Where to Spend, What to Skip: Marketing Moves That Generate Higher ROI

Keeping up-to-date on industry Google Ads benchmarks is crucial to help answer questions you might get from clients or exec such as:

• “Is this a good CTR?”
• “Why is our CPA so high?”
• “What’s a good conversion rate, anyway?”

Questions like these come up all the time, especially when budgets are tight and performance dips even slightly.

But unless you’ve got fresh benchmark data on hand, these conversations are usually filled with guesswork, vague assurances, or worse, outdated reports that no longer reflect how competitive today’s ad landscape really is.

Wordstream by LocaliQ recently updated its Search Advertising benchmarks for 2025, compiling real data from thousands of Google and Microsoft Ads campaigns across 20 verticals.

The data consists of data points from thousands of campaigns in both Google and Microsoft Ads for some of the top industries. Some of the top industries include:

• Arts & Entertainment.
• Automotive.
• Education.
• Finance & Insurance.
• Health & Fitness.
• Home Improvement.
• Shopping & Retail.
• Travel.

While these benchmarks are a starting point, it’s important to note that many factors go into setting benchmarks that are attainable for your business.

We hope this data is useful for you to help level-set expectations and goals for your business, and get a sense of how you stack up to the competition.

In this report, you’ll find benchmarks for Search campaigns in Google & Microsoft Ads for:

• Click-through rate (CTR).
• Average cost-per-click (CPC).
• Conversion rate (CVR).
• Cost per lead (CPL).

Let’s dig into the data.

Average Click-Through Rate In Google & Microsoft Ads By Industry

Data from LocaliQ benchmark report, June 2025

The average click-through rate for Google & Microsoft Ads across all industries averaged out to 6.66% over the last 12 months.

Compared to when the company first started gathering data in 2015, the average CTR for search ads was minimal at 1.35%.

The business category that boasted the highest CTR was Arts & Entertainment, with an astounding 13.10% CTR.

At the other end of the spectrum was Dentists and Dental Services at a 5.44% CTR.

The CTR metric should be analyzed as only one indicator of performance, not the end-all-be-all when trying to determine if your ads are doing well.

The widespread in CTR performance is influenced by:

• Your competition (Is the SERP saturated?).
• Your bidding strategy.
• Your position on the results page.
• Your ad copy relevancy.
• Your audience targeting.

High CTR doesn’t always mean high performance, though. Sometimes it just means your ad is click-worthy, not necessarily that it’s converting. That’s why CTR should be viewed as one piece of the puzzle, not the whole picture.

If your CTR is low compared to your industry average, tools like Google’s Quality Score can help pinpoint the problem areas, from poor ad relevance to weak expected click-through rate.

Average Cost-Per-Click In Google & Microsoft Ads By Industry

Data from LocaliQ benchmark report, June 2025

The average cost-per-click for Google and Microsoft Ads across all industries over the past 12 months averaged $5.26.

While the Attorneys and Legal Services showcased one of the lowest CTR categories, it also boasted the highest average CPC. In 2025, the average CPC for this industry came in at $8.58.

This average is unsurprising, given the higher-than-average cost of acquiring a customer.

On the lower end of the spectrum, the Arts & Entertainment industry had the lowest average CPC at $1.60.

Similar to analyzing the CTR metric, average CPC is just one performance indicator.

For example, your ads may show a low average CPC and a low CTR. This could mean your bids aren’t high enough to be competitive in the market, and you may want to consider raising bids.

On the other hand, if you have a higher-than-average CPC, you’ll want to monitor these more closely to ensure you can prove your return on ad spend/investment.

Average Conversion Rates In Google & Microsoft Ads By Industry

Data from LocaliQ benchmark report, June 2025

The average conversion rate across all industries for Google and Microsoft Ads in the last twelve months was 7.52%.

The average conversion rate is calculated from the number of leads/sales you get divided by the number of clicks from your ad.

When looking at the data from 2025, the average conversion rate varied highly across industries.

On the high end of performance, Automotive had the highest conversion rate at 14.67%, followed by Animals and Pets at 13.07%.

The industries that had the lowest conversion rate included:

• Finance & Insurance: 2.55%
• Furniture: 2.73%
• Real Estate: 3.28%

When looking at these industries and the products they sell, these conversion rates make sense.

