Online Advertising Benchmarks

How are your ads really performing?
Compare them to industry averages to find out!

2022 Search Advertising Benchmarks

In the tabs below, you'll find average cost per click, click-through rate, conversion rate, and cost per lead for search ads for over 20 different industries in 2022. For a deeper dive into the data, head to our 2022 Paid Search Advertising Benchmarks Report.

 

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FAQs

What is search advertising?
Search advertising (also known as paid search or search engine marketing) is a form of pay-per-click (PPC) advertising on search engines like Google and Bing. Businesses create ads that target keywords (the terms their potential customers are typing into search), the ads appear at the top of search engine results pages for those searches, and they only pay when someone clicks on their ad.
How much does Google Ads cost?
The cost of Google Ads depends on a number of factors, including how well you manage your account, the types of keywords you're targeting, your customer lifecycle, and consumer trends. The biggest factor, however, is your industry. The benchmarks on this page will give you a feel for Google Ads pricing, but for a deeper dive, head to our post >> How Much Does Google Ads Cost?
What is cost per click?
Cost per click (CPC) is the actual price you pay for each click in your PPC campaigns. Cost per click is not a fixed priced for any one ad or advertiser. It is determined by a formula that factors in your bid, the quality of your ad, and the position of the ad on the page. Learn about how Google Ads determines cost per click here.

The average cost per click for search ads in 2022 ranges from $1.36 to $8.67. See the table below for 2022 average costs per click in search ads by industry:

Industry Search Ads Average Cost Per Click
Arts & Entertainment $1.51
Animals & Pets $2.86
Apparel / Fashion & Jewelry $2.66
Attorneys & Legal Services $8.67
Automotive — For Sale $2.27
Automotive — Repair, Service & Parts $3.13
Beauty & Personal Care $3.10
Business Services $4.85
Career & Employment $3.94
Dentists & Dental Services $7.10
Education & Instruction $3.94
Finance & Insurance $4.57
Furniture $2.39
Health & Fitness $4.01
Home & Home Improvement $6.11
Industrial & Commercial $4.18
Personal Services $3.32
Physicians & Surgeons $3.78
Real Estate $1.36
Restaurants & Food $1.84
Shopping, Collectibles & Gifts $2.25
Sports & Recreation $1.73
Travel $1.63

 

You can learn more about cost per click in our Complete Guide to PPC Metrics.

What is conversion rate?
Conversion rate (CVR) is the percentage of people who clicked on your ad who then also completed the conversion—where a conversion could mean filling out a form, making a purchase, downloading an app, etc.

The average conversion rate for search ads in 2022 ranges from 2.06% to 15.45%. See the below chart for average conversion rate by industry:

Industry Search Ads Average Conversion Rate
Arts & Entertainment 4.81%
Animals & Pets 15.45%
Apparel / Fashion & Jewelry 2.06%
Attorneys & Legal Services 9.33%
Automotive — For Sale 5.77%
Automotive — Repair, Service & Parts 12.74%
Beauty & Personal Care 6.88%
Business Services 5.31%
Career & Employment 4.58%
Dentists & Dental Services 13.33%
Education & Instruction 5.93%
Finance & Insurance 5.59%
Furniture 2.59%
Health & Fitness 9.21%
Home & Home Improvement 11.21%
Industrial & Commercial 7.78%
Personal Services 10.18%
Physicians & Surgeons 15.07%
Real Estate 3.52%
Restaurants & Food 5.54%
Shopping, Collectibles & Gifts 3.07%
Sports & Recreation 5.86%
Travel 5.19%

 

For more on conversion rate, head to our Complete Guide to PPC Metrics.

How can I improve my ad performance?
If you're already running Google or Bing ads and find that your metrics are falling below industry averages, these resources can help:

Where can I learn more about search advertising?
What is cost per lead?
Cost per lead (CPL), also known as cost per conversion, cost per action, or cost per acquisition, is how much it costs for you to obtain a conversion. A conversion is defined by the action you want your ad viewer to take, such as to fill out a form or make a purchase. Unless everyone who clicks on your ad converts, this cost is nearly always higher than your cost per click.

