Automotive Search Ad Benchmarks: Data & Tips to Drive Growth in 2026

Roughly 76% of new and used car shoppers use a search engine in their buying process. At the same time, automotive enthusiasts perform over 104 million daily searches for auto parts and accessories. Advertising on platforms like Google Ads and Microsoft Ads places your business in front of this high-intent audience.

But 2025 was a tumultuous year to be a marketer in the automotive industry. The market is expanding (sales of light-duty vehicles and aftermarket grew in 2025), which calls for flooring the pedal on advertising spend. But increasing—and swiftly fluctuating—tooling, parts, and import costs, plus higher interest rates, created a lot of uncertainty for sellers and buyers.

While search advertising remains one of the best bets for growth, you need all the data you can get to know if your current strategy is working and where you can pivot to stay competitive.

Benchmarking your Google Ads and Microsoft Ads against businesses like yours is a great way to answer those questions. And we’ve got you covered there!

We’ve analyzed over 2,000 automotive search ad campaigns, so you can see exactly how other businesses in your industry are performing for key metrics. We also have tips and insights from automotive search ads experts to help you keep costs low, get more clicks and customers, and hit the gas on growth.

Contents

• Key takeaways
• Automotive search ads benchmarks
  • Average click-through rate
  • Average cost per click
  • Average conversion rate
  • Average cost per lead
• Tips for automotive businesses to improve search ad campaigns

❓Want to see how the automotive industry stacks up against others in Google and Microsoft advertising results? Download our latest, complete search ads benchmarks report for free here!

Search ads benchmarks for automotive: Key takeaways

Our automotive search ads benchmarks showed some differences compared to what we saw in our overall search ads benchmarks. Click-through rates decreased this year for automotive businesses, while we saw increases for most industries in our overall data. And costs per click and lead increased, but at a much lower rate than we saw elsewhere.

• Average click-through rate decreased for 58% of automotive businesses and decreased overall by 5.56%. This is a departure from our full industry Google Ads benchmarks, where CTR increased 3.74% overall. It’s been a tricky year in the automotive industry, marked by high interest rates and fluctuating tariffs. These uncertainties may have kept people who weren’t already needing a vehicle from clicking on ads.
• Average cost per click decreased for more than half of automotive businesses, but increased 3.30% overall. This is a lower rate of increase than our overall benchmarks (12.88% increase). CPC is a pretty good measure of industry competition, so the slower rate of increase could suggest that automotive marketers are holding back a little until uncertainties like tariffs settle out.
• Average conversion rate decreased for 61% of automotive businesses but increased overall by 5.71%. This is due to some subcategories, like Mobile Homes & RVs (+115.45%) and Auto Parts & Accessories (+108.34%), seeing substantially large increases in performance YoY. The average RV owner is getting younger, with Gen X and Millennials driving much of that industry’s growth, and their online savvy may also be pushing up search ad conversions.
• Average cost per lead increased for 58% of automotive businesses but only increased overall by 1.02%. This is a lower rate of increase than our overall benchmarks of 5.13%. This is another signal that uncertainty may be dulling keyword competition compared to other industries. It’s also worth noting that the average cost per lead of $32.79 for our cohort of automotive businesses is substantially less than the average cost per lead of $295 we found from other sources.

Why would we see signs of lower consumer interest (a drop in average CTR) and dulled competition (slower increases in CPC and CPL) compared to the average of all industries? Much of it is timing and a split along new car and repair subcategories.

Many buyers pulled their purchase forward to buy before the announced tariffs took effect. Plus, purchases of battery electric vehicles (BEVs) softened after tax credits expired. That meant buyer interest dropped in the second half of the year, even though 2025 looked overall strong in sales. That would explain why competition for new car search ads didn’t increase as aggressively as it did in other industries.

At the same time, the average vehicle in the US is now nearly 13 years old—a record in this country. That’s boosting sales for aftermarket and repair shops. It shows in the data as CTRs climb for categories like Engine Repair & Tune-Up (+25.68%) and Shock & Strut Repair (+23.49%).

There’s still much in the air for the upcoming year. If the tariff talk cools and interest rates drop, expect a lot more competition for clicks and conversions in the automotive industry.

Automotive search ads benchmarks by metric

Ready for a deep dive into the pay-per-click (PPC) data trends for the automotive industry? Here are the Microsoft and Google Ads metrics for each automotive subcategory.

Click to view full size

🚨 Want to take a look under the hood of your search ads? Use our Free Google Ads Grader to get a full report on how to tune up your search strategy.

