3 reasons why paid ads don't work for accounting firms
and 4 examples of when they can...
I’ve spoken to many firms who’ve blown ad spend on FB & Google.
Some have seen mediocre results, and a couple of price-shopping prospects coming through.
Most saw nothing.
At the core, it comes down to this…
Accounting is a RELATIONAL business, not a TRANSACTIONAL one.
Choosing a new accountant isn’t like buying a product online. Click an ad, add to your basket, enter card details and you’re a customer.
There's a more human element needed.
Especially if you’re selling services with higher annual fees like outsourced finance function or outsourced CFO.
Prospective clients will go through a mental checklist:
Do I KNOW this person?
Do I LIKE them?
Can I TRUST them?
With a referral, these 3 things are checked pretty quickly (mostly via proxy from the referrer)
From an ad, it’s very difficult to do that in such a short space of time.
That’s why content marketing works so well for firms…
It allows you to build relationships with prospective clients, online, so that when the time is right for them, you’re their first choice.
Yes, results don’t happen overnight like ads. But the longer-term gain from this is much better.
So let's dig a little deeper…
Here are the real reasons why paid ads don’t work for most* firms…
*I’ve said most because there are times when they can and do work. I’ll share more about those a little later on…
Why Google PPC ads don’t work for accounting firms
Running PPC ads on Google (or similar search engines) is based on search terms.
If prospects search for terms like ‘accounting in <area>’, ‘tax specialist’, and ‘<niche> accountant’, you can run ads targeting people searching for those terms.
These ads will appear at the top of Google above the organic (non-paid) search results.
Here’s why they often don’t work for firms:
1. Ads sent straight to the website
A big mistake lots of firms make when running PPC ads is that they send prospects straight to their website homepage.
This page is not built for conversion.
There are too many links and options for them to take without any clear call to action.
If you’re going to run PPC ads (I’d advise against it unless you meet the criteria I outline in the ‘why ads can work’ section later on) then you need to send prospects to a dedicated landing page.
2. Most online searchers are price-shopping
Think about it…
Are your target clients the types of people likely to go and search in Google? Or are they more likely to ask somebody they know or build a relationship with you first online?
The result of this is a lot of tyre-kickers coming through from PPC ads.
That’s not to say you can’t get a few good ones, you can. You just need to know whether the cost of those leads > fees you generate. Often it doesn’t make sense or it’s too inconsistent to keep the ads running.
(If your model is to work with lower-fee/high-volume clients then PPC can work…)
Why social paid ads don’t work for accounting firms
As well as running ads on search engines like Google, you can also run them on social media platforms like Facebook, Instagram, and Linkedin.
These ads aren’t based on search terms. They’re based on targeting which can include things such as:
Type of business
Size of business
Location
Income
Interests
Here’s why they don’t work for accounting firms:
1. There is no ‘buying intent’
I’ve written previously about why the majority of your target market isn’t looking for a new accountant right now.
And this is the fundamental reason why ads on Facebook etc don’t work for firms.
Let’s assume for a second I’m your target client. Marketing agency owner, based in the UK, team size 2-10 people. You can use that to target me on paid channels.
So you run an ad campaign to promote your firm and it appears in my feed.
Am I going to click it?
No.
Why? Because I’ve got no interest in changing accountants.
I have no buying intent.
Yes, you might have the targeting laser focused. But you’re offering extra cheeseburgers to a room of people that just finished eating a double whopper.
*But wait, can paid ads work at all?
Like all things, there are going to be instances where it can and does work.
Here's where I believe paid ads can work:
1. If your model is high volume, low fee
If your business model is to win a high volume of lower-fee clients (think contractors, freelancers, small sole traders etc) then PPC can work.
You just need to ensure you work with a proper agency to set up dedicated landing pages + accurate tracking and reporting since balancing the cost of acquisition against fees will be tight.
2. If you're operating in a focused niche with a high average fee
Let’s assume you specialise in e-commerce accounting and your average fees are £500 per month minimum.
PPC on Google could also work (depending on search volumes for ‘e-commerce accountant’ or similar) because although you would be wasting some ad spend on tyre-kicker leads, your high average fees should help offset these costs.
Again, you need to work with an agency to make sure this is properly set up and tracked accurately.
3. If you’re selling a specific productised service
If you sell a productised service e.g. a paid tax planning consultation or a one-off business audit, then paid ads on social channels could work.
You’ll still have the issue of a lack of buying intent but since these options are more transactional (sign up and buy once) more people will likely be interested even if they have an existing accountant.
4. If the goal is lead generation, not client acquisition
Most people on social media don’t have buying intent.
But they do have problems you can solve.
So instead of running ads to promote your firm and services, you can use ads for lead generation e.g. running a campaign to promote downloads of an ebook or guide.
Note, this will only work well if:
Your content + targeting is laser-focused
You have a solid nurture system in place
The nurture system is important because again, just because they downloaded your guide, it doesn’t mean they have buying intent. A nurture system allows you to build the relationship & trust over time until they DO have the intent to work with you.
Strategy underpins all of this
Having a clearly defined marketing strategy for your firm will help you to understand what all of this means for your firm.
Based on your model, your ideal clients, your average fees, and your offer, a strategy will help to identify which channels will work best, and which won’t.
Related - [Template & Guide] 8 Step Marketing Strategy For Accounting Firms
Until next time,
Jordan