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Google Ads Benchmarks 2023 by Industry [Original & Latest data]

As we approach the end of 2023, it’s crucial to assess whether your campaigns have reached their maximum potential. When investing in advertising, confidence in your campaigns’ performance is essential for business viability. Without delay, I present to you the all of Google Ads benchmarks in 2023!

Let’s go!

Where did these Google Ads benchmarks 2023 come from?

With over 7 years of hands-on expertise as a Google Ads expert at Mega Digital (recognized as a top Google Premier Partner in APAC), I regularly receive exclusive data, such as heatmaps and benchmarks, directly from Google.

Apart from the data received directly from Google, I also gathered data from thousands of Mega Digital customers’ Search advertising campaigns conducted between January and October 2023.

The Google Ads benchmarks report includes the most important metrics such as average cost per click, average conversion rate, average click-through rate and cost per lead, along with year-over-year changes.

Google Ads benchmarks highlight in 2023

Using search ads is a well-known and powerful method to advertise your business online. When properly managed, pay-per-click (PPC) ads typically generate $2 in return for every $1 spent, giving an average return on investment (ROI) of 200%.

Overall cost by performance metrics

When considering all the data together, here are the typical averages for Google Ads:

  • Click-through rate: 6.11%
  • Cost per click: $4.22
  • Conversion rate: 7.04%
  • Cost per lead: $53.52
Overall of Google Ads benchmarks 2023

YoY changes

To better understand the overall typical numbers mentioned earlier, it’s crucial to look at the trends from past years. Here are the trends:

  • Cost per lead (CPL) rose notably across 21 out of 23 industries analyzed, showing an average increase of nearly 20% year-over-year. This increase aligns with general inflation and economic instability, causing prices to climb overall.
  • Conversion rates dropped notably across 91% of industries, averaging a 10% decrease.
  • Cost per click (CPC) saw a slight uptick, rising around 5% overall across just over 60% of industries.
  • Click-through rates (CTR) improved, with 91% of industries showing an average 3% increase year-over-year.
YoY changes Google Ads benchmarks in 2023

Most impacted industries

Some industries experienced notable increases in cost per lead.

For example, Career & Employment had a 52% increase, Arts & Entertainment went up by 50%, and Real Estate rose by 46%. But Automotive Sales cost 9% less for each potential customer, and Beauty & Personal Care decreased by 4%.

Most impacted industries

Google Ads benchmarks 2023 by Industry

I’ve gathered all the industry benchmarks for Google Ads in 2023. You can find everything you need to know here, eliminating the need to search elsewhere.

1. The average CPC

Cost per click by industry

The typical cost per click in Google Ads in 2023 stands at $4.22.

Business CategoryAvg. Cost Per Click
Arts & Entertainment$3.13
Animals & Pets$2.72
Apparel/Fashion & Jewelry$1.55
Attorneys & Legal Services$9.21
Automotive – For Sale$2.08
Automotive – Service & Parts$3.06
Beauty & Personal Care$2.89
Business Services$5.47
Career & Employment$3.78
Dentists & Dental Services$6.69
Education & Instruction$4.10
Finance & Insurance$4.01
Health & Fitness$4.18
Home & Home Improvement$6.55
Industrial & Commercial$4.35
Personal Services$3.90
Physicians & Surgeons$3.97
Real Estate$1.55
Restaurants & Food$1.95
Shopping, Collectibles & Gifts$2.44
Sports & Recreation$1.77

Industries like Attorneys and Legal Services, Dentists and Dental Services, and Home and Home Improvement face higher costs per click, averaging $9.21, $6.69, and $6.55, respectively.

Conversely, Arts and Entertainment, Real Estate, and Travel experience notably lower costs per click, averaging around $1.55 and $1.63, respectively.

Cost per click YoY

Cost per click YoY

This year, a higher percentage of industries (61%) saw a rise in cost per click compared to the previous year’s 57%. The most substantial increases occurred in Personal Services (up by 17.47%), Furniture (up by 12.6%), and Real Estate (up by 12.32%).

