Google Ads PPC trends 2024: CPC analysis

Discover top cost-per-click trends of 2024. Why does CPC grows year on year and what seasonal changes affect paid advertising costs for marketing agency clients and online businesses.
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OCTOBOARD: Google ads ppc trends 2024 cpc analysis

Key CPC trends in 2024

We have asked our customers what industry they work in and analyzed the data processed by PPC Data Analytics of the Octoboard platform. Only clients that explicitly agreed to participate in the survey and shared their data for the purpose of this analysis were taken into consideration. Data was aggregated up and normalized across industries and time series. In order for an aggregated data point to be included in this study, it had to contain at least 30 data entries.
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Based on the search results provided, here is a summary of the average cost-per-click (CPC) in Google Ads across different industries:

Average Google Ads CPC by Industry in January-June 2024

Overall Average CPC: $2.53

”Industry-Specific Average CPC”

Industry-Specific Average CPC:

  • Auto : $2.25
  • B2B : $3.10
  • E-Commerce : $1.22
  • Education : $2.15
  • Employment Services : $2.26
  • Finance & Insurance : $2.94
  • Real Estate : $2.17
  • Technology : $3.23
  • Travel & Hospitality : $1.86

How has average CPC changed over the years

”How have average CPCs changed over the years”

The average cost-per-click (CPC) in Google Ads has fluctuated over the years, with an overall upward trend:

  • 2019: The average CPC was $1.72.
  • 2020: The average CPC was $1.98.
  • 2021: The average CPC was $2.12.
  • 2022: The average CPC was $2.35.
  • 2023: The average CPC was $2.42
  • 2024: The average CPC rose to $2.53
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These metrics have been combined by the Octoboard Paid advertising analytics platform and Octoboard PPC data transformation module.

Key factors driving the CPC increases

”Some key factors driving the CPC increases”
  • Increased competition: More advertisers are boosting their Google Ads spend, leading to higher competition and CPCs.
  • Inflation: The economy and inflation are likely contributing to the rise in CPCs.
  • Google's policy changes: Google making broad match the default match type could increase clicks that don't convert, driving up CPCs.

How do seasonal trends affect average CPC

Seasonal trends can significantly impact average cost-per-click (CPC) in Google Ads across different industries:

”Seasonal Fluctuations in CPC”

Seasonal Fluctuations in CPC

  • The holiday season, including Thanksgiving, Christmas, and New Year, often sees a surge in online shopping and advertising, intensifying competition and causing CPCs to rise, especially in ecommerce and retail.
  • The back-to-school season can also lead to higher CPCs for businesses selling related products like stationery, computers, and children's clothing.
  • Summers are generally slower months for many businesses, auto dealers are noticing a decline in revenue, potentially leading to lower CPCs during this period.

Factors Driving Seasonal CPC Changes

”Factors Driving Seasonal CPC Changes”
  • Increased demand for ad space and higher click-through rates (CTRs) during peak seasons can cause a rise in CPCs as advertisers compete more aggressively.
  • Conversion rates and sales also increase during holidays, justifying the rise in CPCs to maintain visibility, but advertisers must balance this with avoiding overspending.
  • Competitor activity, such as major promotions or new product launches, can sway the market, either driving up CPCs due to increased interest or decreasing them due to heightened competition.

Strategies for Managing Seasonal CPC Fluctuations

”Strategies for Managing Seasonal CPC Fluctuations”
  • Analyze historical data to identify patterns in search volume, conversion rates, and CPC during different times of the year to anticipate seasonal trends.
  • Adjust daily budgets to accommodate increased demand during peak seasons, while maintaining a balance between CPC and conversions.
  • Utilize automated bidding strategies like Target CPA or ROAS to effectively handle both long-term trends and short-term bursts, requiring minimal changes to take advantage of seasonal fluctuations.
  • Regularly review and analyze conversion data to ensure campaigns remain agile and responsive to market dynamics, allocating more budget to profitable products during their peak seasons.
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By understanding and leveraging the principles of seasonality, advertisers can optimize their Google Ads campaigns, ensuring they remain competitive and maximize their return on investment throughout the year.

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