LocalIQ/WordStream’s annual Search Advertising Benchmark Report for 2024 shows that conversion rates in paid advertising industries have decreased, while the cost of generating leads through search ads is increasing. The 2024 edition of the report covers the same key metrics as the 2023 report – click-through rate (CTR), conversion rate, cost per click (CPC), and cost per lead (CPL). Google’s parent company, Alphabet, is maximizing profits as advertisers spend more on clicks and leads. Data indicates significant competition due to the monetization of Google’s SERPs, with Google justifying continuous price increases.
LocalIQ/WordStream reported that the conversion rate for 2024 is 6.96% in 12 out of 23 industries. Conversion rates decreased in Dentists and Dental Services (19.57%) and Finance and Insurance (32.40%). Conversely, conversion rates increased in Career and Employment (80.97%) and Fashion and Jewelry (112.01%). In 2023, the conversion rate was 7.04%, down from 7.85% in 2022, indicating a gradual decline over the years.
Cost per lead (CPL) has increased by 25%, now at $66.69 in 2024 for 19 out of 23 industries. In 2022, CPL had increased by 27%. Click-through rate (CTR) increased by 5% in 70% of industries and is now 6.42%. Cost per click (CPC) is $4.66 in 2024 after a 10% increase in 86% of industries. The industries with the biggest CPC increases were Personal Services, Real Estate, and Sports and Recreation. CPC was $4.01 in 2022 and $4.22 in 2023.
Data courtesy of: LocalIQ/WordStream.
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LocalIQ/WordStream reported that the conversion rate for 2024 is 6.96% in 12 out of 23 industries. Conversion rates decreased in Dentists and Dental Services (19.57%) and Finance and Insurance (32.40%). Conversely, conversion rates increased in Career and Employment (80.97%) and Fashion and Jewelry (112.01%). In 2023, the conversion rate was 7.04%, down from 7.85% in 2022, indicating a gradual decline over the years.
Cost per lead (CPL) has increased by 25%, now at $66.69 in 2024 for 19 out of 23 industries. In 2022, CPL had increased by 27%. Click-through rate (CTR) increased by 5% in 70% of industries and is now 6.42%. Cost per click (CPC) is $4.66 in 2024 after a 10% increase in 86% of industries. The industries with the biggest CPC increases were Personal Services, Real Estate, and Sports and Recreation. CPC was $4.01 in 2022 and $4.22 in 2023.
Data courtesy of: LocalIQ/WordStream.
| Business Category | Average Click Through Rate | Average Cost Per Click | Average Conversion Rate | Average Cost Per Lead |
|---|---|---|---|---|
| Animals & Pets | 7% | $3.90 | 12.03% | $34.81 |
| Apparel / Fashion & Jewelry | 6% | $3.39 | 3.33% | $83.10 |
| Arts & Entertainment | 13% | $1.72 | 4.22% | $44.70 |
| Attorneys & Legal Services | 5% | $8.94 | 5.64% | $144.03 |
| Automotive — For Sale | 9% | $2.34 | 6.49% | $42.95 |
| Automotive — Repair, Service & Parts | 6% | $3.39 | 12.96% | $27.94 |
| Beauty & Personal Care | 7% | $3.56 | 8.01% | $48.42 |
| Business Services | 6% | $5.37 | 5.78% | $105.64 |
| Career & Employment | 7% | $4.53 | 5.63% | $117.92 |
| Dentists & Dental Services | 5.38% | $6.82 | 8.36% | $86.49 |
| Education & Instruction | 6.21% | $4.39 | 7.91% | $71.52 |
| Finance & Insurance | 7.71% | $3.00 | 2.78% | $75.94 |
| Furniture | 6.50% | $3.29 | 2.53% | $119.10 |
| Health & Fitness | 6.88% | $4.71 | 7.40% | $61.56 |
| Home & Home Improvement | 5.59% | $6.96 | 8.62% | $82.27 |
| Industrial & Commercial | 5.83% | $4.95 | 6.84% | $77.48 |
| Personal Services | 7.95% | $4.95 | 8.83% | $52.98 |
| Physicians & Surgeons | 6.73% | $4.76 | 11.08% | $59.74 |
| Real Estate | 9.20% | $2.10 | 2.91% | $87.36 |
| Restaurants & Food | 8.68% | $2.18 | 8.72% | $29.67 |
| Shopping, Collectibles & Gifts | 7.81% | $2.61 | 3.49% | $42.10 |
| Sports & Recreation | 9.66% | $2.34 | 5.35% | $49.90 |
| Travel | 10.16% | $1.92 | 5.36% | $66.02 |
Which industry has the highest average conversion rate?
Personal Services with an average conversion rate of 8.83%.
Which industry has the lowest average cost per lead?
Automotive — Repair, Service & Parts with an average cost per lead of $27.94.
Which industry has the highest average click-through rate?
Travel with an average click-through rate of 10.16%.
Which industry has the lowest average conversion rate?
Finance & Insurance with an average conversion rate of 2.78%.
Which industry has the highest average cost per click?
Attorneys & Legal Services with an average cost per click of $8.94.
Which industry has the highest average click-through rate among those listed?
Travel leads with an average click-through rate of 10.16%.
What industry has the lowest average cost per click?
Real Estate, with an average cost per click of $2.10.
Which industry exhibits the highest average conversion rate, apart from Personal Services?
Physicians & Surgeons, with an average conversion rate of 11.08%.
Among the industries listed, which one has the highest average cost per lead?
Attorneys & Legal Services, with an average cost per lead of $144.03.
What is the average click-through rate for the Apparel / Fashion & Jewelry industry?
6%.
Which industry shows the highest average cost per click after Attorneys & Legal Services?
Business Services, with an average cost per click of $5.37.
What is the average conversion rate for Dentists & Dental Services?
8.36%.
Which industry has the lowest average conversion rate after Finance & Insurance?
Furniture, with an average conversion rate of 2.53%.
What is the average cost per lead for Education & Instruction?
$71.52.
Which industry has the highest average click-through rate after Travel?
Sports & Recreation, with an average click-through rate of 9.66%.
What is the average cost per click for Health & Fitness?
$4.71.
Which industry has the lowest average conversion rate after Furniture?
Real Estate, with an average conversion rate of 2.91%.
What is the average click-through rate for Industrial & Commercial?
5.83%.
Which industry has the highest average cost per click after Business Services?
Dentists & Dental Services, with an average cost per click of $6.82.
What is the average conversion rate for Restaurants & Food?
8.72%.