Nonetheless, certain industries managed significant reductions in cost per click this year.

Finance and Insurance experienced the most substantial decrease with an 11.48% drop, while Auto Sales and Dentists and Dental Services witnessed decreases of 8.37% and 7.60%, respectively.

2. The average CVR

Conversion rate by industry

The typical conversion rate in Google Ads for 2023 stands at 7.04%.

Business CategoryAvg. Conversion Rate
Arts & Entertainment13.41%
Animals & Pets1.57%
Apparel/Fashion & Jewelry3.03%
Attorneys & Legal Services7.00%
Automotive – For Sale5.72%
Automotive – Service & Parts12.61%
Beauty & Personal Care8.16%
Business Services4.94%
Career & Employment3.11%
Dentists & Dental Services10.40%
Education & Instruction7.07%
Finance & Insurance4.11%
Health & Fitness8.40%
Home & Home Improvement10.22%
Industrial & Commercial7.91%
Personal Services8.70%
Physicians & Surgeons13.12%
Real Estate2.88%
Restaurants & Food5.06%
Shopping, Collectibles & Gifts3.69%
Sports & Recreation5.69%

Industries like Apparel, Fashion, and Jewelry showcased the least average conversion rates at 1.57%, trailed by Furniture at 2.57% and Real Estate at 2.88%.

Conversely, industries such as Animals and Pets, Physicians and Surgeons, and Automotive Repair, Service, and Parts demonstrated the highest average conversion rates at 13.41%, 13.12%, and 12.61%, respectively.

Conversion rate YoY

Conversion rate YoY

Arts and Entertainment, Apparel, Fashion, and Jewelry, along with Career and Employment, faced the most substantial year-over-year decreases in average conversion rates, dropping by 36.22%, 34.78%, and 32.04%, respectively.

In contrast, Education and Instruction experienced the most substantial surge in conversion rates, rising by 18.86% year over year. Additionally, Beauty and Personal Care showed a noteworthy increase in conversion rates, growing by 10.76% compared to the previous year.

3. The average CTR

Click-through rate by industry

The typical click-through rate for Google Ads in 2023 averages 6.11%.

To calculate your average click-through rate, divide the total clicks by the total impressions.

Business CategoryAvg. Click-Through Rate 
Arts & Entertainment8.12%
Animals & Pets6.46%
Apparel/Fashion & Jewelry11.78%
Attorneys & Legal Services4.76%
Automotive – For Sale8.77%
Automotive – Service & Parts5.91%
Beauty & Personal Care6.87%
Business Services5.11%
Career & Employment6.67%
Dentists & Dental Services5.34%
Education & Instruction6.41%
Finance & Insurance6.18%
Health & Fitness6.44%
Home & Home Improvement4.80%
Industrial & Commercial5.57%
Personal Services7.54%
Physicians & Surgeons6.73%
Real Estate9.09%
Restaurants & Food8.65%
Shopping, Collectibles & Gifts6.39%
Sports & Recreation10.53%

The industries showing the lowest click-through rates include Attorneys and Legal Services at 4.76%, Home and Home Improvement at 4.80%, and Business Services at 5.11%.

Conversely, the industries boasting the highest click-through rates were Arts and Entertainment at 11.78%, Sports and Recreation at 10.53%, and Travel at 10.03%.

Click-through rate YoY

Click-through rate YoY

Business Services and Industrial/Commercial sectors faced the most substantial drop in average click-through rates year over year, declining by 2.11% and 1.94%, respectively.

Conversely, Sports and Recreation showed a remarkable surge with a 17.65% increase in click-through rates year over year. Additionally, Shopping, Collectibles, and Gifts experienced a rise of 15.55%, while Beauty and Personal Care observed a 15.08% increase in click-through rates over the same period.

4. The average CPL

Cost per lead by industry

The typical cost per lead in Google Ads in 2023 stands at $53.52.

