Facebook Ads Benchmarks of 2024 for Your Business
The question of which is the biggest social media platform gets asked every year, and the answer has been the same every year: Facebook. With over 2 billion daily users, why wouldn’t it be?
Thanks to how active the platform is, businesses still consider Facebook Ads one of the best methods for increasing brand awareness, generating leads, and converting leads.
But how can you determine how well your ads will do on Facebook? It's simple: you need to check information like benchmarks. Each year, these benchmarks for different businesses change.
This article will share the latest Facebook Ads benchmarks 2024 for various business industries and the newest trend predictions.
Key Trends in Facebook Ads in 2024
For this article, we looked over the top 19 prominent industries in most Facebook ads. From them, we were able to make some predictions on what your ads will be like in 2024. These are trends we will be talking about now.
Increased CTR
In 9 of 19 industries, the Click-Through Rate (CTR) increased significantly, particularly in Arts & Entertainment and Education & Instruction. However, for 15 out of 23 industries focused on traffic, the CTR decreased compared to the previous year. Despite this decline, the average CTR remains higher at 1.51% compared to the 0.9% reported in other available data.
Decreased CPC
In the lead objective, nine industries experienced a decrease in Cost Per Click (CPC) Year Over Year (YOY). For the traffic objective, 14 industries witnessed a YOY decrease. Notably, the increases in CPC for both objectives were not significant. This observation is intriguing, especially considering the substantial rise in CPC for search advertising across most industries (91%).
More CR
The economy might have influenced the industries experiencing year-over-year (YOY) decreases. For instance, fewer individuals might be interested in buying or selling in a volatile housing market, resulting in a decline in Conversion Rates (CVR) for real estate businesses.
Neutral CPL
Once again, it's intriguing to note this trend, especially considering the significant surge in Cost Per Lead (CPL) for search ads. In 2023, 91% of industries experienced an increase in CPL.
Keep in mind that using SMM panel service from top brands can help get better results when you are running Facebook ads. But we recommend you consult with them to know how you can do it.
Facebook Ads Benchmarks 2024: Traffic Campaigns
Average CTR
The Click-Through Rate (CTR), a measure of how often viewers click on your ad, reflects the appeal of your Facebook ads. A higher CTR indicates that viewers find your ad compelling and worthy of clicking. The average CTR for traffic campaigns in Facebook ads across all industries is 1.51%.
Industries with the highest CTR include Arts & Entertainment at 2.55%, Real Estate at 2.45%, and Restaurants & Food at 2.29%. On the other hand, industries with lower average CTRs are Dentists & Dental Services at 0.81%, Finance & Insurance at 0.88%, and Attorneys & Legal Services at 0.99%. These figures provide insights into the effectiveness of ad copy and creative elements in different industry sectors.
Average CPC
Cost per Click (CPC) is the total spend divided by the total clicks. A lower average CPC in your traffic campaign means converting website visitors more cheaply. For the traffic objective, a click refers to moving from your ad to your specified destination.
The average cost per click in Facebook ads for traffic campaigns is $0.83, much lower than Google Ads at $4.22. The lowest CPCs are Travel at $0.43, Arts & Entertainment at $0.44, and Restaurants & Food at $0.52. Higher-than-average CPCs are seen in Dentists & Dental Services at $1.27, Furniture at $1.19, and Attorneys & Legal Services at $1.15.
Despite being higher, they're still below the average CPC for Google Ads, and industries with higher CPCs often have higher customer lifetime values, justifying the increased advertising costs.
Facebook Ads Benchmarks 2024: Lead Generation Campaigns
Average CTR
Facebook lead ads don't require a website click; users must click on the ad to become a lead. Prioritize a high click-through rate (CTR) for lead campaigns, signaling effective user engagement. The average CTR for lead gen ads across all industries is 2.50%.
Average CPC
Minimizing your average Cost Per Click (CPC) for Facebook lead ads is crucial. Yet, consider lead quality – a slightly higher CPC may be justified for top-notch leads. The average CPC for lead generation campaigns across industries is $1.92.
Average CR
Conversion rate measures the success of your Facebook ads in driving leads, calculated by dividing total leads by total clicks. A high conversion rate signifies compelling ads, while a lower rate may indicate adjustments needed in targeting, copy, or landing pages. The average conversion rate for lead gen campaigns in Facebook ads is 8.25%.
Average CPL
Cost per lead reveals the cost paid to acquire a new lead. The calculation involves dividing your total spending by the total number of conversions. The average cost per lead on Facebook ads for the leads objective across industries is $23.10.
Further Reading: How to Get More Views on LinkedIn Posts
Conclusion
Having a clear idea about the Facebook ads benchmark for 2024 or future years can greatly impact how you run your ads in the future. It will help you tailor your ads to get the best ROI from every ad you run.
You won’t always have access to much information when building a new ads campaign. In those cases, knowing the average costs for your industry for CRP, CVR, or CPL can help you determine if you should or shouldn’t be running a Facebook ad.
FAQ’s
Q. What are the typical benchmarks for small businesses?
Small businesses often aim for a CTR between 1-3% and a Conversion Rate of 2-5%.
Q. How often should I review and adjust my Facebook Ads strategy?
Regular reviews, at least monthly, are recommended. Adjustments should align with changing benchmarks and industry trends.
Q. Are there any industry-specific benchmarks I should be aware of?
Yes, benchmarks vary by industry. Research your specific niche to set realistic goals.
Q. Can benchmarking improve my ad performance?
Absolutely. Regular benchmarking is like having a compass in the digital landscape. It helps you spot areas that need improvement and fine-tune your strategy for better results, making your journey smoother and more successful.
Q. How do Facebook algorithm updates affect ad benchmarks?
Updates can influence metrics like CTR and Engagement. Stay informed and adjust your strategy accordingly.