Conversion rates down in 2022

Research into the trends in the US search advertising (SEA Search Engine Advertising) market shows that in 2022 the conversion rate fell, while the cost per click (CPC) and the cost of generating a lead (CPL) increased. The CTR (Click Through Rate), on the other hand, increased. So, more ads were clicked, but advertising became more expensive and slightly less successful in conversion. This trend occurred in almost all 23 sectors surveyed. You could cautiously conclude from this that the follow-up process, converting visitor to customer, is a very important part of the advertising process and needs special attention to actually entice visitors to the website to place an order or become a customer.

In two verticals (Beauty & Personal Care, Education & Instruction), search ad conversion rates remained more or less the same. But in the Arts & Entertainment (36.2%) and Apparel, Fashion & Jewelery (34.9%) sectors, conversion rate fell sharply.
The investigation also showed the following:

Conversion rates

Sectors with the highest conversion rates:

• Animals and pets: 13.41%
• Doctors and surgeons: 13.12%
• Auto repair, service and parts: 12.61%.

Industries with the lowest average conversion rates:

• Clothing, fashion and jewellery: 1.57%
• Furniture: 2.57%
• Real estate: 2.88%.

Cost Per Lead (CPL)

The average cost per lead (CPL) was $53.52. Only the Auto Sales (-8.6%) and Beauty & Personal Care (-3.9%) industries experienced a decrease in Cost per Lead, while CPL increased in the remaining 91% of industries.
Sectors with the highest CPLs:

• Career and Employment: $132.95
• Lawyers and legal services: $111.05
• Furniture: $108.85

Sectors with the lowest CPLs:

• Auto repair, services and parts: $21.12
• Animals and Pets: $23.57
• Shopping, collectibles and gifts: for $31.50.

Click-through rates (CTR)

The average Click Through Rate (CTR) was 6.11%. CTR increased for all but two sectors. Only Business Services and the Industrial & Commercial sector declined, but this decline was not as significant as the increases in other sectors.
Sectors with the highest click-through rates:

• Arts and Entertainment: 11.78%
• Sports and recreation: 10.53%
• Travel: 10.03%.

Sectors with the lowest click-through rates:

• Lawyers and legal services: 4.76%
• Home and Home Improvement: 4.80%
• Business services: 5.11%.