What is your cost per lead?
Posted: Sun Jan 05, 2025 8:50 am
A high cost per lead can be the result of a lot of clicks that don’t ultimately convert. Pre-qualifying users with your ad copy and targeting more specific keywords are two ways to improve the quality of your PPC leads. You may also want to look at which keywords and ads are driving conversions at a lower cost and consider gambling data turkey allocating more of your budget to these lower-cost keywords that are likely to be more targeted. And if you’re only running paid search campaigns on Google, remember that Microsoft’s ad costs are typically lower. Advertising on multiple search engines can be a more efficient use of your overall budget. Also keep in mind that higher budgets typically result in a higher CPL (but also more leads!). For more help keeping your costs down, check out these Google Ads cost-saving tips.
Total Search Advertising Spend by Industry
The chart below shows how the relationship between cost per click and cost per lead varies by industry. Specifically, we see that a high cost per click does not necessarily equate to a high cost per lead. For example, while Dentists & Dental Services has a much higher average cost per click than Arts & Entertainment ($7.00 vs. $1.50), they both have an average cost per lead of $50. This is because the average conversion rate for Arts & Entertainment (5%) is much lower than for Dentists & Dental Services (5% vs. 11%). Why? A person is more likely to book a reschedulable dental appointment or fill out a contact form than to book, say, a non-refundable ticket to a show. Additionally, the click-through rate is much higher in the Arts & Entertainment section because people are researching their options more, whereas in the Dentistry & Dental Services section, the consumer has a clear idea of what they want.
Total Search Advertising Spend by Industry
The chart below shows how the relationship between cost per click and cost per lead varies by industry. Specifically, we see that a high cost per click does not necessarily equate to a high cost per lead. For example, while Dentists & Dental Services has a much higher average cost per click than Arts & Entertainment ($7.00 vs. $1.50), they both have an average cost per lead of $50. This is because the average conversion rate for Arts & Entertainment (5%) is much lower than for Dentists & Dental Services (5% vs. 11%). Why? A person is more likely to book a reschedulable dental appointment or fill out a contact form than to book, say, a non-refundable ticket to a show. Additionally, the click-through rate is much higher in the Arts & Entertainment section because people are researching their options more, whereas in the Dentistry & Dental Services section, the consumer has a clear idea of what they want.