# Google Ads Industry Performance Benchmarks

Industry-specific benchmarks for Google Ads performance evaluation. Data ranges based on widely-published WordStream, Google, and LOCALiQ industry reports (2024-2025 vintage). Use these as diagnostic baselines, not absolute targets.

> **Inflation adjustment (2026)**: These benchmarks reflect 2024-2025 data. Google Ads CPCs have been rising 10-20% year-over-year due to increased competition, AI-driven bidding adoption, and SERP layout changes (AI Overviews reducing organic clicks, pushing more demand to paid). When comparing your 2026 performance to these tables, adjust CPC and CPA benchmarks upward by 10-20% to account for market inflation.

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## Important Caveat

These benchmarks represent **averages across all advertisers**, including poorly optimized accounts. Well-managed accounts typically outperform these benchmarks by **30-50%** on CPA and CTR. If your performance exactly matches these averages, there is significant room for improvement. If your performance is worse than these averages, treat it as an urgent signal.

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## Search Network Benchmarks by Industry

> **2026 note**: CPC and CPA figures below are 2024-2025 averages. For 2026 planning, adjust upward by 10-20%. AI Overviews and other SERP layout changes are compressing organic CTR, increasing advertiser demand for paid placements, and driving costs higher across most verticals.

| Industry | Avg CPC | Avg CTR | Avg Conv Rate | Avg CPA | Notes |
|----------|---------|---------|---------------|---------|-------|
| **Legal** | $6.75 | 4.4% | 7.5% | $90.00 | Highest CPC vertical; personal injury drives the average up |
| **Insurance** | $5.50 | 4.0% | 6.0% | $92.00 | Auto and health insurance are most competitive |
| **Finance & Banking** | $4.50 | 4.2% | 6.5% | $69.00 | Includes credit cards, loans, financial planning |
| **B2B / Industrial** | $3.75 | 3.5% | 5.0% | $75.00 | Long sales cycles; conversion = lead, not sale |
| **SaaS / Technology** | $4.20 | 3.8% | 4.5% | $93.00 | High CPA offset by high LTV; free trial conversions |
| **Healthcare** | $3.25 | 4.5% | 5.5% | $59.00 | Includes dental, dermatology, urgent care |
| **Home Services** | $3.00 | 5.0% | 8.0% | $37.50 | Plumbers, electricians, HVAC; high intent searches |
| **Real Estate** | $2.50 | 4.8% | 3.5% | $71.00 | Low conversion rate; long consideration cycle |
| **Education** | $3.50 | 4.2% | 5.5% | $64.00 | Online courses, degree programs, tutoring |
| **E-commerce** | $1.50 | 4.5% | 4.0% | $37.50 | Broad range; niche e-commerce can be much cheaper |
| **Travel & Hospitality** | $1.75 | 5.5% | 4.5% | $39.00 | Seasonal; OTAs drive up competition |
| **Automotive** | $2.75 | 4.0% | 6.0% | $46.00 | Dealers, parts, service; local intent strong |

### How to Use This Table

| Your CPA vs. Industry Avg | Diagnosis | Priority Action |
|--------------------------|-----------|-----------------|
| CPA < 50% of industry avg | Excellent — look for scaling opportunities | Increase budget; expand keywords |
| CPA 50-80% of industry avg | Good — optimize for incremental gains | Test new ad copy; refine landing pages |
| CPA 80-120% of industry avg | Average — room for improvement | Audit QS; review search terms; test bid strategies |
| CPA 120-200% of industry avg | Below average — investigate root cause | Check QS (likely < 5); audit keyword relevance; review landing pages |
| CPA > 200% of industry avg | Critical — structural issues likely | Full account audit: conversion tracking, keyword match types, landing pages, ad relevance |

---

## Display Network Benchmarks by Industry

> **2026 note**: Display CPC figures below are 2024-2025 averages. Display costs have inflated less than Search (5-10% YoY) but still trend upward. Adjust accordingly.

