Google Ads Benchmarks: Your industries CTR benchmarks

Updated: December 10, 2020
Google Ads Benchmarks: Your industries CTR benchmarks

Google Ads Benchmarks For your company

Google Ads is a rich resource of data and metrics, but this information can also be a minefield because it is only effective if can interpret and understand the data.

CPC vs CPA vs CPM - Understanding Online Advertising Price

What are the metrics you need to look at?

There are three primary metrics that you should be regularly monitoring in your Google Ads (formerly Google AdWords) account, including the click-through rates (average CTR), conversions and cost-per-click so that you know exactly how your marketing campaigns and advertising is performing.

The bottom line…

Ultimately, you need to know the Google benchmarks for your space and how they impact your specific business. Luckily, Google search offers plenty of insight into all of this and allows you to tweak your campaigns accordingly.

Sources: Wordstream

The importance of watching your competition

But having access to data around benchmarks by industry is just the first step; you also want to know how your opposition is performing so that you can adjust your campaigns to beat them and position your business at the peak of as many searches as possible. Do your research and Google industries like yours and see how they are making magic in their space. Beyond that, examine data coming out from the most recent reports.

Exploring benchmarks

As Google search and even its Display Network uses an auction-based, pay-per-click model, you can use these Google Ads benchmarks to set your ads spend and know that you are getting the best possible results for your money. This data is different across all industries as well, so there is not a one hat fits all approach that is going to be successful across all Google Ads campaigns.

Why do they matter so much?

Knowing the data behind the average cost-per-click and conversion rates are essential so that you can save on expenses and have the best possible chance of appearing high in google search and rankings. Here are a few insights around the average cost and average CTR by industry.

The average click-through rate (CTR) in Google Ads by industry

This is the metric to show you how many people are actually clicking on your search and display Google Ads after they have seen them. This metric is determined by taking the number of clicks on your ads and dividing it by the number of times your ad is shown in search results to give you a percentage. The higher the percentage, the more people you are getting taking action once they see your Google Ads, resulting in an increase in average click and conversion rates.

Why is this so important to understand?

It is hugely important to have a higher percentage because it means you are getting more value for your money, are spending less on advertising while also improving your rankings amongst your competition. There is greater competition in some industries compared to others, so these are the benchmarks you should be looking to exceed in your advertising campaigns:

Sources: Google Adwords Industry Benchmarks

The average cost per click by industry

Because Google Ads is built on an auction model, you are competing with rivals in your industry for ranking with your advertisements. Cost per click (CPC) is how much you will be charged and is dependent on what others in your industry are spending as well. Knowing the average cost per click in your industry is highly important so you know how much you need to be spending to stay ahead of the competition.

average ctr in adwords

Looking at your benchmarks for CPC

Below we have included data around the average CPC across a wide range of industries so that you can see the benchmark for your business. That way you can set your maximum average cost per click on the search network, at a level where you know you are going to be beating your opposition and get the best exposure within search.

Sources: Google Adwords Industry Benchmarks

The average conversion rate in Google Ads by industry

Once someone has clicked on one of your Google Ads within the search network, you want them to take action once they have reached your website or app. This could include making a purchase, booking an appointment, signing up for a newsletter or email list or downloading and installing a product or app. Using tags that are optimised for search, Google can tell you how many people have clicked on your ad within the search network. When completed, one of these actions is called a conversion.

What’s the deal with CTRs?

The median conversion rate across all industries is around 2.35 per cent while around 25 per cent of all Google Ad accounts have a conversion rate sitting at around 1 per cent, so if you exceeding those numbers you are on the right path. However, the really successful advertisers in the top 10 per cent of the search network are achieving a conversion rate that is over 11 per cent. Again, this varies by industry and we have collated the average conversion rates so that you can see how you stack up against your competition who may be utilising these channels across search:

 Sources: Google Adwords Industry Benchmarks and Google Ads

Embrace the information you’re given, not hide from it

No matter how you approach your search campaigns – whether utilising the Google Display Network or just opting for Google Ads and search engine optimisation – data should always be the cornerstone. Without analysing information like this, you’re effectively going in blind on your campaigns, and run the risk of losing out on huge opportunities. There’s also the potential to stop any wasted marketing spend – something you need to do in order to get the most out of any search campaign.

Why analysing your search data and Google Display Network campaign is important

By taking the time to wade through the plethora of information available to you, your team can better equip your campaign with hard-hitting strategy and potential. Going in blind and taking stabs in the dark won’t land you the best conversions or the average click-through rate that will see you reeling in the profits; instead, you’ll lose out to unnecessarily high expenses, misaligned targeting and poor results.

Easy ways to use your insights and reporting

Strategic Audiences in Google Analytics & Google AdWords | Bounteous

When you sit down to look at all of the data points across Google Display Network and search, there are findings that can help you gain traction where you need to most. For starters, you can:

Segment behaviour of your audience

Narrow down on your targeting to embrace a more powerful approach to your ads or search campaign. Avoid looking at your audience as one big bunch, and instead, break them down into how they interact with your website. From there, you can tailor your bids to suit their intention and attitudes.

Combine Google Analytics reporting with Google Ads or Google Display Network Data

This search engine giant gives you plenty to work with, so you may as well put it to good use. Take all of the insights and information you’re given and compile it into a report that shows all of your hard work across these channels and how they act differently. Segment them by audience behaviour and investigate the dimension of your ads. You can read more about how to do that in this Google Analytics answer.

Use bench marketing to see how you compare to your competition

Like we said before, it’s important to compare how your business sits with your digital marketing (specifically, Google Ads) by utilising benchmarks. Reports like this give you an aggregated list of industry insights, of which we’ve outlined above. However, you can further enhance this by setting up meaningful targeting around the trends of your industry. Read more on that here.

It all starts with the word ‘go’

If you’re ready to kickstart your campaign on Google Ads, all it takes is the ability to analyse the insights behind your business and industry, and then put it to good use. The challenge is that doing so can be time-consuming and overwhelming. At Edge, we’re well-versed in taking these insights and translating them into tangible, ROI-driven PPC campaigns that generate conversions and revenue for our clients.

We’re ready, are you?

If you’d like to see how we can help you power up your exposure on the world’s biggest PPC platform, get in touch with our friendly team of experts now. We’re always more than happy to outline the next steps and tailor a solution to suit your specific brand.

Mira -
Head of Paid Media
1300 558 659 -

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