Whether you are new to running PPC ads or you have recently taken on a new client, it can be intimidating to figure out if you’re performing well. Everyone aims to create outstanding ads with the highest click-through rates and top-notch conversion rates, but what’s considered a good performance metric can vary from one industry to another. So, what specific numbers should you aim to surpass in your particular industry?
Take a look at the industry performance for Google Ads benchmarks that our clients are experiencing. This includes data on things like
- Click Through rate (CTR)
- Cost Per Click (CPC)
- Conversion Rate
- Cost Per Action (CPA)
You can find these average metrics for various industries, such as Advocacy, Auto, B2B, Consumer Services, Dating & Personals, E-Commerce, Education, Employment Services, Finance & Insurance, Health & Medical.
The Industry-Specific Average Click-Through Rates in Google Ads
The Google Ads Benchmarks show that dating and personal services have a remarkable average search click-through rate (CTR) of 6%. It’s not surprising, as creating compelling emotional ad copy is easier when people are looking for love. Similarly, industries like Advocacy, Autos, and Travel also enjoy high search CTRs.
Back in 2015, legal services struggled to grab attention on search engine result pages (SERPs) with a relatively low average CTR of 1.35%. This was primarily due to advertising restrictions imposed by both Google and government organizations. However, legal advertisers have made significant improvements in their performance over the past few years.
In 2018, the industries that had the lowest average click-through rates included Technology, B2B, and Consumer Services.
The good news for Google Ads advertisers and agencies is that the average click-through rate has increased over the past couple of years.
As of now, the average click-through rate is 3.17% for search and 0.46% for display across all industries.
Average Google Ads Cost-Per-Click (CPC) by Industry
It’s no surprise that legal services command some of the highest costs for clicks in Google ads on the search network. Keywords like “Lawyer” and “Attorney” are consistently among the top 10 most expensive in both Google and Bing. The average cost per click (CPC) in the legal industry exceeds $6. Consumer services are not far behind, with an average CPC of $6.40.
On the other hand, advocacy and nonprofit groups enjoy a lower cost per click, which is typically under $2. This is likely due to the $2 maximum CPC bid requirement that Google Grant advertisers need to set for all their keywords.
All of this valuable data is part of the ‘Google Ads Industry Benchmark‘.”
In simple terms, most businesses can advertise on the Google Display Network without spending too much money per click. The only exception is the Dating & Personals industry, which has higher costs per click, exceeding $1.
On average, the cost per click in Google Ads is $2.69 for search ads and $0.63 for display ads. The good news is that these costs haven’t gone up much compared to a couple of years ago when they were $2.32 and $0.58, respectively.
Revise the Average Click-Through Rates in Google Ads by Industry
Online dating and personal services ads perform exceptionally well in pay-per-click (PPC) campaigns, with an impressive average click-through rate (CTR) of 6%. This isn’t surprising, as it’s easier to create emotionally compelling ad copy when your audience is actively searching for love. Other industries that also experience high search CTRs include Advocacy, Automotive, and Travel.
When we initially gathered this data in 2015, legal services struggled to capture attention on search engine results pages (SERPs), with a relatively low average CTR of 1.35%. This was largely due to advertising restrictions imposed by both Google and government authorities. However, legal advertisers have since improved their CTR statistics in recent years.
By 2018, the industries with the lowest average click-through rates included Technology, B2B, and Consumer Services.
Average Conversion Rates in Google Ads by Industry
Just a couple of years ago, the Finance and Insurance sectors were doing exceptionally well in terms of conversion rates.
However, our latest data reveals a new frontrunner – the Dating & Personal industry, with an impressive average search conversion rate exceeding 9%! Notable mentions also go to the legal fields, consumer services, and the automotive industry.
In several instances, the top-performing advertisers in these sectors are unafraid to adapt their offers or how they guide users through the conversion process to enhance their conversion rates. Some might also be leveraging tactics like video landing pages to give their conversions a significant boost.
E-commerce businesses might find it challenging to tweak their offers, leading to lower average conversion rates on both search and display. Additionally, they often deal with massive product inventories, making it difficult to fine-tune their ad copy for all their keywords.
While simplifying the buying process remains a crucial technique for improving e-commerce conversions, Google Ads advertisers should concentrate on enhancing the effectiveness of keywords with strong commercial intent to get the most out of their search campaigns.
The typical rate at which people take action on Google ads varies by the type of ad: for search ads, it’s around 3.75%, and for display ads, it’s about 0.77%.
When we last gathered this data, we noticed that search ad conversion rates had gone up a bit, while display ad conversion rates had decreased slightly. This might suggest that advertisers using display ads should focus more on where they display their ads and who they target to improve their results.
Average Cost Per Action in Google Ads by Industry
Costs per action (CPA) have seen some significant changes in recent years. The lowest CPA, which is the cost for a specific action, is now in the automotive industry, with each action costing just $33. On the flip side, businesses in B2B, real estate, and the tech sector are dealing with average CPAs of over $100.
In advertising, we typically anticipate costs to increase over time, but interestingly, the average CPA on the Google Search Network is now lower than it was a few years ago. However, when it comes to display ads, CPAs have risen slightly.
So, on average, in Google Ads across all industries, the CPA is approximately $48.96 for search ads and $75.51 for display ads.
What Does It All Mean?
If your results fall on the lower side of these figures, it’s a sign that there’s room for improvement. You can start by using a free Google Ads Grader tool, which will help you pinpoint the specific areas where your campaigns might be underperforming compared to others in your industry.
And even if you’re meeting these benchmarks, don’t stop there. Aim to stand out from the crowd by crafting exceptional ad copy and creating landing pages that are so effective, they outperform everyone else – strive to be a real standout in the field.
Take a look at these search advertising Google ads benchmarks to gauge how you compare to your competitors and identify areas where you can make enhancements.