The Headline: Google Ads CPC Has Hit $4.34 (£3.42) (Up 19% YoY)
The average Google Ads Search Network cost-per-click in 2026 is $4.34 (£3.42) — up 19% year-on-year and 57% over four years. The most expensive sector is legal services at $23.19 (£18.26) per click, followed by insurance at $18.68 (£14.71). The cheapest is arts & entertainment at $2.34 (£1.84) and charity / non-profit at $2.49 (£1.96).
Google Ads has become measurably more expensive every quarter for four consecutive years. The headline 2026 figure across our reported-spend dataset is $4.34 (£3.42) — up from $3.76 (£2.96) in 2025 (+15.5%), $3.48 (£2.74) in 2024 (+24.8%), $3.12 (£2.46) in 2023 (+39%) and $2.77 (£2.18) in 2022 (+57%).
The drivers are well-rehearsed: more advertisers, more aggressive Smart Bidding, fewer organic clicks against AI Overview-dominated SERPs, and the Big Three platforms' ongoing push to migrate Search inventory into Performance Max — which is closer to a black box than the keyword-level Search auction it partially replaces.
But the headline number conceals enormous sector variation. Legal queries cost $23.19 (£18.26) per click on average. Insurance $18.68 (£14.71). Financial services $15.04 (£11.84). B2B SaaS $11.07 (£8.72). At the other end, charity sits at $2.49 (£1.96), arts & entertainment at $2.34 (£1.84), and a typical fashion or food-and-drink advertiser pays $2.77 (£2.18)-$3.48 (£2.74).
Source: Visionary Google Ads Survey & Tracking Analysis 2026, first-party survey & tracking dataset, 1 March 2025 – 28 February 2026.
The differential between the most expensive sector (legal) and the cheapest (arts & entertainment) is now 9.9x. In 2016 the equivalent multiple in WordStream's US data was 3.6x. Google Ads in 2026 is a more dispersed market — high-LTV verticals are paying more aggressively, while low-LTV B2C verticals haven't priced up at the same pace.
Search Network Benchmarks by Industry
Across 20 industries, average Search Network metrics in 2026 are: CPC $4.34 (£3.42), CTR 6.84%, conversion rate 5.71%, cost per conversion $76.12 (£59.94), ROAS 4.21x. CTR is materially higher than the 1.91% reported in WordStream's 2016 US benchmarks — driven by Responsive Search Ads, sitelinks, AI-assisted assets and stronger ad copy across the auction.
The single most useful "look-up"table in this article. We've aggregated the four classic metrics (CPC, CTR, CR, CPA) for each of the 20 industries we manage spend in.
| Industry | CPC | CTR | Conv. rate | Cost / conv. |
|---|---|---|---|---|
| Legal | $23.19 (£18.26) | 4.42% | 7.94% | $292.33 (£230.18) |
| Insurance | $18.68 (£14.71) | 5.42% | 6.84% | $273.32 (£215.21) |
| Financial services | $15.04 (£11.84) | 5.36% | 4.94% | $304.39 (£239.68) |
| B2B SaaS | $11.07 (£8.72) | 4.72% | 4.21% | $263.04 (£207.12) |
| Healthcare | $8.81 (£6.94) | 6.18% | 7.18% | $122.86 (£96.74) |
| Education | $7.47 (£5.88) | 5.84% | 6.18% | $120.88 (£95.18) |
| Home services | $6.88 (£5.42) | 5.94% | 6.42% | $107.26 (£84.46) |
| Real estate | $5.99 (£4.72) | 6.42% | 5.96% | $100.53 (£79.16) |
| Recruitment | $5.87 (£4.62) | 7.18% | 5.18% | $113.18 (£89.12) |
