Google Adwords conversion rate averages by industry [infographic]

A reminder of the importance of paid search marketing contrasting the search network with the display network

Wordstream have published some useful research for benchmarking paid search marketing at a high level. If you’re considering paid search it gives you an idea of the conversion rates you can expect when making the business case. Of course, a test will show you rates specific to your market and your site, but this gives an indication.

This infographic is based on advertisers across industries using their AdWords performance grader over one billion dollars of spend.

Here’s a summary of the main findings taken

  • Average conversion rate for the search network in Q3 2012: 5.63%
  • Average conversion rate from the display network in Q3 2012: 4.68%
  • The Travel industry has the lowest conversion rates
  • Internet / Telecoms has the highest conversion rates across search & display.
  • The display network (ads outside of Google on publisher sites useful for generating awareness) generates 5x the volume of impressions but 1/5 of the clicks compared to the search network (searches within Google and its partners). 
  • Clickthrough rates are not covered by this research, but Wordstream suggest an average 2% to 5% paid search clickthrough rate for competitive industries and a 5%+ click-through rate for non-competitive industries for top positions with brand terms higher.

The thing to remember with the data above is that a conversion is not necessarily a sale it includes lead / data capture as well. While industry benchmarks are great if you are one of the bigger players in the industry be careful not to get too hung up on them, work to your own cost per sale and use such metrics as guides not absolutes. (view original post).

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