Google Ads CPCs rose to $5.42 in 2025 with 87% of industries seeing increases, but conversion rates climbed to 8.18% as automation improves

by | May 19, 2026 | Latest E-commerce News & Updates

The average Google Ads cost-per-click rose to $5.42 in 2025 from $4.66 the prior year, with CPCs increasing in 87% of industries analyzed, while average conversion rates climbed to 8.18% as advertisers got better at turning clicks into conversions, according to a new WordStream by LocaliQ benchmark report based on more than 16,000 campaigns. Attorneys & Legal Services topped the CPC rankings at $8.58, followed by Finance & Insurance and Home Improvement in the $7+ range, while Arts & Entertainment and Travel & Hospitality sat at the low end in the $2-$3 range. Average cost per lead increased to $70.11 in 2025 from $66.69 in 2024, a more modest 5.13% rise than prior years, signaling some stabilization after steep inflation across paid media. A separate WordStream analysis of more than 15,000 Google Ads accounts found nearly 29% recorded zero conversions over a 90-day period, with accounts using negative keywords seeing conversion rates up to three times higher than those without them.

Paul Drecksler is the founder and editor of Shopifreaks, covering the most important stories in e-commerce.

Companies: Google

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