A Lachi Media Study · 126 Companies · $84.1M in Ad Spend

Home service businesses that connected advertising to completed jobs generated 38% higher gross-profit returns.

Across 126 US home service businesses, the typical company generated $1.68 in gross profit for every $1 spent on ads when advertising was connected to completed jobs, compared with $1.22 for businesses focused on leads and calls.

126
companies
$84.1M
ad spend
$410.7M
attributed revenue
2 yrs
of closed-job data
01 · The main finding

The typical business earned $1.68 in gross profit per ad dollar when advertising was connected to completed jobs.

Businesses focused on leads and calls generated a median $1.22 in gross profit for every $1 spent on ads. Businesses connecting advertising to completed jobs generated $1.68. That is a 38% higher median gross-profit return. Gross profit in this study means revenue minus technician labor and parts, before overhead.

Focused on leads and calls
$1.22
Median gross profit generated for every $1 spent on advertising.
Connected to completed jobs
$1.68
Median gross profit generated for every $1 spent on advertising.
02 · What the advertising system can see

The closer measurement gets to real money, the more useful the advertising becomes.

Advertising platforms can see when someone calls or fills out a form, but they do not automatically know whether that person became a paying customer, what the job was worth, or whether it was profitable. Unless businesses send that information back, the system makes decisions without knowing which leads actually produced valuable work.

Leads & calls1.16×
Qualified leads1.27×
Completed jobs1.28×
Jobs at revenue1.69×
Jobs at gross profit1.75×
Bar length = median gross profit earned per $1 of ad spend, from accounts focused on leads and calls (top) to accounts connected to gross profit (bottom).
The downside was also clear
Accounts focused on leads and calls ran their advertising at a loss 37% of the time. Accounts connected to completed jobs, just 8%.
The pattern held across spend levels
The same direction appeared among smaller, mid-size, and larger advertisers. Scale helped, but it did not explain the difference.
Industry reaction

“The ad platforms will optimize toward anything you point them at, which is exactly why pointing them at leads instead of profit gets so expensive. Most advertisers already have the tools to fix this, they just haven’t connected their spend to what a job is really worth. This study puts a hard number on that gap, and it’s bigger than most would guess.”

Laura HeritageVP of Partnerships, ClickTech
03 · Scale did not explain the difference

Better measurement mattered more than bigger budgets.

Bigger budgets usually bring more data, more history, and more room to test. But in this study, scale did not explain the strongest returns. Among the smallest spend tier, companies that connected advertising to completed jobs reached a median return close to the largest operator in the sample. What separated them was not only budget. It was whether the advertising system could see what happened after the lead.

Smallest spend tier
$21.5K-$107K / year · connected to jobs
1.69×
median return
≈
The $20M operator
$20,000,000 / 2 yrs · multi-market
1.80×
return

Nearly half of the small advertisers connected to completed jobs beat the $20M operator outright. The technology larger operators have used for years, connecting advertising to what a job is actually worth, is now realistic for much smaller businesses.

92% vs 63%
Businesses connected to completed jobs were much more likely to generate more gross profit than they spent on ads.
88% vs 60%
The same pattern appeared in the 43 businesses Lachi Media observed but did not manage.
Every tier
The return gap held among smaller, mid-size, and larger advertisers.
04 · Why many businesses still stop at leads

The fix is practical, but it is not automatic.

The easy default

Most ad accounts start by counting calls and forms. Unless the business changes what is sent back, the system keeps optimizing toward the top of the funnel.

The integration work

Telling the platform what a job is worth means connecting a CRM or field-service system back to the ad account. That setup is still the step many smaller companies skip.

Reports built on leads

Lead reports are easy to build and easy to explain. But a lead report can look healthy while the jobs behind it are low-value, unbooked, or unprofitable.

The result

The advertising system makes decisions using incomplete information. The companies that close that gap give it a better signal to work from.

05 · What a contractor can do about it

You do not need perfect profit accounting to start. You need to climb one rung.

The first practical step is not a bigger media budget. It is connecting advertising to what happened after the lead. Start with completed jobs, then add revenue, then add gross profit where the data is reliable.

  • Send jobs back, not just leads. Feed completed-job outcomes from your CRM to the ad platform, so it learns which clicks become real work.
  • Value the job by revenue. Tell the platform what each job was worth, so it can learn from bigger tickets instead of only cheaper calls.
  • Value the job by gross profit. Where labor and parts data is reliable, send the value that reflects what the business actually kept before overhead.

If you can report qualified leads today but not job values, that is not a reason to wait. It is the next rung.

06 · Methodology

How the study was run.

Sample
126 US home services companies across service & repair, recurring maintenance, and improvement & construction. 83 managed by Lachi Media, 43 independently observed. Ads ran on Google Ads and, for 36 companies, Microsoft Advertising.
Scale & period
Two years of account history. $84.1M total ad spend, from $43,000 to $20M per company, and $410.7M in advertising-attributed revenue.
Gross profit
CRM-reported revenue minus technician labor and parts. It does not subtract overhead, vehicles, insurance, or advertising, so this is a gross-profit return measure, not full net profit.
Attribution
Revenue matched to advertising through gclid, msclkid, and UTM parameters, matching roughly 90% of ad-sourced jobs. Each account’s goal was classified from its actual conversion configuration.
Statistics
The relationship between goal and return on ad spend is significant across the full sample (Spearman’s rho 0.32, p<0.001) and within the non-managed subset (rho 0.33, p=0.03), and holds within every spend tier.
Limitations
A cross-sectional study of one agency’s client and observed-account base, not a random sample of the industry. Labor is self-reported and calculated differently across W-2 and 1099 companies.

Detailed methodology and aggregate results are available to reporters on request. No individual company is identified, and no client-identifiable data is shared.

Connect advertising to completed jobs, revenue, and profit.

Lachi Media helps home service businesses move beyond lead reports and build advertising around the outcomes that actually matter.

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