If your Google PPC conversion rates are low, it’s frustrating and expensive. 💸
Clicks don’t pay the bills; conversions do. With competition heating up and ad costs rising in 2025, getting more leads and sales from your budget is more critical than ever.
Luckily, small tweaks can lead to massive improvements. From refining your targeting to optimizing landing pages, the right strategies can turn wasted spend into real revenue.
Also, PPC tools like AI copywriting and competitor research make it easier than ever to boost conversions.
Whether you’re running search, display, or shopping ads, this guide will cover industry benchmarks, formulas, and the most effective ways to improve your PPC performance 🔥
How are Google PPC Conversion Rates Calculated?
Before you start optimizing, you need to know how Google PPC conversion rates are measured.
The formula is simple:
Conversion Rate = (Number of Conversions ÷ Number of Ad Interactions) × 100
A “conversion” depends on your business goals. It could be a purchase, a form submission, a phone call, or any action that moves a lead closer to becoming a customer.
Tracking your conversion rate is key because it helps you identify the keywords, ads, and landing pages that drive results. It also shows which campaigns are underperforming, so you can refine your targeting, messaging, and budget.
If your conversion rate is high, you’re doing something right. If it’s low, it’s time to adjust and optimize. 🔧
Conversion Rate Benchmarks by Industry
Not all industries have the same Google PPC conversion rates, what’s considered “good” varies depending on the market. A high-converting e-commerce ad won’t have the same numbers as a B2B software campaign. That’s why knowing industry benchmarks is crucial.
These benchmarks give you a realistic target and help you determine whether your ads are performing well or need improvement.
If your conversion rate is below average for your industry, it’s a sign that your targeting, landing pages, or ad copy might need adjustments. On the other hand, if you’re outperforming the average, you can double down on what’s working.
Here’s a look at average Google Ads conversion rates and cost per conversion by industry according to recent data:
| Industry | Median Conversion Rate | Median Cost Per Conversion |
| Advertising & Marketing | 3.33% | $48.73 |
| Agriculture & Farming | 2.02% | $21.53 |
| Animals & Pets | 5.45% | $20.61 |
| Apparel & Fashion | 2.15% | $19.86 |
| Arts & Entertainment | 3.34% | $20.35 |
| Attorneys & Legal Services | 9.02% | $61.89 |
| Automotive Parts & Services | 10.24% | $28.66 |
| Beauty & Personal Care | 4.62% | $23.89 |
| Business Services | 2.45% | $74.12 |
| Dental Services | 10.77% | $43.88 |
| Education | 3.59% | $28.63 |
| Electrical Services | 7.41% | $45.49 |
| Finance & Insurance | 2.87% | $103.10 |
| Food & Beverage | 2.97% | $15.94 |
| Furniture | 1.82% | $30.19 |
| Health & Fitness | 4.33% | $36.72 |
| Home Improvement | 3.56% | $50.20 |
| HVAC Repair | 6.47% | $64.08 |
| Nonprofit | 8.24% | $25.83 |
| Plumbing | 8.19% | $55.29 |
| Real Estate | 3.37% | $36.18 |
| Restaurants | 5.04% | $7.52 |
| Roofing | 6.67% | $141.06 |
| Sports & Recreation | 2.63% | $18.70 |
| Storage & Moving | 10.42% | $27.92 |
| Travel | 2.49% | $22.55 |
| Weddings & Events | 3.87% | $28.38 |
Why These Metrics Matter
Looking at conversion rate alone doesn’t always tell the full story. A high conversion rate is great, but if your cost per conversion is too high, your ads might not be as profitable as they seem.
- Conversion Rate measures how well your ads turn clicks into leads or sales. If this number is low, it’s a sign that your targeting, ad copy, or landing pages need improvement.
- Cost Per Conversion tells you how much you’re spending to get each lead or sale. Even if you have a great conversion rate, your ROI could suffer if you’re paying too much per conversion.
By analyzing both, you get a clearer picture of ad performance and can make better decisions about budget allocation, targeting, and optimization strategies.
If your conversion rate is below average but your cost per conversion is low, you might need better audience targeting. If your conversion rate is high but costs are also high, improving efficiency could help maximize profits.
