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What’s A Good Google Ads CTR/CPC/CPA In 2022? [STUDY]

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What's A Good Google Ads CTR/CPC/CPA In 2022? [STUDY]


“Is this a good click-through rate?”

“Why is our cost per conversion high? Is this in line with our competitors?”

“What’s a good conversion rate?”

How many times do you get asked these questions in a week? A month?

Nothing’s more frustrating than getting these questions from your C-Suite team without having data to back it up. Or, you have outdated data that is not useful in today’s advertising world.

Keeping up-to-date on industry benchmarks is crucial to help answer these questions for your business.

Wordstream by LOCALiQ recently published their Search Advertising benchmarks for 2021.

Their data consists of data points from thousands of campaigns in both Google and Microsoft Ads for the top 20 industries. Some of the top industries include:

  • Arts & Entertainment.
  • Automotive.
  • Education.
  • Finance & Insurance.
  • Health & Fitness.
  • Shopping & Retail.
  • Travel.

While these benchmarks are a starting point, it’s important to note that many factors go into setting benchmarks that are attainable for your business.

We hope this data is useful for you to help level-set expectations and goals for your business, as well as get a sense of how you stack up to the competition.

In this report, you’ll find benchmarks for both Search and Display campaigns in Google & Microsoft Ads for:

  • Click-through rate (CTR).
  • Average cost-per-click (CPC).
  • Conversion rate (CVR).
  • Cost per acquisition (CPA).

Let’s dig into the data.

Average Click-Through Rate In Google Ads By Industry

Screenshot from LOCALiQ.com, February 2022

The average click-through rate across all industries sat at 3.17% in 2021. In LOCALiQ’s data, the industries they pooled together outperformed that CTR, averaging over 6%.

Compared to when they first started gathering data in 2015, the average CTR for Search ads was minimal at 1.35%.

The business category that boasted the highest CTR was within Arts & Entertainment with an astounding 10.67% CTR.

At the other end of the spectrum was Attorneys and Legal Services at a 3.84% CTR.

The CTR metric should be analyzed as only one indicator of performance, not the end-all-be-all when trying to determine if your ads are doing well.

There are many factors that can influence CTR, including:

  • Your competition (Is the SERP saturated?).
  • Your bid.
  • Your position on the page.
  • Your ad copy relevancy.
  • Your audience targeting.

When analyzing your ads, Google gives you indicators of performance within your Quality Score. If your average CTR is below your peer set in your industry, Google will let you know.

When optimizing your Search Ads, make sure you’re taking a look at levers outside of just ad copy.

Average Cost-Per-Click In Google Ads By Industry

Average CPC in 2021 by industry.Screenshot from LOCALiQ.com, February 2022

While the Attorneys and Legal Services showcased the lowest CTR, they also boasted the highest average CPC. In 2021, the average CPC for this industry came in at $8.67.

This average is not surprising, given the higher than average cost it takes to acquire a customer.

On the lower end of the spectrum, Real Estate and Travel industries had the lowest average CPC at $1.40.

Similar to analyzing the CPC metric, this is just one indicator of performance.

For example, your ads may show a low average CPC and a low CTR. This could mean that your bids aren’t high enough to be competitive in the market, and you may want to consider raising bids.

On the other hand, if you have a higher than average CPC, you’ll want to monitor these more closely to ensure you can prove your return on ad spend/investment.

Average Conversion Rates In Google Ads By Industry

2021 average conversion rates across industries.Screenshot from LOCALiQ.com, February 2022

The average Conversion Rate is calculated from the number of leads/sales you get divided by the number of clicks from your ad.

When looking at the data from 2021, the average Conversion Rate varied highly across industries.

On the high end of performance, Animals & Pets had the highest conversion rate at 19.19%, followed by Physicians and Surgeons at 19.15%.

The industries that had the lowest Conversion Rate included:

  • Furniture: 3.25%
  • Real Estate: 3.93%
  • Apparel/Fashion & Jewelry: 3.60%

When looking at these industries and the products they sell, these conversion rates make sense.

