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Facebook is the most popular social media platform. It has over two billion active users every day. Facebook ads are still a popular way for businesses to increase brand awareness, reach out to prospects, and gain new customers.
How can you tell if Facebook ads work? We have the data you need to answer all your questions.
We’re sharing Facebook Ads Benchmarks across 20 industries to help inform your 2024 plans and better understand your Facebook Advertising campaigns. These benchmarks include click-through rates, cost per click, conversion rates, and more for two popular Facebook Ads campaign objectives.
Key trends: the big picture
In the past year, Facebook advertising results have improved for most businesses. This means that their engagement metrics have increased, and their advertising costs decreased. Here’s a deeper look:
- The click-through rate (CTR), which is a measure of how many people clicked on a Facebook lead-based ad, increased from one year to the next for nine out of 19 industries. CTR decreased year-over-year for 15 of the 23 industries that were part of the traffic objective. However, the average CTR remains higher than what other data indicates (1.51 vs. 0.9%).
- The cost per click (CPC), which is the measure of the amount spent on a single click, has decreased significantly over the past year. Nine industries have seen a decline in CPC for the leads goal, while 14 others saw a drop for the traffic goal. The increases were not drastic for any of the objectives. It’s interesting to note that CPC has increased dramatically across the board (91%) for most industries.
- In the lead objective, 13 of 19 industries experienced an increase in conversion rate. This could be due to the economy. In a volatile real estate market, for example, there may be fewer people looking to buy or sell. This could have led to a decline in CVR.
- In the lead objective, the cost per lead (CPL) for 12 of 19 industries remained the same or decreased. It’s also interesting to note this trend, given the dramatic increase in CPL on the search ads, where 91% of industries experienced increases in CPL by 2023.
What is the overall takeaway? Facebook ads continue to be more cost-effective than search ads due to their lower costs.
Mark Irvine, Director of Paid Media, Search Labs, said: “I’m always amazed by the fact that Facebook Ads CPCs are so much lower than those you would see in Google Ads and other search networks.”
Benchmarks for Facebook traffic campaigns by Industry
Facebook advertising lets you choose specific objectives for every campaign. Then, it optimizes your campaign against the aim. This helps you achieve specific goals with Facebook ads.
The objective of Facebook ads is to optimize the campaign by driving clicks to your app, landing page, or event. Many small business advertisers use traffic campaigns because they can help drive more customers (and visitors!) Traffic campaigns are popular among small business advertisers because they help to drive more visitors (and potential customers!)
As this campaign is designed to generate traffic, metrics such as cost per lead and conversion rates tend to be higher. We’ve left out the metrics we feel are most important for your advertising objective.
Facebook Ads for Traffic Campaigns: Average Click-through Rate
The CTR, or click-through rate, is a measurement of how often viewers click on an ad. Your campaign’s CTR is a measure of how viewers view your Facebook ads. HHigher CTRsindicate a strong Facebook ad creativity.
The average click-through rate for Facebook traffic ads across all industries is 1.51 percent.
Arts & Entertainment had the highest CTR at 2.55%. Real Estate was at 2.45%, and Restaurants & Food came in at 2.29%.
Dentists & Dental Services had a CTR of 0.81%. Finance & Insurance was at 0.88%. Attorneys & Legal Services was at 0.99%.
CTRs vary significantly between business types on Facebook, more than they do with Google Ads. To be successful, Facebook Ads need to have impressive visual proof in order to grab the attention of the scrolling audience. “That’s why some of the highest CTRs on Facebook are from industries like Travel, Arts & Entertainment, Sports, and Travel,” said Irvine.
He added, “These industries are both in line with what we see on our feeds.” “A tropical vacation or night out can be more appealing than a visual depiction of an auto repair or a dentist visit.” Facebook’s CTR results in these industries show a strong division.
Facebook Ads Cost Per Click for Traffic Campaigns
CPC, or cost per click, is the result of dividing your total expenditure by the total number of clicks. By maintaining a lower CPC for your traffic campaign, you will be able to convert more website visitors at a cheaper price.
A click for the traffic goal would go from your ad directly to your website or wherever you have set your ad.
Facebook Ads for Traffic Campaigns across all Industries average $0.83 per click. The average cost per Google Ad click is $4.22. This is a much lower price.
Travel, Arts & Entertainment, and Restaurants & Food had the lowest click-through cost.
Dentists and dental Services, Furniture, Attorneys and legal Services, and Furniture all had higher than average costs per click. These CPCs, however, are lower than the average Google Ads CPC of over $4. These industries also have high average lifetime customer costs. It makes sense, therefore, that their advertising costs are higher than those of a restaurant or entertainment venue.
The biggest trend that I see in this Facebook Ads CPC data is the fact that consumer demand continues to be strong despite an uncertain economy. The cost per click remains within the range we have been offering advertisers for many years, and click-through rates are also strong,” said Tyler Mask, Senior Manager of Custom Solutions at LocaliQ.
Benchmarks for Facebook Ads Lead Generation Campaigns by Industry
Leads are generated by Facebook ads that have the “leads” objective. This includes form fills, messages, phone calls, and conversions.
You’ll run Lead Ads in a campaign with a lead objective. These ads include prompts that appear directly in the ad to collect information.
These benchmarks include conversion rate and lead cost since the goal is to increase leads and convert them.
Facebook Ads Lead Generation Campaigns: Average Click-through Rate
Facebook’s lead ads do not require that users click through to your website. However, they will have to click the ad in order to be a lead. The ad still allows you to click through to your website. SYou hould prioritize a high click-through rate in your Facebook Leads Objective campaigns because it indicates that your ad attracts users to take action.
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