Google Ads Benchmark: Marketing Strategies That Generate the Best ROI in 2025-2026

Let's be honest: investing in digital advertising in 2025 is getting more and more expensive. But that doesn't mean you should throw in the towel! On the contrary, it's the perfect time to get smarter with your marketing budget.

PPC Automation: Your New Ally (But Not Your Replacement)

If you work in digital marketing, you've probably heard about automation all over the place. And it probably scares you a little. "Will AI take my job?" We've all asked ourselves this question.

Breathe easy: your job is safe (but will change)

Here's the good news: Automation won't replace you. Instead, it will transform your daily life for the better. No more repetitive and boring tasks! You'll finally be able to focus on what really matters:

• Diving into the data to understand what's really happening

• Making strategic decisions that really make a difference

• Optimizing the results that automation generates (because it's not perfect!)

Think of it this way: Automation is great at doing the legwork, but you're the one telling the story behind the numbers. And no machine can do that for you.

The painful reality: your leads are costing more and more

Hold on tight, because the numbers don't lie. According to the June 2025 LocalIQ report, here's how the average cost per lead has changed on Google Ads:

• 2021 : $41.40 (the blessed time!)

• 2022 : $48.44 (+17%)

• 2023 : $53.52 (+10%)

• 2024 : $66.69 (+24% - ouch!)

• 2025 : $70.11 (+5.13%)

[Evolution of Google Ads cost per lead 2021-2025] (Image 1) Figure 1: Evolution of the average cost per lead on Google Ads (2021-2025) - Source: LocalIQ

Do the math: in just four years, that's a 69% increase. Almost double! If that doesn't convince you to stretch every dollar you spend, I don't know what will.

Is your industry in the red or in the green?

Not all industries are equal when it comes to digital advertising. Some are swimming in money, others are struggling. Let's see where you stand.

Sectors where it costs a fortune (Cost per lead)

If you work in these fields, prepare your portfolio:

1. Legal Services : $131.63 (ouch!)

2. Furniture : $121.51

3. Business Services : $103.54

4. Fashion and Jewelry : $101.49

5. Real Estate : $100.48

[Average Cost Per Lead by Industry](Image 2) Figure 2: Average Cost Per Lead by Industry - Green sectors exceed $100 per lead

Are you in the legal field? Yeah, I feel for you. But keep reading, there is hope!

Conversion champions

Now, let's talk about the winners - the ones who turn their clicks into customers like pros:

1. Car repair : 14.67% (the king!)

2. Pets : 13.07%

3. Physicians and surgeons : 11.62%

4. Education : 11.38%

5. Personal services : 9.74%

[Average Conversion Rate by Industry](Image 3) Figure 3: Average Conversion Rate by Industry - The automotive sector (repair) dominates with 14.67%

The secret to the auto repair shop? When your car breaks down, you don't really shop. You NEED a mechanic, and fast. This is purchase intent at its best.

Where your clicks cost you the most

Every click counts. Here's how much you pay on average in the most expensive industries:

1. Legal Services : $8.58 (you again!)

2. Home renovation : $7.85

3. Dental Services : $7.85

4. Education : $6.23

5. Personal Services : $5.81

[Average Cost Per Click by Industry](Figure 4) Figure 4: Average Cost Per Click by Industry - Legal Services Leads with $8.58 per click

Who really gets attention?

Click-through rate is your ability to make people say, "Hey, I'm interested!" Here's who wins this popularity contest:

1. Arts and Entertainment : 13.10%

2. Sports and leisure : 9.19%

3. Purchases and collectibles : 8.92%

4. Travel : 8.73%

5. Real estate : 8.43%

[Average Click-Through Rate by Industry](Image 5) Figure 5: Average Click-Through Rate (CTR) by Industry - Arts & Entertainment Leads with 13.10%

Arts and entertainment are crushing the competition. It's only natural: who doesn't want to click on a cool show or event?

Three strategies to implement today

Enough about the problems. Let's move on to concrete solutions.

1. Tame Smart Bidding

Google Smart Bidding is powerful. But be warned: it's NOT a set-it-and-forget-it magic solution.