Business CategoryAvg. Cost Per Lead
Arts & Entertainment$23.57
Animals & Pets$72.24
Apparel/Fashion & Jewelry$76.71
Attorneys & Legal Services$111.05
Automotive – For Sale$42.52
Automotive – Service & Parts$21.12
Beauty & Personal Care$36.97
Business Services$87.36
Career & Employment$132.95
Dentists & Dental Services$65.37
Education & Instruction$62.80
Finance & Insurance$90.02
Health & Fitness$51.42
Home & Home Improvement$66.02
Industrial & Commercial$59.74
Personal Services$40.85
Physicians & Surgeons $37.71
Real Estate$66.02
Restaurants & Food$34.81
Shopping, Collectibles & Gifts$31.50
Sports & Recreation$31.82

Industries such as Apparel, Fashion, and Jewelry exhibited the lowest average conversion rates at 1.57%, followed by Furniture at 2.57% and Real Estate at 2.88%.

On the other hand, industries like Animals and Pets, Physicians and Surgeons, and Automotive Repair, Service, and Parts showcased the highest average conversion rates at 13.41%, 13.12%, and 12.61%, respectively.

Cost per lead YoY

Cost per lead YoY

The industries that saw the most substantial year-over-year rises in cost per lead (CPL) were Career and Employment (increased by 52.19%), Arts and Entertainment (up by 49.18%), and Real Estate (up by 46.22%).

Auto Sales recorded the most notable decrease in cost per lead (CPL) year over year, dropping by 8.62%. Close behind, Beauty and Personal Care experienced a 3.90% decrease in CPL compared to the previous year.

Self-assessing the situation through data to adjust campaigns might be quite challenging for those who aren’t experienced or less experienced in running Google Ads. If you encounter difficulties in analyzing data to determine the right direction for your campaign, you can seek assistance from seasoned Google Ads experts from trusted agencies (such as Mega Digital).

What we have learn from these Google Ads Benchmarks?

Having reviewed the Google Ads industry benchmarks, you might now be curious about ways to improve them. Now, let’s delve into the guidelines for effectively optimizing a campaign in 2024:

Ways to improve CTR in 2024

Don’t stress if your click-through rates are under the industry norm—there are quick ways to improve. Adjusting your ad content and targeting can have a big impact. Try new approaches, like using powerful language or emotional phrases in your ads to engage your audience and prompt clicks.

You might also need to reevaluate your target audience. Review your PPC keywords considering user intent. Your Search Terms Report could show if your ads cater more to users seeking information rather than those prepared to click and take action.

Ways to improve CPC in 2024

Lowering your cost per click means finding effective strategies while keeping a balanced approach. Don’t sacrifice quality clicks for cheaper CPC.

Start by checking your Quality Score. Great landing pages and relevant ads can earn you more cost-effective clicks if they meet user needs.

Also, reconsider your bidding strategy. Different approaches affect click costs based on your goals. Look into detailed breakdowns of Google Ads bidding strategies for more insights.

>>> Read more: Best Google Ads Bidding Strategies and Pro Tips

Ways to improve CVR in 2024

If your conversion rates lag behind your industry’s average, there might be multiple reasons. Assuming your other PPC metrics are on par, low clicks can contribute to this issue.

Start by optimizing your landing pages for mobile and accessibility, ensuring clear calls to action. Then, review keywords, ad content, and audience alignment in your Google Ads strategy for potential mismatches between offerings and audience intent.

Wrap up

I trust this data report proves beneficial for your business effort.

Although these Google Ads benchmarks can provide a useful starting point for refining your strategy, it’s important to understand that there’s no definitive right or wrong way to advertise your business on platforms like Google. Each advertiser’s account is distinct and will differ from others.

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Ngoc Nguyen
Ngoc Nguyen
Specialize in analyzing the benefits of Google ads for sellers and offer optimized solutions for your Google advertising or marketing campaigns.


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