Analysis of Cost Per Click for Different Industries

Costo Medio Per Clic (CPC) per Settore

AVERAGE COST PER CLICK (CPC) BY INDUSTRY: A GUIDE FOR ADVERTISERS

The cost per click (CPC) is a crucial metric for advertisers who use click-based advertising campaigns. It represents the average cost an advertiser has to pay each time a user clicks on their ad. Understanding the average CPCs by industry can help advertisers optimize their advertising budget and maximize their return on investment.

AVERAGE COST PER CLICK (CPC) BY INDUSTRY (UNITED STATES)

IndustryAverage CPC (Search)Average CPC (GDN)
Advocacy$1.43$0.62
Auto$2.46$0.58
B2B$3.33$0.79
Consumer Services$6.40$0.81
Dating & Personals$2.78$1.49
E-Commerce$1.16$0.45
Education$2.40$0.47
Employment Services$2.04$0.78
Finance & Insurance$3.44$0.86
Health & Medical$2.62$0.63
Home Goods$2.94$0.60
Industrial Services$2.56$0.54
Legal$6.75$0.72
Real Estate$2.37$0.75
Technology$3.80$0.51
Travel & Hospitality$1.53$0.44

The table shows the average cost per click (CPC) for various business industries. The CPC represents the average cost an advertiser pays each time a user clicks on their online advertising.

The table reports two different CPC metrics: the first column indicates the average CPC for search campaigns (search engines like Google), while the second column shows the average CPC for the Google Display Network (GDN), which are ads shown on websites, YouTube videos, mobile apps, and so on.

By comparing these two values, one can understand which industries tend to have higher click costs on search engines versus the GDN, and vice versa. This can be useful for advertisers who want to allocate their advertising budget most efficiently across different channels.

The industries with the highest average CPCs for search campaigns are Legal, Consumer Services, and B2B. While for the GDN, the industries with the highest CPCs are Dating & Personals, Consumer Services, and Finance & Insurance.

The Average Cost Per Click (CPC) by Industry data is taken from WordStream.

Advocacy

Average CPC (Search): $1.43
Average CPC (GDN): $0.62
Advocacy campaigns tend to have relatively low CPCs for both search and display networks, making them a cost-effective choice for organizations looking to promote social or political causes.

Auto

Average CPC (Search): $2.46
Average CPC (GDN): $0.58
The automotive industry sees a moderate average CPC for searches, while display network costs are surprisingly low, which can be advantageous for branding and retargeting campaigns.

B2B

Average CPC (Search): $3.33
Average CPC (GDN): $0.79
B2B companies face higher CPCs in searches, reflecting the competitive nature of this sector. However, the cost on the display network remains manageable.

Consumer Services

Average CPC (Search): $6.40
Average CPC (GDN): $0.81
This sector has one of the highest CPCs for searches, indicative of the high potential value per customer. Although the CPC on the display network is lower, it remains relatively high compared to other industries.

Dating & Personals

Average CPC (Search): $2.78
Average CPC (GDN): $1.49
The dating sector has a moderate average CPC for searches and a higher CPC on the display network, which might reflect the intense competition for user attention.

E-Commerce

Average CPC (Search): $1.16
Average CPC (GDN): $0.45
The e-commerce sector benefits from relatively low CPCs for both searches and the display network, making it ideal for high-volume campaigns.

Education

Average CPC (Search): $2.40
Average CPC (GDN): $0.47
Education presents average CPCs for searches and low CPCs for the display network, offering effective marketing opportunities with moderate budgets.

Employment Services

Average CPC (Search): $2.04
Average CPC (GDN): $0.78
The employment services sector has manageable CPCs for both search and display networks, allowing for good budget allocation in advertising.

Finance & Insurance

Average CPC (Search): $3.44
Average CPC (GDN): $0.86
Campaigns in the finance and insurance sector see high CPCs in searches, reflecting the high potential value per customer. The display network offers a more economical opportunity to reach users.

