New data! Paid search advertising benchmarks in various industries in 2021

In this day and age, when we want to buy something, our subconscious reaction is to go to Google (or any search engine we use). Whether we know exactly what we want, are looking for nearby businesses, or want to do more in-depth research, 71% The buyer’s journey begins with a search engine.

In other words, consumers have the highest purchase intentions on search engines. This is why paid search advertising is so efficient and extremely competitive.

In order to compete, you need to have a clear understanding of how you perform against others in the industry. To help you solve this problem, WordStream and LOCALiQ have cooperated to provide you with the benchmark data you need!

Below you will find the following metrics for the top 20 industries for Google and Bing search ads:

• Average cost-per-click
• Average click rate
• Average cost per potential customer
• Average conversion rate

Compare your average to the average of your industry and gain insight into what you need to improve to stay competitive.

Average cost-per-click for search ads

The cost-per-click varies based on the degree of competition for keywords, audience, location, etc., and your Bidding strategy Can affect this indicator.

• We found that the average cost per click for search ads across all industries was US$3.53, ranging from US$1.40 to US$8.67.
• The industries with the lowest cost-per-click include travel ($1.40), arts and entertainment ($1.60), and sports and entertainment ($1.73).
• The industries with the highest average cost-per-click include lawyers and legal services ($8.67), dentist and dental services ($6.49), and home improvement ($5.75).

These findings are consistent with ours Past benchmark report, The legal industry has the highest cost-per-click, and the sports and fitness industries have the lowest.

Need to increase the cost-per-click?

For more tips, check out 15 ways to reduce cost-per-click in Google and Facebook ads

Average click-through rate of search ads

CTR affects your quality score and guides you to determine the correct positioning. Advertising proposal, And your advertising offers. The metric itself can be misleading, so be sure to analyze it based on other metrics, such as conversion rate.

• We found that the average CTR for all industries was 6.18%, ranging from 3.84% to 10.67%.
• The industries with the highest average click rates include arts and entertainment (10.67%), tourism (8.54%) and real estate (7.75%), followed by sports and entertainment (7.73%).
• The industries with the lowest average click rates include lawyers and legal services (3.84%), home and home improvement (4.21%), and dentist and dental services (4.69%).

In our previous benchmark reports, we have always found that the travel and art industries have the highest click-through rates and the lowest Legal, health and household industries.

On the other hand, the click-through rate for sports and fitness has historically been lower than what we see here, and the click-through rate for personal verticals is much higher than these numbers.

Want a better click-through rate?

Average cost per lead for search ads

The cost per potential customer, also known as the cost per operation, cost per conversion, or cost per acquisition, tells you how much you spent to get someone to complete the required action—whether it’s filling out a form or giving it to you Call or make a purchase.

• We found that the average cost per potential customer in all industries was US$41.40, ranging from US$14.88 to US$73.70.
• The industries with the highest cost per potential client include lawyers and legal services (US$73.70), furniture (US$64.72), and finance and insurance (US$62.80).
• The industries with the lowest per capita cost are animals and pets ($14.88), car repair, service and parts ($17.81), and restaurants ($20.49).

This overall average is lower than the average we have seen in the past, which is good news for advertisers. In our past survey results, the automotive vertical industry has been at the lowest level.

Looking for a lower cost per lead?

Follow the tips in the following resources to improve your CPL:

Average conversion rate of search ads

Although the cost per potential customer measures how much you spend getting people who click on your ad to contact you in some way, the conversion rate tells you how many people who clicked on your ad actually converted.

• We found that the average conversion rate for all industries was 8.82%, ranging from 3.25% to 19.19%.
• The industries with the highest conversion rates include animals and pets (19.19%), doctors and surgeons (19.15%), and auto repair, service and parts (15.23%).
• The industries with the lowest conversion rates are furniture (3.25%), clothing/fashion and jewelry (3.6%), and real estate (3.93%).

Our past data also found that the legal and automotive industries have the highest conversion rates, while the real estate and clothing industries have the lowest conversion rates. On the other hand, the personal conversion rate has historically been higher than what we see here.

Ready to increase your conversion rate?

Want more advertising benchmarks?

You can get a complete report on these search advertising benchmarks in LOCALiQ, as well as expert insights and tips to improve results Complete search advertising benchmark report. You may also be interested in these industry-specific advertising benchmarks:

data source

This report is based on a sample of 18,316 North American LOCALiQ customer activities in the overview business category of placing search ads on all search engines between May 1, 2020 and June 25, 2021. Each business category includes at least 69 unique active customer activities. “Average” is the median technically used to account for outliers. All monetary values ​​are published in U.S. dollars.