The digital advertising sectors with the highest conversion rates have higher costs per acquisition (CPA), posing a barrier for cost-conscious advertisers wanting to reach customers online, according to EMarketer’s Industry KPI data via SellerApp.
Electronics led all tracked sectors in Q1 2024, with a US ad conversion rate of 6.2%. However, CPAs were also on the higher end of the scale, at $76.
Other high-converting industries were clothing, shoes, and jewelry (conversion rate of 5.5%; CPA of $66) and supermarket and gourmet food (4.94%; $53).
Some sectors had significantly higher CPAs but poor conversion rates. Home and kitchen had CPAs of $77 but conversion rates of only 1.3%. Automotive had the highest CPAs ($78) but only a 1.4% conversion rate.
“Brands in the electronics and gourmet foods sectors face a difficult challenge: The cost of advertising online is steep, but so is competition. Those that opt not to advertise to save money could cede ground to rivals,” noted EMarketer.
Ariel Ben Solomon is the Growth and Strategy manager at Ecomhunt. He is the host of the Ecomhunt Podcast. Can be followed on Twitter at @ArielBenSolomon
