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PPC Benchmarks: How Much to Spend Per Click in 2025?
March 6, 2025
10 mis
If you’re running a pay-per-click (PPC) Google campaign in 2025, you’re probably wondering whether it’s really effective and how you stand concerning the competition. Ok, you may see and evaluate your metrics, but is it enough?
PPC advertising is a constantly evolving marketing area, with costs and metrics influenced by market trends, competition, and consumer behavior. Knowing (in depth) how PPC benchmarks work is essential, as they can help you set more realistic and tailored-to-your-business goals and optimize your campaigns for better performance.
Do you want to learn more about them? This article breaks down the latest PPC benchmarks and what they mean for your ad strategy, along with offering you some practical tips to make the most of your PPC campaigns.
The PPC benchmarks 2025 analyzed in this article and the ones that you should focus on are:
If you’ve incorporated Google Ads in your marketing strategy for quite some time now, you’re probably familiar with them.
Whatever the case, we’ll briefly review each one so you can have a clearer picture of them and the PPC benchmarks for 2025.
Let’s explore them one by one:
We start with the click-through rate (CTR). This metric measures the percentage of users who click on your ad after seeing it. In other words, it estimates the number of users who visit and click on your ad compared to the number of users who see it.
To find this percentage, you use the formula:
CTR = (Clicks/Impressions)*100
CTR is crucial not only because it gives you this percentage. It goes far beyond that. It can actually inform you whether your ad appears in the right searches and whether it applies to your target audience.
To make a long story short, the higher your CTR, the more engaging your ad is to your audience.
So, what should your PPC CTR benchmarks be? There are differences between Google Search Ads and Google Display Ads. Here is the deal:
The average CTR for Google search ads is 3.17%.
The average CTR for display ads is 0.47%.
When we say average, we generally mean for all kinds of businesses. However, each industry has its own characteristics and trends, and the above numbers may vary depending on the field in which your company operates.
Source: WordStream
You must use those average CTRs to evaluate whether you’re falling behind or ahead of the competition this year.
For example, if you encounter a lower-than-average CTR, you can consider A/B testing headlines, improving your ads’ copy, or adjusting targeting. Simple, targeted moves can make a lot of difference.
Another equally important PPC benchmark is the one referring to Cost-Per-Click (CPC). What does CPC measure? The money you pay every time someone clicks on your ad. How can you find out this number? By implementing the the formula:
CPC = Total cost of clicks/total number of clicks
Once again, the result will be different for Google Search Ads vs. Display Ads and will be influenced by the nature of your industry, the keywords you’ll be using, and whether or not they are highly competitive.
So, on average, these PPC benchmarks for 2025 will be:
The average CPC for Google search ads is $2.69 (but is higher for legal and finance industries due to their high competitiveness).
The average CPC for display ads is 0.63%.
Knowing where your CPC stands compared to this PPC benchmark will help you determine whether you’re close to your industry average and make adjustments accordingly.
Source: WordStream
In case you fall behind you can improve your Quality Score, use negative keywords to optimize your CPC, and refine your audience targeting to avoid wasted spending.
Check out our blog article that lists the main PPC mistakes, if your CPC is lower than expected.
Let’s proceed to the next metric on our list and, subsequently, the next PPC industry benchmark. Ta ta! The conversion rate (CVR)!
The CVR measures the number of users who take a desired action (such as proceeding to a purchase, signing up for a course, submitting a form, or booking an appointment) after clicking your ad.
The higher the CVR, the more effective your landing pages and ad messaging are. But how do you get hold of this metric? Here is the secret (not) formula:
CVR = (Number of conversions/Number of total ad interactions) x 100
Similar to the other PPC benchmarks, the CVR of search and display ads will differ, and the results will also vary across industries.
To have a standard you can use to evaluate whether your ads are effective and working and attract convertible prospects, have a look at the average PPC conversion rate benchmarks for 2025:
The average CRV for Google search ads is 3.75%.
The average CRV for display ads is 0.77%.
For instance, if your search CRV is much lower than three or your display CRV is close to zero—depending on your industry each time—it will mean that your ads need improvement because they don’t generate satisfying conversions, and there is room for optimization.
Source: WordStream
Otherwise—although we hate to break this to you—your market rivals will “eat” from your plate.
So, if your CVR is lower than the PPC benchmark, look at optimizing your landing page, simplifying your forms, and improving the user experience.
Finally, on our list of PPC benchmarks 2025, we have the Cost Per Action (CPA). What does CPA signify? The amount of money you spend to convince a customer to complete a specific action. This can be, for instance, purchasing your product/service or filling out a lead form.
Turning theory into a practical formula, you’ll have:
CPA = Total Cost (of your Ads campaign) / Total Actions (desired)
This year, you can expect an average CPA for Google Ads of around $40,00, although—guess what—this will highly depend on your industry. Some industries, such as finance, may reach even $55,00.
The average CPA for Google search ads is $48.96.
The average CPA for display ads is $75.51.
Source: WordStream
To lower your CPA, you can work on refining your ad targeting, optimising your bidding strategy, and improving your landing page experience.
Now that you know the key PPC benchmarks for 2025, here’s how you can use them to improve your ad campaigns:
1. Compare Your Performance—Use these PPC benchmarks to see if your campaigns are over- or underperforming. They may even be okay, but wouldn’t you like to know? If your CTR or CVR is below the average benchmark, it’s time to improve your ads and optimize your landing page.
2. Adjust Your Budget—If your CPC is too high, consider refining your keyword strategy, such as switching to less competitive keywords.
3. Improve Your Ads Quality—Focus on writing engaging ad copy, using relevant keywords—this includes negative keywords as well—and enhancing your Quality Score to reduce CPC.
4. A/B Test Everything – Experiment with different ad creatives, targeting options, and landing page designs to find what works best for your audience. Optimise for conversions – ensure your landing pages are fast, mobile-friendly, and designed to encourage action with clear CTAs.
Considering all that and taking concrete actions based on your metrics and the PPC benchmarks 2025, you’ll have taken a step—or more—forward in gaining a competitive advantage over your market rivals.
PPC advertising in 2025 requires a data-driven approach and constant evaluation. Knowing the average and specific PPC industry benchmarks can give you an edge—a substantial one.
So, keep monitoring your metrics, experimenting with different strategies, and optimizing your campaigns to get the best return on investment.
And if you need a helping hand, Promodo’s team of experts can offer it to you. Specialized in designing unique and tailored-to-your-needs PPC marketing campaigns - with the relevant benchmarks as a guide, you’ll be more than confident that you’ll use your money wisely and cost effectively.
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