Local PPC is here to stay, but many advertisers still believe it is not important for them. It is widely thought that only location-bound businesses, like brick-and-mortar stores or food deliveries, should focus on local PPC. However, even for businesses operating completely online, tailoring their campaigns to a specific location can help optimize their advertising spends, as is proven by our new study.
To find out if and how advertising costs differ in the United States, SEMrush analyzed over 55,000 keywords from 10 industries, including both offline and online businesses - from automobile dealerships to cryptocurrencies.
Discover which states are the most and least expensive for advertisers in general and for specific verticals in particular.
West Virginia, Texas, and Florida lead the game. Across 10 industries explored, West Virginia is the most expensive state for advertisers from Online Education and Marketing & Advertising verticals. On the other hand, Texas is the state where the most investment is required when it comes to Automobile Dealerships, Real Estate, Cryptocurrency and Fashion Retail. Insurance, one of the most expensive verticals historically, is even more costly to promote in Florida.
Keywords related to Online Banking have the highest average CPC in Nevada, while it is surprisingly most expensive in Alaska to advertise in the Fitness & Health niche. Finally, if you operate in the Pharmaceuticals niche, you had better set some money aside if you are going to want to target customers from Delaware.
Breakdown by Industry
The situation differs quite significantly when it comes to specific verticals. States like West Virginia, Texas, California, and Florida are present in the top 10 in almost all industries. However, this is not a case of “one size fits all”.
Not all niches are equally location-sensitive. The CPC range in the Cryptocurrency category is, unsurprisingly, the smallest one (from $1.24 in Texas to $0.42 in Alaska), and is similar to the Pharmaceuticals category (from $1.43 in Delaware to $0.25 in Alaska and Montana). Meanwhile, in Marketing & Advertising the cost per click strongly depends on location: on average you spend $9.18 for a click in West Virginia and just $0.89 in Hawaii.
Insurance again proved to be one of the most expensive verticals for PPC. Only in two states is the average CPC lower than $10 ($8.81 in District of Columbia and $4.96 in Alaska), and still the “cheapest” click in this niche costs more than the most expensive average click in all Real Estate verticals (Texas, $2.06).
Finally, this is how the average CPC differs in Fitness & Health, Online Education, Online Banking, Fashion Retail and Automobile Dealership industries:
How You Can Apply this Data to Your Campaign
Leveraging local strategies is a great way for marketers to succeed with their PPC campaigns, as it helps to increase the performance of every single ad and optimize spends throughout an entire campaign. However, there is no universal recipe: you should explore how advertising spends differ in your industry and plan your activities based on this data.
The new and more precise local keyword metrics in SEMrush’s PPC Keyword tool will help you reveal new opportunities for your PPC activities and shift your focus to potentially lucrative regions in order to increase the return on ad spend.
To conduct this study, we picked 55,000 random keywords from 10 industries (both high-volume and low-volume keywords were included, as well as short-head and long-tail keywords). Search queries mentioning cities were removed (for instance, “PR consultant” was included and “PR consultant Boston” was excluded). The data in this article, for the 10 groups representing industries, was found by calculating the mean CPC in each of the states.