Facebook Ad Benchmarks for YOUR Industry [New Data]

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Facebook is one of the fastest growing ad networks – in fact, the number of advertisers using Facebook has more than doubled in the last 18 months.

If you’re one of the 2 million advertisers who started advertising on Facebook in the past 2 years, you may have found that it can be easy to get overwhelmed on the new platform. Facebook has nearly countless ad targeting options to explore, and performance differs for every client. Just like on AdWords, performance can differ across different industries on Facebook, so what numbers should you be looking to beat in your industry?

We dug into our data to find out! Check out the Facebook ad performance benchmarks our clients are seeing, including:

  • Average Click-Through Rate (CTR) on Facebook by industry
  • Average Cost per Click (CPC) on Facebook by industry
  • Average Conversion Rate (CVR) on Facebook by industry
  • Average Cost per Action (CPA) on Facebook by industry

You’ll find averages across these Facebook metrics for eighteen industries: Apparel, Auto, B2B, Beauty, Consumer Services, Education, Employment & Job Training, Finance & Insurance, Fitness, Home Improvement, Healthcare, Industrial Services, Legal, Real Estate, Retail, Technology, and Travel & Hospitality. Let’s dig in!

Average Click-Through Rate on Facebook

average click through rate for facebook ads

Legal advertisers may struggle with low click-through rates on the SERP, but they’re lucky to have the highest CTRs on Facebook (1.61%). No doubt, it can be hard to impress the prospective client looking for a lawyer when your ad is one among seven ads on the SERP, but a lawyer’s high-value offer and call to action certainly stands out more when it’s standing alone on a prospect’s social feed.

Other advertisers with high CTRs are in the retail (1.59%), apparel (1.24%), beauty (1.16%), and fitness (1.01%) industries. It’s no surprise that these industries often feature models and high-quality images in their ads, and those ads perform particularly well on highly visual platforms like Facebook and Instagram.

You have to be pretty crafty to distract potential job hunters from their social feeds, and employment & job training services can have relatively low CTRs on Facebook (0.47%). Facebook and Instagram may not be the network for job seekers, but LinkedIn may have promise for these advertisers!

The average click-through rate (CTR) for Facebook ads across all industries is 0.90%.

Average Click Through Rate (CTR) for Facebook Ads by Industry
Industry Average CTR
 Apparel  1.24%
 Auto  0.80%
 B2B  0.78%
 Beauty  1.16%
 Consumer Services  0.62%
 Education  0.73%
 Employment & Job Training  0.47%
 Finance & Industry  0.56%
 Fitness  1.01%
 Home Improvement  0.70%
 Healthcare  0.83%
 Industrial Services  0.71%
 Legal 1.61%
 Real Estate 0.99%
 Retail 1.59%
 Technology  1.04%
 Travel & Hospitality  0.90%

Average Cost Per Click (CPC) on Facebook

average facebook cost per click

Even though financial advertisers have the highest CPCs on Facebook at $3.77 per click, advertisers may still be quite satisfied with that CPC on Facebook. The terms “Insurance,” “Loans,” and “Mortgage” are the three most expensive keywords on Google, each costing about $50 per click.

The cheapest clicks on Facebook are reserved for the apparel ($0.45 per click), travel and hospitality ($0.63) and other retailers ($0.70) industries, with clicks well below a dollar. These industries often have the largest audiences so even at these low CPCs, it’s important to understand how to manage your budgets so that your Facebook costs don’t run amok.

The average cost per click (CPC) for Facebook ads across all industries is $1.72.

Average Cost Per Click (CPC) for Facebook Ads by Industry
Industry Average CPC
 Apparel $0.45
 Auto $2.24
 B2B $2.52
 Beauty $1.81
 Consumer Services $3 .08
 Education $1.06
 Employment & Job Training $2.72
 Finance & Industry $3.77
 Fitness $1.90
 Home Improvement $2.93
 Healthcare $1.32
 Industrial Services $2.14
 Legal $1.32
 Real Estate $1.81
 Retail $0.70
 Technology $1.27
 Travel & Hospitality $0.63

Average Conversion Rates on Facebook

average conversion rate on facebook ads

Fitness studios have plenty to sweat about, but finding prospects on Facebook doesn’t appear to be one of them! Facebook can connect driven prospects into the hands of fitness advertisers and help them convert at remarkably high rates, averaging 14.29% conversion rates from Facebook ads.

Other industries with high CVRs are education (13.58%), employment & job training (11.73%), healthcare (11.00%), real estate (10.68%) and B2B (10.63%). Facebook’s unique lead generation ads help these industries outperform most other ad platforms!

However, industries such as retail, travel & hospitality, and technology may not benefit as much from Facebook’s lead generation ads and consequently have much lower conversion rates (3.26%, 2.82%, and 2.31%, respectively). For these advertisers, remarketing on Facebook may be particularly powerful to help improve conversion rates. As it turns out, exposure to remarketing ads can help increase conversion rates over time!

The average conversion rate for Facebook ads across all industries is 9.21%.

Average Conversion Rate (CVR) for Facebook Ads by Industry
Industry Average CVR
 Apparel 4.11%
 Auto  5.11%
 B2B  10.63%
 Beauty  7.10%
 Consumer Services  9.96%
 Education  13.58%
 Employment & Job Training  11.73%
 Finance & Industry  9.09%
 Fitness  14.29%
 Home Improvement  6.56%
 Healthcare 11.00%
 Industrial Services  0.71%
 Legal 5.60%
 Real Estate 10.68%
 Retail 3.26%
 Technology 2.31%
 Travel & Hospitality 2.82%

Average Cost Per Action on Facebook

average cpa on facebook

With an average CPA of $7.85, nearly all education advertisers agree that it’s a smart decision to cater to Facebook and Instagram’s relatively young audience. While Facebook may be a great place to find your new students, it can be an expensive place to find a new car, architect, or IT specialist – average Facebook CPAs for auto, home improvement, and technology services are $43.84, $44.66, and $55.21, respectively. Of course, the lifetime value of a new client in these industries is very high, making it all worthwhile in the end.