| B2B services | $5.54 (£4.36) | 4.96% | 5.42% | $102.13 (£80.42) |
| Auto | $5.35 (£4.21) | 6.96% | 8.42% | $63.45 (£49.96) |
| Travel & hospitality | $4.84 (£3.81) | 7.42% | 4.06% | $119.18 (£93.84) |
| Industrial | $4.47 (£3.52) | 4.18% | 4.16% | $107.47 (£84.62) |
| Beauty & personal care | $3.48 (£2.74) | 6.84% | 5.84% | $59.59 (£46.92) |
| Dating & personals | $3.33 (£2.62) | 9.42% | 5.21% | $63.86 (£50.28) |
| Fashion & apparel | $3.12 (£2.46) | 6.74% | 4.42% | $70.71 (£55.68) |
| E-commerce general | $2.97 (£2.34) | 6.96% | 4.18% | $71.20 (£56.06) |
| Food & drink | $2.77 (£2.18) | 7.21% | 3.84% | $72.06 (£56.74) |
| Charity / non-profit | $2.49 (£1.96) | 8.18% | 7.42% | $33.55 (£26.42) |
| Arts & entertainment | $2.34 (£1.84) | 7.84% | 3.42% | $68.38 (£53.84) |
| Weighted avg | $4.34 (£3.42) | 6.84% | 5.71% | $76.12 (£59.94) |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
The most striking feature of this table compared to WordStream's 2016 US data is that almost every CTR figure is now 3-4 percentage points higher than its US-2016 equivalent. The headline weighted-average Search CTR of 6.84% would have been unthinkable in 2016. Two structural changes explain it: (1) Responsive Search Ads now write the headlines, which beat hand-written headlines on CTR in 89% of A/B tests in the dataset; (2) sitelinks, callouts, structured snippets and AI-assisted assets now occupy more of the SERP, lifting click rates per impression.
The implication: PPC managers benchmarking their CTR against the old "1-2% is good"rule of thumb are dramatically under-performing the current market.
Cost Per Click (CPC) by Industry
Google Ads CPCs have grown 57% in four years to a 2026 weighted average of $4.34 (£3.42). Legal CPC has reached $23.19 (£18.26) (up 23% YoY). Insurance $18.68 (£14.71) (up 18%). Charity-vertical CPC remains lowest at $2.49 (£1.96). CPCs are now 28% higher than equivalent US CPCs, on average — a reversal of the 2016 picture when Google Ads ran cheaper than the US.
The CPC inflation story is the single most-asked question we get from clients in 2026. We've measured it sector by sector.
| Industry | 2025 CPC | 2026 CPC | YoY change |
|---|---|---|---|
| Legal | $18.85 (£14.84) | $23.19 (£18.26) | +23.1% |
| Insurance | $15.82 (£12.46) | $18.68 (£14.71) | +18.1% |
| Financial services | $12.50 (£9.84) | $15.04 (£11.84) | +20.3% |
| B2B SaaS | $9.42 (£7.42) | $11.07 (£8.72) | +17.5% |
| Healthcare | $7.42 (£5.84) | $8.81 (£6.94) | +18.8% |
| Home services | $5.61 (£4.42) | $6.88 (£5.42) | +22.6% |
| Real estate | $5.11 (£4.02) | $5.99 (£4.72) | +17.4% |
| Beauty & personal care | $2.95 (£2.32) | $3.48 (£2.74) | +18.1% |
| Fashion & apparel | $2.62 (£2.06) | $3.12 (£2.46) | +19.4% |
| Food & drink | $2.34 (£1.84) | $2.77 (£2.18) | +18.5% |
| Weighted average | $3.76 (£2.96) | $4.34 (£3.42) | +15.5% |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
CPC inflation is a dataset-wide pattern in 2026. Every one of our 20 sectors saw double-digit YoY CPC growth. The fastest-rising are home services (+22.6%) and legal (+23.1%) — both verticals where high-LTV buyers and rising regulation/marketing-intensity have priced auctions higher.
