Facebook Ads Conversion Rates & Benchmarks by Industry 2022

Latest Facebook advertising benchmarks by industry in four key metrics: Facebook Ads click-through rate, Facebook Ads cost per click, Facebook Ads conversion rates, and Facebook Ads cost per action.

Introduction

As Facebook’s advertiser base continues to grow, so too does the range of possibilities for marketing your product to your target audience. With the platform’s wide variety of ad formats and audience targeting options, you can be sure to find the perfect way to reach the users you want to convert.

From the perspective of the user, they can quickly become numb to advertising messages and ignore them completely.  The phenomenon of ad fatigue and banner blindness is a real challenge for marketers. So, how can campaigns be designed to achieve positive results?

And, in the process, how do those results compare to Facebook benchmarks?

Facebook ads conversion rates

Below you will find the latest Facebook advertising benchmarks by industry in four key metrics: click-through rate, cost per click, conversion rate, and cost per action.

Click-through rate

The average Facebook click-through rate across all industries surveyed is 0.90%. This means that if you’re advertising on Facebook, you can expect about a 0.9% click-through rate on average. However, keep in mind that this number will vary depending on your industry. For example, advertisers in the legal industry may have below-average CTRs on Google’s Search Network, but not on Facebook.

The lower CTR on one platform could be because users are more difficult to impress when ads blend in on the SERP. However, a lawyer’s UVP, enticing CTA, and scroll-stopping image are much more likely to stand out.

Other industries that have seen higher CTRs include: 

Retail (1.59%) 

Apparel (1.24%) 

Beauty (1.16%) 

Technology (1.04%) 

Fitness (1.01%)

It’s interesting to note that the industries whose ads perform best on highly visual platforms like Facebook tend to be those that feature high-quality images of people. Other factors that could contribute to higher CTRs in these industries include frequent sales, promotions, discounts, and giveaways.

The industries with the lowest average Facebook click-through rates are employment & job training services (0.47%), finance & insurance (0.56%), customer services (0.62%), home improvement (0.70%), industrial services (0.71%), education (0.73%), and B2B (0.78%).

These industries have lower Facebook CTRs because people looking for these services tend to search on other platforms like Google. Mostly users browse Facebook for social reasons, not as a tool to improve their career aspirations, hire plumbers, or further their education.

The Google Ads Benchmarks showed a great deal of variation in CTR between the Search Network (5.06%) and the Display Network (0.50%). Similarly, Facebook CTR (0.90%) is quite different from the Google Search CTR, but more similar to the display CTR.  The most likely explanation for this discrepancy is the differing intent of users on each platform.

Someone clicking a Facebook ad is likely to have a different purpose than someone clicking a Google ad; the latter is based on keywords, and thus users are actively seeking specific results, while the former are generally scrolling through their feed and viewing photos or interacting on Messenger.

Cost per click

The average Facebook cost per click (CPC) across all industries is $1.72. The average Facebook cost per click (CPC) for financial advertisers is $3.77, which is significantly higher than the average CPC across all industries of $1.72. Financial advertisers also have the second-lowest click-through rate (CTR), which means that not only are few people clicking on their ads, but advertisers are also paying more per click. This is a lose-lose situation for financial advisers.

 Apparel, travel, and hospitality boast some of the lowest CPCs in contrast to financial advertisers. This is beneficial for these industries as it allows for clicks well below $1. Retail and apparel also have high CTRs, which is a win-win for these two industries.

Despite having low CPCs, it is still essential for businesses in these industries to understand how to manage their Facebook advertising budgets effectively, as they often have large audiences..

Conversion rate

The average Facebook ad conversion rate is significantly higher than the Google Ads conversion rate, at 9.21%. This is especially true for advertisers in the fitness, education, and employment & job training industries, where conversion rates average 14.29%, 13.58%, and 11.73%, respectively.

The fact that the employment & job training industry has the lowest CTR but conversion rate at the third-highest could be due to the fact that people who are interested in this industry are more likely to act on their interest. Similarly, while fitness ads have a lower CTR, they have the highest conversion rate. This could be because people who are interested in fitness are more likely  to not click through until they are motivated to take action.

Many industries have extremely low Facebook conversion rates, with retail (3.26%), travel & hospitality (2.82%), and technology (2.31%) are being some of the worst offenders having extremely below-average rates . 

It’s worth noting that technology has a higher CTR but the lowest conversion rate. A likely cause of this discrepancy might be that people are exploring their options for technology solutions, but advertisers are not optimizing the post-click landing page.

Cost per action

The average cost per action on Facebook is $18.68. This figure varies based on the advertisers’ specific goals, which can include sales, providing contact information, submitting a form, or placing a call.

Technology advertisers spending an average of $55.21 per action significantly outpace education advertisers in terms of ad spending. As a result, while Facebook may be an effective platform for higher education programs to attract new students, it can be quite costly for businesses seeking to hire new computer programmers.

The technology industry has a high CPA for a variety of reasons, one of which is the intent of users. Facebook is primarily a social media platform where people interact with friends and family, rather than a site used to hire for technical positions. Therefore, the vast majority of people who use Facebook are not interested in hiring for such technical positions, which contributes to the high CPA.

Other industries with high CPAs include home improvement, auto, and finance & insurance, while other below-average industries are healthcare and real estate.

What is a good conversion rate for FB ads?

When discussing the success of an ad campaign, the conversion rate is the go-to metric. This metric tells you exactly how many visitors convert from your ad. The term “conversion” can vary depending on your goals, whether it’s selling products, getting visitors to complete a survey, or booking a phone call. By looking at the conversion rate, you can quickly and easily see how effective your ad campaign was.