The average cost per action (CPA) for Facebook ads across all industries is $18.68.

Average Cost Per Action (CPA) for Facebook Ads by Industry
Industry Average CPA
 Apparel $10.98
 Auto $43.84
 B2B $23.77
 Beauty $25.49
 Consumer Services $31.11
 Education $7.85
 Employment & Job Training $23.24
 Finance & Industry $41.43
 Fitness $13.29
 Home Improvement $44.66
 Healthcare $12.31
 Industrial Services $38.21
 Legal $28.70
 Real Estate $16.92
 Retail $21.47
 Technology $55.21
 Travel & Hospitality $22.50

What Does It All Mean?

Facebook advertising is really taking off because it offers an abundance of opportunity for advertisers of nearly all industries. If you’re not advertising on Facebook, try running our Facebook Opportunity Calculator to see how your ads could potentially perform on Facebook.

If you find yourself on the lower end of these numbers, that just means there’s plenty of room for improvement! To learn how to improve your ads on Facebook, visit PPC University or call us to speak with a Facebook expert today. If you’re hitting these benchmarks – don’t stop and settle for average either! Always strive to be a unicorn by writing the best ad copy and creating landing page unicorns that convert better than anyone else!

Check out the full infographic below:

facebook ad performance benchmarks

Data Sources

This report is based on a sample of 256 US-based WordStream client accounts in all verticals (representing $553,000 in aggregate Facebook spend) who were advertising on Facebook between November 2016 and January 2017. Facebook campaigns can have several different objectives, so only Facebook campaigns with the objective of driving conversions were considered when determining average CVR and CPA numbers. Average figures are median figures to account for outliers. All currency values are posted in USD.

About the author

Mark is a Data Scientist at WordStream with a background in SEM, SEO, and Statistical Modeling. Follow him on Twitter, LinkedIn, and Google +.

 
 

Comments

Lav Singh
Mar 02, 2017

Is there any data available for non-profit?

Mark Irvine
Mar 02, 2017

Hi Lav,

Interestingly, we didn't see many non-profit advertisers on Facebook (and we looked)!
Facebook doesn't offer the same free advertising grants for non-profits and charities that Google does so we see a lot more non-profits on Google rather than Facebook.

We've previously benchmarked these metrics for Google campaigns (search & display) here: http://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks

Siul Avan
Mar 02, 2017

I second that. Non-profit data is something worth outlining in this report.

Fiona
Mar 03, 2017

Hi,
Quick query - on the CPC graph Apparel's CPC is not being reflected correctly in terms of size of the bar....the actual bar is showing the CPC at over $1 however the label is saying $0.42. Which one is correct ?
thanks
f

Elisa Gabbert
Mar 03, 2017

Hi Fiona, $0.45 is correct -- we'll update the graphic!

kris
Mar 09, 2017

Do you have any benchmarks for Facebook Lead Gen ads?

Mark Irvine
Mar 09, 2017

Hi Kris,

The above benchmarks include all ad types, including Lead Gen ads.

Sebastian
Mar 10, 2017

Hi There,

I'm a bit confused by your conversion rate percentage. It seems incredibly high. What are you considering conversions?

matt
Mar 20, 2017

Do you have any bench mark numbers on cost per conversion for financial services? I often see alot around CPC and CPA etc. We primarily use fb ads to generate a lead from customers who complete our webform.

Thanks in advance

Ray Donovan
Mar 24, 2017

Hi, I thought the very same! 9% of clicks result in coversions? I can't believe that. I'd like to know how many interactions are required to produce a conversion? On a current campaign, my cost per click is €0.22 I've had 150 clicks and only 3 sign ups. Big ticket items health and fitness breaks at €1600 per event.

Cristina
Mar 23, 2017

Are telecoms included in the Technology industry?

Mark Irvine
Mar 24, 2017

Hi Cristina,

Yes! Telecoms would be included in the Technology category here

Noah Frary
Mar 24, 2017

Quick question: when talking about CTR(click through rate) and Conversion Rate are you saying that for say the Education industry the conversion rate is 13% of the .73% of people that clicked through to the ad?

Or are you saying that on average you see 13% of people targeted for education ads converting on a targeted ad?

Thank you!

Mark Irvine
Mar 24, 2017

Hi Noah,

Here, we're defining CTR as Clicks / Impressions
and Conversion rate as Conversions / Clicks

So in this case the 13% of people who clicked on the ad converted.

Michelle
Mar 26, 2017

Hi there, when you are talking about clicks are you talking about link clicks or all clicks on the ad?

Thank you.

Mark Irvine
Mar 27, 2017

Hi Michelle,

Here we're using the Clicks (All) metric for simplicity, which includes link clicks as well as other media engagements, app downloads, lead fill, etc

Michelle
Mar 26, 2017

Hi there,

I was also wondering what's your definition for Actions? Is it the total number of actions people took that are attributed to the ads? The metric includes any action that was recorded and attributed to the ads which is the sum of engagement actions (such as post reactions or video views), link clicks and conversions (such as website adds to cart or offline purchases).

Thank you.

Mark Irvine
Mar 27, 2017

Hi Michelle,

Here we're using the action metric as defined within Facebook, which is typically conversions, but also includes similar engagements such as lead submissions and app downloads.

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