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Updated Google AdWords Benchmarks

By April 2, 2018 No Comments

Regardless of your industry, keeping track of AdWords benchmarks is important. The article below from WordStream features an updated breakdown for 20 different industries, including auto!

Google AdWords Benchmarks for YOUR Industry [Updated!]

-by Mark Irvine

Whether you’re doing PPC for the first time or you’ve just signed a new client, it can be daunting to know whether or not you’re doing a good job. Sure, we all want to create unicorn ads that have highest CTRs and the best conversion rates, but what’s a good metric for one industry isn’t necessarily good for another. So what numbers should you be looking to beat in your industry?

We dug into our data to find out, and all figures have been updated with fresh data for 2018!

Check out the Google AdWords industry benchmarks our clients are seeing, including:

  • Average Click-Through Rate (CTR) in AdWords by industry, for both Search and Display
  • Average Cost per Click (CPC) in AdWords by industry, for both Search and Display
  • Average Conversion Rate (CVR) in AdWords by industry, for both Search and Display
  • Average Cost per Action (CPA) in AdWords by industry, for both Search and Display

You’ll find averages across these AdWords metrics for twenty industries: 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.

Average Click-Through Rate in AdWords by Industry

average click through rate in adwords

Dating and personal services really click with PPC – boasting an average search CTR of 6%! No doubt, it’s easy to write powerful emotional ad copy when your prospects are searching for love. Other industries with high search CTRs include Advocacy, Autos, and Travel.

When we first collected this data in 2015, legal services could struggle to attract attention on the SERP (with a relatively low average 1.35% CTR) – in large part due to advertising restrictions enforced by both Google and government organizations. Legal advertisers have improved their stats in the past few years!

As of 2018, the industries with the lowest average click-through rates including Technology, B2B, and Consumer Services.

The average click-through rate in AdWords across all industries is 3.17% for search and 0.46% for display.

Both of these averages are higher than they were a couple of years ago: Good news for AdWords advertisers and agencies!

Average Click Through Rate (CTR) The average CTR in AdWords across all industries is 1.91% on the search network and 0.35% on the Google Display Network.
Industry Average CTR (Search) Average CTR (GDN)
 Advocacy  4.41% 0.59%
 Auto  4.00% 0.60%
 B2B  2.41% 0.46%
 Consumer Services  2.41% 0.51%
 Dating & Personals  6.05% 0.72%
 E-Commerce  2.69% 0.51%
 Education  3.78% 0.53%
 Employment Services  2.42% 0.59%
 Finance & Insurance  2.91% 0.52%
 Health & Medical  3.27% 0.59%
 Home Goods  2.44% 0.49%
 Industrial Services  2.61% 0.50%
 Legal  2.93% 0.59%
 Real Estate  3.71% 1.08%
 Technology  2.09% 0.39%
 Travel & Hospitality  4.68% 0.47%

Average Cost Per Click in AdWords by Industry

average cost per click in adwords

It’s no surprise that legal services have some of the highest CPCs among all Google ads on the search network. Both “Lawyer” and “Attorney” make the top 10 most expensive keywords on Google and on Bing. Average CPCs in the legal industry are over $6. Consumer services aren’t too far behind, with an average CPC of $6.40.

Advocacy and nonprofit groups are fortunate to have a cost per click under $2, likely as a result of the $2 max CPC bid Google Grant advertisers have to set on all of their keywords.

Most industries have pretty inexpensive CPCs on the Google Display Network. The only industry with costs per click over $1 on the Display network is Dating & Personals.

The average cost per click in AdWords across all industries is $2.69 for search and $0.63 for display.

The news here is good too: These average costs have increased very little over the figures we found a couple of years ago (when the averages were $2.32 and $0.58 respectively).

Average Cost Per Click (CPC) The average CPC in AdWords across all industries is $2.32 on the search network and $0.58 on the Google Display Network.
Industry Average CPC (Search) Average CPC (GDN)
 Advocacy $1.43 $0.62
 Auto $2.46 $0.58
 B2B $3.33 $0.79
 Consumer Services $6.40 $0.81
 Dating & Personals $2.78 $1.49
 E-Commerce $1.16 $0.45
 Education $2.40 $0.47
 Employment Services $2.04 $0.78
 Finance & Insurance $3.44 $0.86
 Health & Medical $2.62 $0.63
 Home Goods $2.94 $0.60
 Industrial Services $2.56 $0.54
 Legal $6.75 $0.72
 Real Estate $2.37 $0.75
 Technology $3.80 $0.51
 Travel & Hospitality $1.53 $0.44

Average Conversion Rates in AdWords by Industry

average conversion rate in adwords

A couple of years ago, the Finance and Insurance industries were leading the pack when it came to conversion rates.