Furniture is a high-ticket item for many customers. Users do a lot of research online before making a purchase. Not only that, but because of the price tag, many customers end up purchasing in stores instead of online.

While the Conversion Rate may be low on this particular industry, it’s more important than ever to be able to measure offline conversions, such as In-Store visits or purchases.

In the apparel industry, it seems that there are new brands popping up every day.

If you do a simple search for Nike sneakers, the amount of sellers and resellers for these types of products has skyrocketed in recent years.

The simple amount of competition directly attributes to a low (or high) conversion rate.

Average Cost Per Acquisition In Google Ads By Industry

Average cost per lead by industry in 2021.Screenshot from LOCALiQ.com, February 2022

The average Cost Per Acquisition is a core KPI that advertisers should keep a pulse on when analyzing performance.

It’s no surprise that certain industries have a much higher CPA compared to other industries. Some of the factors that can influence CPA include:

  • Average CPC.
  • Average CTR (this influences your CPC).
  • Audience targeting.
  • Conversion Rate.
  • The type of product/service you’re selling.

The Attorneys and Legal Services had the highest CPA out of all industries at a whopping $73.70. This is not surprising considering the possible barriers to entry for this industry.

From a consumer perspective, they are likely doing a lot of research before making a decision and contacting someone in this industry.

While the CPA may be high, many businesses in that industry find that well worth the investment, considering their return on each individual customer.

Those industries that have lower-priced products and services likely have a lower CPA goal. The industries that showed the lowest CPA in 2021 was Animals and Pets at $14.88, followed by Automotive Repair, Services and Parts at $17.81.

Mark Irvine, Director of Paid Search at Search Lab, mentioned that Cost Per Lead metrics showed improvement from recent years. He attributes some of this to the following factors:

  • Improvement of Lead Management Systems (CRMs).
  • Improvement in audience targeting.
  • Improvements in keyword targeting.

Summary

If you find yourself on the lower end of the spectrum in comparison to others in your industry, don’t fret! These benchmarks are meant to be a guidepost for you.

If you’re struggling to improve performance, try following these tips below.

  • #1: Set the right (and realistic) goals for your campaigns.
  • #2: Test out other search engines besides Google.
  • #3: Choose the right budget(s) for your campaigns.
  • #4: Invest in a good keyword strategy.
  • #5: Focus on your landing page strategy ad optimization.
  • #6: Don’t forget about mobile!

Make sure to check out Wordstream by LOCALiQ’s full report on benchmarks and tips to improve your campaigns.

More Resources:


Featured Image: Jirsak/Shutterstock





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Headings With Hierarchical Structure An “Awesome Idea”

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Headings With Hierarchical Structure An "Awesome Idea"

Google’s John Mueller discussed heading elements with a member of the SEO community where he affirmed the usefulness of using hierarchical structure when using heading elements.

Background Context to What Mueller Said

Heading elements <H1> – <H6> are supposed to be used to indicate what a section of a webpage is about.

Furthermore the heading elements have a ranking order, with the <H1> being the highest rank of importance and the <H6> being the lowest level of importance.

The heading element purpose is to label what a section of content is about.

HTML specifications allow the use of multiple <H1> elements. So, technically, using more than one <H1> is perfectly valid.

Section 4.3.11 of the official HTML specifications states:

“h1–h6 elements have a heading level, which is given by the number in the element’s name.

If a document has one or more headings, at least a single heading within the outline should have a heading level of 1.”

Nevertheless, using more than on <H1> is not considered a best practice.

The Mozilla developer reference page about the use of headings recommends:

“The <h1> to <h6> HTML elements represent six levels of section headings. <h1> is the highest section level and <h6> is the lowest.