7 Easy Ways to Improve Your Google Ads Conversion Rate
To improve your Google Ads conversion rate, it’s essential to optimize every element of your campaign, from targeting the right audience to refining your ad copy and landing pages.
Here’s how.
1. Refine Your Targeting
Improving your Google Ads conversion rate starts with getting your ads in front of the right people. There are two main points when it comes to better targeting.
Focus on high-intent keywords
When you’re choosing keywords, focus on those that indicate a strong intent to convert. For example, instead of targeting broad terms like “shoes,” target phrases like “buy running shoes online” or “best shoes for marathon training.”
These keywords signal that the user is further down the purchase funnel and more likely to take action. Doing so helps you attract more qualified leads and increases the likelihood of conversions.
Use audience segmentation
Not all customers are the same, so why should your ads be? Audience segmentation allows you to create tailored ads based on factors like demographics, location, and user interests.
For example, if you’re running a local service, focus on users in your specific area. If you offer products for young professionals, target that age group with ads that speak to their needs and lifestyle. You can also use local SEO tools to get more data, such as heatmaps and competitor keywords.
2. Optimize Your Ad Copy
Your ad copy plays a huge role in whether potential customers click on your ad. To boost conversions, your message needs to be clear, compelling, and engaging. Here’s how to refine your ads.
Create compelling ad headlines
The headline is the first thing users see, so it needs to grab their attention immediately. Write headlines that speak directly to their needs or desires. For example, instead of a generic “Buy Shoes,” try something like “Get the Perfect Running Shoes for Your Marathon.”
Highlight benefits and CTAs
Your ad should clearly communicate the value your product or service provides. Focus on the benefits—what problem does it solve or what need does it fulfill? Also, always include a strong call-to-action (CTA), like “Shop Now” or “Get Your Free Quote,” to guide the user to take action.
A/B test ad variations
Even the best ad copy can be improved. That’s where A/B testing comes in. Experiment with different ad versions—change the headline, tweak the call-to-action, or adjust the messaging. Running these tests allows you to see which version drives the most conversions.
3. Improve Your Landing Pages
Your landing page is where users take action, so it’s crucial to make it as effective as possible. A seamless, user-friendly experience can significantly boost your conversion rates.
Here’s how to optimize it.
Align landing pages with ad copy
Consistency is key. When users click on your ad, they expect the landing page to match the promise of the ad. If your ad talks about a special offer or a specific product, make sure that’s exactly what they see on the landing page.
If there’s any disconnect, users might bounce away, confused or frustrated. Aligning the two helps build trust and leads to higher conversions.
Simplify forms and calls to action
Long, complicated forms are a major turn-off for users. Keep forms simple—ask only for essential information, and make it easy for users to fill out. Similarly, your CTAs should be crystal clear.
Use action-oriented language like “Get Started” or “Claim Your Offer” to guide users toward conversion. The easier you make it for people to take the next step, the more likely they are to complete the action.
Speed and mobile optimization
A slow-loading page is a quick way to lose potential customers. Make sure your landing page loads quickly, ideally within a few seconds. Additionally, with more users browsing on mobile devices, ensure your landing page is mobile-friendly.
It should look great and function well on any screen size. And if you have too many landing pages to create, you can always use an AI landing page builder.
4. Utilize Ad Extensions
Ad extensions are powerful tools that make your ads more useful and visible to potential customers. By providing more information and options, you can improve your ad’s performance and boost conversions
Leverage sitelink extensions
Sitelink extensions let you add extra links to your ad, giving users more options to explore your website. For example, if you’re advertising a product, include links to different product categories or related pages.
This not only makes your ad more valuable but also gives users a more personalized experience by directing them to the most relevant pages.
Call extensions
Make it easy for users to contact you by adding call extensions to your ads. This feature lets users dial your business directly from the ad, which is especially helpful for service-based businesses or those with time-sensitive offers.
By providing this quick and easy communication option, you increase the chances of users taking action immediately.
Structured snippets
Structured snippets highlight specific features of your product or service directly in the ad. For example, if you offer free shipping, a discount, or a 24/7 support service, showcase these perks using structured snippets.
This added detail can make your ad stand out, provide more value, and entice users to click through to learn more.
