally, higher spend indicates higher demand from the GLSA channel.
These businesses not only experienced increased lead volume in February ‘25 but also improved the efficiency of that lead volume (increased booking rate), which led to a notable reduction in CAC (—$51.28 YoY).
CAC was also down 10% month-over-month.
Google LSAs Drove a 21.8x Return on Ad Spend Potential in February
For every $1 spent on GLSA in February ‘25, $21.80 of revenue opportunity was generated (up from 18.8x from February ‘24).
The opportunity comprises estimates, sold jobs, and closed jobs of leads that originated from GLSA (note that we only take one estimate per customer, and a customer can exist in just one of those buckets at a given time period to avoid double counting).
To make this more tangible, across this sample of businesses, $265,782 (up from $161,944 in February ‘24) in revenue opportunity was generated from GLSA per business in February 2025.
That’s a 64% increase year-over-year. However, revenue potential was down 17% compared to January ‘25.
On average, the business in this sample had $103,838 more in revenue opportunity this year than last from spending $3,592 more this year (28.9x ROI potential on that additional spend).
Google LSAs Drove a 9.6x Return on Ad Spend (Closed Revenue) in February
GLSAs drove $9.60 in closed revenue for every $1 spent in February ‘25, up from $7.10 in February ‘24.
That equated to $117,316 (up from $61,556 in February ‘24) in closed revenue per business for February converted by GLSA.
Compared to last year, the $3,592 in additional spend per business generated an average of $55,760 in net new closed revenue, amounting to a 15.5x return on ad spend closed revenue on the additional spend.
Of the total closed revenue in February generated by Google Local Service Ads, 66% came from new customers (down from 68% in February ‘24).
Keep in mind that the accounts in this sample are top performers (there is bias in that they use our attribution platform to make data-driven decisions), so ROAS may be more useful for you than volume, but the number of accounts generating six-figures+ of closed revenue multiple months in a row from GLSA is a strong indicator of how that channel is maturing and becoming a formidable revenue generation source.
However, sold revenue in February was down 13% from the prior period, which may be a slow-down indicator for March, so let’s take a look at the first 19 days of this month👇
March 2025 GLSA Preview
We now have 19 days of data for March, so let’s peak at a few trends for GLSAs so far this month (compared to the first 19 days of February):
Spend: -13%
Unique Leads: -19%
Cost per Unique Lead: $63.58
Customer Acquisition Cost: $277.85 (+6%)
ROAS Potential: 19.4x (-12%)
ROAS Closed: 8.x (-10%)
Closed Revenue per Business: $59,659 (-22%)
Through the first 19 days of March, closed revenue has taken a big hit compared to the first 19 days of February, down 22%.
Sold revenue is also down 19%, indicating there isn’t enough work in the pipeline to compensate for the closed revenue difference from the prior period.
March is a notoriously difficult month given that we are in a true transition period from the cold season to the warm season, but the lower lead volume is a lagging indicator that March will underperform compared to January and February.
Until next time . . .
-Jon