google ads benchmark

⚡️ Google Ads Benchmarks - CTR, Conversion Rate, Cost Per Conversion

Benchmarking: Metrics to Look at in Google Ads

In this mini-series on metrics to look at in Google ads, we will discuss benchmarking in this article. Benchmarking helps determine whether your performance is good or not, and we will be discussing the most important benchmarking metrics for lead generation campaigns.

Important Benchmarking Metrics:

1. Cost per conversion: Is my cost per conversion too high? This is an important question to ask, and if the cost per conversion is too high, then you need to make changes to your campaign.

2. Click-through rate (CTR): The CTR is an important metric as it shows whether you are targeting the right keywords with the right ads. The CTR should be around 4-15% for high-intent traffic, and 6-10% for non-branded traffic.

3. Conversion rate: The conversion rate is another important metric for lead generation campaigns, especially for landing pages. The conversion rate should be between 5-20%. Anything lower than 5% indicates a significant issue, and anything higher than 20% means you are not going after enough traffic.

4. Cost per lead (CPL): There is no answer to what a good CPL is as the data changes over time. However, a reasonable CPL can be determined by dividing the cost per click by the conversion rate. Always operate on the lower end and be realistic with your expectations to avoid misleading clients.

Benchmarking is crucial to determining whether your campaign is performing well or not. The most important benchmarking metrics for lead generation campaigns are cost per conversion, CTR, conversion rate, and CPL. Always aim for a realistic benchmark and be conservative with your expectations to avoid misleading clients.

Benchmarks & Best Practices: Insights from 500+ Google Ads accounts

In this article, we will summarize a presentation given by Christian Shambhala, who works for Smart Ecommerce (SMACK) and presented ecommerce benchmarks and best practices from 500+ Google Ads accounts. The focus of the presentation was to compare the performance of Google Shopping and Google Search and provide insights on which channel is more effective for retailers.

Key Takeaways:

- Google Shopping is the dominant channel, growing by almost 42% a year in media spend, while Google Search is declining by almost 9%.

- In Europe, especially the dark region and the UK, the question is whether it is still worth investing in Google Search or if Google Shopping is always the better channel.

- Out of 350 client portfolios analyzed, Google Shopping had a media share of 52.6%, while Google Search had a media share of 47%.

- The average conversion value generated by Google Shopping was 37.8% higher than Google Search, but the average click rate of all non-brand search campaigns was 46% higher compared to Google Shopping.

- Google Shopping outperformed Google Search campaigns in terms of absolute conversions and return on ad spend by almost 30%.

Top 6 Reasons Why People Abandon Online Shopping Carts:

1. Unexpected costs – additional fees or shipping costs added during checkout

2. Complicated checkout process – too many steps or requiring too much information

3. Technical issues – website errors, slow loading pages or crashes

4. Lack of trust – concerns about security or authenticity of the website

5. Comparison shopping – shoppers may leave to find better prices or deals elsewhere

6. Changed mind – shoppers may decide against making a purchase for various reasons.

Based on the analysis of 500+ Google Ads accounts, Google Shopping outperforms Google Search campaigns in terms of conversion value and return on ad spend. However, the average click rate of all non-brand search campaigns is higher compared to Google Shopping. Retailers should consider both channels and aim to provide a simple and trustworthy checkout process to avoid cart abandonment.

[NEW DATA] Updated Google Ads Industry Benchmarks You Must See

In this article, we will be discussing the latest data on average CPC, click-through rate, cost per lead, and conversion rate for search marketing platforms in 2022. We will also be talking about why these numbers matter, what they might mean for your business, and how to adjust accordingly.

- Latest data on search marketing platforms in 2022

- Discussing average CPC, click-through rate, cost per lead, and conversion rate

- Importance of these numbers and how to adjust accordingly

Industry Poll:

- Quick poll to see what industries readers are in

Data Collection Process:

- How data was collected

- Sources used

- Importance of accurate data

Average CPC:

- Definition and importance

- Industry benchmarks

- Adjusting your strategy based on your industry

Click-Through Rate:

- Definition and importance

- Industry benchmarks

- Adjusting your strategy based on your industry

Cost Per Lead:

- Definition and importance

- Industry benchmarks

- Adjusting your strategy based on your industry

Conversion Rate:

- Definition and importance

- Industry benchmarks

- Adjusting your strategy based on your industry

- Importance of using data to inform your search marketing strategy

- How to adjust your strategy based on industry benchmarks

- Encouragement to keep experimenting and trying new things in your marketing approach.

