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Google Ads Click Through Rate

Screenshot from LOCALiQ.com, February 2022

When Wordstream by LOCALiQ published their Search Advertising first started gathering data in 2015, the average CTR for Search ads was only 1.35%. In 2021, the average click-through rate across all industries became 3.17%. In LOCALiQ’s data, the industries they pooled together outperformed that CTR, averaging over 6%. Attorneys and Legal Services at a 3.84% CTR. Finally, at 10.67% CTR, Arts & Entertainment boasted the highest CTR of all that they has tracked.

However, the Click-Through-Rate metric should be analyzed as just one unit of performance, not the make-it-or-break-it when trying to determine if your ads are doing well.

Some factors that can influence CTR, include:

  • Your audience targeting.
  • Your ad copy relevancy.
  • Your bid.
  • Your position and placements on the page.
  • Your competition (waiting til it’s become a hype is not always best)
Screenshot from LOCALiQ.com, February 2022

Although the Attorneys and Legal Services showcased the lowest Click-Through-Rate, they also boasted the highest average CPC. In 2021, the average Click-Per-Cost for this industry was $8.67. Which is normal considering the fact it takes more clicks to actually generate a client. With that in mind, Real Estate and Travel industries had the lowest average Click-Per-Cost at only $1.40. It is important to closely watch your CTR and CPC along with other analytics to determine your ad return on investment/spend.

Screenshot from LOCALiQ.com, February 2022

The average Conversion Rate is calculated from the number of sales/leads you get, divided by the number of clicks you get from your ad. In 2021 the Animals & Pets industry had the highest conversion rate at 19.19%, second Physicians and Surgeons had a conversion rate of 19.15%. Furniture: 3.25% and Real Estate: 3.93% had the lowest conversion rate due to them being high ticket items that people usually want to experience in person. But there is way to measure the conversion of online into real in person or online sales which is why its important to monitor more than just one metric.

Screenshot from LOCALiQ.com, February 2022

The average Cost Per Acquisition is a metric that advertisers should keep up with when analyzing performance.

A number factors that may influence CPA include:

  • The type of product/service you’re selling.
  • Conversion Rate.
  • Average Click-Per-Cost.
  • Average Click-Through-Rate (this influences your CPC).
  • Audience targeting.

Although the CPA may be high, lots of businesses find it well worth the investment, considering their return on each individual customer. Industries that have lower-priced products and services are likely to have a lower CPA goal.

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