The cost of paid search advertising has continued to rise, while conversion rates are declining in nearly every industry year after year. This grim trend continues for 2024 as well.
Anyone else feeling déjà vu? I felt exactly the same after reading LocalIQ's annual report on benchmark sheets across industries, released today. It seems to be a repeat of same story as 2023.
This year's edition again includes data on average conversion rate, cost per lead (CPL), click through rate (CTR) and cost per click (CPC).
Why we care. Advertisers are increasingly paying for leads and clicks, while Google's parent company Alphabet continues to report record profits. It is believed that this is due to "increased competition and in Google's search results (SERP). However, it raises questions about what "controls" Google can adjust behind the scenes, as Google constantly finds ways to justify higher prices without necessarily delivering a greater return on larger investments from advertisers.
- The average CPL was about 15-20% greater in 2023 than in 2022.
CTR: 6,42%. CTR increased by an average of 5% for 70% of the industries.
- The average CTR was 6.11% in 2023 and 5.91% in 2022.
Cost per click (CPC) increased by an average of 10% in 86% of the industries.
- Real Estate, Sports & Leisure and the Services sector saw increases of over 25% year-on-year.
- CPC increased for 60% of the industries, but only by an average of 2%.
The report. This year's report on search advertising benchmarks gives us a clear picture of the current trends and changes in digital marketing. This insight is invaluable to marketers looking to optimize their strategies to meet the new challenges
It is clear that developments in search advertising continue to be dynamic and challenging. To stay competitive in the market, it is more important than ever to constantly analyze and adjust your campaigns based on current data. We hope this report gives you the insight you need to fine-tune your strategies and reach new heights with your digital marketing efforts.
Do you have any thoughts or experiences to share about these changes? Please let us know by contacting us. We look forward to hearing from you!
Read more about how we can help you with search engine advertising at Google Ads and Microsoft Advertising.