Furniture is a high-ticket item for many customers. Users do a lot of research online before making a purchase. Not only that, but because of the price tag, many customers end up purchasing in stores instead of online.

While the conversion rate may be low in this particular industry, it’s more important than ever to be able to measure offline conversions, such as in-store visits or purchases.

In the apparel industry, new brands seem to pop up every day.

If you do a simple search for Nike sneakers, the number of sellers and resellers for these types of products has skyrocketed in recent years.

The amount of competition can directly contribute to a low (or high) conversion rate.

Average Cost Per Lead In Google & Microsoft Ads By Industry

Data from LocaliQ benchmark report, June 2025

The average cost per lead across all industries for Google and Microsoft Ads in the last twelve months was $70.11.

The average cost per lead is a core KPI that advertisers should keep a pulse on when analyzing performance.

It remains one of the most scrutinized metrics by marketing and finance teams alike.

It’s no surprise that certain industries have a much higher CPL compared to other industries. Some of the factors that can influence CPL include:

• Average CPC.
• Average CTR (this influences your CPC).
• Audience targeting.
• Conversion rate.
• The type of product/service you’re selling.

On average, the CPL across all industries reported was $70.11.

The Attorneys and Legal Services industry had the highest CPL out of all industries at a whopping $131.63.

However, while the CPL may be high, many businesses in that industry find that well worth the investment, considering their return on each individual they represent.

Those industries with lower-priced products and services likely have a lower CPL goal.

The industries that showed the lowest CPL in 2025 were Automotive Repair, Services & Parts at $28.50, followed by Arts & Entertainment and Restaurants & Food at $30.27.

Compared to last year’s data, 13 out of the 23 industries reported an increase in CPL.

Data from LocaliQ benchmark report, June 2025

While the last few years have seen such a large fluctuation in CPL due to the record inflation and economic instability, the year-over-year changes in CPL have mellowed out a bit.

Summary

Benchmark reports are exactly that: benchmarks. They’re not scorecards, and they don’t account for your specific brand, audience, goals, or tech stack.

So, if your numbers don’t perfectly align with the averages, it doesn’t mean you’re underperforming.

If you’re looking to make progress in the second half of the year, try following the tips below:

• Make sure your goals are aligned with your industry’s actual buying journey.
• Explore alternative platforms like Microsoft Ads to diversify CPC risk.
• Prioritize ad relevance and landing page experience.
• Improve tracking for offline conversions where applicable.
• Don’t forget to test (and retest) your keyword and bidding strategy.
• Don’t forget about the mobile experience!

Make sure to check out Wordstream by LocaliQ’s full report on benchmarks and tips to improve your campaigns.

More Resources:

• Which Metrics Matter In PPC?
• The State Of Performance Max: How To Optimize Google Ads In 2025
• PPC Expert Tips: Budgets, Testing & Optimization

Featured Image: Roman Samborskyi/Shutterstock

A new study commissioned by Meta and conducted by Deloitte finds that advanced personalization strategies are associated with a 16 percentage point increase in conversions compared to more basic efforts.

The research also introduces a maturity framework to help organizations evaluate their personalization capabilities and identify areas for improvement.

What the Data Shows

According to the study, 80% of U.S. consumers say they’re more likely to make a purchase when brands personalize their experiences. Consumers also report spending 50% more with brands that tailor interactions to their needs.

The report connects these behaviors to broader business outcomes. In the EU, Meta’s personalized advertising technologies were linked to €213 billion in economic activity and 1.4 million jobs.

While the economic impact data is specific to Meta, the findings reflect a wider trend in digital marketing: personalized engagement influences purchase decisions and brand loyalty.

Derya Matras, VP for Global Business Group at Meta, commented:

“As people want content and services that are more relevant to them, they are increasingly drawn to brands that make them feel understood.”

Maturity Model for Personalization

The report outlines a four-level maturity model to help you assess where you stand with personalization. The study links higher maturity levels with measurable business outcomes.

Level 1: Low Maturity

Data remains siloed, and messaging tends to be generic. Personalization, if present, is rule-based and limited to a few channels.

Level 2: Medium Maturity

Some systems are integrated, enabling basic audience segmentation and limited customization across channels. These organizations may also use analytics tools and consent management.

Level 3: High Maturity

Unified customer profiles and identity resolution enable greater personalization across multiple touchpoints. Predictive modeling and dynamic content are more common.