| Industry | Avg CPC (Display) | Avg CTR (Display) | Avg Conv Rate (Display) | Notes |
|----------|-------------------|-------------------|------------------------|-------|
| **Legal** | $0.85 | 0.60% | 1.8% | Display is rarely primary channel for legal |
| **Insurance** | $0.75 | 0.50% | 1.2% | Remarketing performs best |
| **Finance & Banking** | $0.90 | 0.55% | 1.5% | Display for awareness; retarget converters |
| **B2B / Industrial** | $0.70 | 0.40% | 1.0% | Low CTR is normal; focus on impression quality |
| **SaaS / Technology** | $0.65 | 0.45% | 1.2% | Remarketing to free trial abandoners |
| **Healthcare** | $0.55 | 0.65% | 1.5% | Managed placements on health sites perform best |
| **Home Services** | $0.50 | 0.70% | 1.8% | Local display targeting effective |
| **Real Estate** | $0.60 | 0.55% | 0.8% | Low conversion; use for brand building |
| **Education** | $0.45 | 0.60% | 1.3% | Awareness campaigns for enrollment periods |
| **E-commerce** | $0.55 | 0.70% | 1.5% | Dynamic remarketing is the primary use case |
| **Travel & Hospitality** | $0.40 | 0.75% | 1.0% | Inspirational imagery; seasonal targeting |
| **Automotive** | $0.50 | 0.65% | 1.2% | Dealer inventory display ads; local targeting |

**Display baseline rule**: Display CTR is typically 8-12x lower than Search CTR. Display CPC is typically 3-5x lower than Search CPC. Display conversion rates are typically 3-4x lower than Search. This is normal. Display is an awareness and remarketing channel, not a direct response channel.

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## Impression Share Benchmarks

| Campaign Type | Target Impression Share | Acceptable IS | Red Flag IS |
|--------------|----------------------|---------------|-------------|
| **Brand (own brand terms)** | 90-95%+ | 80-90% | < 80% (competitors stealing your brand traffic) |
| **Non-brand competitive** | 40-60% | 25-40% | < 25% (underspending or low QS) |
| **Non-brand long-tail** | 60-80% | 40-60% | < 40% |
| **Competitor terms** | 20-40% | 10-20% | N/A (low IS is expected and acceptable) |
| **Shopping (branded products)** | 70-85% | 50-70% | < 50% |
| **Shopping (generic terms)** | 30-50% | 15-30% | < 15% |

### Impression Share Loss Diagnosis

| IS Loss Type | What It Means | Fix |
|-------------|--------------|-----|
| **Lost IS (Budget)** > 20% | Budget runs out before end of day | Increase daily budget or reduce keyword scope |
| **Lost IS (Budget)** 5-20% | Mild budget constraint | Acceptable if intentional; increase budget for high-ROI campaigns |
| **Lost IS (Rank)** > 30% | Ad Rank too low (QS or bid issue) | Improve QS first (free); for Smart Bidding accounts, loosen target CPA/ROAS to allow higher bids; for manual bidding, increase bids (costs money) |
| **Lost IS (Rank)** 10-30% | Moderate rank issues | Focus QS improvement on highest-volume keywords |
| **Lost IS (Rank)** < 10% | Healthy competitive position | Monitor; no urgent action needed |

---

## CTR Benchmarks by Ad Position (Search Network)

| Ad Position | Avg CTR (All Industries) | High-Performing Accounts | Low-Performing Accounts |
|-------------|-------------------------|--------------------------|-------------------------|
| Position 1 (Absolute Top) | 6.0-7.5% | 8.0-12.0% | 3.0-5.0% |
| Position 2 (Top) | 4.0-5.5% | 6.0-8.0% | 2.0-3.5% |
| Position 3 (Top) | 2.5-3.5% | 4.0-5.5% | 1.5-2.0% |
| Position 4+ (Other) | 1.0-2.0% | 2.0-3.0% | 0.5-1.0% |

**Interpretation**: If your ads are in Absolute Top position but CTR is < 5%, your ad copy is underperforming. If your CTR is 8%+ in Absolute Top, your ad copy is strong; focus optimization on CPA and conversion rate instead.

> **SERP layout changes (2026)**: AI Overviews (formerly SGE) now appear on a significant percentage of informational and commercial queries. When AI Overviews are present, they push ads and organic results further down the page, compressing CTR for all ad positions. CTR benchmarks above may overstate expected performance for queries where AI Overviews dominate. Monitor your Absolute Top impression share and CTR trends together — declining CTR with stable impression share may indicate AI Overview interference rather than ad copy issues.

