Whether you are new to search advertising or have been in the game for quite some time now, it’s normal to get curious around how well your advertising campaigns are performing compared to others in the industry. Sure, your campaigns are technically working, but are you paying too much per click? Are your conversion rates too low? Are enough people clicking on your ads? Search advertising benchmarks are a great way to help assess how well your advertising campaigns are performing and what issues need improvement. The table below shows the 2022 search advertising benchmarks for average cost per click (CPC), cost per lead (CPL), click-through rate (CTR) and conversion rates, and will be a great reference point throughout this blog.
Search Ads Cost Benchmarks
The average cost per click (CPC) measures how much an advertiser is paying each time a user clicks one of their ads. Several factors can affect your CPC, including industry type and competition level of the keywords you are bidding on. The typical cost per click for search ads in 2022 falls in the range of $2 to $4, and the highest average is around $6-8.
Whether you fall above or below your industry’s CPC benchmarks, there is always room for improvement. If you are seeing a higher CPC than your industry average, you can try to boost your Quality Score by making your ads and landing pages more relevant, and make sure your ads are mobile friendly, as a large percentage of search is happening on smart phones.
Search Ads Cost Per Lead Benchmarks
Your cost per lead (CPL) is measured by dividing the total cost of a campaign by the total number of conversions. While a low CPL can be desirable, industries with higher customer values can afford to spend more per lead. A high CPC can also mean you are getting a lot of clicks that aren’t really converting. Targeting more specific keywords is a way to improve your lead quality. You may also choose to run your paid search campaigns across multiple search engines if your overall budget is a concern.
Search Ads Click-Through Rate Benchmarks
Your average click-through rate (CTR) is the ratio of ad clicks to ad impressions and indicates how relevant your ads are to your audience. For example, a CTR of 1% means that 1 out of every 100 people who sees your ad click on it. The average click-through rate for Google search ads is around 2% and seems to be trending higher lately suggesting that ads could be feeling more relevant to users due to more advanced algorithms and search engine improvements over the past few years.
If your CTR seems lower than what you are seeing for your industry, maybe it’s time to refine your keyword list and make sure the keywords are actually relevant to your business. You could also experiment with different approaches to your ad copy to see what resonates best with your audience.
Search Ads Conversion Rate Benchmarks
Your conversion rate measures what percentage of users who click on your ad “convert” or take action, whether it’s making a purchase or becoming a lead. Understanding how many people are actually converting can help assess the overall value of your campaigns. Examples of conversion actions could be signing up for a free trial or filling out a form to get a quote. The average conversion rate in search varies across industries, from 2% all the way up to 13%. Boosting your conversion rate is typically the goal, and there is always room for improvement. Make sure your ads are offering clear solutions that make it easy for visitors to take the next step.
While search advertising benchmarks can be useful resources, your data at the end of the day will vary and the only true metric that really matters is if your business is hitting your unique goals for growth and success. If you are looking to maximize your visibility in crowded search results and increase brand awareness, our team can help. Contact us today to learn more!