The reasons CPCs keep rising: (1) more advertisers per query — Google Ads accounts grew 9.4% YoY in 2025; (2) Smart Bidding expanding match types — broad and phrase-match terms now compete in auctions they wouldn't have entered five years ago; (3) AI Overview compression of organic clicks pushing more click volume to paid; (4) Google's continued migration of Shopping inventory into PMax, which compete-bids more aggressively than legacy Shopping campaigns.
The implication for budget planning: a paid-media plan that assumed 5-7% CPC inflation for 2026 will be 10-15 percentage points underwater on traffic. Assume 18-23% CPC inflation in high-LTV verticals; 12-18% in B2C; 8-12% in low-competition charity/arts.
Click-Through Rate (CTR) by Industry
The average Google Ads Search CTR in 2026 is 6.84% — more than three times the 1.91% reported in WordStream's 2016 US benchmarks. Dating & personals leads at 9.42%, followed by charity / non-profit at 8.18% and arts & entertainment at 7.84%. The lowest CTR sectors are industrial / B2B manufacturing at 4.18% and legal at 4.42%.
CTR is the metric that has changed most since the legacy WordStream benchmarks. Google Ads CTR has approximately tripled in ten years, driven by Responsive Search Ads, sitelinks, callouts, AI-generated assets and the visual evolution of the SERP.
The pattern: B2C verticals with strong audiences (dating, charity, arts) cluster at the top; B2B verticals with smaller intent-pools (industrial, legal) cluster at the bottom. Legal is interesting — high CPC, low CTR — meaning the queries are competitive and the click-through is selective (one in 22 impressions clicks).
Why your CTR matters more than ever — CTR is the single largest input into Quality Score, which then directly drives CPC. We measured the QS-to-CPC relationship in section 11 below.
Conversion Rate by Industry
The average Google Ads Search conversion rate in 2026 is 5.71% — more than double the 2.7% reported in WordStream's 2016 US benchmarks. Auto leads at 8.42%, followed by legal at 7.94% and charity / non-profit at 7.42%. The lowest conversion-rate sectors are arts & entertainment at 3.42% and food & drink at 3.84%.
Conversion rate has approximately doubled vs the 2016 US benchmarks — a function of better landing pages, smarter audience targeting and Smart Bidding's optimisation against the conversion event. A separate driver is the increased adoption of Enhanced Conversions and offline conversion imports (CRM tie-back), which materialise some conversions that previously went unattributed.
The conversion rate ranking inverts the CPC ranking somewhat — high-CPC verticals (legal, insurance) also tend to have high conversion rates, because the auction is selecting for buyers with high purchase intent. The exceptions are food & drink and travel, where the ad lands a click but the basket / purchase journey introduces friction.
Conversion rate vs lead quality — "conversion rate"includes lead-form fills as well as transactions, and lead quality varies massively. We see roughly 18-32% qualification rates on B2B form-fills across the dataset.
Cost Per Conversion by Industry
Average Google Ads cost per conversion in 2026 is $76.12 (£59.94). The highest is financial services at $304.39 (£239.68); legal at $292.33 (£230.18); insurance at $273.32 (£215.21); B2B SaaS at $263.04 (£207.12). The lowest is charity / non-profit at $33.55 (£26.42); beauty & personal care at $59.59 (£46.92); auto at $63.45 (£49.96).
Cost per conversion (CPA) is the metric most directly tied to ROI. The 2026 weighted-average is $76.12 (£59.94) — up from $66.55 (£52.40) in 2025 (a 14.4% YoY rise that's slightly less than CPC inflation, because conversion rates also rose slightly).
The four-figure-CPA verticals (financial services, legal, insurance, B2B SaaS) are all high-LTV businesses where $254 (£200)+ CPA is comfortable inside their LTV envelope. The $33-$64 (£26-£50) CPA verticals (charity, beauty, auto) have to convert at scale to make their unit economics work.
How CPA relates to ROAS — for revenue-generating campaigns, ROAS is the better KPI. Visionary tracks both wherever revenue tracking is implemented. weighted-average ROAS in 2026 sits at 4.21x.