Level 4: Champion Maturity

Real-time personalization, generative AI, and clean-room tech support tailored omnichannel experiences. Teams collaborate across departments, with AI governance integrated into decisions.

Three Personalization Strategies

The study outlines three personalization strategies:

1. Customer-based: Tailors experiences to individuals based on personal data and behavior.
2. Cohort-based: Segments audiences based on shared traits or behaviors.
3. Aggregated data-based: Uses anonymized, large-scale datasets to identify general trends.

The report doesn’t suggest a single best method. Instead, it offers examples to help you evaluate what fits your capabilities and goals.

Looking Ahead

For marketers assessing their next steps, the maturity framework offers a structured way to evaluate readiness across people, processes, and technology.

Rather than treating personalization as a software problem, the report frames it as a long-term shift in how organizations structure teams and manage data.

Believe it or not, PPC automation was around long before the days of ChatGPT.

But with the rise in popularity of AI, machine learning, and automation – where does that leave PPC management?

Staying tried and true to manual PPC management has been shown to limit efficiency and margins.

But PPC automation layering isn’t just for pros. Whether you’re managing one account or 10 accounts, having a human component alongside automation can be the key to success.

This in-depth guide will teach you:

• What PPC automation layering is.
• How automation has impacted Google Ads.
• How automation has impacted PPC practitioners.
• Use cases for PPC automation layering.

What Is Automation Layering?

PPC automation layering is the strategic use of multiple automation tools and rules to manage and optimize PPC campaigns.

The main goal of PPC automation layering is to improve the efficiency and effectiveness of your PPC efforts.

This is where automation layering comes in.

Automation layering leverages different automation features, technologies, and sometimes 3rd party tools at various levels of your campaign management.

Some examples of automation layering include:

• Smart Bidding strategies – Ad platforms take care of keyword bidding based on goals input within campaign settings. Examples of Smart Bidding include Target CPA, Target ROAS, Maximize Conversions, and more.
• Automated PPC rules – Ad platforms can run specific account rules on a schedule based on the goal of the rule. An example would be to have Google Ads pause time-sensitive sale ads on a specific day and time.
• PPC scripts – These are blocks of code that give ad platforms certain parameters to look out for and then have the platform take a specific action if those parameters are met.
• Google Ads Recommendations tab – Google reviews campaign performance and puts together recommendations for PPC marketers to either take action on or dismiss if irrelevant.
• Third-party automation tools – Tools such as Google Ads Editor, Optmyzr, Adalysis, and more can help take PPC management to the next level with their automated software and additional insights.

See the pattern here?

Automation and machine learning produce outputs of PPC management based on the inputs of PPC marketers to produce better campaign results.

How Has Automation Impacted Google Ads?

Over the years, Google Ads (as well as Microsoft Ads, Meta, etc.) have introduced countless automation features for marketers.

So, what’s their main goal here?

To make paid media management easier for advertisers.

In recent years, Google Ads has made a shift towards small to medium-sized businesses (SMBs), with claims that setting up a campaign is as easy as inputting a few settings and letting Google handle the rest.

For more experienced advertisers, they’ve experienced first-hand the shift from hands-on PPC management to a more “hands-off” approach with automation features.

While everyone can agree that easier paid media management sounds great, the learning curve for marketers has been far from perfect.

Automation has essentially taken over many of the day-to-day management tasks that PPC advertisers were used to doing.

For example, a few automation features built into the Google Ads platform include:

• Keyword and campaign bid management.
• Audience expansion.
• Automated ad asset creation.
• Keyword expansion.
• And much more.

In theory, having Google Ads take over much of the busy work sounds great.

But in reality, the shift to automation layering has been far from great.

This leads us to the next big question: Will automation replace PPC marketers?

Does Automation Replace PPC Experts?

Job layoffs and restructuring due to automation is certainly a sensitive topic.

Add in a looming economic slowdown, and you’ve got many marketers clinging to their roles as hard as they can.

The marketing industry has seen shifts in job responsibilities, specifically in the content space, thanks to platforms like ChatGPT, Bard, and more.

But it’s time to settle this debate once and for all.

Automation will not replace the need for PPC marketers.

Now, keep in mind that automation has already replaced many of the day-to-day tasks that PPC experts have been used to doing for the past decade or so.

