Google Ads Benchmarks for Your Industry [2022]

Google Ads is a powerful tool for businesses of all sizes. But, how do you know if your campaigns are performing well? And, more importantly, how do you compare your results to industry benchmarks?

In this blog post, we will discuss google ads benchmarks by industry. We will also provide tips on how to improve your campaign performance, so let's get started!

If you are running a Google Ads campaign, it is important to track your results. But, how do you know if your results are good or bad?

One way to gauge your performance is to compare your results to industry benchmarks. Some of the more important benchmarks are: click-through rate [CTR], cost per click [CPC], cost per lead [CPL], & conversion rate.

Google Search Ads CTR [Click-through-rate]

Your click-through rate, or CTR, is a key metric for online advertisers. It is defined as the percentage of people who click on an ad out of the total number of people who see it.

While this number will vary depending on your industry, the average Google Search CTR across all industries is 6.63%.

There are many factors that can affect your CTR, such as the quality of your ads or website, how targeted your ads are to specific user interests or demographics, and even how competitive your keywords are in relation to other search results.

By closely tracking and optimizing these aspects of your campaign, you can improve your overall CTR and maximize the return on your advertising investment.

Google Search Ads CPC [Cost Per Click]

Cost per click, or CPC, is the amount you pay each time someone clicks on your ad. This number will vary depending on your industry, as some keywords are more expensive to bid on than others.

The average CPC across all industries ranges from $1.36 for real estate ads, up to $8.67 for legal/attorney ads. That being said, the most expensive keywords can cost upwards of $50 per click!

To reduce your CPC, you can focus on targeting long-tail keywords, which are less competitive and therefore typically have a lower CPC.

You can also improve your Quality Score, which is a metric Google uses to determine how relevant and useful your ads are to users. The higher your Quality Score, the lower your CPC will be.

Google Search Ads CPL [Cost Per Lead]

Your Google Ads campaign cost is divided by the number of leads generated.

For example, if you spend $500 on your Google Ads campaign and generate 20 leads, your CPL would be your $500 ad spend divided by 20 leads, which is a CPL of $25.

CPL is a key metric for determining the effectiveness of your Google Ads campaign and can be used to compare your results against industry benchmarks.

The average Google Search CPL across all industries is $48.44.

Various factors can affect your industry's cost per lead, such as the average price of your product or service, the competitiveness of your keywords, and your Quality Score.

You can reduce your CPL and get more leads for your company by optimizing these aspects of your campaign.

Google Search Ads Conversion Rate

When it comes to online ads, the key metric is conversion rate. This is simply the percentage of people who take the desired action after clicking on your ad, whether it's signing up for a newsletter or making a purchase.

As you may suspect, this number will also vary depending on your industry. The average Google Search conversion rate for all industries is currently 7.43%.

There are many factors that affect your conversion rates, such as the quality of your website, the relevance of your ads, and the overall user experience.

You can improve your conversion rate and obtain more leads or sales for your business if you optimize these elements of your campaign.

Google Search Ads CTR [Click-through-rate] Benchmarks by Industry for 2022

• Arts & Entertainment - 11.43%

• Animals & Pets - 7.08%

• Apparel / Fashion & Jewelry - 6.27%

• Attorneys & Legal Services - 4.24%

• Automotive — For Sale - 8.67%

• Automotive — Repair, Service & Parts - 5.65%

• Beauty & Personal Care - 5.92%

• Business Services - 5.17%

• Career & Employment - 5.93%

• Dentists & Dental Services - 5.03%

• Education & Instruction - 6.17%

• Finance & Insurance - 5.70%

• Furniture - 6.01%

• Health & Fitness - 6.15%

• Home & Home Improvement - 4.62%

• Industrial & Commercial - 5.61%

• Personal Services (Weddings, Cleaners, etc.) - 6.95%

• Physicians & Surgeons - 6.25%

• Real Estate - 8.55%

• Restaurants & Food - 7.60%

• Shopping, Collectibles & Gifts (General) - 5.50%

• Sports & Recreation - 8.82%

• Travel - 9.19%

These are just a few examples of google ads benchmarks by industry. As you can see, the average CTR varies quite a bit. So, how do you know if your campaign is performing well?

An obvious way to gauge your performance is to compare your CTR to the average CTR for your industry. If your CTR is higher than the average, then you are likely doing something right! If it is lower than the average, then there may be room for improvement.

How to Improve Your Google Ads CTR

If your CTR is lower than average, there are a few things you can do to improve it.

• Make your ads more relevant to potential customers by using keywords that are specific to their needs.

• Write catchy, persuasive ad copy that catches people's attention and makes them want to click.

• Use images or videos that are eye-catching and relevant to your product or service.

• Experiment with different ad formats and strategies to see what works best for your business.

By following these tips, you can improve your CTR and get more people to take the desired action on your ad.

Now that we've covered CTR, let's talk about CPC.