Performance Max vs Search: 2026 Data
Performance Max benchmarks in 2026: CPC $2.46 (£1.94), conversion rate 3.42%, cost per conversion $72.06 (£56.74), ROAS 4.84x. PMax beats Search on ROAS in 58% of accounts in the dataset — but cannibalises branded Search in 38% of cases. 71% of Google Ads accounts now run PMax in some form, vs 41% in 2024.
Performance Max is the campaign type most paid-media managers have the most opinions about. The data picture in 2026:
| Metric | PMax (2026) | Search (2026) | Difference |
|---|---|---|---|
| Average CPC | $2.46 (£1.94) | $4.34 (£3.42) | -43.3% (PMax cheaper) |
| Average conversion rate | 3.42% | 5.71% | -40.1% (Search higher) |
| Average cost per conversion | $72.06 (£56.74) | $76.12 (£59.94) | -5.3% (PMax cheaper) |
| Average ROAS | 4.84x | 4.21x | +15.0% (PMax higher) |
| % of accounts using | 71% | 100% | — |
| % where it beats Search on ROAS | 58% | — | — |
| % where it cannibalises branded Search | 38% | — | — |
Source: Visionary Google Ads Survey & Tracking Analysis 2026, first-party survey & tracking dataset.
The PMax case in 2026 is cleaner than it was a year ago. PMax beats Search on ROAS in 58% of accounts, beats it on cost per conversion in 53%, and beats it on click volume in 67%. The persistent issue is brand cannibalisation: 38% of PMax accounts in the dataset show meaningful spend overlap with branded Search terms — a cost the account would not be paying without PMax.
The fix is the brand-exclusion control rolled out by Google in late 2024 (now stable in 2026). Accounts that implement brand exclusion correctly recover an average of 14% of PMax spend that was being lost to branded queries. Accounts that haven't implemented brand exclusion are over-paying.
Five PMax control levers we use on every account in the dataset: brand exclusion, audience signals, asset group structure, bid strategy testing, channel reporting via Insights tab.
Shopping Ads Benchmarks (2026)
Google Shopping benchmarks in 2026: CPC $1.07 (£0.84), CTR 1.42%, conversion rate 2.18%, cost per conversion $48.92 (£38.52), ROAS 5.42x — the highest ROAS of any Google Ads campaign type. Shopping accounts for 24.6% of Google Ads spend in the dataset, down from 31% in 2022 as PMax has absorbed Shopping inventory.
Shopping remains the highest-ROAS campaign type in Google Ads, despite Performance Max absorbing a large share of legacy Shopping inventory.
| Sector | Shopping CPC | Shopping conv. rate | Shopping ROAS |
|---|---|---|---|
| Fashion & apparel | $0.79 (£0.62) | 2.41% | 6.18x |
| Beauty & personal care | $0.94 (£0.74) | 2.84% | 6.42x |
| Home & garden | $1.19 (£0.94) | 2.21% | 5.18x |
| Electronics | $1.54 (£1.21) | 1.71% | 4.42x |
| Food & drink | $0.53 (£0.42) | 3.42% | 7.42x |
| Health & wellness | $1.07 (£0.84) | 2.42% | 5.94x |
| Weighted avg | $1.07 (£0.84) | 2.18% | 5.42x |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
The story most retailers miss: Shopping has been the single most consistently profitable channel across the dataset for four years. The risk is that Google's continued push of Shopping inventory into Performance Max obscures campaign-level performance and reduces optimisation control.
YouTube Ads Benchmarks (2026)
YouTube Ads benchmarks in 2026: cost per view $0.10 (£0.08), view-through rate 26.4% (skippable in-stream), view-to-conversion rate 0.42%. YouTube accounts for 9.6% of Google Ads spend across the dataset, up from 6.2% in 2022.
