What Are the Google Ads Benchmarks for 2025? [STUDY]
Staying current with industry Google Ads benchmarks is essential for marketing professionals. They help address common questions from clients or executives, such as:
- “Is our Click-Through Rate (CTR) satisfactory?”
- “Why do we have a high Cost Per Acquisition (CPA)?”
- “What qualifies as a good conversion rate?”
In an environment where budgets are tight and even slight performance dips can lead to significant concerns, having fresh data readily available can make all the difference.
Why Benchmarks Matter
Without up-to-date benchmark data, discussions about ad performance often devolve into guesswork or outdated insights that don’t reflect today’s competitive landscape. Wordstream by LocaliQ has recently released its Search Advertising benchmarks for 2025, showcasing actual data drawn from thousands of Google and Microsoft Ads campaigns.
This comprehensive study covers 20 different verticals, including:
- Arts & Entertainment
- Automotive
- Education
- Finance & Insurance
- Health & Fitness
- Home Improvement
- Shopping & Retail
- Travel
These benchmarks can serve as a starting point but remember that achieving success is contingent upon a myriad of factors—tailored metrics that suit your specific business needs.
Key Benchmarks Overview
In this report, we’ll dive into crucial benchmarks for Search campaigns in Google and Microsoft Ads, examining:
- Click-Through Rate (CTR)
- Average Cost-Per-Click (CPC)
- Conversion Rate (CVR)
- Cost Per Lead (CPL)
Let’s explore the data!
Average Click-Through Rate in Google & Microsoft Ads by Industry
Data from LocaliQ benchmark report, June 2025
The average CTR for Google & Microsoft Ads across all industries in the past year is a remarkable 6.66%. This figure marks a significant leap from 1.35% reported back in 2015.
The arts and entertainment sector outshines all others with an impressive 13.10% CTR, while dental services lag behind with a modest 5.44% CTR.
Factors Influencing CTR
Several elements can dramatically affect CTR, such as:
- Competition (Is the Search Engine Results Page (SERP) saturated?)
- Bidding strategy
- Ad placement
- Relevancy of ad copy
- Target audience
Bear in mind that a high CTR doesn’t inherently guarantee success. Sometimes an ad could attract clicks without driving conversions.
Average Cost-Per-Click in Google & Microsoft Ads by Industry
Data from LocaliQ benchmark report, June 2025
For the past year, the average CPC across all sectors stands at $5.26. The legal sector reports a high avg CPC of $8.58, reflecting the inflated customer acquisition costs.
Conversely, the arts and entertainment sector enjoys the lowest CPC at a mere $1.60.
Analyzing CPC
It’s vital to view CPC as part of a broader performance picture. A low CPC paired with low CTR may indicate that your bid strategy is not competitive. Conversely, a high CPC should prompt a reassessment of your ROI.
Average Conversion Rates in Google & Microsoft Ads by Industry
Data from LocaliQ benchmark report, June 2025
The average conversion rate for Google and Microsoft Ads averages out to 7.52% over the last year.
The automotive industry leads with an astounding 14.67%, while sectors like finance and insurance sit at the bottom with just 2.55%.
Understanding Conversion Rates
These figures highlight the variability across industries—high-ticket items like furniture often attract lower conversion rates. This is due to the extensive research consumers conduct before purchasing big-ticket items.
Importance of Measuring Offline Conversions
For industries where online sales are not the sole focus, such as retail or furniture, measuring offline conversions becomes crucial.
Average Cost Per Lead in Google & Microsoft Ads by Industry
Data from LocaliQ benchmark report, June 2025
The average CPL across industries stands at $70.11. This figure is vital for advertisers in gauging campaign success.
Industry Insights on CPL
The attorneys and legal services sector experiences the highest CPL at $131.63, representing a high investment but often justified by the substantial returns on each client. In contrast, sectors like automotive repair feature a significantly lower CPL, averaging $28.50.
Summary
These benchmark reports serve as foundational guidelines rather than strict scorecards. If your metrics deviate from the averages, it doesn’t mean you’re faltering.
Tips for Continued Improvement
To enhance performance in the coming months, consider:
- Aligning goals with your industry’s purchasing patterns.
- Experimenting with platforms like Microsoft Ads to mitigate CPC risks.
- Emphasizing ad relevance and user experience on landing pages.
- Enhancing offline conversion tracking.
- Regularly testing keywords and your bidding strategy.
- Prioritizing mobile experience.
For a comprehensive analysis, explore Wordstream by LocaliQ’s full report on advertising benchmarks and strategies to improve your campaigns.
More Resources:
- Google Ads Click-Through Rate
- What is Conversion Rate?
- Most Important PPC KPIs
- Tracking Offline Conversions
- Smart Bidding Guide
Remember, the path to ad success lies not just in the numbers, but in the strategies you employ!
