On September 30, 2024, WordStream released its annual Facebook Ads Benchmarks report, revealing key trends and performance data across 20+ industries for 2024. The comprehensive analysis, based on data from nearly 3,000 campaigns run between February 2023 and April 2024, offers valuable insights for advertisers looking to optimize their Facebook ad strategies.
Key Findings
- Overall Performance Improvements: Unlike recent trends in search advertising, Facebook ads have seen relatively stable or improved performance metrics across most industries.
- Click-Through Rate (CTR) Increases: For traffic campaigns, 15 out of 23 industries experienced year-over-year increases in CTR. The average CTR across all industries for traffic campaigns rose to 1.57%, up from 1.51% in the previous year.
- Cost Per Click (CPC) Decreases: In traffic campaigns, 18 out of 23 industries saw a decrease in CPC, with two industries showing no change. The average CPC across all industries for traffic campaigns dropped to $0.77, down from $0.83 in the previous year.
- Conversion Rate (CVR) Improvements: For lead generation campaigns, 10 out of 15 industries experienced improvements in conversion rates. The average CVR across all industries for lead campaigns increased to 8.78%, up from 8.25% last year.
- Cost Per Lead (CPL) Reductions: The average CPL across all industries for lead campaigns decreased to $21.98, an improvement from $23.10 in the previous year.
Industry-Specific Insights
Traffic Campaigns
- Highest CTR: Real Estate (2.60%), Arts and Entertainment (2.59%), and Travel (2.20%)
- Lowest CTR: Finance and Insurance (0.85%), Dentists and Dental Services (0.88%), and Attorneys and Legal Services (0.99%)
- Highest CPC: Attorneys and Legal Services ($1.09), Apparel/Fashion and Jewelry ($1.07), and Dentists and Dental Services ($1.07)
- Lowest CPC: Travel ($0.42), Arts and Entertainment ($0.43), and Restaurants and Food ($0.51)
Lead Campaigns
- Highest CTR: Sports and Recreation (3.74%), Real Estate (3.71%), and Personal Services (2.56%)
- Lowest CTR: Automotive Repair, Service and Parts (1.08%), Health and Fitness (1.46%), and Industrial and Commercial (1.48%)
- Highest CVR: Industrial and Commercial (12.03%), Dentists and Dental Services (9.83%), and Real Estate (9.70%)
- Lowest CVR: Physicians and Surgeons (4.81%), Automotive Repair, Service and Parts (4.86%), and Beauty and Personal Care (5.93%)
- Highest CPL: Attorneys and Legal Services ($104.58), Automotive Repair, Services, and Parts ($81.45), and Physicians and Surgeons ($57.97)
- Lowest CPL: Real Estate ($13.87), Sports and Recreation ($14.59), and Business Services ($16.95)
Expert Insights
Tyler Mask, Senior Manager of Social Advertising and Custom Solutions at LocaliQ, noted that consumer spending habits are shifting towards social platforms like Facebook due to recent advancements. He stated, "Many consumers are searching for businesses on social media first in lieu of traditional search platforms. We are seeing social platforms increasingly fill all stages in the marketing funnel, whereas search now tends to be a more bottom-of-funnel strategy."
Brett McHale, Founder of Empiric Marketing, commented on the increased conversion rates for lead generation campaigns: "The in-platform lead form is more appealing for users for particular offers, and many businesses prefer the accuracy of the leads reporting compared to other conversion actions that have greatly reduced in accuracy over the years since iOS14."
Navah Hopkins, PPC Evangelist at Optmyzr, emphasized the importance of balancing metrics: "Conversions have to be the main metric we focus on, however, given that Meta requires so many conversions for its algorithm, it can be helpful to pay attention to average CPC as well. CPC rising means fewer people are clicking on your ad, and that could be due to ad fatigue or the wrong targeting."
Goran Mirkovic, CMO at Freemius, highlighted the trend of diversifying advertising budgets: "This data shows a bigger trend in the industry where businesses are spreading their advertising budgets across different platforms to get the best reach and efficiency. Diversifying is still the smartest idea. I don't recommend going all in on one channel, regardless of if it's paid or not."
Recommendations for Advertisers
- Leverage AI-powered creative tools to improve ad visuals and CTR.
- Implement the Facebook ads conversions API for enhanced conversion tracking.
- Experiment with Advantage+ audiences to potentially lower CPC and CPL.
- Complement Facebook advertising with other marketing channels for a holistic strategy.
As Facebook advertising continues to evolve, these benchmarks provide valuable insights for businesses looking to optimize their campaigns. By understanding industry averages and leveraging expert recommendations, advertisers can work towards improving their performance and maximizing their return on ad spend in the ever-changing digital landscape.
Key Facts
- Report release date: September 30, 2024
- Data collection period: February 1, 2023 - April 30, 2024
- Number of campaigns analyzed: 2,946
- Industries covered: 20+
- Average CTR (traffic campaigns): 1.57%
- Average CPC (traffic campaigns): $0.77
- Average CVR (lead campaigns): 8.78%
- Average CPL (lead campaigns): $21.98