According to Google Economic Impact data, businesses across all industries typically generate $2 in revenue for every $1 they invest in Google Ads. Very few marketing channels boast such outstanding effectiveness. If you add to this the fact that the effects of PPC campaigns occur much faster than, for example, those from SEO campaigns, and that the data obtained from PPC can even feed the latter, it becomes clear why so many companies base their marketing strategies on paid advertising.
In this post, we scrutinize the PPC conversion rate definition, explain how to calculate it, and present how to improve it. Also, we reveal:
- the industry averages for PPC conversion rates,
- the average conversion rates for different PPC ad platforms,
- general ranges for bad, average, and good conversion rate.
Let’s get to it!
What is PPC Conversion Rate?
The PPC (Pay-Per-Click) Conversion Rate is a metric used in digital marketing to measure the percentage of clicks on a PPC ad that results in a conversion. A conversion can be defined as any desired action that a user takes after clicking on the ad, such as making a purchase, filling out a form, signing up for a newsletter, or downloading a resource.
A higher conversion rate indicates that a greater proportion of the clicks on your ad are leading to conversions, which usually suggests that your ad is well-targeted and effective in driving desired actions from users.
How to Calculate PPC Conversion Rate?
To calculate it, use the following PPC conversion rate formula:
For example, if your PPC ad receives 1,000 clicks and results in 50 conversions, the PPC Conversion Rate would be:
PPC Conversion Rate = (50 / 1000) × 100= 5%
To calculate PPC conversions (various indexes, including CR), you may also use CR calculators available online. Just type in Google “conversion rate calculator” or “PPC conversions calculator” and choose the right tool from the pages displayed in SERPs.
What is a Bad PPC Conversion Rate?
The bad conversion rate for PPC is below 1,2%, but it generally depends on the industry and platform used.
The most competitive industries have much lower average conversion rates than less competitive ones. For instance, while 1,2% is a very bad score in Automotive or Dating & Personals (where the average conversion rate is over 5%), it’s simultaneously not so bad in Law & Advocacy (with industry average CR below 2%).
The same goes for the ad channel. The average conversion rate of 1,2% is a very bad result in Amazon Ads (with an average conversion rate above 9%), but can be normal in Instagram Ads (where the average conversion rate is above 1).
Interestingly, the average conversion rates for some ad platforms, such as Instagram, Snapchat, or X, are below 1.2%! This should be interpreted carefully, as these platforms have millions of users (potential leads and clients), so for some companies, this level may be acceptable. Anyway, it always means you can (and should!) increase your PPC conversion rate, as you haven’t given it your all.
What is Average PPC Conversion Rate?
The average PPC conversion rate also varies depending on the industry (from 1.96% in Advocacy to 9.64% in Dating & Personals) and ad platform used (from 0.6% for Snapchat to over 12% for YouTube Ads). Generally, we can assume that the average conversion rate is between 3,5% and 10%, as this is correct for most industries and ad channels.
What is a Good PPC Conversion Rate?
A good PPC conversion rate is over 5%, while a CR exceeding 8% is very good. In some industries and platforms, achieving such values may be easier than in others. For example, using LinkedIn Ads in the legal industry may be a perfect combination, as the ad channel fits well with the industry, while the average CR for both of them significantly exceeds 5%. This score may be, however, unreachable for e-commerce businesses with an average CR under 3%, especially if they utilize platforms with relatively poor average conversion rates (TikTok, Snapchat, etc.).
What are the PPC Conversion Rate Among Industries?
