Facebook Ad Costs Surge 21% in 2025, Outpacing Google
▼ Summary
– Facebook’s average cost per lead increased 21% year over year to $27.66, while Google’s average CPL is $70.11.
– Traffic campaigns show improved efficiency with a higher average CTR of 1.71% and a lower average CPC of $0.70, down 6.7% YoY.
– Lead campaigns face challenges with a flat average CTR of 2.59%, a slightly higher average CPC of $1.92, and a lower average conversion rate of 7.72%.
– Advertisers should focus on tighter targeting and lead quality as lead-generation campaigns become more expensive and less reliable.
– A balanced mix of campaign objectives and alignment with broader business goals is recommended for 2025 strategies.
Facebook advertising costs have surged by 21% in 2025, reaching an average cost per lead of $27.66, significantly outpacing Google’s average CPL of $70.11. Despite this sharp increase, social media ads continue to be a preferred channel for small businesses aiming to connect with audiences effectively and affordably.
Traffic campaigns have shown notable improvements in performance. The average click-through rate rose to 1.71%, up from 1.57% in the previous year. Shopping, Collectibles & Gifts led the way with an impressive 4.13% CTR, while Automotive Repair lagged behind at just 0.80%. At the same time, the average cost per click dropped by 6.7% year-over-year to $0.70. The lowest CPC was observed in Shopping, Collectibles & Gifts at $0.34, whereas Finance & Insurance recorded the highest at $1.22.
Lead generation campaigns, however, tell a different story. The average CTR held steady at 2.59%, with Arts & Entertainment performing strongest at 3.92% and Dentists coming in lowest at 1.05%. The average CPC for lead campaigns increased slightly to $1.92, up from $1.88. Dentists faced the highest CPC at $9.78, while Restaurants & Food enjoyed the lowest at just $0.74. More concerning is the decline in conversion rates, which fell from 8.67% to 7.72% on average. Restaurants & Food achieved the highest conversion rate at 18.25%, while Furniture trailed with only 3.77%.
These trends highlight a clear divergence: traffic campaigns are becoming more efficient with better engagement and lower costs, making them ideal for broad awareness and website visits. In contrast, lead campaigns are growing more expensive and less effective, with conversion rates dropping across most sectors. This shift means advertisers can no longer rely solely on lead ads for strong returns. Success now depends on refined targeting, more compelling creative, and a greater emphasis on lead quality.
Broader economic and competitive pressures are influencing these changes. Inflation and tighter household budgets are reducing demand in certain industries, such as home improvement and personal care, where conversion rates have fallen noticeably. Meanwhile, increased competition for user attention is driving up advertising costs industry-wide.
According to Tyler Mask, Director of Optimization Strategy at LocaliQ, “Although CPC, CVR, and CPL have all taken a hit this year, CTR improving in spite of higher costs means consumers are still engaging with ads , a good sign for businesses.”
Looking ahead, marketers must refine their strategies in 2025. Rather than chasing cheap clicks, the focus should shift toward generating higher-quality leads. Meta’s AI-powered Advantage+ tools can help optimize campaigns, but they must be used judiciously to avoid inefficient spending or low-value conversions. A balanced approach, incorporating traffic, branding, and lead generation objectives, is increasingly essential. Above all, advertisers are advised to align their efforts with overarching business goals rather than optimizing for any single metric, as performance continues to vary significantly by industry.
(Source: Search Engine Land)