Here's how to do it right:

First, choose your strategy according to your objective:

• Target CPA : If you know how much a customer should cost you

• Target ROAS : If you want a specific return on investment

• Maximizing Conversions : When You Just Want the Most Sales Possible

• Maximize value : To optimize the average basket

Now for the important thing: install guardrails!

Create alerts to notify you when:

• Your cost per click suddenly explodes

• Your impressions or clicks are dropping strangely

Real-life example: You've set a target CPA of $25, but your impressions are falling flat? Your algorithm probably thinks your target is too low and is limiting your visibility. Without alerts, you could be losing days (or even weeks!) of sales without even realizing it.

2. Don't snub Google's recommendations

I know, I know. The Recommendations tab in Google Ads is often irritating. Like, "Thanks, Google, but no thanks for your weird suggestion."

But listen to me: these recommendations get better when you interact with them. It's like training a dog—you have to show it what's right and what's wrong.

The right approach:

• Check the recommendations every two weeks

• Apply the ones that make sense to you.

• Actively reject bad ones by explaining why

There's even a "Not relevant" option - use it! The more you train the algorithm, the more it understands YOUR specific needs. And after a few weeks, you'll be surprised at how relevant the suggestions become.

3. Spy on your competitors (legally!)

Keep your friends close and your competitors even closer, as they say.

Tools like Semrush, Moz, Google Trends, or Klue can automate your competitive intelligence. You'll learn:

• What keywords they are targeting

• What content they publish

• Their presence on social networks

• Their market share

Caution : The goal isn't to mindlessly copy what they're doing. It's to stay informed and position yourself differently. Sometimes knowing what your competitor is doing confirms that you're on the right track. Other times, it gives you ideas on how to stand out.

What the numbers really tell us (industry by industry)

If you are in the legal field...

Phew. You have the highest CPC ($8.58), the highest cost per lead ($131.63), the highest cost per lead ($131.63), the highest cost per lead ($131.63), AND a rather low conversion rate (5.09%). Tough.

Your priority? Optimize your landing pages as if your life depended on it. Every visitor costs you a fortune, so make sure your website converts as much as possible.

If you are in auto repair...

Congratulations! You're the champions! A 14.67% conversion rate with a reasonable CPC of $3.90 is nothing short of amazing.

Your secret? People looking for a repair shop have an urgent need. They're not comparing 50 options—they want to fix their car NOW. Capitalize on that.

If you are in real estate...

Your click-through rate is solid (8.43%), but your conversion rate is poor (3.28%). People are clicking, but not buying.

The problem? Real estate is a big investment. People need time, thought, and viewings. Work on your nurturing strategy—stay in touch with your leads, send useful information, and be patient.

If you sell pet products...

You're in second place for conversion (13.07%) with a decent CPC ($3.97). Pet owners are loyal and spend generously on their pooches and kitties.

Your advantage? Emotion. Use it in your ads. Cute photos work. Always.

In short: marry human and machine

It's 2025. Digital marketing is more complicated (and more expensive) than ever. But it's also more exciting!

Here's what you need to know:

✅ Automation is your ally, not your enemy - but don't trust it blindly

✅ Costs will continue to rise - optimization is no longer optional, it's vital

✅ Your industry has its own rules - compare yourself to the right benchmarks

✅ Data without strategy is worthless - analyze, adjust, repeat

✅ Invest your time in strategic thinking, not repetitive tasks

✅ Train the algorithms through your interactions - they get better over time

PPC automation isn't "set it and forget it." It's "set it, monitor it, adjust it, optimize it." Think of it like a smart GPS: It guides you, but you drive. And when it suggests turning into a lake, you have the judgment to say, "Uh, no thanks."

By combining the computing power of machines with your strategic intelligence (and common sense!), you will not only survive rising advertising costs, but thrive.

Now, let's get to work! Your campaigns won't optimize themselves, we're here to help! Free consultation . 😉

Sources: Search Engine Journal, LocalIQ Benchmark Report (June 2025)