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What is a good conversion rate for PPC?

Short answer

A good PPC conversion rate is one that keeps your cost per lead profitable. Rates vary widely by service, offer, page and tracking, so industry averages say little. Work out the rate you need from your cost per click and target cost per lead. Then improve it with better pages, offers and targeting.

In this answer
  1. 01Work out the rate you need
  2. 02Why averages mislead
  3. 03What moves the rate
  4. 04Check the rate is real

Work out the rate you need

Conversion rate is conversions divided by clicks. Turn that around, and you can find the rate your budget needs.

Your target conversion rate
  1. Cost per clickAverage click price from your account.
  2. Target cost per leadWhat a lead is worth to you.
  3. DivideClick price divided by target lead cost.
  4. CompareCheck your real rate against the target.

If clicks cost $12 and you can pay $100 per lead, you need a 12% conversion rate. At 6%, each lead costs $200.

Why averages mislead

Published averages mix different services, offers and tracking setups. An account that counts page views as conversions shows a high rate that means nothing. A strict account that counts only booked jobs shows a low rate that may be excellent.

What moves the rate

  • A landing page about the searched service
  • A clear offer, like a free estimate
  • A short form and a tap-to-call button
  • Tighter keywords that bring buyers, not researchers
  • Pages that load quickly on phones

Check the rate is real

Before you celebrate a high rate, check what counts as a conversion. Duplicate tags, spam forms and soft actions can double the rate overnight without one new customer.

Good example. A pest control company lifts its rate from 7% to 11% by adding a call button and a same-week offer. Cost per lead drops by a third.

Bad example. A company's rate jumps to 30% after a site update. A duplicated tag counts every form twice.

Our PPC management works on conversion rate through pages and offers, not just bids.

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