---

## Conversion Rate Benchmarks by Landing Page Type

| Landing Page Type | Avg Conv Rate | Top 25% Conv Rate | Top 10% Conv Rate |
|------------------|--------------|-------------------|-------------------|
| Lead gen form (short, < 4 fields) | 5.0% | 8.0% | 12.0%+ |
| Lead gen form (long, 5+ fields) | 3.0% | 5.0% | 8.0% |
| E-commerce product page | 3.5% | 6.0% | 10.0%+ |
| E-commerce category page | 2.0% | 3.5% | 5.5% |
| SaaS free trial page | 4.0% | 7.0% | 11.0% |
| SaaS demo request page | 2.5% | 4.5% | 7.0% |
| Click-to-call (mobile) | 6.0% | 10.0% | 15.0%+ |
| Appointment booking | 4.5% | 7.5% | 12.0% |

---

## Seasonal Adjustment Notes by Industry

| Industry | Peak Seasons | CPC Increase During Peak | Recommendation |
|----------|-------------|-------------------------|----------------|
| **E-commerce** | Nov-Dec (holiday), Prime Day (Jul) | +30-60% CPC | Increase budgets 50%+ in Oct; pre-build QS in Sep |
| **Legal** | Jan (New Year resolutions, accidents) | +10-20% CPC | Front-load January budget |
| **Home Services** | Mar-Jun (spring), Sep-Oct (fall prep) | +20-40% CPC | Scale up in Feb; reduce Jan/Dec spend |
| **Travel** | Jan-Feb (booking), Jun-Aug (travel) | +25-45% CPC | Bid on booking intent in Dec; travel intent in May |
| **Education** | Aug-Sep (enrollment), Jan (spring semester) | +20-30% CPC | Campaign launch in Jul and Nov |
| **Finance** | Jan-Apr (tax season), Oct-Dec (planning) | +15-35% CPC | Tax-related campaigns peak Jan-Mar |
| **Healthcare** | Jan (new insurance), Sep-Oct (flu season) | +10-25% CPC | Benefits season in Q4; New Year health in Q1 |
| **Real Estate** | Mar-Jun (spring market) | +20-35% CPC | Scale up in Feb; maintain through Jun |
| **B2B / SaaS** | Jan-Mar (new budgets), Sep-Oct (Q4 planning) | +15-25% CPC | Align campaigns with buyer budget cycles |
| **Insurance** | Oct-Jan (AEP/OEP for health), Mar-May (auto/home) | +30-50% CPC | Open enrollment = highest competition |
| **Automotive** | Mar-May (spring buying), Nov-Dec (year-end deals) | +15-30% CPC | Year-end clearance campaigns |

### Seasonal Budgeting Rule

```
Monthly budget = Annual budget x Seasonal weight factor

Seasonal weight factor:
  Peak month:     1.3 - 1.6x (allocate 30-60% more than average month)
  Normal month:   0.9 - 1.1x
  Off-peak month: 0.5 - 0.8x (reduce spend, not pause)

Example: $120K annual budget, e-commerce
  Nov: $120K x 1.5 / 12 = $15,000 (vs. $10K average)
  Dec: $120K x 1.6 / 12 = $16,000
  Jan: $120K x 0.7 / 12 = $7,000
```

---

## Cost-Per-Conversion Benchmarks by Conversion Type

Different conversion types have inherently different values. Compare your CPA to the right benchmark.

| Conversion Type | Typical CPA Range | Top Performers | Notes |
|----------------|------------------|----------------|-------|
| Phone call (from ad) | $15-40 | $8-15 | Highest intent; best for local services |
| Form submission (short form) | $20-60 | $10-25 | 3-5 fields; name, email, phone |
| Form submission (long form) | $35-90 | $15-40 | 6+ fields; qualification questions reduce volume but improve lead quality |
| E-commerce purchase | $25-75 | $10-30 | Highly variable by AOV; $25 CPA on $200 AOV is great, on $30 AOV is terrible |
| Free trial signup | $30-100 | $15-45 | SaaS primary metric; back into this from LTV |
| Demo request | $50-150 | $25-70 | B2B SaaS; lower volume, higher quality than free trial |
| App install | $2-8 | $1-3 | Mobile-first businesses; quality varies widely |
| Newsletter signup | $3-12 | $1-5 | Top of funnel; cheap but low immediate value |
| Click-to-call (mobile) | $10-30 | $5-15 | Mobile-specific; track call duration for quality |
| Store visit | $5-20 | $2-10 | Requires location extensions and sufficient foot traffic data |