Average click-through rate

Click-through rate is more of a top-line metric that tells us a lot about the effectiveness of an automotive ad’s targeting and how “clickable” a search ad is. While clicks don’t directly equal revenue, they are an important data point to guide your search ad strategy.

The overall average click-through rate for automotive search ads is 6.17%. This represents a 5.66% decrease compared to last year.

The automotive businesses that saw the best CTRs were New Motorcycle Dealers (10.28%), Honda Dealers (9.12%), and ATVs (8.88%).

The automotive businesses with the lowest CTRs were Auto Service & Repair (4.55%), Body Repair & Paint (5.35%), and Inspection & Diagnostic Services (5.40%).

Average CTR year over year

Jeep Dealers experienced the highest CTR drop year over year at -39.23%. The next two automotive subcategories that saw the largest declines in click-through rate were Dodge Dealers (-33.40%) and Honda Dealers (-28.75%).

On the flip side, Tire & Wheel Alignment and Rotation enjoyed the biggest increase in CTR with an increase of 26.22%. This was followed by Engine Repair & Tune-Up with an average CTR increase of 25.68% and Shock/Strut Repair with an increase of 23.49% year over year.

Average cost per click

CTR and cost per click combined have a big effect on your search ads budget. While you want a high CTR, if your cost per click also increases, your search ads budget can skyrocket. Ideally, you want a lot of clicks for a low cost. CPC is dependent on many factors, including your bidding strategy and keyword competition.

The average CPC for the automotive industry is $3.13. This is a 3.3% increase over the prior year.

The automotive businesses that saw the best CPCs were ATVs ($1.72) and General Use Auto Dealers ($1.77), with Honda Dealers and New Motorcycle Dealers tied for third ($1.82).

The automotive business categories with the highest CPCs were Automotive Glass Repair ($6.89), Transmission & Clutch Repair ($6.89), and Body Repair & Paint ($5.81).

Average CPC year over year

The automotive industries with the largest increase in CPC year over year were Toyota Dealers (+33.53%), Volkswagen Dealers (+18.39%), and Auto Service & Repair (+16.19%).

Conversely, Jeep Dealers (-25.84%), Nissan Dealers (-23.60%), and GMC Dealers (-18.22%) experienced the largest drop in CPCs.

Average conversion rate

Conversion rate is an important metric to understand because it tells you how well an ad can generate leads or sales. It also gives you a bigger picture of your ad overall, including how captivating the copy was and how well it was targeted.

The average conversion rate for automotive businesses is 8.80%. This is a 5.71% increase year over year.

The automotive businesses that saw the best CVRs were Auto Parts & Accessories (29.01), Automotive Glass Repair (19.14%), and Transmission & Clutch repair (16.96%).

The automotive businesses with the lowest CVRs were Toyota Dealers (1.81%), ATVs (3.27%), and General Used Auto Dealers (3.93%).

Average CVR year over year

The industries with the biggest drop in conversion rates were Toyota Dealers (-31.54%), Ford Dealers (-27.76%), and Body Repair & Paint (-26.99%).

At the same time, Mobile Homes & RVs (+115.46%), Auto Parts & Accessories (+108.34%), and Volkswagen Dealers (+75.29%) showed the largest increases in CVR.

Average cost per lead

Cost per lead (also called cost per conversion, cost per action, or cost per acquisition) highlights how much you spend for each conversion, so it’s most closely tied to the ROI of your search ad budget.

The average CPL for automotive businesses is $32.79. This is a 1.02% increase compared to the prior year.

The automotive businesses that saw the best CPLs were Auto Parts & Accessories ($19.69), Tire & Wheel Repair ($19.69), and Tire Dealers ($22.65).

The automotive categories with the highest CPLs were Toyota Dealers ($121.51), Commercial & Other Vehicles ($78.26), and Ford Dealers ($69.41).

Average CPL year over year

The Commercial & Other Vehicles subcategory showed the largest decrease in CPL compared to the prior year (-36.87%). The next two were Volkswagen Dealers (-35.59%) and Mobile Homes & RVs (-32.97%).

The automotive industries that saw the largest increases in cost per lead were Toyota Dealers (+84.05%), Ford Dealers (+53.73%), and General New Auto Dealers (+27.14%).

Expert tips to improve automotive search ads campaigns

If you find your performance isn’t up to par with your industry cohorts, don’t tap the brakes on search ads just yet. We’ve asked several automotive advertising experts to share their best tips to rev up your results.