To calculate your conversion rate percentage, simply take the number of conversions and divide it by the number of visitors. Then, multiply that figure by 100. For example, if your Facebook ad gets 2 out of 50 people to buy a product, your conversion rate would be 4%.

It’s important to remember that a high conversion rate doesn’t necessarily mean your ad is more profitable. In fact, an ad with a lower conversion rate could actually be more profitable if it results in more sales.

There are many factors that affect conversion rates. For Facebook campaigns, conversion rates will vary depending on the industry and the campaign goals. Wordstream‘s Facebook Ad benchmarks show that the average conversion rate for paid Facebook ads across all industries is 9.21%. Therefore, a “good” conversion rate for your Facebook Ads should be around 10% or more.

To get an idea of whether your Facebook ad conversion rate is good, you need to compare it to industry-specific conversion rates. For example, the fitness industry has a 14.29% conversion rate, while the travel industry’s conversion rate is only 2.82%. This doesn’t necessarily mean that Facebook ads are bad for your business, but it’s important to be aware of how your industry compares.

We must remember that these numbers refer only to conversions and not to actual revenue generated or expenditure on advertising. For example, a fitness company may sell a supplement for $20, while a company in the travel industry could potentially book a client for $500 per day. However, the conversion rate is counted the same for both

The higher conversion rates for some industries can be explained by the fact that some products are simply easier to sell than others. For example, fitness-related ads tend to cost three times as much as travel-related ads. This is something to keep in mind when analyzing conversion rates across different industries.

It is still a good goal for businesses to increase their conversion rates, and they should strive to maintain a conversion rate that is above average for their industry. However, Neil Patel, a marketer, disagrees with this approach. According to Neil Patel, businesses should not chase after conversion rates that are above average, instead they should focus on improving their current rates. If you want to improve your business’ conversion rate on Facebook ads, having currently a 3% conversion rate, you should aim to improve that number to a 6% conversion rate.

What is the average CTR for Facebook Ads 2022?

The click-through rate (CTR) is a metric that measures the success of an online advertisement in terms of how often users click on the ad after seeing it. A high CTR indicates that users are finding the ad relevant and useful, and are therefore more likely to take the desired action, such as making a purchase or signing up for a newsletter.

The basic formula for calculating CTR is: Number of Ad Clicks ÷ Number of Ad Impressions x 100 = Click-Through Rate (%) On Facebook, the average CTR across all industries is 0.90%. This means that, on average, one person will click on a Facebook ad for every 111 impressions. It is projected that the average Facebook ads CTR will be 0.90% in 2022.

What is the average ROI for Facebook Ads?

The Facebook advertising platform is the most promising social advertising platform for eCommerce, with 1.86 billion users, an average ROI of 152%, an average conversion rate of 1.85%, and 85% of social media orders.

Despite the promising statistics, it is still necessary to demonstrate that Facebook Ads is effective for your eCommerce business. Other social media platforms may provide a better return on investment or conversion rate, so it is important to test various options before investing heavily in one particular option.

What is the average cost per conversion on Facebook?

Cost per conversion is a key metric for determining the financial viability of your marketing and acquisition efforts. Ideally, your cost per conversion should not exceed your conversion value, as this would mean you’re paying more for a conversion than it is worth. This metric is calculated by dividing your total cost by the number of conversions achieved. By closely monitoring your cost per conversion, you can ensure that your marketing and acquisition efforts are delivering a positive return on investment.

Facebook is the most popular social media platform in the world, and with demographically targeted ads, it is a very attractive advertising channel. Facebook boasts that it delivers the “highest ROI” for marketers, and in 2018, Facebook had 2.4 billion average monthly active users, making Facebook an excellent digital marketing channel for advertisers.

With Facebook advertising, businesses only pay when a user actually clicks on the ad. The cost varies by the type of campaign, ranging from as little as $0.01 per click to as much as $50 per click. However, the average click-through rate (CTR) for Facebook campaigns is 0.2%, which means that on average, 2 out of every 1000 people who see the ad click to visit the advertiser’s site.

How do I increase conversion rate on Facebook ads?

As a marketer, you’re always looking for ways to reach more people and convert them into customers. Facebook ads is one of the most powerful platforms available. However it can be difficult to increase your conversion rates for Facebook ads. You have to find the right balance between budget, creative, and technical elements to be successful. With the right strategy, you can reach a huge audience and boost your conversion rates.

Here are some tips to help improve your Facebook ad conversions:

1. Clearly define your conversion event. What do you want people to do when they see your ad? 

2. Keep your destination in mind. Make sure it is clear what you want people to do and where you want them to go. 

3. Create relevant and  eye-catching visuals. Use images and videos that will grab attention and make people want to learn more. 

4. Try to keep the copy short and sweet. Get to the point quickly and use language that is easy to understand. 

5. Include a direct call-to-action in your ads. Tell people exactly what you want them to do, such as click on a link or visit your website. 

6. Always keep trying to broaden your audience. Try targeting different groups of people to see who is most responsive to your ad. 

7. Keep optimizing your ads for conversions. Use data from your previous campaigns to improve your current strategy.

8. Choose the right ad format for your campaign goals. 

9. Track your ads across multiple devices to get a complete picture of your audience’s engagement. 

10. Use your analytics insights to improve your targeting and messaging.

images from https://instapage.com/blog/facebook-advertising-benchmarks