### CPA-to-LTV Ratio Guideline

| Ratio (CPA / Customer LTV) | Assessment | Action |
|---------------------------|------------|--------|
| < 10% | Excellent — scale aggressively | Increase budget; expand keywords; test new campaigns |
| 10-20% | Good — healthy acquisition cost | Optimize for incremental gains |
| 20-33% | Acceptable — depends on margins | Ensure margins support this; optimize CPA down |
| 33-50% | Caution — thin margins | Reduce CPA through QS improvement, landing page optimization |
| > 50% | Unsustainable — acquisition cost too high | Pause low-performers; restructure; consider if paid search is the right channel |

---

## Mobile vs. Desktop Performance Benchmarks

| Metric | Mobile Avg | Desktop Avg | Ratio | Implications |
|--------|-----------|-------------|-------|-------------|
| CTR | 4.1% | 3.8% | Mobile 8% higher | Mobile gets more clicks due to fewer visible results |
| CPC | 15-25% lower than desktop | Baseline | Mobile cheaper | Opportunity for budget-constrained advertisers |
| Conversion Rate | 2.5-3.5% | 4.0-5.5% | Desktop 40-60% higher | Desktop converts better for complex purchases |
| CPA | 10-30% higher than desktop | Baseline | Mobile more expensive per conversion | Despite cheaper clicks, lower conv rate drives CPA up |
| Bounce Rate | 55-65% | 35-45% | Mobile 50% higher | Mobile pages must load fast and be thumb-friendly |

> **2026 update**: The mobile-desktop conversion rate gap has been narrowing steadily as mobile checkout, autofill, and payment experiences improve (Apple Pay, Google Pay, one-tap checkout). In verticals with strong mobile UX (e-commerce, local services, click-to-call), the gap is now closer to 20-30% rather than the 40-60% shown above. B2B and complex SaaS remain desktop-dominant.

### Device Strategy Decision

> **Smart Bidding note (2026)**: Device bid adjustments are **ignored** by Smart Bidding strategies (tCPA, tROAS, Maximize Conversions, Maximize Conversion Value). Smart Bidding automatically adjusts bids per device based on real-time conversion signals. The recommendations below apply only to Manual CPC or Enhanced CPC campaigns. For Smart Bidding campaigns, optimize the mobile experience (page speed, form simplicity) instead of adjusting bids — the algorithm will find the right bid per device.

| Scenario | Recommended Device Strategy |
|----------|---------------------------|
| E-commerce with mobile-optimized checkout | Bid equally on all devices; mobile can perform well |
| Lead gen with complex forms (5+ fields) | Reduce mobile bid adjustment by 10-20%; or simplify mobile form |
| Click-to-call business (locksmith, towing) | Increase mobile bid adjustment by 20-30%; mobile is primary |
| B2B with long consideration cycle | Reduce mobile bid adjustment by 15-25%; desktop is primary |
| Local services with Google Maps presence | Increase mobile bid adjustment by 10-20%; "near me" is mobile-dominant |

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## Quick Diagnostic: Is My Account Healthy?

Score your account against these benchmarks. 4+ "At or above benchmark" = healthy. 3+ "Below benchmark" = needs immediate work.

| Metric | Check Against | Your Status |
|--------|--------------|-------------|
| Search CTR | Industry avg CTR table | At / Above / Below benchmark |
| Search CPA | Industry avg CPA table | At / Above / Below benchmark |
| Brand IS | 90%+ target | At / Above / Below benchmark |
| Non-brand IS | 40-60% target | At / Above / Below benchmark |
| QS distribution | 30%+ at QS 7+ | At / Above / Below benchmark |
| Conversion rate | Landing page type table | At / Above / Below benchmark |
| Wasted spend (irrelevant search terms) | < 15% of total spend | At / Above / Below benchmark |
