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[Report] 2017 Recruitment Media Benchmark Report

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In this report, Appcast analyzed 2016 pay-for-performance recruitment media from over 750 companies across every major industry. Learn the trends and results that 750+ leading employers are getting from their recruitment media.

What's in the Report?
-Click-to-apply rates by industry
-Average cost-per-click bids by device
-Impact of device and length of job titles and descriptions on conversion rates

Sign up for a free demonstration of Appcast to learn how you can improve the performance of your recruitment advertising. http://www.appcast.io/get-a-demo-of-appcast/

Published in: Recruiting & HR
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[Report] 2017 Recruitment Media Benchmark Report

  1. 1. Introduction Job advertising consumes nearly 30% of recruitment budgets at leading employers across the globe. Optimizing this spend can dramatically improve candidate flow, apply volume and ultimately, the return on investment of your talent acquisition spend. Until recently, most recruiters evaluated their job advertising spend almost exclusively on macro-level outcome metrics like total numbers of applicants. The challenge, however, is that focusing too much on the sheer number of applicants you can pull through the hiring funnel ignores job level data on your advertisement performance. More refined analysis of hiring metrics means getting a better look at what’s really working in your recruitment media strategy—and what’s not. As more companies adopt pay-for-performance recruitment advertising, it is imperative that recruiters move from theory to action and use performance data to better benchmark and baseline their job advertising, and develop strategies that will improve bottom-line results. 1 / 92017 Recruitment Media Benchmark Report In this report, we analyzed 2016 pay-for-performance recruitment media buying from over 750 companies across every major industry. To clarify, we did not assess duration-based or slot-based job advertisements in this report. Only recruitment media paid for on a cost-per-click (CPC) or cost-per-applicant (CPA) basis were factored into this study. The distinction is that in a pay-per-performance environment, click volume and the number of applicants determines both spend and returns from a job ad campaign. Data in this report includes: Total number of clicks and applies by device Click-to-apply rates by device Click-to-apply rates by industry Average cost-per-click bids Cost-per-click bids by industry Click-to-apply rates by job title length Click-to-apply rates by job description length About this report:
  2. 2. Total Number of Clicks and Applies by Device For this report, Appcast analyzed 33.0 million clicks and 2.5 million applies across pay-per-performance job ads. Mobile clicks (job ads viewed from a mobile device), owned almost 50% of job candidate traffic in 2016, suggesting that most candidates continued to search for, click on, view and even consider applying to jobs from a mobile device. For applying, job candidates still used a desktop computer as a primary device (71.2% compared to 28.8% on mobile). In general, increased mobile applications in 2016 could be attributed to an ever-growing demand for mobile-friendly careers sites or jobs that entered the market that didn’t require a resume upload. Both changes inherently made applying from a mobile device simpler, therefore more prevalent. Platform Desktop Mobile Total Clicks 17.0 million 16.2 million 33.0 million Applies 1.8 million 0.7 million 2.5 million 2 / 92017 Recruitment Media Benchmark Report Stats AppliesClicks Desktop 48.8% 51.2% 28.8% 71.2%Mobile
  3. 3. Average Click-to-Apply Rate by Device The average click-to-apply rate was 7.5%; 10.5% on desktop and 4.5% on a mobile device. Mobile click-to-apply (CTA) rates jumped from just over 2% in 2014, to 4.5% in 2016. Desktop CTA rates remained fairly stagnant in 2016 at 10.5%. Mobile traffic most likely did not account for the increase in CTA rates in 2016, as it can only account for increases in click rates. Increased CTA rates across both desktop and mobile could have been driven by a combination of several factors: Despite the increase in mobile applies in 2016, a staggering difference in CTA rates between desktop and mobile remained. In general, this suggested that mobile application processes are much less seamless than desktop application processes. Although initiatives to improve application processes on mobile devices and desktops have begun, 2017 is projected as a turning point for advertisers looking to optimize every dollar spent on candidate acquisition. an increased adoption of buttons on sites like LinkedIn and Indeed with different application device offerings; low/no form friction on mobile career sites; decreased numbers of desktop computer owners. 3 / 9 What is a Click-to-Apply Rate? Click-to-apply rates indicate the number of candidates who click on your job ad that end up applying. A high click-to-apply rate indicates strong applicant flow. FY 2016: CTA% by Device 12% 10% 8% 6% 4% 2% 0% 7.5% Total 10.5% Desktop 4.5% Mobile 2017 Recruitment Media Benchmark Report
