Everything You Need To Know About CTR and other Google Ads Benchmarks

If you’re looking to invest in Google Ads, you’ll want to ensure that you’ll get the best returns for your business. The key to great results is the right Adwords Management strategy.
In this blog, we’ll discuss the main Google Ads benchmarks to focus on when creating your Google Ads campaigns.

The PPC metrics that matter

When creating a Google Ads campaign, one of the key things to consider is which benchmarks to use. Between CTR benchmarks and benchmarks related to ad spending, there are plenty of options to choose from. Below, we’ll talk through the four most important metrics to consider.

Average Click-Through Rates
Average Cost-Per-Click
Average Conversion Rate
Average Cost-Per-Action

Why Google Ads benchmarks and PPC statistics are important

Put simply, knowing key PPC metrics and industry benchmarks and how to interpret them allows advertisers and agencies to get a sense of their success compared to competitors. Although you’re probably aiming for the highest CTRs and conversion rates, what’s considered a ‘good’ metric may vary between industries.

All about CTR (click-through rate)

Average CTRs across industries

The click-through rate (CTR) tells you how many people have clicked on your ad after viewing it. For example, if 100 people viewed your ad and 10 people clicked on it, then your CTR would be 10%. The average CTR across all industries is currently 3.17% for search and 0.17% for display. While sectors such as personal services and dating sectors have a higher CTR of 6.05%, while the technology sector has a much lower CTR of just over 2%.

What is considered a good CTR?

As you can probably tell, your CTR benchmarks will depend on your industry. By knowing the average CTR for your industry, you can create a realistic benchmark.

All about CPC (cost-per-click)

When somebody clicks on your ad, you pay a small amount of money for that click. This benchmark is key because it allows you to set a limit on how much you expect to spend on each click. After all, a great CTR isn’t very useful if you’re paying lots of money just to attract a single click. The average CPC for Google Ads is $2.69 and $0.63 for display. However, the amount you spend will depend on the competitiveness of the keywords you use as well as the quality of your ad copy.

Conversion rates in Google Ads

Getting people to become customers rather than just visitors is key to achieving a good conversion rate. It’s important to note that conversion rates can mean different things depending on the industry you’re in. Some eCommerce websites define a conversion as a sale achieved via the ad, while for other industries, a conversion may mean an enquiry or a booked appointment. The average conversion rate across all industries is 3.75%, with some industries significantly above or below this figure.

All about CPA (cost-per-action)

CPA is the final benchmark we’re going to discuss in this blog. This benchmark refers to the amount of money that you spend to acquire a paying customer. It is the key benchmark to determine the success of your campaign, as it tells you how much of a return your campaign is actually generating. The average CPA across all sectors stands at $48.96 for search and $75.51 for display. Of course, the CPA for some industries will be significantly higher. It will all depend on the product you are trying to sell.