What’s the average conversion rate for Facebook Ads？ It depends

As a seasoned digital marketer, you are well aware of the vast potential of advertising on Facebook. You’ve likely delved into the concept of promoting your brand through this highly trafficked platform. While you may have experienced satisfactory conversion rates from Facebook advertising, it’s natural to question how your performance stacks up against industry averages.

Benchmarking your results against the standard conversion rates for Facebook ads can provide valuable insights. However, it should not be the sole determinant of your advertising strategy. Continue reading to discover the typical conversion rates for Facebook ads and, more crucially, how to assess your company’s success with these campaigns.

One of the key benefits of Facebook advertising is the myriad of methods available to reach a diverse audience.

Statistically, this diversity makes it difficult to establish a universal average conversion rate. Nonetheless, it can be insightful to compare your performance with peers in your industry. Wordstream, a leading SaaS advertising platform, has compiled data to offer a benchmark for this purpose.

On average, Facebook ads yield a conversion rate of 9-10%. Refer to the following table for a breakdown of conversion rates by industry: Apparel (4.11%), Auto (5.11%), B2B (10.63%), Beauty (7.10%), Consumer Services (9.96%), Education (13.58%), Employment & Job Training (11.73%), Finance & Insurance (9.09%), Fitness (14.29%), Home Improvement (6.56%), Healthcare (11.00%), Industrial Services (0.71%), Legal (5.60%), Real Estate (10.68%), Retail (3.26%), Technology (2.31%), Travel & Hospitality (2.82%), with an overall average of 9.21%. Keep in mind that comparing your conversion rate to those in a different industry or the collective average may not be entirely accurate.

For instance, the industrial services industry has an average conversion rate of 0.71%, while the fitness industry boasts a 14% conversion rate. It would be unjust to claim that the industrial services industry is less effective at Facebook advertising than the fitness industry.

Consider that a single contract with an industrial services company can generate millions in revenue, whereas a fitness-related business may sell $10 water bottles through highly targeted ads. The target audience for industrial services companies is often smaller, and conversion rates for large contracts are generally lower to begin with.

Does this make Facebook advertising a poor choice for industrial services? Absolutely not! The water bottle company must convert a substantial volume of traffic to compete with a single conversion in the industrial services sector.

So, how can you determine if your Facebook ad conversion rate is satisfactory?

It’s tempting to compare your conversion rate to industry standards. While it’s not detrimental to reference average Facebook ad conversion rates, it’s essential to consider the unique factors influencing your own campaigns. A reasonable conversion rate can depend on various elements.

You can boost your conversion rate by offering promotions or free trials, improving ad targeting to reach potential customers, and ultimately, assessing the return on investment (ROI) for your Facebook ads. ROI is the key performance indicator for gauging success.

With this in mind, you can better understand what average conversion rates on Facebook should look like for your campaigns.

You can use the average conversion rate chart as a reference for your initial campaigns. However, to determine your target conversion rate, it’s crucial to calculate it yourself. This will help you estimate the traffic, click-through rate, and conversion rate needed to achieve a positive ROI.

Create an Excel spreadsheet and calculate the numbers yourself! Bonus Facebook Advertising ROI Calculator I’ve compiled a spreadsheet that you can copy and use to calculate your own metrics for a successful Facebook ad campaign. Download the calculator here. Use past campaigns for the ad spend, impressions, and click-through rate columns.

Remember that you can always work to improve these factors, in addition to increasing your conversion rates, to achieve a better ROI.

This is where the real fun begins. Whether your Facebook ads deliver a positive ROI or not, you can continuously test and refine your strategies to improve results. Use the conversion rates from your last campaign as a benchmark for future efforts.

Improvements can always be made, and as long as your ROI continues to rise, you’re on the right track. Your average Facebook conversion rate may not match your industry’s, but as long as it supports business growth and scaling, you’ve succeeded in your Facebook advertising endeavors.

If you’re seeking a CRO agency to maintain or enhance your Facebook ad conversion rates in line with your business objectives, please don’t hesitate to explore our social media advertising packages or contact us at 888-601-5359 today!