As a small or medium business owner, we know your marketing dollars are valuable. Understanding how to best allocate your ad spend to get the most out of your ads can be one of the most daunting aspects of digital marketing and pay-per-click advertising. Every business owner and entrepreneur wants to create the best ads with the highest click-through rates (CTRs) and the best conversion rates. However, it can be difficult to figure out what average cost per click to aim for to beat the competition in your industry. We’ve compiled a list of industry benchmarks including Cost Per Click (CPC), Click-Through Rate (CTR), Cost Per Action (CPA), and Average Conversion Rate (CVR) for Network Ads of Research and Display. .
We derived pay-per-click conversion rates for the following US industries:
- Consumer services
- Meetings & Meetings
- Employment services
- Finance and Insurance
- Health & Medical
- Household items
- Travel & Hospitality
Average cost per click (CPC) by industry
Most industries have a fairly cheap average cost per click on the Google Display Network. The only industry with a CPC over $ 1 for display ads is Dating & Persona. However, for Search Network ads, Legal Services has the highest average cost per click by industry, which is not so surprising since “lawyer” and “lawyer” are two of the most expensive search terms on Google and Bing. Customer service lags behind legal services with an average cost per click of $ 6.40, and technology tops the three most expensive average CPCs with $ 3.80.
The good news is that the pay-per-click conversion rate has increased very little over the past two years, so you won’t have to factor in as much of the increase in CPC costs as you once did.
Average click-through rate (CTR) by industry
As you can see in the table above, by far the highest average click-through rates (CTRs) in the industry are dating and dating, which could contribute to the emotional burden on copy companies of this. industry are able to write for their ads. The next two industries with the highest CTRs are automotive and travel and hospitality – both industries have the ability to post compelling images of exotic and distant destinations and the latest and greatest cars on the market. .
Average conversion rates by industry
In years past, the finance and insurance industries had the highest pay-per-click conversion rates. However, new data shows the dating and home industry is now leading the pack with an average conversion rate of over 9% on search. Legal with 6.98% and consumer services with 6.64% on search round out the three main sectors with the highest average conversion rates.
The majority of the best converting advertisers aren’t afraid to tweak their sales offerings to increase their pay-per-click conversion rates. They also typically take advantage of marketing tactics that boost conversion, such as creating new content for their website and adding videos to their landing pages. While these tactics work for some industries, ecommerce customers may not have as many opportunities to change their sales offerings, which can result in a lower average conversion rate. Plus, their hands are tied to their inventory, which means they aren’t able to tweak their ad copy to match all of the top performing ecommerce keywords.
To get the most out of your Google Ads spend, focus on improving your keyword performance to ensure high business intention to attract high intention customers who are ready to buy. While Search Network conversion rates have increased slightly, Display Network conversion rates have declined. To ensure that your display ads continue to convert, pay close attention to the placement of your display ads and audience optimization.
Average cost per action (CPA) by sector
While everyone is still feeling the residual financial effects of the pandemic, advertising costs have increased exponentially for some industries and decreased for others. The three industries with the highest CPAs are technology with an average CPA of $ 133.52, B2B with $ 116.13, and consumer services with $ 90.70. These prices may be hard to believe, but the CPA on research is actually lower than it was a few years ago. Display CPAs, on the other hand, have increased over the past two years.
What is a good cost per click?
As mentioned, most businesses are still feeling the effects of the pandemic when it comes to their average cost-per-click and pay-per-click conversion rates, but it’s difficult to identify the best average cost-per-click for your business because there are no clear guidelines to follow. There is no one simple answer to what is a good cost per click. Google’s advertising costs for Search and Display ads vary depending on your industry, current trends (such as the COVID-19 pandemic), and customer lifecycle. However, with the historical average cost per click by industry data that we have provided here, combined with your unique knowledge of your business, we hope that you will be able to identify the optimal average cost per click for your business.