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If you’re new to paid search advertising, or just onboarding new clients with your agency, figuring out how to measure success can be challenging. We all want to create ads that have high CTRs and chart-breaking conversion rates, but a good metric in one industry isn’t necessarily good in another—in fact, it can be difficult to know what a good CTR is in your own industry. Which numbers should you be looking to beat?
Our fantastic data scientist Mark Irvine has leveraged our huge data stores to establish AdWords performance benchmarks in four key metrics on both the Search and Display networks:
- Average Click-Through Rate (CTR)
- Average Cost per Click (CPC)
- Average Conversion Rate (CVR)
- Average Cost per Action (CPA)
Because every business is different, we’ve determined benchmarks for twenty different 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.
How to Use the New Tools
To simplify your search for success, we have created a new set of free tools to accurately calculate how you measure up to the competition based on your current metrics, your network, and your industry. Simply input the metric you want to investigate, select your industry and network, and our free tool will quickly let you know how you measure up! (Big shout-out to our developer Drake McCabe who built the tools.)
Want more info? Use the AdWords Grader to get a full, free report on how you’re doing across 10 key metrics.
What’s a Good Click-Through Rate in AdWords?
Your click-through rate (CTR) is the ratio of clicks to impressions on your AdWords ads. AdWords CTR is important because CTR is a major component of your Quality Score, which determines your cost per click.
What’s a Good Cost Per Click in AdWords?
Your cost per click (CPC) is the price you pay every time someone clicks one of your ads. A low CPC ensures that you’re getting a good return on your AdWords investment.
What’s a Good Conversion Rate in AdWords?
Your conversion rate is the ratio of people who complete your offer or make a purchase out of the total number of people who visit your site or landing page. Conversion rates can vary highly by industry due to the variety of different offers.
What’s a Good Cost Per Action in AdWords?
Your cost per action, or CPA, is the cost required to secure an action (either a sale or a lead) through AdWords. CPA is calculated by dividing your CPC by your conversion rate.
How did you do?!
If you want even more insight into how your AdWords account is performing compared to other advertisers, check out the free AdWords Performance Grader. You’ll get an instant, customized report packed with insights into your performance on ads, landing pages, mobile and more.