Getting new customers is always top of mind for laundromat owners — and businesses in general. Laundromat ads are the way to do it.
But finding new customers in an often limited geographical area poses quite a few difficulties.
For instance, how do you know that an advertisement will truly be put in front of people in your area? Or how do you track ROI from your advertising campaigns?
The old solution relied on traditional media. You could put your ad in a local newspaper (thus ensuring you get a local audience) — and if you put in a coupon, you could track how many redemptions came through the door. Not elegant, but not ineffective in its own right.
But the world has changed. Newspapers as a primary advertising medium are dead (or still dying), and with the onset of COVID-19 the use of paper-based coupons leaves something to be desired. Though we’ll one day return to normal, the time in between poses an opportunity to adopt new technology like never before.
Laundromats need to adapt the way they advertise if they want to grow, which is where digital advertising platforms come into play. In this post, we’ll look a bit closer at two of the most popular advertising options — Facebook and Google — and see how they play a part in the new world of laundromat advertising.
My hope is that you’ll be interested in giving one of them (or both) a go, as you’ll see they can be very lucrative.
If you’ve spent any time on Facebook lately, you’ve seen an ad. Here’s a recent example from my personal Facebook feed (sporting the Dark Theme, no less):
These days, it’s hard to remember a time before Facebook advertising… I’m pretty sure I was in my mid-teens (and I’m 27 at the time of writing, if you’re wanting to feel a bit old). Facebook ads have seen quite a few changes through the years, but as a platform it’s jumped forward in leaps and bounds.
As a result, the platform is now a stalwart of online advertising. It’s how Facebook makes its money from the roughly 2.7 billion user count, and it makes sense at a local level for laundry businesses to advertise and get a piece of that pie.
And the pie can be a lucrative one. Businesses have long reported some tremendous growth just via Facebook ads. One notable example is from 2013, where one company turned ~$300 in ad spend into $10,510.50 in revenue.
That’s a 35x ROI, if you want to do the math.
Now of course, your mileage may vary here. As people have become more accustomed to the medium, average engagement has leveled out to more predictable, business-decision-friendly levels. Today’s overall ad conversion rates currently sit at 9.21%, meaning roughly 9 of every 100 clicks you receive on an ad will turn into a paying customer.
If you’re able to figure out 1) the average cost per click and 2) the average revenue per customer won — you can figure out just how much you can make from a Facebook ad campaign (or any laundry ad campaign for that matter).
So let’s see if we can do the math.
The average cost per click on a Facebook ad is $1.72 — which is startlingly low.
And the average revenue per customer depends on your data. For a quick estimate, simply divide your total monthly revenue by your monthly number of customers. But for the sake of our example, let’s say that your average customer spends $30 each month on laundry.
Assuming you put $500/month into Facebook ads and got 9.21% conversion rates, here’s what the math pops out:
- Total input: $500
- Total clicks: ~290
- Total conversions: ~26
- Revenue per customer: $30
- Total new revenue: $780
- ROI: $280
Of course, keep in mind that it can take some time to optimize your ads and get these numbers — but once you find the balance, it’s totally worth it!
Learn more about how you can start building your own Facebook ads here. We love this kind of thing, and we’re happy to chat about it any time!
Let’s shift gears now and talk Google Ads, because that’s inevitably the next question we hear when we talk about laundromat ads with a client. They want to know if Google ads can be just as lucrative — and I’m sure the same thing is on your mind.
Google Ads are the links you almost always see at the top of the Search Engine Results Pages (SERPs), which is why they can be good for your business. The only other way to get this high on SERPs is through dedicated SEO, which is a long-term investment you may not be ready for.
So Google Ads get you on the front page quickly — but what about costs, ROI, and ease of use?
Let’s see what the data says. It’s actually fairly simple, too.
Average cost per click is between $1 to $2. Not Bad.
Businesses typically see $2 in revenue per $1 spent on ads.
Now there’s more to the financials than that, but this already paints an extremely positive picture. In theory, if you spent $100 in Google ads, you’d make $200 in revenue.
But surprisingly, it’s usually much better than that. Most businesses that spend time optimizing their ads find better results:
Which sort of makes you think — why wouldn’t you try ads?
Well, that’s where ease of use starts to muddy the waters.
If you’re not familiar with Google Ads’ user interface, or how they organize and distribute your ads, it’s pretty easy to get confused and spend your money in the wrong place.
You’ll need to set up a campaign, an ad group, and then your ad — all with an overwhelming amount of guidelines and optimizations. I highly recommend checking out this guide on the basics to get a better understanding, but bring your coffee with you.
Long story short, it’s actually hard to get started with Google Ads without the help of a professional these days. You’ll be going up against businesses who have had plenty of time to optimize their ads, which puts you at a bit of a disadvantage. Go figure, right?
So, What Should You Do?
Honestly — you should be using online ads for your laundry business.
Both Facebook and Google can be incredibly lucrative, but only under the right circumstances.
It’s up to you to dig into your audience, business, and budget to see what can work.
And I highly recommend talking to someone who’s been around the block a few times with Google Ads. I know Dennis Diaz, Spynr’s CEO, is highly knowledgeable (and he knows people who know even more than him!).
We’d love to talk ads with you, even if it’s just to help you self-start your efforts in the right direction. Talk soon!