A good Google Ads conversion rate in 2026 is broadly anything above the all-industry average of about 8% — though strong service accounts often hit 10–16%. A good cost per lead is below your industry average, which sits around £50 (≈$67) overall but ranges from under £25 to over £100 depending on sector. “Good” always means “good for your industry and margins”, so here’s how to judge your own numbers.
What is a good conversion rate in Google Ads?
Across all industries, the 2026 average conversion rate is roughly 8% (WordStream’s analysis of 13,000+ campaigns). The highest-converting sectors — animals & pets (~16%), auto repair (~15%) and education (~13%) — sit well above that, while finance & insurance (~3%) and furniture (~3%) sit below. Compare yourself to your sector, not the global average.
What is a good cost per lead?
The 2026 average cost per lead for search ads is about £50 (≈$67). But legal services average the highest at over £100 per lead, while sectors like auto repair and hospitality come in under £25. A “good” cost per lead is simply one your margins can absorb profitably — a £120 lead can be excellent for a solicitor and ruinous for a takeaway.
How to know if your numbers are actually good
Work it back from profit, not vanity metrics:
- What is a customer worth? Lifetime value, not just first sale.
- What can you pay per lead and still profit? Factor in your lead-to-customer close rate.
- Is your cost per lead below that ceiling? If yes, the account is working — even if the conversion rate looks “average”.
For context, a live account on my results page runs at a lifetime average cost per lead of £63 with full conversion tracking in place.
The levers that actually move these numbers
Conversion rate and cost per lead are usually decided after the click:
- Landing page relevance and speed — the biggest single factor for most accounts.
- Search intent — high-intent keywords convert far better than broad ones.
- Offer and call to action — a clear, low-friction next step.
- Call handling — many “lost” leads are just unanswered phones.
Why averages can mislead
Benchmarks are a sanity check, not a target. A 5% conversion rate at a £40 cost per lead can be far more profitable than a 12% rate at £150. Always tie the numbers back to what a customer is worth to you.
Frequently asked questions
My conversion rate is below 8% — is that bad?
Not necessarily. If your cost per lead is profitable for your margins, the account is doing its job. Some valuable sectors simply convert lower.
How can I improve my cost per lead?
Cut wasted spend with negatives and tighter match types, sharpen high-intent keywords, and improve the landing page and call handling. Tracking has to be solid first.
What’s a good conversion rate for a service business?
Well-run local service accounts often see 10–15%+, helped by high-intent local searches and a strong, simple landing page.
Does Google’s bidding affect my conversion rate?
Yes — but only as well as your tracking lets it. If conversions are mis-measured, smart bidding optimises toward the wrong thing.
Want to know how your numbers compare? Get a free audit and I’ll benchmark your account honestly.