This report provides an analysis of the average conversion rates for various business types utilizing Google Search advertising, examining data from 2023 and 2024. The analysis reveals significant variations in conversion performance across different sectors. In 2023, home services and legal industries generally exhibited higher average conversion rates, while e-commerce/shopping tended to have lower rates. A comparison between 2023 and 2024 indicates some shifts in these averages, with certain industries experiencing notable increases or decreases. These trends are influenced by a multitude of factors, including the nature of the business, target audience behavior, competitive landscape, ad quality, and landing page effectiveness. Understanding these benchmarks and the underlying factors is crucial for businesses to evaluate their advertising performance and identify opportunities for optimization.
Conversion rate, the percentage of ad interactions that result in a desired action, is a key metric for evaluating the success of Google Search advertising campaigns. Industry benchmarks for conversion rates offer valuable context for businesses to assess their performance relative to their peers, establish realistic objectives, and pinpoint areas where improvements can be made. This report aims to provide a comprehensive overview of average Google Search advertising conversion rates across several key business types, drawing upon recent studies and reports from reputable marketing research firms and advertising platforms. The timeframe for the data analyzed primarily spans from early 2023 to the present. Given that a substantial portion of pay-per-click (PPC) budgets is allocated to Google Ads, understanding performance on this platform is particularly important for advertisers.
Average Conversion Rates by Business Type in 2023
Home Services
In 2023, the home services sector demonstrated a relatively strong average conversion rate on Google Search Ads. According to one report, the average conversion rate for home services search ads was 10.22%. However, a more granular look reveals significant variations within this broad category. For instance, plumbing businesses showed an average conversion rate of 15.61%, while pest and rodent control services averaged 15.52%, and air conditioning sales reached 15.11%. Conversely, construction and contractors (general) had a much lower average of 3.65%, and roofing and gutters averaged 5.58%. This wide range, from 3.65% to 15.61%, indicates that the specific nature of the home service offered significantly impacts conversion dynamics. Services addressing immediate needs, such as plumbing or pest control, tend to have higher conversion rates, likely due to the urgency of the user's search. In contrast, services like general contracting might involve a longer decision-making process.
Legal
The legal industry also exhibited a noteworthy average conversion rate on Google Search Ads in 2023. One study reported an average conversion rate of 9.21% for attorneys and legal services. Further analysis indicates variations based on the specialization of law. For example, data from another source shows that bankruptcy law had a high average conversion rate of 13.56%, while criminal law averaged 9.90%, and estate and probate law (including wills) stood at 9.65%. Accidents and personal injury law had a lower average of 5.45%. The generally high conversion rate in the legal sector can be attributed to the high value of legal services and the often urgent need for professional assistance. The differences in conversion rates across legal specializations suggest that the specificity and intent behind the search query play a crucial role.
E-commerce/Shopping
The e-commerce and shopping sector generally experienced a lower average conversion rate on Google Search Ads compared to service-based industries in 2023. The average e-commerce conversion rate for Search Ads was reported as 2.81%. Another source provided a slightly lower blended average of 2.0% for B2C e-commerce. This lower rate can be influenced by various factors such as the prevalence of browsing behavior, extensive price comparisons conducted by online shoppers, and a typically longer purchase journey. Data also suggests variations within e-commerce based on product categories, although specific figures for 2023 were not consistently available across the provided snippets.
Finance
The finance industry showed a moderate average conversion rate on Google Search Ads in 2023. One report indicated an average conversion rate of 4.01% for finance and insurance 5, while another source reported a similar figure of 4.11%. The complexity of financial products and services often necessitates thorough research and consideration before a decision is made, which can contribute to a moderate conversion rate. The competitive nature of the finance sector can also impact these figures.
Healthcare
The healthcare industry presented a varied landscape in terms of average conversion rates on Google Search Ads in 2023. While one broad category, health and fitness, had an average of 4.18% 5, a more specific segment, physicians and surgeons, showed a much higher average of 13.12%. Within the broader healthcare category, conversion rates ranged from 3.60% for personal fitness trainers to 13.12% for physicians and surgeons. Similar to the legal sector, specific medical services often address urgent needs, leading to higher conversion rates compared to more general health-related searches.
Education
The education industry's average conversion rate on Google Search Ads in 2023 also showed some variation across sources. One report listed an average of 4.10% for education and instruction, while another indicated a higher average of 7.07%. These differences might reflect variations in the types of educational programs being advertised or the specific conversion goals being tracked (e.g., inquiries vs. applications).
