As we approach the business end of 2024, a new industry report from Wordstream offers useful insight for organisations wanting to benchmark their Meta Ads performance.

Grasping these trends and benchmarks is crucial for advertisers aiming to refine their digital marketing strategies. By understanding how various industries perform on platforms like Meta, businesses can make more informed decisions about where to allocate their budgets and what to expect in terms of returns.

Despite rising costs and declining performance in other digital advertising sectors, Meta Ads have shown relative stability and even improvements in some areas.

Although Google Ads remain critical for online business growth, costs have escalated recently. In comparison, Meta Ads have proven to be a cost-effective complement, offering stable and sometimes lower costs year over year. This trend is particularly important for small—to medium-sized businesses that need to maximise their return on investment while managing tighter budgets.

Key Trends in Meta Ads Metrics

The report highlights several key trends, including an increase in click-through rates (CTR) and conversion rates (CVR) across multiple industries. Conversely, while the cost per click (CPC) and cost per lead (CPL) have risen in some sectors, these metrics remain lower than those seen in Google Ads. This trend underscores the ongoing value of Meta Ads as a strategic tool for businesses aiming to enhance their digital marketing efforts.

Additionally, the growing importance of social platforms like Meta in the customer journey cannot be overlooked. As consumers spend more time on social media, businesses that invest in Meta Ads are better positioned to capture attention and drive conversions across all stages of the marketing funnel.

Traffic Campaigns: Metrics and Industry Breakdown

Meta Ads traffic campaigns are designed to drive clicks and direct traffic to websites, apps, or events. The report indicates that the average CTR for traffic campaigns has increased slightly to 1.57% across all industries, up from 1.51% last year.

Industries such as Real Estate (2.60%), Arts and Entertainment (2.59%), and Travel (2.20%) achieved the highest average CTRs, reflecting their ability to engage users effectively.

The average CPC for traffic campaigns has decreased to US$0.77, down from US$0.83 in the previous year. This reduction in cost makes traffic campaigns a viable option for businesses looking to increase site visits without significantly inflating their advertising budgets.

However, sectors like Attorneys and Legal Services, Apparel and Fashion, and Dentists and Dental Services faced higher CPCs, with rates ranging from US$1.07 to US$1.09. The decrease in CPC for many industries suggests that businesses are becoming more efficient in their targeting, likely aided by Meta’s AI-driven tools and improved audience segmentation features.

Leads Campaigns: Focus on Conversion and Cost Efficiency

Leads campaigns on Meta ads, which are designed to capture user information through forms, calls, and messages, continue to be a powerful tool for generating potential customers.

The average CTR for these campaigns stands at 2.53%, a marginal increase from the previous year. Industries such as Sports and Recreation (3.74%), Real Estate (3.71%), and Personal Services (2.56%) lead the pack in terms of engagement.

While CTR is an important metric, the cost efficiency of these campaigns is crucial. The report reveals that the average CPC for leads campaigns is US$1.88, slightly lower than last year’s US$1.92. However, some industries, particularly Attorneys and Legal Services, face significantly higher costs, with CPCs reaching up to US$8.50.

The average conversion rate for leads campaigns is a robust 8.78%, reflecting the effectiveness of Meta Ads in driving user actions. Industries such as Industrial and Commercial (12.03%), Dentists and Dental Services (9.83%), and Real Estate (9.70%) report the highest conversion rates, indicating their success in turning ad engagements into meaningful customer interactions. These industries demonstrate how targeted, well-crafted ads can lead to higher conversion rates, particularly when the ads align closely with the audience’s needs and interests.

Optimising Meta Ads for Better Performance

For businesses not yet seeing results in line with industry benchmarks, the report offers several strategies for improvement:

1. Leverage AI-Powered Creative Tools: AI-driven design tools can enhance the visual appeal of ads, particularly in industries with lower CTRs. Engaging ad creatives can help businesses stand out in crowded markets and drive more clicks at a lower cost.
2. Utilise the Conversions API: Meta’s Conversions API allows for more accurate tracking of conversion events by connecting directly to a business’s CRM system. This tool can help capture a broader range of conversions, including offline actions, which can boost the overall conversion rate of ad campaigns.
3. Adopt Advantage+ Audiences: Meta’s Advantage+ audience targeting expands the reach of campaigns by leveraging AI to identify new potential customers. This strategy can help reduce CPC and CPL by targeting users more likely to engage with the ads.
4. Diversify Marketing Channels: While Meta Ads are effective, they should be part of a broader digital marketing strategy that includes other social platforms, SEO, and search ads. Diversifying ad spend across multiple channels ensures a wider reach and maximises the effectiveness of the overall marketing strategy.

About the Data

The benchmarks presented in this report are based on data from nearly 3,000 campaigns conducted between February 2023 and April 2024. These figures, expressed in median values, provide a reliable overview of industry performance, offering valuable insights for advertisers across different sectors.