What is a good cost per click for ads?
TL;DR
Google Ads averages $1-$4 for most local businesses, $5-$20 for competitive industries (legal, insurance, finance). Meta ads average $0.50-$2.50. Target a CPC where (1 / conversion rate) × CPC < customer LTV / 3.
Detailed answer
- 1.Google Search: $1-$4 (typical small business), up to $50-$200 (legal, insurance).
- 2.Meta (Facebook/Instagram): $0.50-$2.50.
- 3.TikTok: $0.50-$1.50 currently.
- 4.LinkedIn: $5-$15 (B2B).
- 5.YouTube: $0.10-$0.30 per view.
Common mistakes
- 1. Optimizing for low CPC instead of low cost per conversion.
- 2. Ignoring quality score (Google) or relevance score (Meta).
- 3. Bidding too low and getting no impressions.
What to do instead
Track cost per conversion, not cost per click. A $4 CPC that converts at 10% is cheaper than a $1 CPC that converts at 1%.
Improve ad relevance (quality score) by tightening audience-message match. A 1-point quality score increase typically cuts CPC by 16%.
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