Other Industries
Beyond the primary categories, data from 2023 also reveals average conversion rates for other business types. Business services had an average of 5.47%, real estate showed a lower average of 1.55%, and restaurants and food averaged 1.95%. The lower rate for real estate might be due to the significant investment and long decision-making process involved in property transactions.
Summary of Average Conversion Rates by Business Type (2023)
(different sources may have different %)
| Business Type | Average Conversion Rate, % |
|---|---|
| Home Services (Overall) | 10.22 |
| Plumbing | 15.61 |
| Pest & Rodent Control | 15.52 |
| AC Sales | 15.11 |
| Construction & Contractors | 3.65 |
| Roofing & Gutters | 5.58 |
| Attorneys & Legal | 9.21 |
| Bankruptcy Law | 13.56 |
| Criminal Law | 9.90 |
| Estate & Probate Law | 9.65 |
| Accidents & Personal Injury Law | 5.45 |
| E-commerce/Shopping (Overall) | 2.81 |
| B2C E-commerce | 2.00 |
| Finance & Insurance | 4.01 |
| Finance & Insurance | 4.11 |
| Health & Fitness | 4.18 |
| Physicians & Surgeons | 13.12 |
| Personal Fitness Trainers | 3.60 |
| Education & Instruction | 4.10 |
| Education & Instruction | 7.07 |
| Business Services | 5.47 |
| Real Estate | 1.55 |
| Restaurants & Food | 1.95 |
Average Conversion Rates by Business Type in 2024
Home Services
Data from 2024 indicates a slight variation in the average conversion rate for the home services sector. Reports from WordStream and LocaliQ both show an average of 8.62% for home and home improvement. PPC.io reported a higher average of 10.22% for home and home improvement. Comparing these figures to the 2023 average of 10.22% from LocalIQ, some sources suggest a potential decrease, while others remain consistent. This might reflect increased competition or changes in consumer behavior within the home services market.
Legal
The average conversion rate for the legal industry in 2024 also presents a range of figures. WordStream and LocaliQ both report an average of 5.64% for attorneys and legal services, while PPC.io indicates a higher average of 9.27%, and StoreGrowers reports 6.98% for legal. Compared to the 2023 average of 9.21% from WordStream, some sources show a decrease, while others remain relatively stable. These variations highlight the importance of considering the source of the data and potentially the specific legal niches included in each report.
E-commerce/Shopping
Average conversion rates for the e-commerce/shopping sector in 2024 continue to show variability. WordStream and LocaliQ report an average of 3.49% for shopping, collectibles & gifts, while PPC.io indicates a higher average of 8.25% for B2C e-commerce, and StoreGrowers reports 2.81% for e-commerce. Compared to the 2023 average of 2.81% from StoreGrowers and 2.0% from PPC.io, the 2024 data suggests some fluctuations, possibly due to the dynamic nature of the online retail market and the influence of various factors like product type and market competition.
Finance
In 2024, the finance industry's average conversion rate on Google Search Ads also shows some divergence across reports. WordStream and LocaliQ both report an average of 2.78% for finance and insurance, while PPC.io indicates a higher average of 6.47%, and StoreGrowers reports 5.10%. When compared to the 2023 averages of 4.01% (WordStream) and 4.11% (PPC.io), some data suggests a decrease in 2024, potentially reflecting economic uncertainties or shifts in consumer behavior regarding financial products.
Healthcare
The healthcare sector's average conversion rates in 2024 continue to vary depending on the specific segment. WordStream reports 7.40% for health & fitness, LocaliQ indicates 11.08% for physicians & surgeons, PPC.io shows 6.5% for healthcare, and StoreGrowers reports 3.36% for health & medical. Comparing these to the 2023 figures of 4.18% (Health & Fitness) and 13.12% (Physicians & Surgeons) from WordStream, and a range of 3.60% to 13.12% from PPC.io, the 2024 data reinforces the trend of higher conversion rates for specific medical services compared to broader health and fitness categories.
Education
Average conversion rates for the education industry in 2024 also present a range of values. WordStream and LocaliQ both report 7.91% for education & instruction, while PPC.io indicates 9.61%, and StoreGrowers reports a lower average of 3.39% for education. Compared to the 2023 averages of 4.10% (WordStream) and 7.07% (PPC.io), the 2024 data suggests some fluctuations, possibly due to different methodologies or the focus on varying types of educational programs.