Google Search Ads CPC [cost per click] Benchmarks by Industry for 2022

• Arts & Entertainment - $1.51

• Animals & Pets - $2.86

• Apparel / Fashion & Jewelry - $2.66

• Attorneys & Legal Services - $8.67

• Automotive — For Sale - $2.27

• Automotive — Repair, Service & Parts - $3.13

• Beauty & Personal Care - $3.10

• Business Services - $4.85

• Career & Employment - $3.94

• Dentists & Dental Services - $7.10

• Education & Instruction - $3.94

• Finance & Insurance - $4.57

• Furniture - $2.39

• Health & Fitness - $4.01

• Home & Home Improvement - $6.11

• Industrial & Commercial - $4.18

• Personal Services - $3.32

• Physicians & Surgeons - $3.78

• Real Estate - $1.36

• Restaurants & Food - $1.84

• Shopping, Collectibles & Gifts - $2.25

• Sports & Recreation - $1.73

• Travel - $1.63

  As you can see, some industries have a much higher CPC than others. That's because certain industries are more competitive than others and companies are willing to pay more for clicks on their ads.

  How to Improve Your Google Ads CPC

  If you want to lower your CPC, there are a few things you can do.

• Use negative keywords to make sure your ad is only shown to people who are interested in what you're selling.

• Bid on long-tail keywords that are less competitive and therefore have a lower CPC.

• Use relevant, targeted ad copy that speaks to the needs of your potential customers.

  By following these tips, you can lower your CPC and get more bang for your buck.

Google Search Ads CPL [cost per lead] Benchmarks by Industry for 2022

• Arts & Entertainment - $50.40

• Animals & Pets - $17.46

• Apparel / Fashion & Jewelry - $57.97

• Attorneys & Legal Services - $83.10

• Automotive — For Sale - $46.99

• Automotive — Repair, Service & Parts - $18.73

• Beauty & Personal Care - $40.04

• Business Services - $73.70

• Career & Employment - $81.45

• Dentists & Dental Services - $50.91

• Education & Instruction - $54.60

• Finance & Insurance - $74.44

• Furniture - $76.71

• Health & Fitness - $45.60

• Home & Home Improvement - $54.05

• Industrial & Commercial - $49.90

• Personal Services - $29.08

• Physicians & Surgeons - $29.96

• Real Estate - $44.70

• Restaurants & Food - $26.58

• Shopping, Collectibles & Gifts - $30.27

• Sports & Recreation - $31.50

• Travel - $46.06

Clearly, the average CPL also varies widely depending on the industry.

Certain industries, like automotive and real estate, have a much higher CPL than others. That's simply because the lead is worth more in those industries.

How to Improve Your Google Ads CPL

If you want to lower your CPL, there are a few things you can do:

• Use relevant keywords to target potential customers who are interested in what you're selling.

• Create targeted ad campaigns that speak to the needs of your potential customers.

• Use relevant, targeted landing pages that are designed to convert visitors into leads.

These are just a few tips to help you lower your CPL, which should get you more leads for less money.

Google Search Ads Conversion Rate Benchmarks by Industry for 2022

• Arts & Entertainment - 4.81%

• Animals & Pets - 15.45%

• Apparel / Fashion & Jewelry - 2.06%

• Attorneys & Legal Services - 9.33%

• Automotive — For Sale - 5.77%

• Automotive — Repair, Service & Parts - 12.74%

• Beauty & Personal Care - 6.88%

• Business Services - 5.31%

• Career & Employment - 4.58%

• Dentists & Dental Services - 13.33%

• Education & Instruction - 5.93%

• Finance & Insurance - 5.59%

• Furniture - 2.59%

• Health & Fitness - 9.21%

• Home & Home Improvement - 11.21%

• Industrial & Commercial - 7.78%

• Personal Services - 10.18%

• Physicians & Surgeons - 15.07%

• Real Estate - 3.52%

• Restaurants & Food - 5.54%

• Shopping, Collectibles & Gifts - 3.07%

• Sports & Recreation - 5.86%

• Travel - 5.19%

Looking at the numbers, you can see that some industries have a much higher conversion rate than others. This is to be expected, as some industries are simply more competitive than others.

How to Improve Your Google Ads Conversion Rate

If you want to improve your conversion rate, you should:

• Bid on more relevant keywords in your campaigns.

• Create ad groups for each keyword theme.

• Write ads that are directly relevant to the keywords you’re targeting.

• Use negative keywords to filter out unqualified traffic.

• Send traffic to landing pages that are relevant to the keywords and the ad copy.

These tips should help you to improve your conversion rate and get more leads without increasing your monthly budget.

Conversions are the metric that matters most.

Now, go run better ads!

Now that you know some of the most important Google Ads benchmarks for your industry, you should check out this list of 25 ways to improve your Google Ads campaigns.

By following these tips and the others in our blog, you can improve your Google Ads campaign performance and generate more leads for your business.

By tracking these 4 metrics - CTR, CPC, CPL, and conversion rate - you can get a good idea of how your Google Ads campaigns are performing.

Compare your numbers to the benchmarks above to see how you're doing. If you're not happy with your results, don't hesitate to reach out to the team here at PayPerClick for help!

Source:

1. https://www.wordstream.com/blog/ws/2022/05/18/search-advertising-benchmarks