…Avoid using multiple <h1> elements on one page

While using multiple <h1> elements on one page is allowed by the HTML standard (as long as they are not nested), this is not considered a best practice. A page should generally have a single <h1> element that describes the content of the page (similar to the document’s <title> element).”

John Mueller has previously said that it doesn’t matter if a webpage uses one <H1> or five <H1> headings.

The point of his statement is that the level of the heading isn’t as important as how they are used, with the best practice being the use of  headings for indicating what a section of content is about.

What Mueller Said on Twitter

A member of the SEO community was joking around and gently ribbed Mueller about using more than one H1.

He tweeted:

The SEO followed up by sharing how he preferred using the best practices for heading elements by using only one <H1>, to denote what the page is about and then using the rest of the headings in order of rank, give a webpage a hierarchical structure.

A Hierarchical structure communicates sections of a webpage and any subsections within each section.

He tweeted:

“I’m too traditional with header elements. (HTML 4 for Life! lol)

I’d still recommend using just one H1 element on a page.

I patiently go back to pages to implement header hierarchy for fun.”

John Mueller tweeted his approval in response:

“I think that’s an awesome idea & a great practice.

Header hierarchy is not just useful to Google, it’s also important for accessibility.

(Google still has to deal with whatever weird things people throw up on the web, but being thoughtful in your work always makes sense.)”

Hierarchical Page Structure

In the early days of SEO, <H1> used to be counted as an important ranking factor, one that was more important than an <H2>.

So, back then, one always put their most important keywords in the <H1> in order to signal to Google that the page was relevant for that keyword.

H1 used to have more ranking power so it was essential to use the <H1> to help rankings.

Google’s algorithm was using keywords as a way to “guess” what a webpage was about.

Keywords in the anchor text, keywords in the title tag and keywords in the <H1> helped Google guess what a page was relevant for.

But nowadays, Google doesn’t have to guess.

It is able to understand what sections of a webpage are about, and consequently, what the entire webpage is about.

Despite those advances, many SEOs still believe that using an <H1> is some kind of magic ranking factor.

Headings are no longer about shouting what keyword you want to rank for.

The role of heading elements are now about telling search engines what a section of content is about.

Each section of a content is generally about something specific.

Heading tags make it easier for search engines to know what a page is about.

And that helps them rank the page for the topic.

And according to the official HTML specifications, that’s technically the proper way to use heading elements.

Lastly, Mueller mentioned a quality of the heading element as a way to better communicate for accessibility reasons, like for people who use screen readers.

The official HTML specifications say:

“Descriptive headings are especially helpful for users who have disabilities that make reading slow and for people with limited short-term memory.

These people benefit when section titles make it possible to predict what each section contains.”

So thank you John Mueller for calling attention to the benefits of using headings with a hierarchical structure, for calling attention to how hierarchical structure is useful for Google and for accessibility.

Featured image by Shutterstock/Asier Romero



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The Challenges & Opportunities For Marketers

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The Challenges & Opportunities For Marketers

Google’s parent company, Alphabet Inc., reported its fourth straight quarter of declining profits.

It made $76 billion in sales over the past three months, but it wasn’t enough to meet Wall Street’s expectations.

Google’s revenue was down 9% compared to last year, and its biggest business, Google Search, saw a 1% drop in revenue. Even YouTube’s advertising sales fell by nearly 8%.

Alphabet has decided to cut its workforce by 12,000 and expects to spend between $1.9 billion and $2.3 billion on employee severance costs.

This latest earnings report shows tech giants like Google are facing challenges in the current digital advertising landscape.

But Google’s CEO, Sundar Pichai, believes that the company’s long-term investments in AI will be a key factor in its future success.

In a press release, Pichai says he expects major AI advancements to be soon revealed in Google search and other areas:

“Our long-term investments in deep computer science make us extremely well-positioned as AI reaches an inflection point, and I’m excited by the AI-driven leaps we’re about to unveil in Search and beyond. There’s also great momentum in Cloud, YouTube subscriptions, and our Pixel devices. We’re on an important journey to re-engineer our cost structure in a durable way and to build financially sustainable, vibrant, growing businesses across Alphabet.”