1. Focus on reducing your cost per click

One of the most important decisions a marketer has to make is which measurements to focus on. It’s easy to over-index on the “money” metrics like the cost of a conversion. However, factors in the automotive industry make it a good idea to keep an eye on top-line results, too.

“While CPL is important, CPC is one of the most important metrics to pay attention to for automotive businesses,” said Jeffery Suhre, Optimization Strategist for Direct Local Automotive at LocaliQ. “When people are buying a new car, they typically don’t submit info to dealers because buying a car isn’t always a great experience.”

That buyer behavior makes tracking lead costs less reliable. “CPL may only include last-click attribution, which we don’t always get, but our traffic typically impacts overall sales, so we try to maintain a low CPC,” Jeffery added.

Here are some ways you can keep your CPCs at or below industry averages:

• Make sure your landing page is perfectly in tune. You can do everything else perfectly, but if your landing page doesn’t align with your ad and audience, your conversion rate will plummet. Make sure your message, imagery, and call to action all align with your ad.
• Run ads across networks and platforms. Ads placed on platforms and advertising networks outside of Google Search often trend cheaper since they’re less competitive. Trying campaigns in those other locations can be a good way to test for cheaper clicks.
• Boost your Quality Score. A higher Quality Score means an increased chance of your ad showing, even with a lower bid. Refresh your ads regularly, include newly added keywords, and review Google’s suggestions from the ads editor section of the platform for ideas on how to improve.

Get several more CPC-slashing ideas in this guide.

2. Make sure your keyword bids are on target

Balance is the name of the game when bidding on search terms. You want to make sure you’re using keyword research tools, like the Google Keyword Planner, to look at the average cost for top positions on the SERP.

“Make sure keyword bids are at an appropriate level when comparing to Google’s estimated first page, top of page, and top spot bids,” Jeffery said. “Some are too high to go after, while some can be very efficient.”

It’s also really important to consider other factors besides just cost. Shying away from an expensive keyword might seem like a good way to reduce your CPC, but if it shows a very high buying intent or has a high search volume, you may miss out on a lot of valuable clicks and conversions.

3. Go big on promotions

There are several levers you can pull in audience targeting and bidding to improve your search ads results. But one of the biggest ways to give your marketing a boost is with a time-sensitive discount or deal.

“Limited-time promotions are one of those strategies that always seem to help drive better CTR, CPC, and CPLs,” said Alan Moore, Digital Marketing Strategist at LocaliQ. “Savvy buyers are clued in to look for deals, so a promotion in your search ad stands out.”

One great aspect of advertising promotions in search is that you get almost instant feedback. If the ad isn’t performing, you can quickly switch the offer or copy to see what will.

4. Use first-party data to strengthen your targeting

Third-party data is still very useful for targeting search ads. But its future is iffy—new platform or even legal restrictions could change how you can capture or use it. That’s why it’s important to also focus on ethically gathering first-party data from your leads and customers.

“First-party data is becoming more important than ever, as the information your business is able to collect is unique to you and solely owned by you,” said Susie Marino, Senior Content Marketing Specialist at LocaliQ. “So, you’ll never lose any first-party customer lists you might have. But who knows what the future of third-party data might look like.”

Susie suggests using first-party data to build audience segments based on your typical buyer’s journey. Plus, automated features within search advertising platforms, such as Smart Bidding, run more efficiently when paired with first-party data. “Auto search ad accounts usually scale fast, and first-party data helps to streamline this,” she added.

Appointment schedulers, quote requests, and inventory searches can all be great ways to gather first-party data from your website.

Source

Drive more traffic and sales with your automotive search ads

New vehicle buyers and people in need of repairs continue to turn to Google and Microsoft Bing to find car dealers and service providers. As the dust clears for the automotive industry, you can expect even more shoppers to do so…and the competition on search ads will heat up.

The data in this report can help you tell where you currently stand and offer guidance on where you can improve. But remember, no two businesses are the same. You have a unique combination of goals, products, audiences, and strengths. The real test is how you perform against yourself over time. And that’s where we can help. Reach out to see how our solutions can improve your search advertising strategy and drive better results for your automotive business.

About this data

This report is based on a sample of 2,001 US-based search advertising campaigns running between October 1, 2024, and September 30, 2025. Each subcategory includes at minimum 21 unique active campaigns. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

Meet The Author

Rob Glover

Rob is a Senior Copywriter for LocaliQ and WordStream, where he uses his content marketing experience to write about all manner of advertising, sales, and adtech topics. When not turning phrases, Rob loves to travel, cook, and spend time outdoors (especially hiking and mountain biking) with his wife and dog.

Other posts by Rob Glover