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Facebook Ad Benchmarks to Follow in 2022

Facebook Ad Benchmarks to Follow in 2022

Intro

Wondering how to get more of your paid advertisements in 2022? And thinking, how are the others making it through? Then this article is just for you. Here, we've prepared the infographics on the four most popular Facebook ad benchmarks. Go through them to learn which one will make your campaign convert and discover if you're on the top or bottom of the number game.

Probably, you won't be surprised if we say that Facebook is the fastest-growing ad network in the world? But what's for the digits? During the last 18 months, the number of Facebook users has doubled. What's more, as of now, the amount of Facebook advertisers has crossed the point of 7 million. Sounds impressive, right?

So if you're one of the 2 million advertisers who entered the platform during the last 2 years, you may need a little guidance. Above everything else, remember that banner blindness and ad fatigue are the real disasters your users face, and you, as an advertiser, have to overcome them.

In this article, we've prepared some powerful tools to help you. Dig into the four dominant Facebook ad performance benchmarks and learn how do they work for your industry.

What are the main metrics for Facebook Ads?

Benchmarks are valuable tools that help you get the data-proven knowledge about current best practices and also help you find opportunities for improving your ad campaigns. They are critical because they help advertisers manage their finances, or more specifically,

  1. understand if they are overpaying
  2. clarify how much they should be budgeting

In the article, we're about to analyze the four key metrics, including

  • Click-through rate (CTR)
  • Cost-per-click rate (CPC)
  • Conversion rate
  • Cost-per-action rate (CPA)

As you'll see, the metrics will vary significantly from industry to industry. Of course, there will be plenty of crossovers. And probably, if you can't find your business on the list, it's overlapping with some different spheres.

Each metric by industry: CPC, CTR, Conversion rate, CPA

Click-through rate (CTR)

The Facebook CTR benchmarks stand for the percentage of users who click on your ad. The basic formula to calculate it is:

Number of ad clicks ÷ number of ad impressions x 100 = click-through rate

The average CTR across all industries is 0.9%.

Finding an excellent Legal or Retail professional may be a complex task, but these industries win the click-through rate race with 1.61% and 1.59%, respectively. Apparel, beauty, and technology are other spheres scoring high on the leaderboard.

The industry with the lowest results according to its click-throughs is employment & job training. Obviously, people enter Facebook primarily for entertainment. And so it may be hard to distract them from their feeds and suddenly make them look for a job.

Legal1.61%
Retail1.59%
Apparel1.24%
Beauty1.16%
Technology1.04%
Fitness1.01%
Real estate0.99%
Travel & Hospitality0.90%
Healthcare0.83%
Auto0.80%
B2B0.78%
Education0.73%
Industrial services0.71%
Home improvement0.70%
Customer service0.62%
Finance & Insurance0.56%
Employment & Job training0.47%

Cost-per-click rate (CPC)

Cost-per-click is the metric that shows the sum of money you need to get your all-important click. It's estimated according to the formula:

Total ad spend ÷ number of ad clicks = cost-per-click

The average CPC Facebook offers across all spheres is $0.72.

As seen on the graph below, the definite leader in this race is the finance and insurance sphere. However, the cost of $3.77 per click can be justified by the cost of the product the industry actually promotes.

The cheapest clicks go to apparel, travel & hospitality, and retail spheres. However, even despite the good cost per click results, Facebook doesn't guarantee easy marketing for these spheres. The fact is that they have rather big audiences even at these low CPCs. So the owners need to understand how to manage their budgets to make them work effectively.

Finance & Insurance$3.77
Customer services$3.08
Home improvement$2.93
Employment & Job training$2.72
B2B$2.52
Auto$2.24
Industrial services$2.14
Fitness$1.90
Beauty$1.81
Real estate$1.81
Healthcare$1.32
Legal$1.32
Technology$1.27
Education$1.06
Retail$0.70
Travel & Hospitality$0.63
Apparel$0.45

Conversion rate

Unfortunately, a click doesn't make everything. What you need is a user to convert, or, in simple words, take the target action you want. It's always useful to know your conversion because it's one of the accurate Facebook industry benchmarks to see the percentage of the overall clicks that generated a result. The formula calculates it is:

Number of ad conversions ÷ number of ad clicks x 100 = conversion rate

The average CR across all industries is 9.21%.

Taking up fitness and sports may be hard at times, but the same doesn't concern the Facebook conversion for the industry, as it converts at the scale of 14.29%. Other leaders on the board are education, B2B, healthcare, and real estate.

The spheres like technology, travel & hospitality, and retail don't benefit that much and have lower conversion rates. For these spheres, remarketing is particularly valuable, as it helps drug the people in and make them convert.

Fitness14.29%
Education13.58%
Employment & Job training11.73%
Healthcare11.00%
Real estate10.68%
B2B10.63%
Customer services9.96%
Finance & Insurance9.09%
Beauty7.10%
Home improvement6.56%
Industrial services5.60%
Auto5.11%
Legal4.64%
Apparel4.11%
Retail3.26%
Travel & Hospitality2.82%
Technology2.31%

Cost-per-action rate (CPA)

CPA or Cost-per-action is the price an advertiser pays for users' target action after engaging with the ad. It can be quite helpful if you want to know how much you spent on a specific action.

The average CPA across all industries is $18.68.

The most successful industry on Facebook, measured by CPA, is Education. And really, the topic connects well with the relatively young Facebook audience.

On the contrary, buying an auto, mending your home, or finding a proficient IT specialist may be pretty expensive on Facebook. However, the payment possibility and the lifetime value in these industries are much higher, meaning that they finally pay back in the end.

Technology$55.21
Home improvement$44.66
Auto$43.84
Finance & Insurance$41.43
Industrial services$38.21
Customer services$31.11
Legal$28.70
Beauty$25.49
B2B$23.77
Employment & Job training$23.24
Travel & Hospitality$22.50
Retail$21.47
Real estate$16.92
Fitness$13.29
Healthcare$12.31
Apparel$10.98
Education$7.85

Outro - conclusion

Analyzing these four benchmarks will give you a good idea about your performance based on the industry. Do you feel like there's too much complexity for you? Then marketing tools like AdBraze can definitely help. Use them for ad automation and keeping all the metrics in one place — it will make your marketing much easier.

Although the benchmarks provide crucial data, always remember that the most accurate metrics come from your past performance. So if you find yourself on the lower edge with these numbers, there's just the space for improvement.

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