Alphabet’s CFO, Ruth Porat, reported that their Q4 consolidated revenues were $76 billion, a 1% increase from the previous year. The full year 2022 saw revenues of $283 billion, a 10% increase.

Going forward, Alphabet is changing how it reports on its AI activities.

DeepMind, which used to be reported under “Other Bets,” will now be reported as part of Alphabet’s corporate costs to reflect its increasing integration with Google Services and Google Cloud.

What Does This Mean For Marketing Professionals?

It’s important to stay updated on the latest developments in the tech industry and how they may affect advertising strategies.

Google’s declining profits and decreased revenue in their search and YouTube platforms are reminders that the digital advertising landscape is constantly evolving, and companies must adapt to keep up.

Marketers should consider diversifying their advertising efforts across multiple platforms to minimize the impact of market swings.

Additionally, Google’s focus on AI and its integration with Google Services and Cloud is something to keep an eye on.

As AI advances, it may offer new opportunities for marketers to target and engage with their audience effectively.

By staying informed on the latest tech advancements, marketers can stay ahead of the curve and make the most of these opportunities.

Despite Google’s recent financial setbacks, the tech giant is still a major player in the digital advertising landscape, and its investments in AI show its commitment to continued growth and innovation.


Featured Image: Sergio Photone/Shutterstock

Source: Alphabet



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How to Use WordPress in 9 Simple Steps (Beginner’s Guide)

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How to Use WordPress in 9 Simple Steps (Beginner’s Guide)

WordPress is the world’s largest content management system (CMS)—around 810 million websites are built on it.

It’s free to use and includes all the features any website owner could need. And if it doesn’t have a feature you want or need, you can have a developer create it for you because it’s built on open-source software.

But with all of these features come some complications. WordPress has a fairly steep learning curve compared to other CMSes like Wix or Squarespace.

I’ve built dozens of websites using WordPress.org (not WordPress.com, which is a totally different beast) and have narrowed down the process to nine simple steps that anyone can follow.

Let’s start with…

Step 1. Get a domain name and hosting

Every website built on WordPress.org needs a domain name (www.thisisyourdomainname.com) and a hosting service that stores and displays your website on the internet.

You can buy a domain name for a small fee from a domain name registrar like NameCheap or GoDaddy. However, if you buy your domain name and your hosting from separate companies, you will need to change your website’s Domain Nameservers (DNS) to point your domain name from your registrar to your hosting company.

They look like this:

SiteGround DNS settings example

It’s a little cheaper to do it this way but not worth the hassle in my opinion. Instead, most hosting providers (such as SiteGround or Bluehost) can also sell you a domain name and connect it with your website automatically, allowing you to skip messing with DNS settings.

You can check out this guide to choosing a domain name if you’re not sure what to pick.

Step 2. Install WordPress

Once you purchase hosting, most hosting providers have a one-click install to set up WordPress on your website. Here are some links to guides on how to do this with common hosting services:

You can also opt for a faster (but more expensive) dedicated hosting provider like Kinsta or WP Engine. These companies will set up WordPress for you when you buy their hosting.

Step 3. Familiarize yourself with the UI

Now that you have a website with WordPress installed, let’s get into how to use WordPress. You can log in to your WordPress dashboard by going to www.yourdomainname.com/wp-admin.

Once you log in, your dashboard will look like this (with fewer plugins since you’re on a fresh install):

WordPress user interface

Let me explain the options here:

  • Posts: This is where you’ll create blog posts.
  • Media: You can go here to see all the media on your site, such as images and videos. I typically upload media directly to my posts and pages and don’t visit media often.
  • Pages: This is where you’ll create static pages on your site, such as your homepage, about page, and contact page.
  • Comments: Here is where you’ll moderate any blog comments.
  • Appearance: This is where you’ll customize the appearance of your website, such as your website’s theme, font type, colors, and more.
  • Plugins: A plugin is an add-on to your website that adds functionality, such as custom contact forms or pop-ups on your website. I’ll discuss these in more detail later.
  • Users: Here is where you can add users to your website, such as writers, editors, and administrators.
  • Settings: Pretty straightforward; here is where your general website settings are located.

