Facebook is one of the fastest-growing platforms for advertisers, and the number of advertisers using Facebook has more than doubled in the past 18 months.
If you are one of the 2 million advertisers who have decided to launch ads on Facebook (referred to as "FB") in the past two years, you may be at a loss in the initial launch stage. FB has almost countless advertising segmentation and positioning options to explore, and the effect is different for each advertiser. Just like Google ads, FB ads perform differently in different industries. How do your ads perform in the same industry?
This paper made a statistic on several data in FB’s various industries (data from February 2017), which includes:
1.Average Click-Through Rate by Industry (CTR)
2.Average Cost Per Click by Industry (CPC)
3.Average Conversion Rate by Industry (CVR)
4.Average Cost Per Action by Industry (CPA)
We have collected several data from 18 mainstream industries which include: apparel, auto, B2B, beauty, customer services, education, employment and job training, finance and insurance, fitness, home improvement, healthcare, industrial services, legal, real estate, retail, technology, travel & hospitality. Let's dig deeper.
1.Average Click-Through Rate by Industry (CTR)
Advertisers in legal-related industries may struggle due to low click-through rates on SERP, but they are lucky to have the highest average click-through rate (1.61%) on FB. When your advertisement is 1/7 of the advertisements on SERP, it is difficult to impress potential clients who are looking for lawyers. However, when lawyers' high quotations and appealing words appear on potential clients' social networks, it will certainly be more prominent.
Other advertisements with high click-through rates are distributed in retail (1.59%), apparel (1.24%), beauty (1.16%), fitness (1.01%), and other industries. There is no doubt that models and high-quality pictures often appear in the advertising materials of these industries. These advertisements are particularly outstanding on highly visual platforms such as FB and Instagram.
The click-through rate of employment and job training services on FB is relatively low (0.47%), so it seems difficult to distract job seekers from social networks.
The average CTR of FB advertising in all industries is 0.90%
Industry Average CTR
Apparel 1.24%
Auto 0.80%
B2B 0.78%
Beauty 1.16%
Customer Services 0.62%
Education 0.73%
Employment & Job Training 0.47%
Finance & Insurance 0.56%
Fitness 1.01%
Home Improvement 0.70%
Healthcare 0.83%
Industrial Services 0.71%
Legal 1.61%
Real Estate 0.99%
Retail 1.59%
Technology 1.04%
Travel & Hospitality 0.90%
2.Average Cost Per Click by Industry
Although financial advertisers have the highest CPC on FB, which is $3.77 per click, advertisers may still be quite satisfied with the CPC on FB.
“Insurance”, “loan” and “mortgage” are the three most expensive keywords on Google. Each click costs about $50.
The cheapest clicks on Facebook are in apparel ($0.45 per click), travel and hospitality ($0.63), and retail industries ($0.70), with a click rate far below $1. These industries usually have the largest audience, so even in the case of low CPC, it is important to know how to manage the budget so that your Facebook cost will not get out of control.
The average CPC of FB advertising in various industries is $1.72.
Industry Average CPC
Apparel $0.45
Auto $2.24
B2B $2.52
Beauty $1.81
Customer Services $3.08
Education $1.06
Employment & Job Training $2.72
Finance & Insurance $3.77
Fitness $1.90
Home Improvement $2.93
Healthcare $1.32
Industrial Services $2.14
Legal $1.32
Real Estate $1.81
Retail $0.70
Technology $1.27
Travel & Hospitality $0.63
3.Average Conversion Rate by Industry (CVR)
There are many things to do in the fitness studio, one of which is to find potential customers on FB! FB can connect potential customers with fitness advertisers and convert them with a very high conversion rate, with an average conversion rate of 14.29% in the industry.
Other industries with high CVR include education (13.58%), employment and job training (11.73%), healthcare (11.00%), real estate (10.68%), and B2B (10.63%). Facebook's unique lead pixel event helps these industries surpass most other advertising platforms!
Retail, travel & hospitality, technology, and other industries may not benefit so much from FB's leading ads, so the conversion rate is much lower (3.26%, 2.82%, and 2.31% respectively). For these advertisers, the secondary marketing on FB may be particularly effective in improving the conversion rate. Facts have proved that secondary marketing advertising helps to improve the conversion rate over time.
The average CVR of FB advertising in various industries is 9.21%
Industry Average CVR
Apparel 4.11%
Auto 5.11%
B2B 10.63%
Beauty 7.10%
Customer Services 9.96%
Education 13.58%
Employment & Job Training 11.73%
Finance & Insurance 9.09%
Fitness 14.29%
Home Improvement 6.56%
Healthcare 11.00%
Industrial Services 0.71%
Legal 5.60%
Real Estate 10.68%
Retail 3.26%
Technology 2.31%
Travel & Hospitality 2.82%
4.Average Cost Per Action by Industry (CPA)
Almost all educational advertisers believe that catering to FB and Instagram's relatively young audience is a wise decision, with an average CPA of $7.85.
Although FB may be a good place to find new students, the average CPA for finding new cars, an expensive place for architects or IT experts - auto, home improvement, and technological services is $43.84, $44.66, and $55.21 respectively. However, the life cycle value of new customers in these industries is very high, everything is worth it.
The average CPA of FB advertising in various industries is $18.68.
Industry Average CVR
Apparel $10.98
Auto $43.84
B2B $23.77
Beauty $25.49
Customer Services $31.11
Education $7.85
Employment & Job Training $23.24
Finance & Insurance $41.43
Fitness $13.29
Home Improvement $44.66
Healthcare $12.31
Industrial Services $38.21
Legal $28.70
Real Estate $16.92
Retail $21.47
Technology $55.21
Travel & Hospitality $22.50
