AdWords Benchmarks Finally Available
Benchmarking AdWords – Whoop Whoop
Benchmarking your performance in any marketing activity you do can be extremely eye-opening and we are always looking for benchmarks so we know what results we should be shooting for with our clients campaigns. Unfortunately when it comes to getting in-depth statistics for your Google Adwords PPC activity, it’s not always easy to find industry relevant Adwords Benchmark information. Google reps have consistently recommended aiming for click-through rates of anywhere between 2-5%. But as for what you should consider a good Conversion Rate, well that’s mostly been anyones guess. That is until now!
Thanks to Wordstream and their latest round of data crunching , you now have access to some very useful benchmarking statistics to help you decide how well you’re really doing! Rather than having to rely on the assurances of your provider or your Marketing Manager.
For example did you know that, according to Wordstream, the average cost per click (CPC) during for an Advert on Google Search is just $0.53 in the current Q3 2012. A decrease of 16.5% since Q2 2012.
Average Conversion Rates For Google AdWords Search And Display
In Q3 2012, Wordstream advises that the average conversion rate on AdWords for the search network was 5.63% across all industries and advertisers. Whilst the average conversion rate on the Google Display Network in Q3 2012 was a bit lower at 4.68%.
However, you’ve got to consider that advertisers control how they define “conversions” within AdWords, so not all “conversions” would be considered the same outcome or of equal value. Many businesses use AdWords to generate leads, whereas e-commerce businesses will be using this activity to generate direct sales. Either way, any industry could count a range of different activities as ‘a conversion’.
For this reason, as most of our clients are in the ‘Home & Garden’ vertical of AdWords, we found it helpful to concentrate on the findings Wordstream provided for this specific Industry group. Since it is more likely businesses within a the same vertical tend to define a conversion in similar ways. For example, in the skylight and contractor industries, advertisers generally use paid search for lead gen, so filling out a form to “get a quote” or to contact the company would count as a conversion.
Please note: These numbers are all based on Wordstreams own analysis and research – they are not official Google data. They analyzed data from 2,600 AdWords accounts, examining key metrics like the total number of number of clicks, impressions, costs, etc. between July 1, 2012 and September 30, 2012. When determining conversion rates, this research ignored data for accounts that didn’t have Google conversion tracking enabled, which was roughly half the dataset. Click here for the full methodology of their study.
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