Now that you know what each option does, let’s get your website settings dialed in.

Step 4. Optimize your settings

Your WordPress website comes with some generic settings that need to be changed, as well as some things I recommend changing to optimize your website for search engines.

Specifically, you should:

  • Change your title, tagline, time zone, and favicon.
  • Change your permalink structure.
  • Configure your reading settings.
  • Delete any unused themes.
  • Change your domain from HTTP to HTTPS.

Let’s walk through each of these steps.

Change your title, tagline, time zone, and favicon

Head to Settings > General to find these settings. Change the title of your website and the tagline, which can appear underneath the title if you choose to display it.

Next, check that the time zone is correct (according to your local time zone) and upload your favicon. A favicon is the little icon that shows up in browser tabs next to the title of the page, like this:

Examples of favicons

You can make a favicon for free with Canva. Just make a 50×50 design with whatever you want your favicon to look like. Check out this guide to learn more. 

Change your permalink structure

Head to Settings > Permalinks. A permalink is the URL structure your blog posts take when you publish them. By default, WordPress displays the date in your URLs, which isn’t great for SEO or readability.

WordPress permalink structure settings

I always change this to the “Post name” option (/sample-post/) to add the title of the post by default. You want to optimize all of your URLs individually when possible, but this setting will make the process easier.

Configure your reading settings

Head over to Settings > Reading to choose whether you want your homepage to be a static page or if you want it to be a feed of your latest blog posts. 

WordPress homepage display settings

Personally, I always create a unique static page to use as my homepage because it gives me more control over the homepage. I like to add internal links to specific pages to help them rank higher on Google, as well as add an email opt-in form on the homepage.

Check out this guide to homepage SEO to learn more.

Delete any unused themes 

By default, you have a few themes installed. Once you choose a theme in step #5 below, you should delete any unused themes to remove vulnerabilities from your site (hackers can attack WordPress websites with outdated themes).

To do that, go to Appearance > Themes, click on the unused theme, then click the red Delete button in the bottom right.

How to delete unused themes on WordPress

Change your domain from HTTP to HTTPS

The “S” in HTTPS stands for secure. Adding this is done with an SSL certificate, and it’s an important step. It means your website is encrypted and safer for viewers.

Having HTTPS instead of HTTP gives you the “lock” icon next to your URL—Google (and most internet users) wants to see a secure website.

HTTPS secure "lock" icon

Most hosting providers automatically activate the secure version of your website. But sometimes, it needs to be manually activated by you. Here are guides on how to do this with common hosting providers:

If your host isn’t shown here, just do a Google search for “[your host] SSL encryption.”

Step 5. Select and customize your theme

Once you’ve optimized your settings, it’s time to start actually building your website using a WordPress theme. A theme is a customizable template that determines what your website looks like. 

You can browse for themes by going to Appearance > Themes, then clicking the Add new button at the top of the page. 

WordPress theme page

The generic Twenty Twenty-Three theme is actually pretty good. Most WordPress themes these days are optimized to show up in search engines and for requirements of the modern user, such as being mobile-friendly. 

However, some themes have a lot of added bloat that can slow a website down, so choose a theme that only has the features you need without extras you won’t use.

Alternatively, if you don’t like any themes or want something that’s more drag-and-drop, you can use a website builder like Elementor or Thrive Architect. These tools make building a website extremely easy, but they do add bloat that can slow a website down.

I use Elementor to build my websites but only use it to build static pages that I want to convert well. Then I use the built-in Guttenberg editor for my blog posts.