Other Industries
Data from 2024 also provides insights into other business types. PPC.io reports an average conversion rate of 6.8% for business services, 4.36% for real estate, and 10.05% for restaurants & food. Comparing these to the 2023 figures, some industries like real estate and restaurants & food show a notable increase in average conversion rates.
Table 2: Summary of Average Conversion Rates by Business Type (2024):
(different sources may have different %)
| Business Type | Average Conversion Rate, % |
|---|---|
| Home & Home Improvement | 8.62 |
| Home & Home Improvement | 10.22 |
| Attorneys & Legal | 5.64 |
| Legal | 6.98 |
| Attorneys & Legal | 9.27 |
| Shopping, Collectibles & Gifts | 3.49 |
| E-commerce | 2.81 |
| B2C E-commerce | 8.25 |
| Finance & Insurance | 2.78 |
| Finance & Insurance | 5.10 |
| Finance & Insurance | 6.47 |
| Health & Fitness | 7.40 |
| Physicians & Surgeons | 11.08 |
| Healthcare | 6.50 |
| Health & Medical | 3.36 |
| Education & Instruction | 7.91 |
| Education | 3.39 |
| Education & Instruction | 9.61 |
| Business Services | 6.80 |
| Real Estate | 4.36 |
| Restaurant & Food | 10.05 |
Trends and Comparisons
Comparing the average conversion rates between 2023 and 2024 reveals some interesting trends. While click-through rates generally improved for most industries in 2024, conversion rates saw a decrease for 12 out of 23 industries, albeit a minimal average decrease of 1%. Notably, the apparel/fashion & jewelry and career & employment industries experienced substantial increases in conversion rates, while finance & insurance and dentists & dental services saw significant decreases. This overall slight decrease in conversion rates in 2024, despite higher click-through rates, suggests that while ads are becoming more effective at attracting clicks, converting those clicks into desired outcomes is becoming more challenging. This could be due to various factors such as the quality of landing pages, the relevance of offers, or increased scrutiny from users. Economic factors, such as inflation, are also likely contributing to these shifts, as consumers may be more deliberate in their purchasing decisions.
Factors Influencing Conversion Rates on Google Search
Several factors can significantly influence conversion rates on Google Search. The target audience plays a crucial role, as different demographics and their specific needs will impact their likelihood to convert. The level of competition within a given industry can also affect conversion rates. Highly competitive markets may see increased ad costs and potentially lower conversion rates if businesses struggle to differentiate themselves. Ad quality, encompassing factors like ad relevance, compelling ad copy, and the effective use of ad extensions, is essential for attracting clicks that are more likely to convert. The landing page experience is equally critical. A landing page that is relevant to the ad, easy to navigate, has a clear call to action, and loads quickly is more likely to result in a conversion. Seasonality can also impact conversion rates, with certain industries experiencing peaks and troughs at different times of the year. Other influencing factors include the device type used by the searcher (mobile vs. desktop), the precision of location targeting, and the broader economic climate. The psychology of the buyer also plays a significant role; industries addressing immediate problems often see higher conversion rates.
Conclusion
The average conversion rates for various business types on Google Search advertising exhibit considerable variation. In both 2023 and 2024, sectors like home services and specific areas within legal and healthcare often demonstrated higher average conversion rates, likely driven by urgent user needs. E-commerce/shopping generally showed lower rates, potentially due to longer purchase journeys and price comparison behaviors. Trends between 2023 and 2024 suggest a slight overall decrease in conversion rates despite improved click-through rates, indicating a growing challenge in converting ad clicks into desired actions. These rates are influenced by a complex interplay of factors, including target audience, competition, ad quality, landing page experience, and economic conditions.
Recommendations
Businesses should utilize the data presented in this report as a general benchmark for their Google Search advertising performance. However, it is crucial to recognize that these are averages, and individual business results can vary significantly based on their unique circumstances and strategies. To optimize conversion rates, businesses should prioritize thorough A/B testing of their ad copy, landing pages, and targeting parameters. Ensuring a seamless and relevant landing page experience is paramount for converting ad traffic. Continuous monitoring of performance data and adaptation to market trends are essential for sustained success. Furthermore, businesses should consider the specific nuances of their industry and the intent behind user search queries when evaluating their conversion rate metrics. Setting up secondary conversions can provide valuable insights into user engagement beyond the primary conversion goal. Leveraging automation and AI features within Google Ads can also aid in optimizing campaign performance and improving conversion rates. While industry benchmarks offer a valuable point of reference, a focus on continuous improvement and data-driven optimization tailored to the specific business remains the most effective approach.
