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How Is Your PPC Management Comparing to the Rest of Your IndustryIf you are new to PPC campaigns or have been running them for a while, you might first want to know whether or not your efforts are being rewarded. And then you'll want to know how your PPC management compares to the rest of your industry.

So is your marketing strategy working or are you wasting money on keywords that don't bring in returns?

Wordstream analysed their clients to establish some benchmark figures in regards to their AdWords campaigns and their levels of success with click through rates, cost per click and conversion rates. Their figures provide a good source of information when comparing your AdWords figures with those within your industry.

 

The difference between advertising on the Search Network vs Display Network

The Google Search Network is the home to advertising, running ads here means they can be displayed right at the top of the search page for the keywords you are paying for; it is the most well known form of paid PPC advertising.

The Google Display Network is where your visual ads will appear on other selected sites, in the spaces below site headers, on sidebars and within the body of the text.

The reason there is a higher CTR on the Search Network is that when people are searching they are usually already in 'search mode' and therefore likely to be geared to purchasing. However, the Display Network is likely to be much more successful in helping develop your brand and online presence.

Click Through Rate - Industry Averages

The average CTR (click through rate) taking into account all industries, is just 1.91% for search and 0.35% on the display network.

Industry

Google Display Network     

Search

B2B

0.22%

2.55%

Consumer Services

0.20%

2.40%

Dating

0.52%

3.40%

eCommerce

0.45%

1.66%

Education

0.22%

2.20%

Employment & Recruitment

0.14%

2.13%

Finance

0.33%

2.65%

Health & Medical

0.31%

1.79%

Home Goods

0.37%

1.80%

Manufacturing & Industrial

0.35%

1.40%

Legal

0.45%

1.35%

Property

0.24%

2.03%

Technology

0.84%

2.38%

Travel

0.47%

2.18%

 

What this table shows is that if you are in Finance and you have a CTR of 2% (which is better than the average CTR of 1.91%) you may think you are performing well. Unfortunately, in your industry this isn’t the case.

Conversely, having a CTR of just 0.60% for your display advertising might look hard to justify, but with an industry average of 0.35% you are probably performing well - unless you are a Tech company, which has a significantly higher CTR rate than any other at 0.84%.

Take a look at the four best performing sectors for CTR: Finance 2.65%, B2B 2.55%, Consumer Services 2.40% and Technology 2.38%. All of them are significantly higher that the average CTR. This means that there are some companies performing at a much higher level than others, and significantly better than in other industries.

However, if you are in Legal Services or Manufacturing then even averaging 1.50% is a significant improvement on the rest of your industry.

 

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Cost Per Click - Industry Averages

Your cost per click (CPC) is the amount you pay every time someone clicks on your ad and the average CPC for all industries is $2.32 for search and $0.58 for display.

 

Industry

Google Display Network     

Search

B2B

$0.37

$1.64

Consumer Services

$0.69

$3.77

Dating

$0.18

$0.19

eCommerce

$0.29

$0.88

Education

$0.40

$1.74

Employment & Recruitment

$1.66

$4.20

Finance

$0.72

$3.72

Health & Medical

$0.37

$3.17

Home Goods

$0.70

$3.19

Manufacturing & Industrial

$0.60

$2.00

Legal

$0.60

$5.88

Property

$0.88

$1.81

Technology

$0.20

$1.78

Travel

$0.24

$1.55


What is clear from this table is that the highest CPCs don’t alway equate to the most CTR. Relatively cheap by industry average is the Tech sector with a CPC of $1.78 in search but it comes in above average for CTR.

Conversely, Employment and Recruitment finds it difficult to compete for keywords suffering high CPCs for poor CTR returns.

The actual cost of your clicks won’t tell your PPC management everything you need to know, but it will help you identify which ads are performing well and which ones aren’t when you look at how your ads compare in conversion rates.

 

Conversion Rate - Industry Averages

The average conversion rate (CVR) for all industries is 2.70% for search ads and just 0.89% for display ads. Remember these rates are the percentage of the total people clicking through to your adverts and can be improved greatly or negatively by how you set up your landing pages and your  conversion processes.

 

Industry

Google Display Network     

Search

B2B

0.96%

2.58%

Consumer Services

0.96%

5.00%

Dating

0.41%

2.75%

eCommerce

0.96%

1.91%

Education

0.50%

4.13%

Employment & Recruitment

1.28%

3.97%

Finance

1.75%

7.19%

Health & Medical

0.77%

2.51%

Home Goods

2.19%

3.68%

Manufacturing & Industrial

0.88%

2.58%

Legal

0.98%

4.35%

Property

1.49%

4.40%

Technology

1.04%

2.55%

Travel

0.53%

2.57%

 

The big winner here happens if you are in the Finance Sector with a CVR of 7.19% which when combined with a higher than average CTR justifies its higher than average CPC rates.  Looking at the Display figures, then industries like Home Goods and Property perform well, usually because their product are high value luxury products where imagery is essential. Unlike Finance where easy to understand information is required.


When to use the Google Display Network in your PPC marketing

Despite a much lower CTR there are clear situations when it might work better for you to use the Display Network - or at least include it - in your PPC marketing campaigns.

  • Brand awareness - AdWords offers advertisers millions of websites to display their ads. They are usually selected from a specific group that correspond with the target audience of the advertiser.  Coaxing people away from the content they were interested in might not be easy, but it does promote your brand quickly and widely.
  • Longer sales process - If your product has a longer consideration time then having Display ads can help keep your company relevant and in mind for when a prospect does consider a purchase.


What can you do to improve your CTR?

AdWords offers a multitude of tools to help you improve on your PPC management. Your success can rely on how well you compete for attention on search results.

  • Make your offer exciting and compelling. It must stand out from all the other ads
  • Make use of numbers, like '50% off' to get the attention of customers
  • Ensure you have a clear and strong CTA, so demonstrate some urgency in your offer.


You can use this information to streamline your PPC management strategy and performance and it offers a number of industry benchmarks for improving your ad performance. A major decision is how to use your Search vs Display advertising - depending on your industry type and how your sales offers and landing pages help in increasing conversions - it’s not always about spending more to get more.

There are lot of other metrics you can use to help increase your PPC success rates but this information will allow you to get a benchmark of your industry and establish successful PPC campaign management.

Topics: PPC, PPC Management

Ross Starkey

Written by Ross Starkey

Ross heads up the content creation and copywriting services team – providing clients with effective, engaging content is his thing. He has 11 years experience of management and has the ability to implement impeccable content plans covering a wide range of subjects.

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