Facebook Ads Benchmark 2024 Report - With Industry Level Insights

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📆 Wed, 17th Jan 2024

Hi, and welcome back to Growth Espresso - your one-stop destination for everything e-com.

With over 2 billion daily active users, Facebook remains the top destination for advertisers worldwide even in 2024. I’m sure as an e-commerce professional, you’re still betting big on Facebook to generate a major chunk of your business.

But how do you know if FB is working out for you? Are your CTRs reaching the numbers they really should? To answer these questions, today in Espresso ☕️, we present you a comprehensive - Facebook Ads Benchmark 2024 Report - With Industry Level Insights

Check out if you’re beating the industry benchmark or if work remains to be done. Let’s help you plan your 2024 FB strategy better 👇️ 

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🔑 Key Trends

In the past year, businesses enjoyed improved Facebook ad performance with increased engagement and decreased costs.

Notably, Click-Through Rate (CTR) increased in 9 out of 19 industries for Facebook Lead Ads, and despite a decline in CTR for the Traffic Objective in 15 out of 23 industries, the average CTR remained high at 1.51%, surpassing the previous 0.9%.

Cost Per Click (CPC) generally decreased year over year, especially in the Leads and Traffic Objectives. This is significant considering a 91% CPC increase in search advertising.

For the Leads Objective, 13 out of 19 industries witnessed a rise in Conversion Rate (CVR). Economic factors, like the volatile housing market, impacted CVR decreases in real estate businesses.

Cost Per Lead (CPL) for the Leads Objective either stayed the same or decreased for 12 out of 19 industries, contrasting the 91% increase in search ads' CPL in 2023.

The key takeaway: Facebook advertising consistently outperforms search ads with lower and more stable costs.

Facebook ads benchmark for traffic campaigns by industry

Facebook ads provide industry-specific benchmarks for traffic campaigns. When setting ad objectives, the platform optimizes campaigns to drive clicks to your landing page, app, or event. This feature is favoured by small businesses as it effectively boosts website traffic, attracting potential customers.

Click Through Rates (CTR)

CTR, or click-through rate, gauges how often viewers click on your ad. It reflects the appeal and click-worthiness of your Facebook ads. Higher CTRs indicate compelling ad copy and creativity.

Top CTR industries: Arts & Entertainment (2.55%), Real Estate (2.45%), Restaurants & Food (2.29%).

Lower average CTR industries: Dentists & Dental Services (0.81%), Finance & Insurance (0.88%), Attorneys & Legal Services (0.99%).

Cost Per Click (CPC)

Cost per Click (CPC) is essential for a cost-effective traffic campaign, calculated by dividing total spend by clicks. The average Facebook ads CPC in traffic campaigns is $0.83, much lower than Google Ads' $4.22. Travel, Arts & Entertainment, and Restaurants & Food have the lowest CPCs, while Dentists & Dental Services, Furniture, and Attorneys & Legal Services experience slightly higher but still competitive CPCs, justified by their high customer values. A low CPC is crucial for efficient capture and conversion of website visitors.

Facebook ads benchmark for lead generation campaigns by industry

Facebook ads with the leads objective aim to generate leads through actions like form fills, messages, calls, and conversions. In a leads objective campaign, you use Facebook Lead Ads, incorporating prompts within the ad to efficiently collect lead information.

Click Through Rates (CTR)

While Facebook lead ads don't demand users to visit your website, they need to click on the ad to become a lead. The option to visit your website is still present. Prioritizing a high click-through rate for your Facebook leads objective campaigns is crucial, as it indicates your ad is compelling users to take action.

The average click-through rate for lead generation campaigns in Facebook ads across all industries stands at 2.50%.

Cost Per Click (CPC)

Whenever a user clicks on your Facebook lead ads, you incur a charge. It's common sense to aim for a low average cost per click (CPC). However, it's crucial to balance this with lead quality. If obtaining high-quality leads is a priority, you might find a slightly higher CPC worthwhile.

The typical cost per click for Facebook ads in lead generation campaigns across all industries stands at $1.92.

Conversion rate (CVR)

Conversion rate gauges how effectively your Facebook ads are generating conversions. It's determined by dividing the total leads by the total clicks. A higher conversion rate indicates that your Facebook ad is persuading users to take the next step towards potentially becoming your customer. Conversely, a lower conversion rate suggests adjustments may be needed in your ad targeting, copy, or landing page to enhance results.

On average, the conversion rate for lead generation campaigns in Facebook ads across industries stands at 8.25%.

Cost Per Lead (CPL)

The cost per lead (CPL) is the amount you spend to acquire a new lead, calculated by dividing total spend by total conversions. The average CPL for Facebook leads is $23.10, with Real Estate, Arts & Entertainment, and Sports & Recreation having the lowest CPLs. Industries like Attorneys & Legal Services, Health & Fitness, and Physicians & Surgeons have higher CPLs due to increased advertising costs, but their customers also bring higher value. Although CPL is crucial, consider other factors when assessing Facebook ads progress.

Put these Facebook ads benchmarks to work in 2024

At its core, Facebook ads is a game of good creatives, optimised landing pages, and having a strong understanding of your audience. If you’re falling behind your industry benchmark, let us know in the poll.