Google AdWords Average Conversion Rates by Industry

Examining your Google AdWords performance and conversion rates, what are you estimating against?

Track your performance all the time and make sure you’re continuously improving. As long as you’re trending better, but using only your own analytical data tells you nothing about how you’re doing against other competitors.

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What is the average conversion rate on Search & Display?

Outsource Google AdWords advertisers see conversion rates of 2.70% on Search network and 0.89% on Display network. Guidelines are an important consideration for your own data, because if you are having 1% conversion for your Search Ads and doubled it to 2%, you might think that was really awesome. You doubled your CVR, that’s good!

Except you’re still doing 0.7% which is really poor comparing to the average though averagely isn’t exceptional. It’s just an average.

Don’t settle for average conversion rates, be a unicorn in a sea of donkeys

If you aren’t doing well, average might seem pretty attractive, but you can do better than that. The range of conversion rates differs so that the top 10 advertisers get conversions five times better than average. Not only can you get better than average, but once you exceed the range, you can do incredibly well on AdWords.

Some account seemingly content to hover around  below or above average. I call these advertiser donkeys. They stubbornly wait for something to happen but then you have the unicorns; accounts that are not just only doing better than average but killing the averages by converting at higher rates  to about  five times higher. These advertisers enjoy not only more conversions but also lower cost too as more engaging Ads drive higher Quality Scores and lower CPCs as a result. Thus which industries convert best on the Display network? Don’t be a donkey.

The surprising top converting industry in Google Display Ads

You may think that industries such as Travel & Hospitality Ads or Dating & Personals Ads would have the best Display network because they’re sexier and exciting than other industries, but you got it wrong.

They actually have the lowest conversion rates within the industries for Google Display Ads!

So which industry does best with Display Ads? Well, it’s Home Goods. Ads about couches, desks, lamps and other furnishings and goods for the home convert at average rates of 2.19% in Display network.

Outsource AdWords outline the top five best-converting industry for Display network are:

  • Home Goods with an average 2.19% CVR
  • Finance & Insurance with 1.75% Avg. CVR
  • Real Estate with 1.49% Avg. CVR
  • Employment Services with 1.28% Avg. CVR
  • Technology with 1.04% Avg. CVR

And who is the worst? The average CVR in the display network industry is an abysmal 0.37%.

Top converting industry with the average Search CVR is almost 3 times higher than overall

In the Search network, some industry is improving to the extent that its average conversion rate is almost three times higher than the average CVR across the whole Search.

Finance and Insurance Ads enjoy an average 7.19% conversion rate on the SERPs, which is 2.19% higher than the next highest industry average:

  1. 1.      Finance & Insurance: 7.19% Avg. CVR
  2. 2.      Consumer Services: 5.00% Avg. CVR
  3. 3.      Advocacy: 4.61% Avg. CVR
  4. 4.      Real Estate: 4.40% Avg. CVR
  5. 5.      Legal: 4.35% Avg. CVR

Knowledge of these averages is critical because your performance against others in your area can seriously impact your costs and ROI. If you’re converting less than average, your Ads aren’t resonating, your QS is going to be affected, and you’re going to pay more for each click.

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