Gym Lead Generation: Do Paid Ads Add Up?

The Reality of Paid Advertising

Paid advertising for gyms is not a quick fix. It requires a strategic approach, constant adaptation, and diligent follow-up. If you don’t have the appropriate processes, the right technology, and responsive staff in place to do that, you could be wasting money.

While the average conversion rate of fitness ads on Google Ads is reportedly 7.4%, research also shows that organic website traffic and word-of-mouth referrals are still more fruitful.

The average conversion rate of organic website traffic for fitness operators varies depending on the specific type of fitness business - the overall average conversion rate across various fitness businesses has been reported to sit at around 45.3%. However, it's important to note that conversion rates can be influenced by factors such as the quality of the website, the effectiveness of marketing strategies, seasonality fluctuations, as well as the specific services you offer – including how you ‘connect’ with your prospects.

Should Your Gym Invest in Paid Ads?

Gym owners accustomed to organic growth need to adjust their mindset and processes when venturing into paid advertising due to colder leads and potentially higher churn rates.

Just because you’ve been successful organically, does not mean you can scale that at the same rate of success by using ads. Apart from anything else, the costs and conversion rate of gym ads aren’t what you think.

The cost of gym lead generation ads can be prohibitive, and the cost-per-click (CPC) and conversion rate (CVR) are less than preferential when you look at the cold hard facts...

For the following example, we’ll be drawing directly on the cost-per-click and cost-per-lead for gym ads via Google Ads as it stands in 2024.

• The average cost per click in Google Ads in 2024 for fitness ads =  $4.71

• The average cost per lead in Google Ads in 2024 for fitness ads =  $61.56

• The average conversion rate in Google Ads in 2024 for fitness ads = 7.4%

With the conversion rate sitting at 7.4% you’re going to need approximately 13 ad clicks for your ads to generate a single lead – and let’s remember here, that Google is counting that conversion based on the event you set up to measure the performance once the lead reaches your website, usually completing a form.

Some of you may have a more sophisticated set up for gym lead management and tracking of performance, but many won’t, so in the interests of keeping this simple we’ll go with the former as it is more common.

So...before you go thinking that 13 clicks for one lead sounds pretty good, let’s remember that a lead is not the same as a new customer. There’s still work to do. Those 13 clicks will effectively cost you $61.65.

Are you happy paying $61.65 per form fill? 

Do you have the level of responsiveness consumers expect to really capitalize on that form fill? Can you respond to their membership inquiry instantly, at any hour of the day? Are your team adequately trained and skilled in conversational selling, to build rapport before pushing for the sale over the phone or email?

What happens if the lead doesn’t respond to the first call or email attempt – how long before you try to connect again?

Some food for thought there. And here’s some more…

How many paid leads are you paying for? What’s the typical conversion rate of those paid leads turning into members at your club? How sticky are those members – is retention good?

Only when you know these metrics / the answers to these questions can you really say that Google Ads are a good investment for your gym. Maybe. If you’re lucky. 

Building An Efficient Gym Lead Generation Ecosystem

Sustainable gym growth relies on a balanced approach combining paid advertising, organic strategies, word-of-mouth marketing, and strong community building, but most importantly it’s about setting up a conversion machine to optimize what you’re doing with your traffic, whether it comes from paid or organic sources.

Playing the numbers game by throwing more and more budget into ads simply isn’t the way to scale.

You need to think about how you are going to convert more of that paid traffic once you have them there on your digital real estate. The first step is to build a relationship, or at the very least provide a lasting impression on those prospects as soon as they enter. Unpopular opinion here – but you need to do that within 5 minutes.

This is where the conversation element comes in. Conversational technology and AI to be precise.

Consumers are researching and responding to your ads at all hours of the day (unless of course, you have your ads set to only run during business hours)…but without adequate follow-up and action being taken, you’re spending money for traffic that you simply can’t do justice to. Remember I said you could be wasting money on ads? This is exactly what I mean.

But what if you could convert more traffic on your website, just by being more responsive to enquiry? And by convert we mean ditching the out-dated form fills and call-back requests, and instead putting those leads directly into your sales team’s calendars in the form of tour and trials.

What if you could convert more social media followers and visitors just by having an active, dedicated service that responds to DMs?

What if you could take inbound calls on your website – the kind where you can convert interest into action?

You can. With AI-powered gym lead generation co-pilots you can achieve what you didn’t think was possible.

The fact of the matter is this. You have the traffic. Regardless of how you brought it there, you have leads arriving on your site each and every day but until now you haven’t known how to turn them into prospects.

Gym Leads and Gym Prospects Are Very Different Things...

Leads are just data points. They are just faceless numbers. Prospects, on the other hand, are people who have shown genuine interest, engaged and connected with you, expressing their interests and intent to join your community. You don’t just have their contact details, you have their attention because you’ve shown them you understand what they’re looking for, and you’re working with them on their terms.

To achieve this conversion from gym lead to prospective member you have to engage within their time frame expectations, on the channels of their choosing, removing any possible points of friction along the way. That includes giving them all the information they request, including your pricing if they ask for it, and then gently nurturing them towards a desired action like booking a club tour or trial. And you must do so without making them wait. 

Don’t use a chatbot that is really just a thinly veiled contact form – if this means taking their details and passing it off to sales to call them back, then you aren’t converting a lead into a prospect at all, you’re simply elongating the lead status period….and the longer a lead remains a lead, the colder they get.

Summing up

With the January membership rush approaching it’s tempting to see paid advertising as a quick fix for boosting membership numbers. However, as we’ve uncovered, investing heavily in ads without first optimizing your existing processes can lead to wasted resources and missed opportunities. Before pouring money into paid campaigns, it’s crucial to understand your metrics and refine your lead generation and management strategies.

Maximizing the potential of your club's organic traffic and social media DMs should be your starting point. By engaging prospects promptly, within that critical five-minute window, and utilizing AI-powered conversational tools like Keepme Sales Agent, you can convert more of your casual website visitors into committed members. This proactive approach not only enhances conversion rates but also builds stronger relationships with your community.

Once your organic channels are fully optimized, any foray into paid advertising will yield better results. You’ll enjoy preferential conversion rates that surpass those of competitors who rely solely on ad spend without a solid foundational strategy. In some cases, you might find that your optimized organic efforts make paid ads unnecessary altogether.

Remember, sustainable growth isn’t about how much you spend on advertising but how effectively you convert interest into action. By focusing on refining your existing processes, understanding your audience, and leveraging technology to enhance responsiveness, you’re setting your gym up for long-term success.

So before you allocate substantial budgets to paid ads, take a step back. Assess and optimize your current lead generation ecosystem. By doing so, you’ll not only save money but also create a more efficient, responsive, and member-focused gym experience. After all, the most successful gyms aren’t those that spend the most on ads -they’re the ones that connect best with their community.