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Google Ads – Conversion Rate Benchmarks

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By Author: S R Chandra Shekar
Total Articles: 2
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We have now got access to some published data, tracking Google Ads Conversion Rates across a fairly wide spectrum of industries. The published data has been derived from a sample size of around 15,000 Google Ads Campaigns spread over a wide range of verticals/industries. This gives us valuable insights into critical indices such as conversion rates across specific industries.
One may well argue that this is a rather limited sample size and may not be an accurate measure. But it certainly serves as a basic indicator to help you evaluate the efficacy of your Google Ads Campaigns.

Google Ads – Average Conversion Rates in 2019
Thanks to Wordstream Google Ads data, we now have the average conversion rates, as tracked by them, across a wide range of industries.
And how do you define a conversion?
According to Google, a conversion is an action that’s counted when someone interacts with your ad (for example, clicks a text ad or views a video ad) and then takes an action that you’ve defined as valuable to your business, such as an online purchase or an email to your business.
How are conversion rates calculated?
According to Google, conversion rates are calculated by simply taking the number of conversions and dividing that by the number of total ad clicks that can be tracked to a conversion during the same period.
For example, if you had 50 conversions from 1000 clicks, your conversion rate would be 5%, since 50/1000 = 5%.

Key Learnings:
• The average conversion rate in AdWords across all industries is 3.75% for search and 0.77% for display.
• The one industry that has registered the best conversion rate is ‘Dating & Personals’, with a 9.64% conversion rate.
• Legal, Auto and Consumer Services feature in the 6 to 7% range.
• An important learning is that the B2B segment as a whole, across business categories, has a conversion rate of just 3.04%. This clearly tells us that the B2B customer spends considerable time researching alternatives, getting feedback and then making an informed decision.
• I suspect that in business transformation driven, high investment sectors in technology like Cloud Migration, OS/DB Migration, the conversion rates will be much lower, given the complexity of the decision making process.

The Way Forward:
• Gone are the days when one can just pump in money into Google Ads and rake in the big bucks. Over the next few years we will see conversion rates bending under pressure, across verticals.

• In an increasingly competitive online marketing environment, it is going to get tougher to drive quality traffic to your website.

• So focus on improving the converion-ability of your Landing Page/s:
I still don’t see many Google Ad campaigns, investing the time and effort to develop focused and persuasive landing pages.
A landing page is a web page to which your visitors should be redirected to after clicking on your Ad. It is akin to a single page selling document – which effectively showcases your product/service in a persuasive and compelling manner.
That is why landing page beats homepage any day, at least when we are talking about ads, because there every click costs you money. A promotion or an ad should always be accompanied by a landing page.
A good landing page should naturally lead a user to the conclusion that converting is in their best interest. To do that, however, you need to know exactly what you want them to do and why they might not want to do it. Then, throughout your landing page, you address their concerns and sell them on the value of what they get in exchange for converting.
A landing page is highly focused on conversion, as it is always accompanied by a single call-to-action. There are no other distractions (like navigation menu) on the page, and there is just one action to take which is conversion.

• Test Alternative Selling Propositions
A great benefit from the landing page approach for professional digital marketers is that it enables them to test 2 alternative selling propositions. By developing two alternative landing pages, each focusing on a specific selling proposition, you can easily test which is the more persuasive and effective selling proposition.

So people, if you are planning a Google Ads campaign, always follow this axiom...
Never | Start A Google Ads Campaign | Without A Dedicated | Landing Page

More About the Author

Chandra Shekar is the Co-Founder of Rainmaker Interactive (www.rainmaker-digital.com), a full-service digital marketing agency, based in Bangalore, India. An MBA in Marketing, Chandra has over 30 years of experience in Marketing, Advertising and since 2006 in Digital Marketing. What drives Chandra is the constant ideating and innovating that the science and art of digital marketing demands if you truly want to build great brands. Reddy holds a Master’s degree in Computer Networking and certifications in SAP NetWeaver 04, HANA, EMC, NetApp, Cisco, Brocade and Azure.

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