Average CRs vary depending on the platform and type of ad, so below we will present results only for the most popular one for which complete and reliable data is available, i.e., Google Ads in two variants: search network ads (SN) and display network ads (DN). The average conversion rate from PPC by industry in 2024 is as follows:
- Advocacy – 1.96% (SN) and 1.00% (DN),
- Auto – 6.03% (SN) and 1.19% (DN),
- B2B – 3.04% (SN) and 0.80% (DN),
- Consumer Services – 6.64% (SN) and 0.98% (DN),
- Dating & Personals – 9.64% (SN) and 3.34% (DN),
- E-Commerce – 2.81% (SN) and 0.59% (DN),
- Education – 3.39% (SN) and 0.50% (DN),
- Employment Services – 5.13% (SN) and 1.57% (DN),
- Finance & Insurance – 5.10% (SN) and 1.19% (DN),
- Health & Medical – 3.36% (SN) and 0.82% (DN),
- Home Goods – 2.70% (SN) and 0.43% (DN),
- Industrial Services – 3.37% (SN) and 0.94% (DN),
- Legal – 6.98% (SN) and 1.84% (DN),
- Real Estate – 2.47% (SN) and 0.80% (DN),
- Technology – 2.92% (SN) and 0.86% (DN),
- Travel & Hospitality – 3.55% (SN) and 0.51% (DN).
Source: Wordstream data.
What is Average PPC Conversion Rate by Platform?
The average conversion rates from PPC by platform are as follows (ranked from lowest to highest CR value):
- for Snapchat – about 0.6% (BeProfit data),
- for X (formerly: Twitter) Ads – below 1% (noted by easyInsights),
- for Instagram Ads – around 1% (stats by Bazaarvoice),
- for Pinterest Ads – 1.16% (Invesp report),
- for TikTok Ads – between 1.2 and 1.8% (Mega Digital report),
- for Quora Ads – between 2 and 5% (based on users’ comments),
- for Bing Ads – 2,94% (Mega Digital report),
- in Google Ads averages are 3.75% for search, and 0.77% for display advertisements (according to WebFX),
- for LinkedIn Ads in the United States – 6.1% (reported by Hubspot),
- for Facebook Ads – 9.1% (Instapage report),
- for Amazon Ads – 9.44 (Ad Badger stats),
- for Youtube Ads – 12% (based on Upbeat data).
As you see, the highest average conversion rate is observed on YouTube Ads, while the mean CR in Snapchat Ads seems to be the lowest one. I consciously excluded Apple Ads from the list, for which the average CR is reported to be above 60%, but such information is based on Apple statements, so it’s not fully credible in this case.
How to Increase your PPC Conversion Rate?
To increase PPC conversion rates, you can optimize ad copy, perform thorough keyword analysis, enhance your landing pages, implement testing and monitoring, and leverage AI. In general, PPC CR optimization should combine various elements of strategic planning, data analysis, and perfecting technical aspects. Here is the detailed roadmap for this process.
1. Optimize ad copy and headlines:
- use compelling headlines: ensure your headlines grab attention and clearly convey the value proposition;
- refine on-page messaging: make your copy not only interesting and relevant to your audience, but also addressing their key pain points;
- highlight unique selling points (USPs): emphasize what sets your product or service apart from competitors.
2. Target relevant keywords:
- perform thorough keyword research: identify and bid on keywords that are highly relevant to your business and have a high intent to convert;
- use negative keywords: exclude terms that are irrelevant or unlikely to lead to conversions to avoid wasted spend.
3. Improve landing pages:
- ensure relevance: match the ad and landing page in terms of content, style, tone of voice, etc.,
- include clear calls to action (CTAs): guide users on what to do next with CTAs such as “Buy Now,” “Sign Up Today,” or “Learn More”;
- simplify navigation: make it easy for visitors to find what they’re looking for without distractions;
- optimize for mobile: ensure your landing pages are mobile-friendly, as many users access ads from their mobile devices;
4. Perform A/B testing:
- test different ad variations: experiment with different headlines, descriptions, and CTAs to see what performs best;
- test landing page elements: try different layouts, images, forms, and content to find the most effective combination.
5. Use ad extensions:
- add sitelink extensions: provide additional links to other relevant pages on your site;
- use call extensions: allow users to call your business directly from the ad;
- include location extensions: show your business address and map link for local searches.
6. Target the right audience:
- refine audience segmentation: use demographic, geographic, and behavioral targeting to reach the most relevant audience;
- retarget visitors: use retargeting campaigns to re-engage users who have previously visited your site but did not convert.
