A recent study found Google CPL (cost per lead) rising across nearly every industry.
The study, conducted by WordStream, measured CPL and other ad metrics across 23 industries. In 21 of these 23 industries, cost per lead is up. On average, Google Ads are 19% pricier in 2022 generating leads.
A key point from the study: This increase is ad cost per lead is more a function of continued large declines in conversion rate, and secondarily attributed to small increases in CPC.
CPCs are up only 2% year-over-year, while conversion rates are down a staggering 14%.
Some businesses may pin the drop in conversion rate on a struggling economy with high inflation, high interest rates, and a consumer lacking confidence. However, the bigger factor here may be data loss for Google which has rendered many targets “invisible.” Apple’s iOS upgrades give smartphone users the ability to firewall their data and turn off tracking.
How Conversion Rates have changed for key business categories in 2022:
Home Svc & Imp: -13%
Physicians / Surgeons: -24%
Real Estate: -19%
For an in-depth look at the study, visit WordStream:
Google Ads Cost Per Lead Has Increased for 91% of Industries YoY