LocalIQ/WordStream’s annual Search Advertising Benchmark Report for 2024 shows that conversion rates in paid advertising industries have decreased, while the cost of generating leads through search ads is increasing. The 2024 edition of the report covers the same key metrics as the 2023 report – click-through rate (CTR), conversion rate, cost per click (CPC), and cost per lead (CPL). Google’s parent company, Alphabet, is maximizing profits as advertisers spend more on clicks and leads. Data indicates significant competition due to the monetization of Google’s SERPs, with Google justifying continuous price increases.

LocalIQ/WordStream reported that the conversion rate for 2024 is 6.96% in 12 out of 23 industries. Conversion rates decreased in Dentists and Dental Services (19.57%) and Finance and Insurance (32.40%). Conversely, conversion rates increased in Career and Employment (80.97%) and Fashion and Jewelry (112.01%). In 2023, the conversion rate was 7.04%, down from 7.85% in 2022, indicating a gradual decline over the years.

Cost per lead (CPL) has increased by 25%, now at $66.69 in 2024 for 19 out of 23 industries. In 2022, CPL had increased by 27%. Click-through rate (CTR) increased by 5% in 70% of industries and is now 6.42%. Cost per click (CPC) is $4.66 in 2024 after a 10% increase in 86% of industries. The industries with the biggest CPC increases were Personal Services, Real Estate, and Sports and Recreation. CPC was $4.01 in 2022 and $4.22 in 2023.