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2018 AdWords Industry Benchmarks: 8 Ways to Get Ahead in YOUR Industry

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A Behind-the-scenes Look into What it Takes to Be Competitive in AdWords Today
Whether you're just getting started in paid search, or are a seasoned expert, you know the key to success is out-performing businesses competing for your target audience.
Using the data behind the 2018 AdWords Industry Benchmarks, WordStream's Sr Data Scientist, Mark Irvine, will guide you through what it takes to be competitive in your industry.
In this webinar you will learn:
• How your account performance compares to your competitors
• Which areas of your account require the most attention
• What strategies are being used by AdWords' best performing accounts

Published in: Marketing
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2018 AdWords Industry Benchmarks: 8 Ways to Get Ahead in YOUR Industry

  1. 1. LIVE WEBINAR © Copyright 2018 WordStream, Inc. All rights reserved. 2018 AdWords Industry Benchmarks: 8 Ways to Get Ahead in YOUR Industry
  2. 2. 2
  3. 3. Logistics • Webinar will be recorded – check your inbox for materials • Submit your questions for Q&A
  4. 4. 4 Mark Irvine WordStream • Senior Data Scientist at WordStream • Voted the 5th Most Influential PPC Expert of 2017 • Analyzes data of 22,000+ WordStream Ad Accounts.
  5. 5. 5 14,197 AdWords Accounts Late 2017 – Early 2018 Benchmarks on 4 KPIs WordStream clients based in the United States 6 months of data was collected from active accounts. Benchmarks highlighted are medians to minimize the influence of possible outliers. All Currencies are USD Foreign accounts are omitted, but generally follow similar trends. Where’s this Data from?
  6. 6. 6 Want More Industry Data? • The data here is 4 KPIs for 20 large industries, including: • Ecommerce • B2B • Auto • Travel • Education • Legal • And more! • To see exactly how your account compares to others in your specific industry , download a free report at wordstream.com/google-adwords
  7. 7. 7 Click Through Rate Benchmarks
  8. 8. 8 Top CTR Industries Low CTR Industries • Dating & Personals (6.05%) • Travel & Hospitality (4.68%) • Advocacy (4.41%) • Technology (2.09%) • B2B (2.41%) • Employment Services (2.42%)
  9. 9. 9 Write Ads for your People, not Keywords #1
  10. 10. 10 Writing Ads for Keywords is Ineffective Most advertisers write their PPC ads with the keyword in mind Refrigerator Repair
  11. 11. 11 Writing Ads for Keywords is Ineffective Most advertisers write their PPC ads with the keyword in mind Washing Machine Repair Most advertisers write their PPC ads with the keyword in mind, but this generally leads to lazy, boring, and lame ads.
  12. 12. 12 Speak to Your Audience Directly Israel SIM Cards CTR: 7.15% CTR: 11.86%
  13. 13. 13 #2 Write ads differently for different demographics!
  14. 14. 14 Demographic Targeting You can chose to target, exclude, or bid differently based on the demographics of people searching for your keywords! Gender Age Parental Status Household Income
  15. 15. 15 Writing Ads for Different Demographics
  16. 16. 16 Writing Ads for Different Demographics Ad shown only to men: Ad shown only to women: CTR: 7.31% CVR: 1.82% CTR: 11.59% CVR: 4.35% CTR: 9.25% CVR: 3.80% Improved CTR 60%! Improved CVR 140%!! Improved CTR 30%! Improved CVR 110%!!
  17. 17. 17 Cost Per Click Benchmarks
  18. 18. 18 Low CPC Industries High CPC Industries • Ecommerce ($1.16) • Advocacy ($1.43) • Travel & Hospitality ($1.53) • Legal ($6.75) • Consumer Services ($6.40) • Technology ($3.80)
  19. 19. 19 Quality Score is Key to Your Ads’ Success! #3 Quality Score is KEY to your campaign’s success!
  20. 20. 20 Quality Score Google wants to show only the best ads at the top of the page. It calculates each ad’s Quality Score considering: • The ad’s expected clickthrough rate • The ad’s relevance to the search • The site’s landing page relevance to the search Having a poor click through rate or an irrelevant ad can result in a bad quality score!
  21. 21. 21 Ad Rank =Quality Score x Max Cost Per Click Ad Rank • Click through Rate • Ad Relevance • Landing Page Relevance Lower Ad Rank
