Did you know that the average small to medium business spends $10,000 on AdWords a month? Bigger companies spend even more than that! Crazy, right? But worth it.
Digital Marketing is the new form of marketing. $10,000 a month on AdWords, can be much more cost-effective than a printed poster that some people may see when they drive by building, or a flyer in the mailbox that is considered as junk mail.
Being a lot more focused and concentrated on the right audience, a digital marketing strategy can transform a business.
Running ads can be tricky, but when done right, it has shocking results.
Whether you just opened up your own business, or you’re interested in running ads for your business, knowing the benchmarks for 2018, is essential for a good strategy. You should always know what your expected CTR/CPC and conversion rate should be, and if they are not aligned with the average, you should optimize your keywords, ads, landing pages, and offers, etc. to improve the numbers.
Now, let’s get into the data.
Average Click Through Rate
The average click-through rate in AdWords for all industries is 3.17% for search, and 0.46% for display.
Of course, the click-through rate may depend on what kind of industry it is. Industries such as Technology, and Customer Services, require some research from consumers before making a final decision; therefore they are lower.
The rate average for both is higher than it was a just a couple of years ago. Which means that it is getting harder and more competitive as time goes by.
The Average Cost Per Click
The average cost-per-click (CPC) in AdWords for all industries is $2.69 for the search network and $0.63 for the display network.
The costs have also increased since a couple of years ago.
The average CPC in the legal industry is the most expensive. According to the Search Engine Journal, the word “lawyer” is actually the fourth most expensive keyword on Google.
Though not all, most industries are quite inexpensive on the Google Display Network. If your CPC is much higher than this, consider asking a Paid Search professional for a few tips.
Average Conversion Rates
The average conversion rate in AdWords for all industries is 3.75% for search and 0.77% for display.
It fluctuates from industry to industry. The Dating & Personals, Legal, Auto, and Consumers Services industries are the ones with the highest conversion rates.
Real Estate and Home Goods are on the lower end, because they have very competitive markets, and the final decision takes much consideration from the consumer.
There you go! Take a quick look at Google AdWords industry benchmarks for 2018, and if your key metrics are below the average for your industry, consider optimizing your Google AdWords campaign, and landing page. If you plan to use Google AdWords, these benchmarks will help you figure out a more realistic budget.
Want to improve your key metrics?
