Wordstream, an official Google Premier Partner, recently compiled all of their statistics covering Google AdWords Industry Benchmarks for 2018 into an easy-to-scan infographic. This visual includes four core metrics:
- Average click through rate (CTR)
- Average cost per click (CPC)
- Average conversion rate
- Average cost per action (CPA)
Each metric displays the average across a range of 16 industries, such as B2B, e-commerce, and technology. Furthermore, averages for specific ads are given for both the Google Display Network (GDN) and Search Network. As easy as it is to scan, there is a bulk of information to be broken down. This information is a must read for any marketer working with Google AdWords in 2018 and beyond.
- The 16 industries include: advocacy, auto, B2B, consumer services, dating & personals, e-commerce, education, employment services, finance & insurance, health & medical, home goods, industrial services, legal, real estate, technology, and travel & hospitality
- Of the 8 categories, dating & personals ranked the highest in 4 categories
- Education, real estate, legal, and technology were each the highest in 1 category
- E-commerce, hospitality, advocacy, home goods were each the lowest in 1 category
- Auto and technology were both the lowest in 2 categories
Average Click Through Rate (CTR)
For the average CTR, the difference between the GDN and Search Network was drastic. The search network had an average of 3.17%, with a high of 6.05% (dating & personals) and a low of 2.09% (technology). Half of the industries landed in the 2.41%-2.93% range. On the GDN side, the average CTR was only 0.46%. Real estate claimed the high, 1.08%, while technology was once again the low at 0.39%.
Average Cost Per Click (CPC)
Like the average CTR, the range between the Search Network and GDN for average CPC was noticeable. While the average for the Search Network was $2.69, the industries of consumer services and legal both topped $6. On the low end, advocacy and e-commerce were the only two industries to fall below $1.50. At $1.49, dating and personals hit well over double the average of $0.63 for the GDN. Three industries, e-commerce, education, and travel & hospitality, all landed in between $0.50 and $0.40 on the low end.
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Average Conversion Rate
Even more so than the two metrics discussed, the average conversion rate showed diversity in the range. While many of the industries landed between 2.5% and 3.5%, three in particular, auto, consumer services, and legal, were between 6%-7%. Blowing the rest out of the water, dating and personals had a ridiculous conversion rate of 9.64%. On the opposite end of the spectrum, advocacy only reached 1.96%. All in all, the search network average totaled 3.75%. For the GDN, dating and personals stood out from the pack with a conversion rate of 3.34% compared to education’s low of 0.50% and the average of 0.77%.
Cost Per Action (CPA)
In the average CPA, the Search Network had a lower average than the GDN for the first time at $48.96. Exactly $100 separated the high, technology at $133.52, and the low, auto at $33.52. The average CPA for the GDN was over $25 more than the Search Network, at $75.51. This was helped in part by education reaching a high of $143.36. Auto was the lowest by far at $23.68.
How Should I Use This Information?
With this infographic covering a wide variety of industries, chances are your account falls under one of them. Skip over the overall average of each category, and compare your numbers to your industry’s specific number. Depending on how you compare, you may either want to continue with your current strategy or completely redesign one or more of your Google AdWords campaign(s).
How does your digital marketing compare?
Jenn LeBlanc, CEO & Founder of ThinkResults Marketing, and author of the #1 marketing best seller, Launching for Revenue: How to Launch Your Product, Service or Company for Maximum Growth, works with tech CEOs and CMOs to drive results. Whether it is a 350% increase in web traffic, a 1400% increase in online leads, or a 400% increase in conversion rates, Jenn and the ThinkResults team deliver results.
Check out our free online quiz about the 10 Elements of a Successful Launch, including the content marketing (and digital advertising) element, to see where you fit and what you need to do next. Or simply set up a call and we can talk about your situation and how to make your digital marketing work for you.