7. Monitor and analyze performance:
- regularly review campaign metrics: track and analyze key performance indicators (KPIs) such as CTR, conversion rate, and cost per conversion;
- adjust bids and budgets: allocate more budget to high-performing ads and reduce spend on underperforming ones.
8. Leverage automation and AI:
- use smart bidding strategies: employ automated bidding strategies that use machine learning to optimize for conversions;
- utilize dynamic search ads: let Google dynamically generate ads based on the content of your website.
If your ad strategy is properly configured and reaches the right audience, your quality score (visible in Google Ads and a few other platforms) should increase.
Remember, the conversion rate is maximized through continuous optimization, so you shouldn’t stop searching for improvements
How can the Quality of the Landing Page Improve the PPC Conversion Rate?
Improving the quality of a landing page can significantly enhance the PPC (Pay-Per-Click) conversion rate, as it directly impacts user experience, which is frequently a leverage for conversions. To achieve this, you should focus on fundamentals like ensuring content relevance, optimizing page technical performance, and addressing branding issues that is an area of subtle interplay between consistency and personalization. The key points you should implement are indicated below.
- Relevance and alignment: Ensure the landing page content closely aligns with the ad copy and keywords. When visitors find the content relevant to their search query or the ad they clicked on, they are more likely to convert.
- Clear and compelling call-to-action (CTA): Use clear, concise, and compelling CTAs that guide the visitor toward the desired action. The CTA should be prominently displayed and easy to find.
- Optimized page load speed: Conversion rate can be affected by the load time of the landing page. Slow-loading pages can frustrate visitors and lead to high bounce rates, negatively affecting conversion rates. Thus, make sure your page loads smoothly.
- Responsive design: Ensure the landing page is mobile-friendly and responsive. A significant portion of PPC traffic comes from mobile devices, so poor mobile experience can hinder conversions.
- Trust signals: Incorporate trust signals such as testimonials, reviews, security badges, and guarantees. These elements can build trust and reassure visitors, making them more likely to convert.
- Simplified forms: Use short and straightforward forms. Minimize the number of fields to reduce friction and make it easier for visitors to complete the form.
- Visual appeal and professional design: Use a clean, professional, and visually appealing design. High-quality images, videos, and a well-organized layout can enhance user experience and increase engagement.
- Relevant and persuasive content: Provide valuable, relevant, and persuasive content that addresses the visitor’s needs and pain points. Highlight the benefits and unique selling points of your product or service.
- A/B testing and optimization: Reaching a high conversion rate requires A/B testing. Perform them continuously on different elements of the landing page, such as headlines, images, CTAs, and layout. Optimize pages and ads based on the test results to improve performance.
- Clear value proposition: Clearly communicate the value proposition. Visitors should immediately understand what they will gain from taking the desired action.
- User-friendly navigation: Simplify navigation to keep visitors focused on the conversion goal. Avoid unnecessary links or distractions that can lead them away from the desired action.
- Consistency and branding: Maintain consistency in branding and messaging throughout the landing page. This creates a cohesive and professional impression that can enhance credibility and trust.
What are the Best Tools to Improve PPC Conversion Rate?
The best tools for improving PPC conversion rates are Google Ads, Landingi, HubSpot, Hotjar, Optimizely and SEMrush. Why did we point out these particular tools? Let’s look at them and their features a bit closer, and the answer will be clear.
1. Google Ads (earlier: Google AdWords)
Google Ads is Google’s advertising platform that allows businesses to create and manage ads displayed in search results and on partner websites. It’s crucial for precise targeting, optimization, and analysis of PPC campaigns, helping to increase conversions.
Application (key function): Managing and optimizing advertising campaigns on Google search and Google display network.
UVP: Well, it’s Google! Unsurprisingly, their network offers unparalleled reach and targeting capabilities, allowing businesses to effectively connect with potential customers worldwide.
Useful features:
- Advanced targeting,
- Ad extensions,
- Automated bidding,
- Detailed performance insights,
- Integration with Google Analytics.
