Are your conversion rates too low, and are you getting enough people to click on your ads? Benchmarks are the simplest way to determine whether or not there is room for improvement in your campaigns, as well as potentially assisting you in troubleshooting some issues. It’s natural to want to know about standard Google Ads benchmarks, whether you’re new to the game or have been doing it for a while.
Your campaigns are operational, but are you paying too much per click? There are three most important Google Ads metrics for all advertisers: cost per click, CTR, and conversion rates. In this post, we’ll go beyond broad statements and look at specific statistics and Google Search Ads benchmarks to help you understand benchmark performance, how ads influence user behavior, how advertisers use ads, and more. If you’re looking for specifics, this is the post for you, so keep reading!
What Exactly is Google Ads?
Google Ads (formerly AdWords) is an advertising platform operated by (surprise, surprise) Google. Google ads work on a pay-per-click basis, which means that advertisers pay Google when users click on their ads.
How does Google decide which ads to display and when?First, Google identifies every available ad fit to be shown based on the query using keywords and semantics. Google also considers the ad’s quality, which we’ll discuss in more detail later.
You may have also noticed Google Display ads on websites you visit on a regular basis. Google Display Ads do not appear on search results pages, but rather on other websites, frequently as visual graphics. Check out our blog to learn which online advertising platform is best for you and digital marketing trends to learn about Google’s monopoly.
The Fundamentals of Google Search Ads Reach
First, let’s look at the type of usage that Google sees on a regular basis, as well as the potential reach of Search Ads.
With 71.14 billion visits in February 2020, Google was the most-visited domain.
As of 2019, there are over 650,000 apps that serve Google Ads.
The Google Ads Search Network includes over 2 million websites and apps.
In 2020, Google will generate 62% of all core search queries in the United States.
63% of US users have clicked on at least one Google search ad.
Google Ads is the world’s largest provider of search advertising. Currently, two out of every five small and medium-sized businesses use Google Ads.
Costs of Google Search Ads and Performance Benchmarks
As the keyword competition and consumer behavior vary greatly, Google Search Ads benchmarks are never 100% accurate. Have being said, if you want to get a sense of average Google Ads benchmarks and what is possible in terms of performance, go here:
The average click-through rate (CTR) on Google Search Ads is 3.17%.
The average conversion rate for Search Ads is 3.78%.
Bing Ads has a lower average CTR than Google Ads.
Ads in the first position on Google’s first page have a CTR of 7.11% on average.
Google Ads Performance Metrics
Google Ads offers a variety of campaign types, and because each type behaves differently, its metrics vary as well. So let’s start with some overall averages and then get into the specific campaign types.
Clickthrough Rate for Google Ads on Average
The clickthrough rate (CTR) indicates how frequently people click on your ad in relation to how many times it is displayed. This metric demonstrates how well your keywords match your advertisement. The Search CTR is 10X that of Display Ads because people are actively looking for information with Search Ads, whereas Display Ads aim to interrupt people while they are doing something else online.
Google Ads Cost-per-Click Average
The cost-per-click is the fee you must pay for each ad click. Knowing how much other advertisers pay per click can help you determine whether you’re spending too little and thus limiting your exposure, or if you’re overpaying for some reason.
Ecommerce Google Ads Conversion Rates on Average
The conversion rate is the percentage of visitors who are converted into sales. The average conversion rate for display ads depends om its needs. Knowing average conversion rates can help you figure out why your campaigns aren’t yielding a high enough return.
Ecommerce Google Ads Cost Per Action Average
The cost per action (CPA) is the amount you pay for each sale. Many businesses are aware of how much they can afford to spend to acquire a customer. You can benchmark your own efforts by knowing the amounts that other advertisers are able to hit.
Average Google Ads Conversion Rates by Industry
When it came to conversion rates, the finance and insurance industries were on top a few years ago. However, some standouts include the legal and consumer services industries, as well as automobiles. In many of these cases, the highest-converting advertisers aren’t afraid to change their offer or conversion flow in order to increase their conversion rates.
Alternatively, they may be employing conversion-boosting strategies such as video landing pages. Furthermore, they frequently have massive inventories, which makes fine-tuning ad copy across all ecommerce keywords impossible. Search conversion rates have risen slightly since the last time we compiled this data, but display conversion rates have fallen slightly, possibly indicating that display advertisers need to pay more attention to placements and audience optimization.
These statistics are hard to ignore if you’re looking for proof that Google Search Ads could benefit your business (regardless of industry or size). Keep in mind that Google Ads can be as large or as small as you want, and they can be scaled up or down. There are also numerous strategies available to assist you in reaching your target audience and connecting with high-intent buyers who are looking for precisely what you’re selling.
We can help you maximize your campaigns by providing data-driven Google Ads services and results-driven strategies. It is critical to compare your metrics to industry benchmarks in order to improve the performance of your Google ads search campaigns. Important metrics to track include click-through rate (CTR), cost per click (CPC), and conversion rate (CR).
Trying to track all the metrics in Google Ads can be overwhelming. Take your business to the next level with Google Ads at the best place, like us. As a leading digital transformation solutions provider, we focus on the most important aspects, ensuring that your clients’ campaigns are performing well.