Paid search advertising conversion rates have declined in almost every industry year over year. Meanwhile, the cost of generating leads through search ads continues to rise, although not as dramatically as in previous years.
That’s according to a new 2023 Search Advertising Benchmark Report from WordStream by LocalIQ. Contains data on average conversion rate, cost per lead (CPL), click-through rate (CTR), and cost per click (CPC), compared to 2022.
Why we care It’s good to understand if you’re doing better or worse than your competitors in paid search so you can optimize for better results, at a lower cost. As always, in PPC, you want to always strive to be above average.
Conversion rate: 7.04%. Only two industries (beauty and personal care and education and training) avoided a decrease in search ad conversion rate. Some of the declines were significant, WordStream reported (for example, Arts & Entertainment was down 36.2% year-over-year and Apparel, Fashion & Jewelry was down 34.9% year-over-year).
Industries with the highest conversion rates:
Animals and pets: 13.41%
Doctors and Surgeons: 13.12%
Auto Repair, Service and Parts: 12.61%.
Industries with the lowest average conversion rates:
Clothes, fashion and jewelry: 1.57%
Furniture: 2.57%
Actual Status: 2.88%
CPL: $53.52. The only two industries that saw a decrease in CPL were Automotive Sales (-8.6%) and Beauty & Personal Care (-3.9%).
91% of industries saw an increase in CPL as well as a decrease in conversion rate, WordStream reported.
Industries with highest CPL:
Career and Occupation: $132.95
Lawyers and Legal Services: $111.05
Furniture: $108.85
Industries with the lowest CPLs:
Auto repair, services and parts: $21.12
Animals and pets: $23.57
Shopping, collecting and gifts: to $31.50.
CTR: 6.11%. CTR increased for all but two industries, according to the report. Only business services and industrial and commercial industries declined, but WordStream noted that they “were not as significant as the increases faced by other industries.”
Industries with the highest click-through rates:
Arts and entertainment: 11.78%
Sports and recreation: 10.53%
Journey: 10.03%.
Industries with the lowest click-through rates:
Lawyers and Legal Services: 4.76%
The home and home improvement: 4.80%
Commercial services: 5.11%.
CPC: $4.22. CPC increased for 14 industries, decreased for 8 and remained the same in Apparel, Fashion and Jewelry.
The industries with the highest costs per click:
Lawyers and Legal Services: $9.21
Dentists and dental services: $6.69
The home and home improvement: $6.55
Industries with the lowest CPC:
Art and entertainment: $1.55
real state: $1.55
Journey: $1.63
The referents Here’s the data, broken down by category:
You can dig deeper into the YoY data in WordStream Google Ads 2023 benchmarks: trends and key statistics for all industries.
About the data. A total of 17,253 US-based search advertising campaigns across 23 industries were analyzed, running between April 1, 2022, and March 31, 2023. Search ad benchmarks they are based on 80% Google Ads and 20% Microsoft Ads.
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