The news: The cost per lead for Google Ads has gone up in 91% of sectors year over year, according to Wordstream’s industry benchmarks report.
Up, up, and away: The price of each lead has gone up drastically. Cost per lead increased in 21 of 23 industries, with an average total increase of 19%. While this is comparable to 2019's increase of 21%, it is substantially greater than the 5% rise and 4% drop that occurred in 2021 and 2020, respectively.
Some of the largest CPL increases were in the following sectors:
The only two sectors with CPLs going down were education/instruction (-29%) and finance/insurance (-2%).
Our take: As with many other things these days, inflation is driving changes in the advertising sector. Consider the following:
With Google having had a weak Q3 in part on account of its ad business, this doesn’t bode well for its Q4 results—and its search ad revenue growth will be nearly half of what it mustered this year.
This article originally appeared in Insider Intelligence's Marketing & Advertising Briefing—a daily recap of top stories reshaping the advertising industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.