Wordstream have published some useful research for benchmarking paid search marketing at a high level. If you’re considering paid search it gives you an idea of the conversion rates you can expect when making the business case. Of course, a test will show you rates specific to your market and your site, but this gives an indication.
The Average Click Thru Rate on AdWords Varies For Search And Display
In any given industry, the click through rate of Google’s ads in Google Search were always higher than the click through rate on the Google Display Network. However, the average Google Display Network click through rate of any industry was still significantly higher than a Facebook ad.
The Average Cost Per Click on AdWords Revealed Conversion Opportunities
In our analysis we found a lot of industry verticals where Google’s Display Network had lower average cost per click and higher average conversion rates than Google Search ads. Yes, you heard that right. There are industries where Google Display Ads are being undervalued because they are cheaper and convert better than your bread and butter search ads.
This infographic is based on advertisers across industries using their AdWords performance grader over one billion dollars of spend.
Here’s a summary of the main findings taken
- Average conversion rate for the search network in Q3 2012: 5.63%
- Average conversion rate from the display network in Q3 2012: 4.68%
- The Travel industry has the lowest conversion rates
- Internet / Telecoms has the highest conversion rates across search & display.
- The display network (ads outside of Google on publisher sites useful for generating awareness) generates 5x the volume of impressions but 1/5 of the clicks compared to the search network (searches within Google and its partners).
- Clickthrough rates are not covered by this research, but Wordstream suggest an average 2% to 5% paid search clickthrough rate for competitive industries and a 5%+ click-through rate for non-competitive industries for top positions with brand terms higher.
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