  4. 4. Average Click-to-Apply Rate by Industry Industries with the highest average CTA rates were Restaurant (11.3%), Customer Service (8.2%) and Administrative/Clerical (6.6%). * Data shows only the functions with at least 1,000 applies in 2016. The industries with average or above average click to apply rates in 2016 were: Restaurant (11.3% Avg. CTA), Customer Service (8.2% Avg. CTA), Administrative/Clerical (6.6% Avg. CTA). In general, the types of jobs leading the pack were those that typically require less information to apply, or are easy to search for from a job site. Many entry level or hourly - roles that often don’t require a resume to apply - had high CTA rates from a mobile application, as well as desktop. The industries with the lowest average CTA rates in 2016 were Healthcare, Consulting and Marketing. Healthcare CTA’s remained low, as they are generally ‘hard-to-fill’ due to education levels and selective skills required in candidates. HR reported the lowest mobile CTA rate (less than 0.5%). 4 / 9 14% 12% 10% 8% 6% 4% 2% 0% RestaurantCustom erService Adm in /Clerical Engineering Sales Construction / Trades H R AccountingBiotechnology / Pharm aceutical TechnologyM anufacturing / Production Banking Retail Transportation M arketing Consultant H ealthcare Mobile CTA Desktop CTATotal CTA 2017 Recruitment Media Benchmark Report
  5. 5. The average CPC value of 2016 was $0.55, but it increased a notable 20% in the second half of the year. The increase in the second half of the year could be due to: 1. 2. An overall increase of jobs in the market: Any changes in the competitive landscape - less available candidates as the unemployment / underemployment rate fluctuated - could have affected average CPC values. The need to spend budgets at the end of the year: Remaining budgets were most likely fulfilled towards the end of 2016 by raising CPC bids to ensure all available dollars were spent. 5 / 9 Avg. CPC in FY 2016 $0.60 $0.58 $0.56 $0.54 $0.52 $0.50 $0.48 $0.46 $0.44 FY 2016 $0.55 1H 2016 $0.50 2H 2016 $0.60 Average Cost-Per-Click Bids The average cost-per-click bid was $0.55. What is Cost-Per-Click (CPC) Recruitment Media? With a CPC model, budget is spent every time a candidate clicks on a job ad. 2017 Recruitment Media Benchmark Report
  6. 6. Average Cost-Per-Click Bids by Industry The transportation industry had the highest average CPC bid at $0.79, while Retail had the lowest at $0.32. Competitive hiring pressures for certain jobs most likely affected average CPCs in 2016. Where supply was low and demand was high, there was still a significantly higher CPC price than any other function. Transportation, for example, had the highest average CPC of $0.79. CPC data for Healthcare told another story, however. 6 / 9 $0.80 $0.70 $0.60 $0.50 $0.40 $0.30 $0.20 $0.10 $0.00 * Data only represents industries with at least 1,000 applies in 2016 $0.79 CPC $0.6 CPC $0.59 CPC $0.58 CPC $0.55 CPC $0.52 CPC $0.52 CPC $0.49 CPC $0.49 CPC $0.49 CPC $0.48 CPC $0.47 CPC $0.45 CPC $0.43 CPC $0.35 CPC $0.34 CPC $0.32 CPC Transportation Engineering ConsultantCustom erService Construction / Trades M arketingBiotechnology / Pharm aceutical Technology Accounting Sales H R Adm in /ClericalM anufacturing / Production Restaurant Banking H ealthcare Retail At first glance the data did not suggest a shortage in roles, but the challenge with generic job advertising data is that sometimes the greater story buries the specific inference. In this example, there are various roles that fall under the category of ‘Healthcare,’ such as LPN’s, Orderlies, Doctors, Nurses, Support Staff and other hospital clerical workers. It is inevitable that CPC bids across these roles in Healthcare will vary. 2017 Recruitment Media Benchmark Report
  7. 7. Average Click-to-Apply Rate by Job Title Length Job titles containing 51 to 60 characters outperformed other job title lengths, with an average CTA of 8.4%. CTA rates impacted by the length of job titles helped us to better understand the relationship between the recruiter, the candidate, and how the look and feel of job ads and postings impacts both. Recruiters must write job titles that are clicked on. Before that can happen, the candidate needs to find that job – either by searching on a job site or by providing a candidate profile that can be ‘matched’ upon. The single largest driver of search and/or match is the job title. The clarity of a simple job title and location are the best ways to get candidates to read about your job. 9% 8% 7% 6% 5% 4% 3% 2% 1% 20-30 Number of Characters in Job Title 31-40 41-50 51-60 61-70 71-80 81-90 91-100 100+ CTA % 7 / 92017 Recruitment Media Benchmark Report
  8. 8. Average Click-to-Apply Rate by Job Description Length Job descriptions containing 501 to 1,000 characters outperformed other job descriptions lengths, with an average CTA of 8.9%. A job description serves to engage interested candidates and give them information that makes them curious to learn more. Longer job descriptions don’t necessarily help candidates decide to apply. In 2016, Appcast’s data showed that candidates were most commonly driven to apply when the job description contained between 501 - 1,000 characters. 8 / 9 10% 9% 8% 7% 6% 5% 4% 3% 2% CTA % 501-1,000 Number of Characters in Job Description 1,001-2,000 2,001-3,000 3,001-4,000 4,001-5,000 5,001-6,000 6,001-7,000 2017 Recruitment Media Benchmark Report
  9. 9. About Appcast 9 / 9 Visit www.appcast.io to sign up for a free demo. Appcast is using data and programmatic targeting to revolutionize the global recruitment advertising industry. From its namesake pay-per-applicant job ad exchange to its market-leading recruitment media optimization platform, Appcast is changing how leading employers, ad agencies, and job boards attract high-quality job seekers. Exchange Pay-Per-Applicant Job Ads Pay-per-applicant, not per-click. Get quality applicants for 30% less than cost-per-click job sites. Clickcast Programmatic Job Ad Optimization Improve the ROI of your performance job ad spend by 20%+ with rules-based & algorithmic bidding. Brand Targeted Employer Brand Advertising Promote your recruitment brand message to specific communities of candidates using real-time targeting data. Making job ads work 2017 Recruitment Media Benchmark Report

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