In which industries is SEA expensive?
The costs for search engine advertising (SEA) are particularly high in the following sectors due to the high level of competition and expensive keywords. However, these investments can be justified by the potential profits and high ROI.
See also:
“Difficult industries for SEO/search engine optimization“.
Content
Financial services
- High CPCs
Keywords in the financial sector, such as “credit”, “mortgage” or “insurance”, are extremely expensive because the competition is fierce. - Customer acquisition
The acquisition of new customers in this sector is valuable, which justifies the high costs.
Legal advice
- Competitive intensity
Law firms often bid high amounts for keywords such as “lawyer”, “legal advice” or “divorce lawyer” in order to appear at the top of the search results. - High ROI
The high costs are offset by the potentially high fees for winning mandates.
Healthcare
- Expensive keywords
Terms such as “dentist”, “surgery” or “health insurance” are in high demand and correspondingly expensive. - Regulatory requirements
Advertisements must meet strict regulatory requirements, which requires additional resources. - Google requirements
Ads must meet strict Google requirements, which requires additional resources, e.g. for depictions of nudity.
Real estate
- Local target groups
Real estate agents bid high amounts for local keywords such as “buy house in [Stadt]” or “rental apartment [Stadt]”. - Fast ROI
The high investments in SEA can be quickly amortized through successful real estate sales.
E-Commerce
- Product diversity
E-commerce websites have to advertise a large number of products and categories, which drives up costs. - Conversion optimization
High costs per click (CPC) are justified by careful conversion optimization in order to maximize sales.
Travel and tourism industry
- Seasonality
Campaigns often have to be adapted at short notice and seasonally, which increases costs. - High CPCs
Keywords such as “flights”, “hotels” or “vacation” are extremely expensive because demand is high.
Technology and software
- Pressure to innovate
Constant further development and new products require continuous SEA investments. - Expensive keywords
Terms such as “software solution” or “IT consulting” are cost-intensive, as many companies are competing for the same customers.
Education and online courses
- Growing demand
The increasing popularity of online educational offerings is leading to more intense competition and higher SEA costs. - Specialized keywords
Keywords such as “online courses”, “further education” or “distance learning” are expensive, as many providers compete for the same target group.
Luxury goods
- Exclusive target groups
Reaching an affluent and demanding target group requires high bids on premium keywords. - Brand strength
Luxury brands invest heavily in SEA to increase their brand presence and attract new customers.
Insurances
- High CPCs
Keywords such as “car insurance”, “life insurance” or “home insurance” are extremely expensive. - Complex products
Ads need to provide detailed information to convince potential customers, which further increases costs.