What we have, and will continue to see, is a shift in the role of PPC experts.

Since automation and machine learning take the role of day-to-day management, PPC experts will spend more time doing things such as:

• Analyzing data and data quality.
• Strategic decision making.
• Reviewing and optimizing outputs from automation.

Automation and machines are great at pulling levers, making overall campaign management more efficient.

But automation tools alone cannot replace human touch and creating a story based on data and insights.

This is the beauty of PPC automation layering.

Lean into what automation tools have to offer, which leaves you more time to become a more strategic PPC marketer.

PPC Automation Layering Use Cases

There are many ways that PPC marketers and automation technologies can work together for optimal campaign results.

Below are just a few examples of how to use automation layering to your advantage.

1. Make The Most Of Smart Bidding Capabilities

As mentioned earlier in this guide, Smart Bidding is one of the most useful PPC automation tools.

Google Ads has developed its own automated bidding strategies to take the guesswork out of manual bid management.

However, Smart Bidding is not foolproof and certainly not a “set and forget” strategy.

Smart Bidding outputs can only be as effective as the inputs given to the machine learning system.

So, how should you use automation layering for Smart Bidding?

First, pick a Smart Bidding strategy that best fits an individual campaign goal. You can choose from:

• Target cost per action (CPA).
• Target return on ad spend (ROAS).
• Maximize conversions.
• Maximize conversion value.

Whenever starting a Smart Bidding strategy, it’s important to put some safeguards in place to reduce the volatility in campaign performance.

This could mean setting up an automated rule to alert you whenever significant volatility is reported, such as:

• Spike in cost per click (CPC) or cost.
• Dip in impressions, clicks, or cost.

Either of these scenarios could be due to learning curves in the algorithm, or it could be an indicator that your bids are too low or too high.

For example, say a campaign has a set target CPA goal of $25, but then all of a sudden, impressions and clicks fall off a cliff.

This could mean that the target CPA is set too low, and the algorithm has throttled ad serving to preserve only for individual users the algorithm thinks are most likely to purchase.

Without having an alert system in place, campaign volatility could go unnoticed for hours, days, or even weeks if you’re not checking performance in a timely manner.

2. Interact With Recommendations & Insights To Improve Automated Outputs

The goal of the ad algorithms is to get smarter every day and improve campaign performance.

But again, automated outputs are only as good as the input signals it’s been given at the beginning.

Many experienced PPC marketers tend to write off the Google Ads Recommendations or Insights tab due to perceptions of receiving irrelevant suggestions.

However, these systems were meant to learn from the input of marketers to better learn how to optimize.

Just because a recommendation is given in the platform does not mean you have to implement it.

The beauty of this tool is you have the ability to dismiss the opportunity and then tell Google why you’re dismissing it.

There’s even an option for “this is not relevant.”

Be willing to interact with the Recommendations and Insights tab on a weekly or bi-weekly basis to help better train the algorithms for optimizing performance based on what you signal as important.

Over time, these recommendations and insights can save you significant time over the weeks and months, which in turn gives you more time to focus on strategic measures in your account(s).

3. Automate Competitor Analysis With Tools

It’s one thing to ensure your ads and campaigns are running smoothly at all times.

Next-level strategy is using automation to keep track of your competitors and what they’re doing.

Multiple third-party tools have competitor analysis features to alert you on items such as:

• Keyword coverage.
• Content marketing.
• Social media presence.
• Market share.
• And more.

Keep in mind that these tools are a paid subscription, but many are useful in many other automation areas outside of competitor analysis.

Some of these tools include Semrush, Moz, Google Trends, and Klue.

The goal is to not simply keep up with your competitors and copy what they’re doing.

Setting up automated competitor analysis helps you stay informed and can reinforce your market positioning or react in a way to help set you apart from competitor content.

In Summary

PPC automation layering has been around for a while and continues to mature each year.

While automation has replaced certain aspects of a PPC manager’s job, it can’t replace the necessary human components of an effective PPC strategy.

Use this guide to learn how to use automation layering to your advantage to get the most bang for your buck.

More resources:

• Hidden Gems in PPC: 10 Underutilized Levers Across Google and Microsoft Ads
• Generative AI Integration SERPs And PPC Advertisers
• PPC Trends 2024

Featured Image: 3rdtimeluckystudio/Shutterstock