Optimizing CPL with AI-Powered Ad Copy

Our client is a long-established home services business servicing a large metropolitan area.  They focus on a professional customer experience, including background-checked technicians, convenient scheduling, and a variety of guarantees to ensure quality and peace of mind for homeowners.

The digital search landscape is rapidly changing with AI-powered “answer engines”. Features like Google’s AI Overviews are making it easier to find information by providing direct answers and reducing the number of clicks on traditional ads. This “zero-click” trend creates a significant challenge for businesses that rely on paid search to generate leads.

For home services businesses relying on paid search this change is significant. Our client’s business depends on a steady flow of qualified leads at a certain Cost Per Lead (CPL) to stay profitable.

As search results become more crowded and competitive, rising cost-per-click (CPC) rates and lower placement of traditional ads make it harder for these businesses to maintain or lower their cost per lead (CPL).

Our client needed a smart solution to adapt: one that could navigate this new search landscape and give them an edge. 

To address changing search habits, Scale Marketing launched a test leveraging Ad Machina. This AI tool creates ad copy based on what users search for in real time.

We tested this tool for a month as an A/B experiment. We focused on key service areas like Plumbing, HVAC, Air Conditioning, and Electrical.

The main goal was to find out if Ad Machina could lower the Cost Per Lead (CPL) through more relevant messaging. We also wanted to see if it could keep the client profitable in a more competitive search environment.

Previously, we tested a similar AI tool, which automatically generates ad copy and expands keyword reach. However, initial tests with the other tool resulted in less efficient cost per lead (CPL).

Ad Machina stood out because it gave us greater control. Ad Machina allows us to fully customize the ad feed meaning we can choose exactly what messages, offers, and details appear in the ads. This flexibility was key to making sure the ads were both relevant and effective.

Meanwhile, Google is beginning to roll out new features that give advertisers more control over managing campaigns with AI MAX.

The test showed that Ad Machina was successful in lowering our cost per lead (CPL), proving its value in a changing search market.

Aggregate Performance:

Across all campaigns, the Ad Machina test group delivered a 22% more efficient CPL than the control group. It achieved this by generating a staggering 114% more conversions for a 66% increase in spend. This proved that the tool drove a profitable increase in lead volume while keeping CPL in check.

Campaign-Specific CPL Improvements:

Plumbing: This campaign saw the most significant improvement. The Ad Machina group achieved a 37% more efficient CPL. The test group drove a 129% increase in leads with only a 45% increase in spend. This directly translated into a substantial reduction in lead acquisition costs and bolstered the service’s lead goals.

HVAC Service: The Ad Machina campaigns were 5% more efficient in CPL than the control group. The campaign drove an 84% increase in conversions, justifying the 74% increase in spend. 

HVAC Install and Replacement: The Ad Machina test showed its worth by generating three leads for this important service. The control campaign produced zero. This result highlights the tool’s ability to drive leads in a highly competitive and difficult-to-convert market.

Electrical: The Electrical campaign also met its CPL goal, achieving a 20% more efficient CPL. The campaign saw an 82% rise in conversions with just a 45% increase in spend showing the tool’s effectiveness for cost-efficient growth.

The Air Conditioning campaign did not improve its cost per lead (CPL) and therefore, was the only campaign that did not show a positive change. These results could have been impacted by seasonality, as cooler weather shifted consumer focus from air conditioning to heating services. This outcome reinforces the importance of monitoring external factors.