    The average cost per lead for search ads in 2022 ranges from $17.46 to  $83.10. Here are the average costs per lead by industry in 2022:

      Industry Search Ads Average Cost Per Lead
      Arts & Entertainment $50.40
      Animals & Pets $17.46
      Apparel / Fashion & Jewelry $57.97
      Attorneys & Legal Services $83.10
      Automotive — For Sale $46.99
      Automotive — Repair, Service & Parts $18.73
      Beauty & Personal Care $40.04
      Business Services $73.70
      Career & Employment $81.45
      Dentists & Dental Services $50.91
      Education & Instruction $54.60
      Finance & Insurance $74.44
      Furniture $76.71
      Health & Fitness $45.60
      Home & Home Improvement $54.05
      Industrial & Commercial $49.90
      Personal Services $29.08
      Physicians & Surgeons $29.96
      Real Estate $44.70
      Restaurants & Food $26.58
      Shopping, Collectibles & Gifts $30.27
      Sports & Recreation $31.50
      Travel $46.06

      You can learn more about cost per lead in our Complete Guide to PPC Metrics.

      What is click-through rate?
      Click-through rate (CTR) is the percentage of people who view your ad (impressions) who then actually go on to click the ad (clicks). Higher click-through rates mean your ad is relevant to your audience.

      Average click-through rates for search ads by industry in 2022 are as follows:

      Industry Search Ads Average Click-Through Rate
      Arts & Entertainment 11.43%
      Animals & Pets 7.08%
      Apparel / Fashion & Jewelry 6.27%
      Attorneys & Legal Services 4.24%
      Automotive — For Sale 8.67%
      Automotive — Repair, Service & Parts 5.65%
      Beauty & Personal Care 5.92%
      Business Services 5.17%
      Career & Employment 5.93%
      Dentists & Dental Services 5.03%
      Education & Instruction 6.17%
      Finance & Insurance 5.70%
      Furniture 6.01%
      Health & Fitness 6.15%
      Home & Home Improvement 4.62%
      Industrial & Commercial 5.61%
      Personal Services 6.95%
      Physicians & Surgeons 6.25%
      Real Estate 8.55%
      Restaurants & Food 7.60%
      Shopping, Collectibles & Gifts 5.50%
      Sports & Recreation 8.82%
      Travel 9.19%

       

      You can learn more about click-through rate in our Complete Guide to PPC Metrics.

      About the data

      This report is based on a sample of 79,455 North American-based LOCALiQ client campaign cycles in the outlined business categories that were running search ads between October 1, 2021 - September 30, 2022.

      Our proprietary platform dynamically shifts budget between search channels on a campaign-by-campaign basis, but in aggregate, approximately 80-85% of budget is allotted to Google and 15-20% to Microsoft.

      Each business category includes a minimum of 250 campaign cycles. All currency values are posted in USD.

      2021 Search Advertising Benchmarks

      In the tabs below, you'll find average cost per click, click-through rate, conversion rate, and cost per lead for search ads for over 20 different industries in 2021. For a deeper dive into the data above, head to our Paid Search Advertising Benchmarks Report.

       

      About the data
      This report is based on a sample of 18,316 North American-based LOCALiQ client campaigns in the outlined business categories that were running search advertising across all search engines between May 1, 2020, and June 25, 2021. Each business category includes a minimum of 69 unique active client campaigns. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

      Vertical-Specific Advertising Benchmarks

      Below you'll find benchmark data for search, display, and social ads in key subcategories within the home services, healthcare, and real estate verticals.

      Home services

      These home services benchmarks cover search, display, and social ads for eight key home services verticals. You can also learn more in our deeper dive into this data.

      About this data
      This report is based on a sample of 4,595 North American-based LOCALiQ client accounts in the home services vertical who were running search advertising, display advertising, and/or social media advertising between May 1, 2020, and June 25, 2021. Each subcategory includes at minimum 10 unique active clients. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

      Healthcare

      Below you'll find benchmark data for search, display, and social ads for 11 key healthcare business verticals. You can find more insights in our deeper dive on this data.

      About this data
      This report is based on a sample of 2,838 North American-based LOCALiQ client campaigns in the healthcare vertical across search advertising, display advertising, and/or social media advertising between May 1, 2020, and June 25, 2021. Each subcategory includes at minimum 10 unique active clients. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

      Real estate

      Below you'll find benchmark data for search, display, and social ads for four key real estate business verticals. You can find more insights in our deeper dive on this data.

      About this data
      This data was pulled from a sample of 2,690 North American-based LOCALiQ client accounts in the real estate vertical who were running search advertising, display advertising, and/or social media advertising between March 1, 2020, and April 25, 2021. Each subcategory includes at minimum 10 unique active clients. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

      google ads grader sample report

      Get more out of Google Ads

      Find opportunities to optimize your account (and save money!) with the Free Google Ads Performance Grader.