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Apple introduced changes with the iOS 14 update that impact how Facebook receives and processes conversion events from tools like Facebook Pixel. The tech giant now requires mobile apps to have prompts for its iOS 14 users where they get to choose whether to opt-in for tracking or not.
The update limits user information exchange with Facebook, thus prohibiting specific user data collection and sharing. As a result, attribution has become an issue, and costs as rising. Businesses that run Facebook ads and use Facebook Business tools to target audiences, track web conversion events (form submissions, clicks, etc.), advertise mobile apps, optimize ads will be affected.
Due to the less tracking of user activity, marketers have less data to work with for Facebook Ads optimization. As a result, you may be overwhelmed when your ads don’t deliver the desired performance. But as you work to improve your Facebook Ads strategy, you should have a clear idea of the FB Ads benchmarks for your industry. This will help you set targets and limits that you shouldn’t cross.
This article shares the Facebook metrics averages for different industries to help you plan your campaigns better.
Below, you will find the latest performance benchmarks for advertising on Facebook in 4 key metrics:
These Facebook metrics are for 18 industries: Auto, Apparel, Beauty, B2B, Education, Consumer Services, Employment & Job Training, Fitness, Finance & Insurance, Healthcare, Home Improvement, Industrial Services, Legal, Retail, Real Estate, Travel & Hospitality, and Technology.
The average CTR for Facebook Ads across all the 18 industries is 0.90 percent.
Figure 1: Average click-through rate by industry. Source - WordStream
Legal advertisers may experience low CTRs when they advertise their services on SERPs, but they fare much better on Facebook. With a click-through rate of 1.6 percent, legal advertisers have the highest CTR of all the 18 industries. For sure, it can be challenging to impress potential clients looking for legal services when your ad is among several other ads on SERPs. But with a clear USP and enticing CTA, legal ads stand out in a prospective client’s feed to encourage clicks.
Other industries that receive a high CTR when they run ads on Facebook include:
These industries usually feature models and great quality visuals in their ads, and it’s no surprise that their ads perform better on Facebook. Another factor contributing to the high CTR is that these industries frequently offer sales and promotions that encourage people to click their ads.
The industry with the lowest click-through rate is Employment & job services at 0.47 percent. Facebook may not be the perfect network for job seekers, and advertisers should consider other platforms like LinkedIn. It’s closely followed by Finance & Insurance (0.56 percent), Customer Services (0.62 percent), and Home Improvement (0.70 percent).
The average Facebook cost per click across all industries is $1.72.
Figure 2: Average cost per click by Industry. Source - Instapage
The highest CPC on Facebook is reserved for the Finance industry. At $3.77 per click, financial advertisers pay more than advertisers in other industries for clicks on their ads. But they are pretty satisfied with this rate on Facebook considering that terms like "Loans," "Mortgages," and "Insurance," are some of the most expensive keywords on search, with each word costing about $50 for a click.
However, considering that the financial industry has a low CTR of just 0.56 percent on Facebook, it appears that marketers are paying too much for very few clicks -- a lose-lose situation for the industry.
Other industries with a high cost per click for their Facebook Ads include:
The cheapest CPCs are paid by advertisers in the Apparel ($0.45), Travel & Hospitality ($0.63), and Retail ($0.70) industries. Costing less than a dollar, clicks in these industries are very affordable, allowing advertisers to run extensive campaigns. However, you should bear in mind that the click-through rates in these industries are high. So, you should understand how to manage your budget to ensure your advertising costs don’t run amok.
The average conversion rate for Facebook Ads across all industries is 9.21 percent, higher than that of Google Ads.
Note: Facebook ad campaigns have different objectives, and only those with the conversion objective were considered for this study.
Figure 3: Average conversion rate by industry. Source - WordStream
Facebook ads that featured Fitness content converted at a higher rate than other ads on the platform. With a conversion rate of 14.29 percent, Facebook ads prove to be effective in connecting fitness advertisers with driven prospects.
Other industries with high conversion rates when running Facebook Ads include:
However, these stats are interesting considering their respective CTRs. The employment & training industry, for instance, has one of the lowest CTRs, but when people click on the ads, they convert at a much higher rate. Similarly, while fitness FB ads have the fifth-highest CTR at 1.01 percent, they have the highest conversion rate in all the industries. The reason for this could be that the people clicking fitness ads have high intent. They know what they are looking for and wait till they're ready to take action before clicking the ads.
Unfortunately, many industries fall way below the Facebook average. Retail, travel & hospitality, and technology are industries with extremely low conversion rates at 3.26 percent, 2.82 percent, and 2.31 percent, respectively. These industries may not benefit much from Facebook's lead generation ads, but they can use remarketing strategies to connect with prospects and improve conversion rates.
Another thing you should note is that while technology ads have a higher CTR (1.04 percent), they have the lowest conversion rate (2.31 percent). A likely cause for this is that as consumers explore their options for technology services, advertisers haven’t optimized their landing pages for conversion, resulting in a low CVR.
We have shared helpful conversion rate optimization strategies you can implement to ensure you gain maximum benefits from your Facebook Ads budget in our blog, How to Get a High ROI on Facebook Ads.
Figure 4: Average cost per action by industry. Source - Instapage
The average CPA for Facebook ads across all industries is $18.68. For this study, the actions varied based on the specific goals of advertisers, such as sales, providing contact details, making a call, submitting a form, etc.
With a CPA of $7.85, Education advertisers pay the least amount for the actions they receive on their ads. As such, it’s a smart decision for education brands to advertise their services on Facebook to connect with the relatively young audience on the platform.
Other industries with a low cost per action include:
While Facebook is a great place to connect with students, it is expensive to find a car, an architect, and IT services. Advertisers in the auto industry pay an average of $43.84 for every action, while those in home improvement and IT services pay $44.66 and $55.21, respectively. However, the lifetime value for new clients in these industries is very high, making the CPAs worthwhile in the end.
For the technology industry, one of the reasons for the high CPA is user intent. Remember, Facebook is a social platform, and most people use it to connect with friends and family – not to hire for technical positions.
To achieve a lower CPA, you need to understand your audience to ensure your ads appeal to them. Your ads also need to communicate your unique offer clearly to encourage your target users to take action. Work with a growth marketing agency to improve your ad design and targeting options.
Facebook Ads have gained many fans because of the opportunities they provide advertisers in almost every industry. Facebook's advanced targeting options allow you to connect with the right audience and impress them with your offers.
The FB Ads benchmarks we have highlighted above will let you know if you're getting maximum value from your campaigns. If you notice that you're on the lower side of these benchmarks, it just means that there’s room for improvement. With some effort, you'll exceed your industry averages and attract more customers for your business. Let us know in the comments sections if you have noticed any changes in the benchmarks when running your campaigns.
Get in touch for expert advice on how to maximize your return on ad spend.