2. Landingi
Landingi is a comprehensive digital marketing platform for building and optimizing pages, pop-ups and other digital assets. It allows for quick creation and testing of different page versions, which is essential for increasing PPC conversion rates. Additionally, Landingi constantly evolves to become an all-in-one solution, so you can expect on the board many useful tools for different purposes.
Application (key function): Creating and optimizing landing pages.
UVP: Landingi has hundreds of predesigned and ready-to-use templates for different campaigns and industries, which is really time-saving.
Useful Features:
- Drag-and-drop page builder,
- Broad testing and optimization capabilities,
- Integration with marketing tools,
- Performance analytics,
- AI and multi-language solutions.
3. HubSpot
HubSpot offers a comprehensive platform for marketing automation, including tools for PPC campaign management and detailed analytics. It helps streamline marketing efforts and improve conversion rates by providing a centralized location for managing all marketing activities.
Application (key function): Managing PPC campaigns and conversion optimization.
UVP: HubSpot integrates all marketing tools into one seamless platform, offering advanced CRM capabilities that set it apart from other tools. Its unique feature set enables not just the optimization of PPC campaigns but also the nurturing of leads through the entire marketing funnel.
Useful Features:
- Marketing automation
- A/B testing
- Detailed analytics
- Lead tracking and management
- CRM integration
- Email marketing automation
- Social media management
- Comprehensive reporting and dashboards
HubSpot’s integrated CRM allows for a more holistic view of customer interactions, making it easier to tailor marketing efforts and track the effectiveness of PPC campaigns in the context of broader marketing goals. This integration enables deeper insights and more precise targeting, ultimately leading to improved conversion rates.
4. Hotjar
Hotjar provides insights into user interactions on your landing pages through heatmaps, session recordings, and feedback polls. This helps identify areas for improvement and optimize pages for better conversion rates.
Application (key function): Analyzing user behavior on landing pages.
UVP: Hotjar helps identify friction points and areas of opportunity, directly leading to more effective PPC campaigns and higher conversion rates.
Useful Features:
- Heatmaps
- Session recordings
- User feedback polls
- Conversion funnels
- Form analysis
5. Optimizely
Optimizely is a platform for A/B testing and personalization that helps businesses experiment with different variants of web pages and ads to find the most effective combinations. This is key for improving conversion rates by optimizing user experiences.
Application (key function): Testing and personalizing web pages and ads.
UVP: Optimizely provides powerful tools for testing and personalizing user experiences, driving higher engagement and conversion rates.
Useful Features:
- A/B and multivariate testing
- Personalization
- Real-time analytics
- Visual editor for experiments
- Audience targeting
6. SEMrush
SEMrush is an all-in-one marketing toolkit that provides extensive features for keyword research, competitor analysis, and PPC campaign optimization. It helps marketers identify high-performing keywords, analyze competitors’ strategies, and optimize their PPC efforts for better performance.
Application (key function): Keyword research and SEO tools.
UVP: SEMrush provides in-depth competitive analysis, allowing you to uncover your competitors’ PPC strategies, ad copies, and keywords.
Useful Features:
- Extensive keyword research
- Competitive analysis
- PPC campaign optimization tools
- Ad tracking
- Detailed analytics and reporting
- SEO and content marketing integration
Boost Your PPC Conversion Rate with Landingi
As you saw, no PPC campaign can be successful without a compelling landing page. PPC conversion rate is finally dependent on how effective it is in guiding users to undertake desired actions like making a purchase or subscribing to a newsletter. Thus, it’s crucial to nail it in every detail.
In Landingi you have on hand a bunch of tools for building better landing pages than your competitors. From over 300 page templates for different industries, through plenty of customization options and almost endless integration capabilities, to the most extensive conversion rate optimization set in the business (with advanced testing and user on-page behavior tracking at the forefront).
Add to this constantly perfected AI pack (for refining content and SEO strategy) and instant multilingual translations (for boosting engagement and expanding on foreign markets) to unlock the real power of digital marketing synergy.
Hop on a free trial and check out with no risk how Landingi can improve your PPC ads campaigns.
