Pardon the play on words, but it’s a dog-eat-dog world out there. Daycare facilities are facing new challenges that require attention and strategic adaptation. Thanks to a notable shift in consumer behavior and increased competition, it is crucial for daycare centers to stay informed about the current trends affecting their business – and how to stay competitive in a changing marketplace.

Dog Daycare Demand is on the Decline: A Look at the Numbers

Recent data points to a significant nationwide drop in demand for dog daycare services over the past three years. Using Google search trends as a benchmark, IMPACT compared the search volume for the term “Dog Daycare” from January 1 to August 28 in 2022, 2023, and 2024. The graph below illustrates this stark decline, with blue representing 2022, red representing 2023, and yellow representing 2024.

As the graph clearly shows, the number of searches for dog daycare has dropped dramatically in 2024 compared to previous years. There are noticeable peaks and troughs, with some weeks in 2022 showing high demand, while those same weeks in 2024 saw a steep plunge. This pattern indicates that demand for dog daycare is shrinking, and competition is increasing as more facilities enter the market.

What This Means for Dog Daycare Facilities

While this downward trend in search volume is alarming, it’s important to remember that the industry is not without hope. The key takeaway is that more facilities are vying for the same pool of potential clients. In this increasingly competitive environment, the facilities that succeed will be those that take proactive steps to capture market share.

One of the most effective ways to do this is by investing in digital marketing, specifically Google Ads. In previous years, facilities may have been able to grow with only organic traffic and word of mouth. However, with so many competitors now utilizing Google Ads and appearing at the top of the search engine results page (e.g., page 1 of Google), dog daycare centers need to up their game. For those who have never advertised, they need to start. For those who are already advertising, they should consider increasing their advertising budgets to maintain visibility.

The War of Attrition: How to Stay Ahead

As competition heats up, a war of attrition rears its head—only the most strategic and aggressive facilities will survive. Many poorly run facilities or those that have not invested in advertising are already closing their doors. This trend is likely to continue through the remainder of well into 2025.

For well-managed and well-marketed facilities, this presents a unique opportunity. By staying active in digital marketing efforts and keeping an eye on competitors, facilities can gobble up valuable market share. This may require a significant increase in ad spending, but it definitely will require a very efficient ad campaign. The payoff can be substantial. Facilities that fail to adapt to this new reality risk falling behind or even going out of business.

How to Position Your Dog Daycare for Success

To stay competitive, here are a few actionable steps that can help dog daycare facilities capture more of the market:

• Reevaluate Your Marketing Budget: If your Google Ads budget hasn’t increased in the past few years, now is the time to revisit it. Consider boosting your investment to ensure your facility is visible to potential clients who are actively searching for daycare options. The added budget might reduce your profit margin a bit, but as long as you have a healthy return on investment (ROI), you will be fine. (Let us know if you need help determining ROI; we have a tool to calculate it.)
• Monitor Competitor Activity: Keep a keen eye on what your competitors are doing. Are they increasing their advertising efforts? Have they introduced new promotions or services? Staying informed can help you adjust your strategies as needed.
• Focus on Client Retention: As the pool of potential clients shrinks, retaining existing clients becomes even more important. Ensure that your current customers are satisfied with your services by offering loyalty programs or added value to already stellar customer service.
• Treat Every Lead Like Gold: with reduced demand, unlike during the sugar-high days of 2021, every form completion or phone call needs to take priority. People are shopping now, taking longer to make a decision, and putting off booking until the last minute, so your reservation specialists need to treat every lead like gold and get back to them immediately.
• Adapt to Changing Client Needs: As consumer preferences shift, it’s essential to stay flexible. Consider adding new services such as training, enrichment daycare, boarding, or even mobile grooming to meet the evolving needs of pet owners.

Looking Ahead

The dog daycare industry is undergoing a period of normalization – demand is adjusting back to the norm after spiking very high post-COVID. But while the overall demand for services may be declining, there are still opportunities for growth for facilities that are willing to adapt. By staying informed, investing in digital marketing, and focusing on client satisfaction, your dog daycare can thrive in this new landscape.