  22. 22. 22 Ad Rank =Quality Score x Max Cost Per Click Ad Rank • Click through Rate • Ad Relevance • Landing Page Relevance Higher Ad Rank
  23. 23. 23 Bad Quality Score Has Real Costs discounted by 16.70%
  24. 24. 24 Industry Average Click Through Rate #4 Selecting the Right Bidding Strategy
  25. 25. 25 Different Bidding Strategies for Different GoalsBidding Strategy Maximize Clicks Maximize Conversions Target CPA Enhanced CPC (eCPC) Manual CPC Who sets your bids Google Google Google You, but Google may adjust sometimes You What you control Your budget Your budget Your CPA goals Nearly everything Everything! Best for Those who want a lot of traffic Those who want conversions at scale Those who want conversions at a set price Those who want to balance control and optimization Those who want control over everything More Automation More Control
  26. 26. 26 Conversion Rate Benchmarks
  27. 27. 27 High CVR Industries Low CVR Industries • Dating & Personals (9.64%) • Legal (6.98%) • Consumer Services (6.64%) • Advocacy (1.98%) • Real Estate (2.47%) • Home Goods (2.70%)
  28. 28. 28 #5 Engage your past visitors with REMARKETING!
  29. 29. 29 97% of all visitors to your site won’t complete your goal on their first visit. 70% of visitors who add an item to their shopping cart will abandon their cart without purchasing.
  30. 30. 3030 Returning Visitors are about 25% more likely to convert. Past buyers are up to 5 times more likely to convert.
  31. 31. 3131 0 0.2 0.4 0.6 0.8 1 1.2 1.4 1.6 1.8 2 2.2 2.4 1 2 3 4 5 6 7 RelativeConversionRate Number of times a user has seen ad Conversion Rate Increases with Exposure More than 2x more likely to convert after seeing your ad 6 times!
  32. 32. 32 #6 Test new search ad formats built for your industry
  33. 33. 33 Ad Formats are Changing • Search ads aren’t going anywhere – but how they answer questions is evolving. Standard text ads: Introduced in 2000. Expanded text ads: Replaced standard text ads in 2017.
  34. 34. 34 Ad Formats are Changing • Search ads aren’t going anywhere – but how they answer questions is evolving. Shopping ads: Introduced in 2010. Shopping Showcase ads: Introduced in 2017.Buy on Google Ads: Coming soon
  35. 35. 35 Ad Formats are Changing • Search ads aren’t going anywhere – but how they answer questions is evolving. Call Extensions: Introduced in 2013. Call Only Ads: Introduced in 2015. Message Extensions: Introduced in 2016. Chatbot Extensions: Coming soon
  36. 36. 36 Introducing Local Service Ads • Local Service Ads make it easy to connect consumers to trusted local professionals. • Local Service Ads will appear above Paid Search ads and organic results. • An advertiser can show for LSAs, PPC ads, and Organic listings on the same SERP.
  37. 37. 37 Local Service Ads • Local service ads are eligible to show for relevant searches for you service, such as “Locksmiths near me”, “Locked out”, “Replace home locks”, etc. • No keywords to manage.
  38. 38. 38 Local Service Ads • After clicking on an ad, they will be asked about what service they need and where they need it. • If the advertiser supports the service and location, they’ll be able to call or message them. • If they don’t, they be referred to advertisers that do.
  39. 39. 39 Cost Per Acquisition Benchmarks
  40. 40. 40 Low CPA Industries High CPA Industries • Auto ($33.52) • Travel & Hospitality ($44.73) • Ecommerce ($45.27) • Technology ($133.52) • Real Estate ($116.61) • B2B ($116.13)
  41. 41. 41 #7 Know What A Conversion is Really Worth
  42. 42. 42 ECommerce Real Estate Not all Conversions Are Worth The Same • Average CPA: $45.27 • Average CPA: $116.61 • Average Sale: $500 • Average Sale: $250,000 • If you convert 10% of leads to sales, each conversion is worth $25,000. • Return on Ad Spend: 200x! • If you mark up your products by 20%, each conversion is worth $100. • Return on Ad Spend: 2x
  43. 43. 43 Bad Quality Score Has Real Costs #8 Change the Conversion Flow
  44. 44. 44 Get Value from Every Visitor
  45. 45. 45 Get Value from Every Visitor Avoid single, long forms – switch up the sign up process! Next Page Not everyone will complete your full form. Less information is better than none!
  46. 46. 46 WordStream Special Offer
  47. 47. © Copyright 2018 WordStream, Inc. All rights reserved. Thank you!

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