Health & Medical

Average CPC (Search): $2.62
Average CPC (GDN): $0.63
The healthcare sector presents moderate CPCs for both searches and the display network, balancing costs and marketing opportunities.

Home Goods

Average CPC (Search): $2.94
Average CPC (GDN): $0.60
The home goods sector sees moderate CPCs in searches and low CPCs on the display network, offering good value for money.

Industrial Services

Average CPC (Search): $2.56
Average CPC (GDN): $0.54
Industrial services have moderate CPCs in searches and low CPCs on the display network, making them a cost-effective option for B2B marketing.

Average CPC (Search): $6.75
Average CPC (GDN): $0.72
The legal sector has one of the highest CPCs for searches, reflecting the high value per customer. However, the CPC on the display network is relatively low.

Real Estate

Average CPC (Search): $2.37
Average CPC (GDN): $0.75
The real estate sector presents average CPCs for searches and low CPCs on the display network, offering good opportunities for effective advertising campaigns.

Technology

Average CPC (Search): $3.80
Average CPC (GDN): $0.51
The technology sector sees high CPCs in searches but low CPCs on the display network, allowing for a balance of costs and visibility.

Travel & Hospitality

Average CPC (Search): $1.53
Average CPC (GDN): $0.44
The travel and hospitality sector benefits from low CPCs for both searches and the display network, making it ideal for high-volume and seasonal campaigns.

Explore also our PPC calculator tool to optimize your advertising strategy!

BONUS SECTION: DATA VISUALIZATION WITH PYTHON

For better understanding and more detailed analysis of the average CPCs by industry, we can use Python and libraries like Pandas and Matplotlib to create data visualizations. This allows us to easily compare CPCs across various industries and identify potential opportunities or challenges.

The following code imports CPC data into a Pandas DataFrame and creates a bar chart using Matplotlib. The chart shows the average CPCs for search and the Google Display Network for each industry.

				
					import matplotlib.pyplot as plt
import pandas as pd

# Data
data = {
    "Industry": ["Advocacy", "Auto", "B2B", "Consumer Services", "Dating & Personals", "E-Commerce", "Education", "Employment Services", "Finance & Insurance", "Health & Medical", "Home Goods", "Industrial Services", "Legal", "Real Estate", "Technology", "Travel & Hospitality"],
    "Average CPC (Search)": [1.43, 2.46, 3.33, 6.40, 2.78, 1.16, 2.40, 2.04, 3.44, 2.62, 2.94, 2.56, 6.75, 2.37, 3.80, 1.53],
    "Average CPC (GDN)": [0.62, 0.58, 0.79, 0.81, 1.49, 0.45, 0.47, 0.78, 0.86, 0.63, 0.60, 0.54, 0.72, 0.75, 0.51, 0.44]
}

# Create DataFrame
df = pd.DataFrame(data)

# Plotting
fig, ax = plt.subplots(figsize=(12, 8))

# Bar plots
width = 0.35
x = range(len(df["Industry"]))

ax.bar(x, df["Average CPC (Search)"], width, label='Average CPC (Search)', color='b')
ax.bar([p + width for p in x], df["Average CPC (GDN)"], width, label='Average CPC (GDN)', color='g')

# Labels and Title
ax.set_xlabel('Industry')
ax.set_ylabel('Average CPC')
ax.set_title('Average Cost Per Click (CPC) by Industry')
ax.set_xticks([p + width / 2 for p in x])
ax.set_xticklabels(df["Industry"], rotation=90)

# Legend
ax.legend(loc='best')

plt.tight_layout()
plt.show()

				
			

Using tools like Python, it is possible to analyze and present data in meaningful ways that can lead to greater efficiency and a better return on advertising investment.

I hope this bonus section with the Python code and the related explanation is useful for advertisers who want to delve deeper into the analysis of average CPCs by industry.

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