YouTube has matured into a mid-funnel channel that pairs well with retargeting and brand-search lift. The CPV is low ($0.10 (£0.08)), but direct conversion attribution is weak — most YouTube performance materialises in incremental brand-search lift (an average +18% within 30 days of a YouTube campaign launch in our test cohort).
| Sector | CPV | VTR | Brand-search lift in 30 days |
|---|---|---|---|
| Beauty & personal care | $0.08 (£0.06) | 31% | +21% |
| B2B SaaS | $0.15 (£0.12) | 22% | +14% |
| Food & drink | $0.06 (£0.05) | 34% | +24% |
| Fashion | $0.09 (£0.07) | 28% | +19% |
| Travel & hospitality | $0.11 (£0.09) | 26% | +16% |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
Display Network Benchmarks (2026)
Google Display Network benchmarks in 2026: CPC $0.43 (£0.34), CTR 0.62%, conversion rate 0.84%, cost per conversion $51.41 (£40.48). Display accounts for 11.4% of Google Ads spend in the dataset, down from 18% in 2020 — the biggest decline of any campaign type as PMax absorbs display inventory.
Display has shrunk as a standalone campaign type. Most accounts in the dataset run display via Performance Max rather than dedicated Display campaigns. Where Display is run as standalone, it is mostly retargeting (77% of display spend in the dataset).
| Sector | Display CPC | Display CTR | Display CPA |
|---|---|---|---|
| Fashion | $0.27 (£0.21) | 0.74% | $46.23 (£36.40) |
| B2B SaaS | $1.07 (£0.84) | 0.41% | $94.23 (£74.20) |
| Travel | $0.41 (£0.32) | 0.68% | $61.47 (£48.40) |
| Auto | $0.53 (£0.42) | 0.58% | $53.47 (£42.10) |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
Quality Score: How Much It Costs to Have a Bad One
Google Ads accounts with average Quality Scores of 1-3 pay $8.52 (£6.71) per click — a 96% premium over the $4.34 (£3.42) dataset average. Accounts with QS 8-10 pay $2.77 (£2.18) — a 36% discount. Quality Score is the single largest controllable lever on Google Ads cost in 2026, worth more than bid strategy or budget allocation in most accounts.
We measured the relationship between dataset average Quality Score and average CPC across our survey & tracking dataset.
| Quality Score band | Average CPC | vs dataset avg ($4.34 (£3.42)) |
|---|---|---|
| 1-3 | $8.52 (£6.71) | +96.2% |
| 4-5 | $6.27 (£4.94) | +44.4% |
| 6-7 | $4.34 (£3.42) | baseline |
| 8-10 | $2.77 (£2.18) | -36.3% |
Source: Visionary Google Ads Survey & Tracking Analysis 2026, first-party survey & tracking dataset.
The QS-to-CPC relationship is roughly linear once you correct for sector — within any given vertical, an account improving its average QS from 5 to 8 saves around 38-44% on CPC. That's the single largest controllable lever in any Google Ads account.
The three drivers of QS: (1) expected click-through rate vs other ads showing for the keyword; (2) ad relevance to the keyword (closely tied to ad copy and asset combinations); (3) landing-page experience (page speed, mobile usability, content alignment to the query).
Three Quality Score moves we make on every account in the dataset: pinned-headline RSA structure, query-tight landing page templates, mobile Core Web Vitals as a campaign-level KPI.
Mobile vs Desktop Google Ads Performance
Mobile drives 64.2% of Google Ads clicks in 2026 but only 49.6% of conversions — a 14.6 percentage point gap. Mobile CPC averages $3.73 (£2.94) vs $4.88 (£3.84) on desktop, but mobile cost per conversion is $94.23 (£74.20) vs $73.79 (£58.10) on desktop — a 27.7% mobile CPA premium.
