The cost per lead (CPL) from search ads rose 25% on average — $66.69 in 19 of 23 industries — with an average increase of about 25%, according to LocaliQ, which reported the average CPL in 2023 at $53.52.

WordStream LocaliQ’s 2024 report features data on the average CPL, conversion rate, click-through rate (CTR) and cost per click (CPC).

The study analyzed more than 17,000 campaigns running from April 2023 through March 2024 to create the latest version of its search advertising benchmarks report to give marketers insight into how businesses perform on Google Ads and Microsoft Ads.

Conversion rates fell for 12 out of 23 industries. Finance & Insurance fell 32.40%, and Dentists & Dental Services fell 19.57%, while conversion rates for Apparel, Fashion & Jewelry rose 112.01%, and Career & Employment rose 80.97%. The average conversion rate was 6.96 so far in 2004, and 7.04% in 2023.

CTRs improved for most industries. Some 70% of industries saw an increase in CTR year-over-year, with an overall average increase of 5% since 2023. Real Estate, Sports & Recreation, and Personal Services saw increases of more than 25% year-over-year, with an average overall increase of 10%.

The economy continues to play a role in increasing costs of Google Ads, according to the report.

In last year’s Google Ads benchmark report, CPC increased for about 60% of industries, but those increases averaged only 2%). This year’s average is 10%, likely due to continued effects from inflation.

Industries with the lowest average CPCs were Arts and Entertainment at $1.72, Travel at $1.92, and Real Estate at $2.10.

The industries with the highest average CPCs were Attorneys and Legal Services at $8.94, Home and Home Improvement at $6.96, and Dentists and Dental Services at $6.82.

While industries like Attorneys and Legal Services typically face higher costs, conversions from these pricier clicks can be of much higher value for these types of businesses, according to the report.

Automotive Repair, Service, and Parts at 12.96% had the highest conversion rates, along with Animals and Pets at 12.03%, and Physicians and Surgeons at 11.08%.

Industries that saw the lowest average CVRs were Furniture at 2.53%, Finance and Insurance 2.78%, and Real Estate at 2.91%.

LocaliQ said that as ads are blend into organic results and often take up more space on the search-engine results page, even for search terms with low commercial intent, lower CVRs may be more common. This is because of an increase in clicks from people who may not be ready to convert.

The industries with the biggest conversion rate decreases were Finance and Insurance, declining at 32.40%. Dentists and Dental Services declined 19.57%, and Attorneys and Legal Services declined 19.46%.

The industries with the highest conversion rate increases were Apparel, Fashion, and Jewelry at 112%, Career and Employment at 80.97%, and Restaurants and Food at 72.16%.

The 2024 overall average conversion rate of 6.96% is only slightly lower than last year’s average of 7.04%.

The cost per lead from search ads rose 25% on average — $ 66.69 in 19 of 23 industries – with an average increase of about 25%, according to LocaliQ, which reported the average CPL in 2023 at $ 53.52.