5. Use Smart Bidding Strategies
Smart bidding strategies help you automate and optimize your Google Ads campaigns, so you can focus on what really matters—getting results. This is how you do it.
Implement target CPA or ROAS bidding
Stop manually adjusting bids and let Google’s smart bidding do the heavy lifting. Target CPA (Cost-Per-Acquisition) and ROAS (Return-On-Ad-Spend) bidding help you automate bids based on your specific goals.
With Target CPA, Google adjusts your bids to get as many conversions as possible within your desired cost-per-conversion.
ROAS, on the other hand, focuses on maximizing revenue based on your ad spend. These automated strategies help you hit your targets without constant monitoring.
Adjust bids based on performance
Not all keywords are created equal, so why bid the same amount for each? Monitor the performance of your keywords and adjust bids accordingly.
Increase bids for high-converting keywords to make the most of your budget, and lower bids for underperforming keywords to avoid wasting spend.
6. Monitor and Adjust Regularly
To truly optimize your Google Ads and boost conversions, it’s important to stay on top of your campaign performance. Regular monitoring and adjustments will ensure you’re always improving.
Track key metrics
Regularly check your conversion rate, click-through rate, and cost per conversion. These metrics reveal how well your ads are performing and guide where adjustments are needed to maximize results.
Analyze search queries
Review search query reports to identify the actual terms users are searching for, as well as their actual keyword intent. This helps you refine keyword targeting and eliminate irrelevant traffic, ensuring your ads reach the right audience.
Continuous testing and optimization
Keep testing different aspects of your campaigns—like ad copy and bidding strategies—and make data-driven adjustments. Ongoing testing and optimization help you stay ahead and improve your ads’ effectiveness.
7. Leverage Retargeting for Higher Conversions
Retargeting is one of the most effective ways to boost your Google Ads conversion rate by focusing on users who are already familiar with your brand. This strategy helps you stay top-of-mind and encourages potential customers to complete their purchase or action.
Here’s how you can make the most of it.
Target users who visited your website but didn’t convert
When someone visits your site but leaves without making a purchase or taking action, retargeting allows you to show them relevant ads across the web. By reminding them of your product or service, you increase the chances of bringing them back to finalize their decision.
Re-engage abandoned cart shoppers
If a potential customer adds items to their cart but doesn’t complete the checkout process, retargeting can help recover that sale. Show personalized ads for the exact products they left behind, along with incentives like discounts or free shipping to encourage them to complete the transaction.
Customize ads based on user behavior
With retargeting, you can create tailored ads based on specific actions users took on your website. Whether they viewed a certain product, spent a certain amount of time on your site, or downloaded a resource, you can serve ads that speak directly to their interests.
Reach users across multiple platforms
Retargeting doesn’t just work on Google Ads. Instead, it allows you to target users across various platforms, including social media, websites, and even mobile apps. This broadens your reach and increases your conversion potential.
Increase Your Conversion Rate with AI for Google Ads
Optimizing Google Ads can be time-consuming, expensive, and full of trial and error. But what if you could skip all the hassle and do it all with AI?
At Search Atlas, we’ve already revolutionized SEO with our automation assistant, and now we’re bringing the same AI-driven magic to Google PPC. Meet OTTO Google Ads: Your powerful, fully automated assistant that manages your Google Ads campaigns for you.
OTTO GA does it all:
- Automatically creates campaigns
- Finds the best keywords
- Writes compelling ad copy
- Creates Google PPC reports that help you track conversions and other metrics
And what makes OTTO even better?
It’s part of Search Atlas, a comprehensive marketing platform that includes tools for SEO, content, and digital PR. By keeping all your marketing data in one place, you get a clearer picture of your performance.
Whether you’re a freelancer, small business, agency, ecommerce business, or a large corporation, OTTO is the perfect solution to simplify and supercharge your Google Ads.
Full Google Ads Optimization for More Conversions
Optimizing Google Ads campaigns can seem like a challenging and time-consuming task, with constant tweaks and monitoring. But what if you could streamline the process and guarantee your ads are performing at their peak with just a few clicks?
AI tools now give you a smarter, more efficient way to boost your conversion rates. Try OTTO Google Ads with a free trial today. No commitment, cancel anytime!