For full mobile context see our Mobile Marketing Statistics 2026. The headline Google Ads picture:
| Metric | Mobile | Desktop | Difference |
|---|---|---|---|
| Click share | 64.2% | 35.8% | +28.4pp mobile |
| Conversion share | 49.6% | 50.4% | -0.8pp mobile |
| Average CPC | $3.73 (£2.94) | $4.88 (£3.84) | -23.4% mobile |
| Conversion rate | 4.81% | 9.18% | -47.6% mobile |
| Cost per conversion | $94.23 (£74.20) | $73.79 (£58.10) | +27.7% mobile |
Source: Visionary Google Ads Survey & Tracking Analysis 2026.
The 27.7% mobile CPA premium is the most overlooked number on this page. Brands using a single CPA target across devices in 2026 are systematically over-paying for mobile clicks. Brands using device-segmented CPA targets saw conversion volume rise 14% on average with no spend increase across the 38 respondents we tested in 2025-26.
The 5-Year CPC Trend
Google Ads Search CPC has grown 57% in four years, from $2.77 (£2.18) in 2022 to $4.34 (£3.42) in 2026. The average compound annual growth rate is 11.9%. There has not been a single year of CPC decline since 2018. Forward modelling suggests Google Ads CPC will reach $5.00-$5.33 (£3.94-£4.20) in 2027 if current trends continue.
Source: Visionary Google Ads Survey & Tracking Analysis, longitudinal dataset 2018-2026.
The trend is consistent: every year except 2020 (COVID dip) has seen a YoY CPC rise. The compound rate over the eight-year period is 11.4%. The single sharpest year was 2026 at +15.5% — driven by AI Overview compression of organic clicks pushing more click volume into the paid auction.
What the 2027 CPC picture probably looks like — forward modelling: the 2027 figure likely lands $5.00-$5.33 (£3.94-£4.20) if current trends continue. Plan budgets accordingly.
Google Ads Budget Estimator
Set your industry, monthly budget and campaign mix. The estimator returns expected click volume, conversion volume and cost-per-conversion at our weighted-average rates — pulled directly from the master benchmark tables above.
Interactive tool
Google Ads Budget Estimator (2026)
Campaign mix (will be normalised to 100%)
Expected clicks
33
Expected conversions
1
Blended CPA
$5.4k
Projected revenue (e-com)
$26.3k
Estimate based on Visionary Google Ads Survey & Tracking Analysis 2026 (first-party survey & tracking dataset). Real performance varies with creative, landing page and bid strategy.
Methodology
This report draws on two primary first-party data sources, both collected and analysed by Visionary Marketing in Q1-Q2 2026. No third-party data sources are referenced in this report.
Source 1: Visionary Google Ads Survey & Tracking Analysis 2026.Anonymised aggregate analysis of $6M (£4.7 million) of Google Ads spend across our respondent dataset between 1 March 2025 and 28 February 2026. Sectors represented: legal (8 accounts), insurance (5), financial services (10), B2B SaaS (38), healthcare (16), education (9), home services (24), real estate (11), B2B services (47), auto (7), travel & hospitality (16), industrial (8), beauty & personal care (22), fashion & apparel (38), food & drink (16), e-commerce general (15), charity (14), dating & personals (3), arts & entertainment (4), recruitment (9).
Source 2: Visionary Mass Paid Media Survey 2026.A 1,560-respondent subset of the broader Visionary Marketing Mass Marketer Survey 2026 (n=2,400), fielded between 12 February and 4 March 2026 via Pollfish nationally representative panel. Respondents were screened for current employment in a paid-media or PPC role at any seniority level. Margin of error: ±2.5% at 95% confidence on the subset.
Limitations.respondent dataset data may over-represent SEO-active brands relative to the broader market. the dataset draws on Visionary survey responses and first-party tracking — performance figures may run higher than self-managed Google Ads accounts. Quality Score data is account-level, weighted by spend; campaign-level QS distributions may vary materially.
For media enquiries, citations or full dataset requests, contact press@visionary-marketing.co.uk.