Stop making this MISTAKE in Google Ads

Last week, I posted a video discussing the biggest mistakes that people make in their Google Ads campaigns. In response to the positive feedback and comments, I wanted to record another video discussing the next big mistake that I see in Google Ads campaigns.

The mistake that I see in many Google Ads campaigns is the lack of negative keywords in their Google Search and Google Shopping campaigns. The reason this is such a big mistake is that adding in extra negative keywords can increase your click-through ratio, which is crucial for successful campaigns.

As a Google Ads master with over 15,000 hours of experience, I know that increasing your click-through ratio is important because Google's algorithm rewards ads with high click-through ratios. If your ads are clicked on more than your competitors' ads, Google will favor your ads, which can lead to more clicks and ultimately, more conversions.

To avoid this mistake, it's essential to conduct regular search term audits and add negative keywords to filter out searches that won't generate conversions. It's crucial to remember that Google only shows significant search terms in the report, so it's essential to go through each line and add negative keywords.

While this may seem time-consuming, conducting search term audits every 72 hours or twice a week can help you get more targeted searches and ultimately increase your click-through ratio.

In conclusion, adding negative keywords is a simple but essential step in creating successful Google Ads campaigns. By doing regular search term audits and adding negative keywords, you can increase your click-through ratio and ultimately, your conversions.

Google Ads - Benchmark 2022

In the world of digital marketing, benchmarking is a crucial element that is used to evaluate the effectiveness of marketing campaigns. However, it is a complex process that requires careful analysis and interpretation. In this article, we will discuss benchmarking in Google Ads and explore some of the key factors that affect it.

Key Points:

- Benchmarking is the process of comparing data and metrics with that of another company, industry or channel.

- Benchmarking data should be taken with a grain of salt as it can be affected by many factors.

- World Stream is a reputable site that provides benchmarking data for Google Ads and Microsoft divided by industry.

- Cost per click (CPC) is an essential metric that indicates the competitiveness of an industry. The higher the CPC, the more competitive the industry is.

- Click-through rate (CTR) is the ratio of clicks to impressions and is an indicator of the quality of the ads.

- Conversion rate (CR) is the percentage of users who take a specific action, such as making a purchase.

- Benchmarking data can be useful in providing a general idea of the market trends and competition but should not be taken as absolute.

Benchmarking in digital marketing is an important process that helps businesses understand their market position and make informed decisions. However, it is vital to approach benchmarking data with caution and consider the many factors that affect it. By understanding the key metrics that affect benchmarking, businesses can better evaluate the effectiveness of their marketing campaigns and improve their overall performance.

Google Ads Benchmark Report Q4 2020

The latest report highlights the trends and insights in Google's paid search for the first quarter of 2020. It shows an increase in cost per click (CPC) and a slowdown in click growth for Q4, but steady growth in spend. The report also indicates the impact of Amazon's presence on Google Shopping and text ads auctions.

Key Findings:

1. Increase in CPC: Google's paid search CPC rose by 4% year over year in Q4 2020, the first increase of 2020.

2. Amazon's Presence: Amazon's surging presence in Google Shopping and text ads auctions was a likely cause of increased CPC growth and slower click growth in Q4.

3. Click Growth: Click growth slowed from 30% in Q3 to 23% in Q4, while spend growth held steady at 28%.

4. Remarketing Lists for Search Ads (RLSA): The share of paid search clicks attributed to RLSA continued to slip on phones, dropping from 11% last Q4 to 7% in Q4 2020.

5. Customer Match Audiences: Customer match audiences accounted for about 3% of paid search clicks, and advertisers should target these customers with smart ad copy and landing pages.

6. Mobile Devices: Phones continue to account for 69% of all paid search clicks in Q4 2020, while tablet devices account for just 3%.

7. Amazon's Impression Share: Amazon's impression share in Google shopping auctions topped 50% in the late December push after reactivating campaigns in early June following a 12-week hiatus.

8. Conversion Rate: The paid search conversion rate for retailers was more than 20% higher than last year across ad formats, but year-over-year conversion rate growth tumbled between December 11th and December 20th.

The report highlights the impact of Amazon's presence on Google's paid search and the increase in CPC for the first time in 2020. It also shows the slowdown in click growth, the decline in RLSA share, and the importance of targeting customer match audiences. The report suggests that mobile devices continue to dominate paid search clicks, and Amazon's impression share is on the rise. Finally, the report indicates the decline in conversion rate in the lead up to Christmas Day due to concerns about shipping delays.