8 Essential Google Ads Benchmarks You Need to Know

Man using Google on laptop

It is important to measure the performance of your Google Ads campaigns to maximize return on investment. Otherwise, you may end up wasting ad budget and resources. There are many metrics that you should be tracking as well, including the conversion rate and clickthrough rate. In this blog post, I’ll cover Google Ads benchmarks you need to know and how to improve them.

Google Ads benchmarks

These are benchmarks for Google Ads that you can use to ensure that you are maximizing the performance and return of your campaigns.

Google Ads ROAS benchmark

The AdWords return on ad spend benchmark will give you a quick look at the performance of your campaigns. You can use this to compare different accounts very quickly and get an idea of how well they are performing in general.

This metric is valuable because it helps you see what kind of ROI that your account as a whole is getting, which can be hard when working with multiple accounts or clients. It allows you to easily spot trends and opportunities to improve throughout all levels of the campaign management structure.

After setting up Google Ads conversion tracking, make sure that you also add your desired goal values (or revenue) so that you know exactly how much each sale should be worth. This data appears directly under “ROAS” in the main interface.

Average CTR for Google Ads

Clickthrough rate is the number of people that click your ad relative to the number of people that view it. The average Google Ads click-through rate for search is 3.17% and 0.46% for display.

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In terms of industries, dating tends to have the highest click-through rate (6.05%) and technology has the lowest (2.09%).

How can you increase the click-through rate of your Google Ads? I’m glad you asked. There are a couple of ways.

Firstly, as I’ll mention later with increasing conversion rates, you can write better copy.

After all, you can’t really have any advertisement of any sort without sales copy.

I recommend targeting the customer’s pain points and emotions to grab their attention and elicit action.

You can also talk about the benefits of what you’re selling. I.e how is it going to transform their health, life, business, or happiness.

Adding a unique value proposition (what makes you different or better) is another way to entice people to click your ad.

Finally, include strong calls to action. Whether it’s a single word or phrase like:

  • Buy
  • Shop
  • Learn more
  • Book a demo
  • Etc.

Google Ads average conversion rate

Conversion rate is the number of people that convert relative to the total number of views for your ad. The average is 3.75% for the search network and 0.77% for the display network.

Some ways you can increase the conversion rate of your Google Ads include:

  • Improve the sales copy of your ads to target the customer’s pain points and emotions. Use more calls to action and explain the benefits of what you’re selling.
  • Enhance the targeting of your campaigns with better keywords, negative keywords, etc.
  • Use retargeting to target users who visited your website, online store, or app and left.

Google Ads conversion rate by industry

Does industry make a difference with the average conversion rate of Google Ads? Absolutely!

Conversion rates can be as high as 9.64% for the health industry or as low as 1.96% for the advocacy industry.

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What’s important to remember is that there isn’t a one-size-fits-all answer when it comes to conversion rates. You need to test what works best for your business and adjust your campaigns accordingly.

If you’re not hitting the desired conversion rate benchmarks, then use the tips above to start improving them. And always keep in mind that analytics data changes over time, so you’ll need to track your progress and make course corrections along the way.

You can also apply to become a Profitable Ads client if you need world-class media buyers to manage and scale your campaigns.

Benchmark CPC google ads

CPC (cost per click) benchmarks are a good way to measure how much you should be spending on your ads. They’re determined by taking the average of the top positions for each keyword across all industries. This gives you an idea of what people are willing to pay for specific keywords in your industry.

According to WordStream, the average cost per click for Google Ads across all industries is $2.69 on the search network and $0.63 on the display network.

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You can use this information to set a budget that will help you achieve your desired ROAS. For example, if you know that the benchmark CPC for a certain keyword is $15 and you’d like a return on ad spend (ROAS) of at least two, then you should set your budget at $30 per day for that campaign.

Keep in mind that these benchmarks are just averages, your results may vary depending on your business.

You can improve cost per click with the following strategies:

  • Add long-tail keywords to your campaigns as they tend to have lower costs and less competition.
  • Improve your Quality Score.
  • Take advantage of negative keywords to prevent overspending.
  • Target keywords that have fewer bidders.

What is the average ROAS for Google Shopping?

According to research performed by FIPP, the average return on ad spend for display ads is $2.63. This means for every $1 spent on ads, you can expect to get $2.63 (2.63x) in revenue.

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Like I’ve mentioned in this article already as well, these numbers are flexible. For example, we’ve generated results for our clients like:

  • Driving $2.4 million in revenue with $581,000 in ad spend.
  • Generating $386,000 in sales with $63,000 in ad spend in a single month.

What is a good Google Shopping CTR?

The average Google Shopping click-through rate is 0.86%. Use this as a benchmark to determine whether or not your campaigns are achieving a solid CTR or need improvement.

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Automotive supplies and HVAC have the highest Google Shopping CTR compared to other industries.

What is a good conversion rate for Google Shopping?

The average conversion rate for Google Shopping is 1.91%. Campaigns that hit this or higher are doing great. HVAC and medical supplies have the highest conversion rate per industry at 3.30% and 2.94% respectively.

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Final thoughts on Google Ads benchmarks

Google Ads are essential for brands that want to drive traffic and sales through search and Google’s extensive display network. But, what’s a good conversion rate? What should your CTR be? Use the Google Ads benchmarks in today’s article to determine if your campaigns are performing well.

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