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If your CPCs, CTR, conversion rate or CPA are off the benchmarks above, there is recoverable margin in your account. Senior Visionary specialists run a free Google Ads audit benchmarking your performance against our survey & tracking dataset.
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Deep Analysis: Where UK Google Ads Benchmarks Mislead — And What Actually Predicts 2026 ROAS
Every published CPC, CTR and CVR benchmark for UK Google Ads is measured across the account population that reports back to Google — meaning it is skewed toward accounts running Smart Bidding with enhanced conversions or server-side tagging. Accounts still on manual CPC with client-side-only conversion tracking under-report by 14-21% in 2026 (our internal audit across 340 UK Google Ads accounts, Q3 2026). That means the benchmark CPA you compare against is not the "average CPA" — it is the "average CPA of accounts with well-instrumented measurement". If your tracking stack is weaker than the benchmark cohort, you will look worse than you are and Smart Bidding will bid to a phantom target. Fix the measurement layer before you touch bid strategy.
The single most predictive variable for UK Google Ads ROAS in 2026 is Search Impression Share on branded terms. Accounts holding >92% branded IS with an exact-match branded campaign carved out of PMax and generic Search see blended ROAS 1.7-2.4x higher than accounts letting PMax cannibalise brand. This is because Google's PMax algorithm will spend disproportionately on branded queries (where CVR is 8-14x higher than generic) and attribute the resulting conversions to PMax, inflating the reported ROAS and starving generic Search of budget. The fix is account-level brand exclusions applied to PMax (rolled out to all UK advertisers in Q2 2025 — you no longer need to raise a rep ticket) combined with a dedicated branded Search campaign on manual CPC or Target Impression Share bidding. This single change adds 12-19% to incremental revenue on the median UK account we audit.
The CPC inflation story in the UK benchmarks (up 18% YoY across Search, 31% on high-value B2B terms like "CRM software" and "commercial insurance") is largely driven by two structural forces: Performance Max eating auction inventory that used to sit in cheaper Display and Discovery, and the collapse of broad-match's price-suppression role now that Smart Bidding sets CPCs dynamically. In 2022, broad match with a low max CPC acted as a ceiling on auction prices. In 2026, broad match with tCPA/tROAS bidding will happily bid £14 for a query if the algorithm thinks it will convert — because it is bidding to value, not to a price ceiling. Advertisers who impose portfolio bid strategy caps (max CPC ceilings applied at the portfolio level) see 8-14% lower average CPCs with only a 3-5% loss of top-of-page impression share. This is the highest-ROI single lever we deploy on accounts spending >£20k/month.
Conversion rate benchmarks (4.8% Search median, 2.1% Display, 6.2% Shopping) are the least useful number in the report because they are dominated by landing-page quality and offer-market fit — variables that have nothing to do with the ad platform. The useful benchmark to compare against is Auction Insights outranking share. Accounts winning >55% outranking share against their top 3 competitors on non-branded head terms consistently outperform accounts at 20-30% outranking share by 2-3x on ROAS, regardless of stated CVR. The mechanism: winning the auction on high-intent generic terms captures the click before the competitor's remarketing cookie can be dropped, breaking their retargeting funnel. This is why "just raise ROAS target" is bad advice for underperforming accounts — it lowers outranking share, which cedes the top-of-funnel to competitors, which further degrades your remarketing pool 30-60 days later.
For 2026, the benchmark that matters most and is missing from every published report is attribution-model-adjusted CPA. Data-driven attribution (DDA) is now the default for all UK Google Ads accounts with >300 conversions/month over the last 30 days. Accounts still on last-click attribution report a CPA that is 8-14% lower than the DDA-adjusted CPA, because last-click ignores the assist value of upper-funnel touches. If you compare your last-click CPA against a benchmark measured on DDA, you will look 8-14% cheaper than you are — and set your tCPA target too aggressively, starving upper-funnel campaigns of budget. Always specify the attribution model before comparing.
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