HVAC Demand Trends: Google LSA Revenue Performance - March 2025
👋 Hey, Jon here! This week, we’re reviewing Google LSA performance for March. 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 1.0x, versus the highest at 40x. 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 February 2025 GLSA:
Spend: +48% YoY
Unique Leads: +77% YoY
Cost per Unique Lead: $59.94 (-16.7% YoY)
Customer Acquisition Cost: $261.82 (-16% YoY)
ROAS Potential: 21.8x
ROAS Closed: 9.6x
Closed Revenue per Business: $117,316 (+90% YoY)
Note: GLSA spend increased 35% year-over-year in March.
Unique Leads from GLSA Increased by 61% Year-over-Year
Q1 2025 saw notable spending increases and unique leads compared to 2024 for the businesses in this sample.
March 2025 GLSA spend was up 35% year-over-year, and unique leads were up 61% year-over-year, which drove a:
75% increase in booked customers year-over-year
65% more run jobs year-over-year
58% more paying customers year-over-year
The cost per unique leads from GLSAs also came down 15% YoY:
And even with a unique lead volume increase, book rates increased 8% year-over-year (not only were there more leads, a higher percentage of them booked appointments).
On average, the businesses in this sample spent ~$3,265 more on GLSA in March 2025 than in March 2024.
That additional spend drove 99 more unique leads per business on average (from 163 unique leads each in 2024 to 262 unique leads each in 2025).
Of the active customers in March 2025 from GLSA, roughly 20% became paying customers.
Because of that, we can estimate that 20 of those 99 additional unique leads converted to paying customers, driving $60,260 in additional revenue at an average ticket of $3,013.
That’s a 18.4x ROI for every additional $1 spent vs. 2024, making the additional spend worth it.
Average tickets were also up 15% YoY, resulting in $390 more spent per paying customer, which covered the paying customer acquisition cost as we’ll see down below.
However, unique lead volume was down from the prior 31 days of January (-15%) with a 27% decrease in spend.
Month-over-month, booked customers dropped 13%, run jobs dropped 14%, and paying customers dropped 18%. March across the board did see some demand dips month-over-month (more than likely due to shoulder season), but still showed improvements year-over-year.
It Cost $214.59 to Acquire a Paying Customer from Google LSAs in March 2025
In this expanded sample, customer acquisition cost (CAC) from GLSA was $214.59 in March 2025, down year-over-year and in line with the rest of Q1’25.
As I’ve mentioned in previous newsletters, GLSA’s pay-per-lead model means that an increase in spend on the channel does not automatically mean soaring customer acquisition costs.
More spend = more leads, and if those leads book, run and close at similar rates, CAC will decrease even if spend is up.
CAC was also down 11% from the prior month (looking at previous 31 days to keep it apples to apples).
Google LSAs Drove a 28.5x Return on Ad Spend Potential in March
For every $1 spent on GLSA in March ‘25, $28.50 of revenue opportunity was generated (up from 21x from March ‘24).
Revenue 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, $356,098 (up from $193,427 in March ‘24) in revenue opportunity was generated from GLSA per business in March 2025.
That’s an 84% increase year over year. However, revenue potential was down 12% compared to the prior month 31-day period for an apples-to-apples comparison).
On average, the business in this sample had $162,671 more in revenue opportunity this year than last from spending $3,265 more this year (49.8x ROI potential on that additional spend).
Google LSAs Drove a 11.6x Return on Ad Spend (Closed Revenue) in March
GLSAs drove $11.60 in closed revenue for every $1 spent in March ‘25, up from $8.70 in March ‘24.
That equated to $144,713 (up from $79,814 in March ‘24) in closed revenue per business for March ‘25 converted by GLSA.
Compared to last year, the $3,265 in additional spend per business generated an average of $64,899 in net new closed revenue, amounting to a 19.8x return on ad spend closed revenue on the additional spend.
Of the total closed revenue in March generated by Google Local Service Ads, 70% came from new customers (up from 68% in March ‘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.
March performed well YoY, with some down performance month-over-month, but it is worth noting that sold revenue in March was up 11% from the prior period, which is a positive indicator for April performance, so let’s take a look at the first 10 days of the current month:
April 2025 GLSA Preview
We now have 10 days of data for April, so let’s peak at a few trends for GLSAs so far this month (compared to the first 10 days of March):
Spend: +54%
Unique Leads: +28%
Cost per Unique Lead: $54.19
Customer Acquisition Cost: $213.56 (+12%)
ROAS Potential: 24.2x (-24%)
ROAS Closed: 10.6x (-1%)
Closed Revenue per Business: $60,044 (+52%)
April is set up to be a much better performing month than March, already reflected in the increase in closed revenue per business and volume of unique leads.
Because we’re only 10 days into the month, the surge in lead volume has been paid for, but those customers likely haven’t made it yet through the funnel to estimates and closed revenue (causing the current decrease in ROAS potential and closed).
If book rates, match rates, and paying customer rates maintain consistency, we’ll see a bounce in month-over-month revenue for April to kick off the summer season!
Until next time . . .
-Jon