Even if you don’t remember anything else about Star Trek, you probably remember the opening credits. A booming voice tells you that the mission of the Starship Enterprise is “to explore strange new worlds” and “to boldly go where no man has gone before.”
Contractors have a lot in common with the crew aboard the Starship Enterprise. They want to explore new territories, to seek out new customers. They want to boldly go where no contractor has gone before.
Now more than ever, contractors are able to explore the territories they serve. New market research provides the age, income and specific location of their prospects. This data can be used to develop a more effective marketing strategy with paid search at the forefront.
Let’s take a quick look around the galaxy of homeowner demographics and see what “the next generation” of homeowners is up to.
(Baby) Boomers are Still Booming
Born between 1946 and 1964, Baby Boomers are responsible for about 52% of home improvement expenditures nationwide. According to the National Kitchen & Bath Association (NKBA), 82% of Boomers hired a contractor for kitchen remodeling after a consultation.
Because Boomers are typically in a higher income bracket, they’re going to be the prime targets for big ticket jobs. They are late technology adopters for the most part, but they respond well to Google and Facebook ads.
Generation X is Gunning it
Born between the mid 60’s and mid 80’s, Gen Xers have taken up residence in the Sun Belt and in less expensive metropolitan areas. Many of them took their recession hits and are now prepared to spend with gusto. Gen X families are likely seeing wear and tear on their homes, so they’re looking to upgrade or modernize.
According to the NKBA study, 68% of Gen Xers hired a contractor for kitchen remodeling after a consultation. The rate for bath was 63%. Based on Gen X’s standing in the workforce and their high rate of homeownership (about 60%), those numbers are only going to grow.
Gen Xers are busy, but discerning homeowners. If you have a good offer or discount, you’re going to get their attention.
Millennials Are Movin’ on Up
Born between 1985 and 2000, only 34% of Millennials own homes right now. On the surface, that might make you wonder if this younger demographic is worth the effort at all. But here’s the thing: the millennials who are homeowners have a higher-than-average income level. According to the Joint Center for Housing Studies at Harvard University, these Millennials are willing to pay relatively more for home improvements, especially if they are related to home automation or energy efficiency.
On top of that, Millennial home ownership is on the rise. They usually choose older, more affordable homes. This is great news for contractors – an older home is always going to need professional repairs.
Millennial homeowners are settling down in less expensive cities in the South and Midwest, such as Minneapolis, St. Louis and Nashville. Online, these younger homeowners respond to reviews and anything eco-friendly. Make sure to play up both in your ads.
Live Long and Generate Leads
Age, income, location – these are details you can target with your paid search ads. Putting these details together in a smart strategy is going to help you discover new pockets of homeowners, sustainable lead pools and revenue streams.
Set your phasers to stun, because the next generation of paid search is upon us.
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Twice a month, Todd Bairstow shares his take on internet marketing for home improvement companies. Submit your email to receive his latest posts.