However, our newly updated data shows that the Dating & Personal industry is way out ahead now, with search conversion rates on average over 9%! Other standouts include the legal industries, consumer services, and autos.

In many of these cases, the best converting advertisers aren’t afraid to change their offer or their conversion flow to boost their conversion rates. Or they may be taking advantage of conversion-boosting tactics such as video landing pages.

Ecommerce clients may not have many options to change their offer and consequently suffer one of the poorer average conversion rates on both search and display. To boot, they often have gigantic inventories, which prevents doing fine-tuning on ad copy across all ecommerce keywords.

While removing barriers to purchase will always be an important CRO tool to help ecommerce clients, AdWords advertisers should focus on improving the performance of their keywords with high commercial intent to yield the most out of their search campaigns.

The average conversion rate in AdWords across all industries is 3.75% for search and 0.77% for display.

Since the last time we compiled this data, search conversion rates have risen slightly, but display conversion rates have fallen slightly, perhaps a sign that display advertisers need to pay more attention to placements and audience optimization.

Average Conversion Rate (CVR) The average CVR in AdWords across all industries is 2.70% on the search network and 0.89% on the Google Display Network.
Industry Average CVR (Search) Average CVR (GDN)
 Advocacy 1.96% 1.00%
 Auto 6.03% 1.19%
 B2B 3.04% 0.80%
 Consumer Services 6.64% 0.98%
 Dating & Personals 9.64% 3.34%
 E-Commerce 2.81% 0.59%
 Education 3.39% 0.50%
 Employment Services 5.13% 1.57%
 Finance & Insurance 5.10% 1.19%
 Health & Medical 3.36% 0.82%
 Home Goods 2.70% 0.43%
 Industrial Services 3.37% 0.94%
 Legal 6.98% 1.84%
 Real Estate 2.47% 0.80%
 Technology 2.92% 0.86%
 Travel & Hospitality 3.55% 0.51%

Average Cost Per Action in AdWords by Industry

average cost per action in adwords

CPA’s have shifted quite a bit in the past couple of years. The lowest cost per action across industries is now autos, coming in at just $33 per action. B2B, real estate, and tech companies, on the other hand, confront average costs per action over $100.

We generally expect costs in advertising to rise over time, but the average CPA on the search network is actually lower now than it was a couple of years ago. Display CPA’s, however, have gone up a little bit.

The average CPA in AdWords across all industries is $48.96 for search and $75.51 for display.

Average Cost Per Action (CPA) The average CPA in AdWords across all industries is $59.18 on the search network and $60.76 on the Google Display Network.
Industry Average CPA (Search) Average CPA (GDN)
 Advocacy $96.55 $70.69
 Auto $33.52 $23.68
 B2B $116.13 $130.36
 Consumer Services $90.70 $60.48
 Dating & Personals $76.76 $60.23
 E-Commerce $45.27 $65.80
 Education $72.70 $143.36
 Employment Services $48.04 $59.47
 Finance & Insurance $81.93 $56.76
 Health & Medical $78.09 $72.58
 Home Goods $87.13 $116.17
 Industrial Services $79.28 $51.58
 Legal $86.02 $39.52
 Real Estate $116.61 $74.79
 Technology $133.52 $103.60
 Travel & Hospitality $44.73 $99.13

What Does It All Mean?

If you find yourself on the lower end of these numbers, that just means there’s plenty of room for improvement! Try running our free Google AdWords Grader to diagnose exactly where your campaigns are failing when compared to peers in your industry. If you’re hitting these benchmarks – don’t stop and settle for average either! Always strive to be a unicorn by writing the best ad copy and creating landing page unicorns that convert better than anyone else!

Check out the full infographic below:

google adwords benchmarks by industry

Data Sources:

This report is based on a sample of 14,197 US-based WordStream client accounts in all verticals (representing over $200 million in aggregate AdWords spend) who were advertising on Google AdWords’ Search and Display networks between August 2017 and January 2018. Each industry includes at minimum 30 unique active clients. “Averages” are technically median figures to account for outliers. All currency values are posted in USD.

Read More Here

(all images from WordStream)

 

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