If you decide to go with a regular theme rather than a theme builder, you can edit the theme by going to Appearance > Customize. You’ll be taken to the following editor:

WordPress theme customization options

Depending on the theme you installed, you may have more or fewer options than the screenshot above. Rather than trying to cover every option you may encounter, I’ll just recommend that you go through each option to see what it does. 

For the most part, the options are self-explanatory. If you hit a snag, you can always do a Google search for that option in your theme to see forum posts from other users or even the theme’s FAQ or manual.

Step 6. Build your basic pages

After you’ve selected a theme, you can start building your website’s pages. Every website typically needs at least the following pages:

  • A homepage
  • A contact page
  • An about page
  • A privacy policy page
  • A terms of service page

Rather than going through how you should create each of these pages, I’ll refer you to the following guides:

Keep in mind that your privacy policy and terms of service (ToS) pages will vary depending on the country you live in. If you’re in the U.S., you can follow this guide for privacy policies and this guide for ToS pages.

That said, there are some general tips you should follow when building any page on your website. In general, make sure that your font is easy to read and a good visible size (18–20px is typical), your colors match, and you avoid too much clutter.

Here’s a good example of a webpage that is clean, legible, and thought out:

Ahrefs about page example

Here’s an example of a webpage that has too much clutter and displays an ad over half the page, causing confusion:

CNN poor website design

In general, less is more and legibility is better than fancy fonts.

Step 7. Install these essential plugins

One of the best parts of using WordPress is access to its massive library of plugins

A plugin is a custom piece of code written by a developer that anyone can install on their WordPress website in order to add specific functionality to the site, such as a contact form, extra customization options, or SEO features.

You can install a new plugin one of two ways. Head over to Plugins > Add New. From here, you can either:

  1. Browse the plugins directly on this page, then install and activate them directly.
  2. Download a plugin .zip file from the plugin’s website, then click the Upload plugin button at the top of the screen and upload the .zip file.
How to upload a plugin to your WordPress website

While many plugins are free, some are paid or have a premium paid version. It depends on what you need. However, I always install the following free plugins on my websites:

Rank Math: This plugin makes basic on-page SEO easier. It tells you if you’re missing basic things like metadata, image alt text, and more. It also allows you to create a robots.txt file and a sitemap, which are important for search engines to crawl your website the way you want.

Wordfence: This is a security plugin to help prevent your website from being hacked. I always install some sort of security plugin on my sites.

Insert Headers and Footers: One of the things you’ll often find yourself needing to do is insert code into the header or footer of your pages. You need to do this for everything from setting up Google Analytics and Google Search Console to adding the Facebook Remarketing pixel and more. Having this plugin makes it much easier to add this code.

Keep in mind that installing a lot of plugins on your website can cause code bloat and slow down your loading speeds, so only install plugins that you really need. 

Step 8. Start creating content

Now you know all the basics of how to use WordPress. But another important thing I want to talk about, which is probably why you wanted to start a WordPress website in the first place—how to create content for your blog.

Writing blog posts is an essential part of showing up on search engines like Google, having something to share on social media, and attracting more visitors to your website.

What you write about depends on your goals. I always start with some basic keyword research to figure out what people are searching for on Google that relates to my website.

A quick and easy way to do this is by plugging a broad keyword into Ahrefs’ free keyword generator tool to get some keyword ideas. 

For example, if I’m starting a website about farming, I may type “farm” into the tool. I can see keyword ideas like “farming insurance” and “vertical farming,” which are two potential blog topics I can write about.

Keyword ideas for farming, via Ahrefs' free keyword generator tool

If I want to get a little more specific, I can try a keyword like “how to start a farm.” This gives me ideas like “how to start a farm with no money” and “how to start a farm in texas.”

Keyword ideas for "how to start a farm," via Ahrefs' free keyword generator tool

Try different seed keywords—both broad keywords and more specific ones—to come up with some blog topics. Once you have a few ideas, go ahead and outline the article and then write it and publish it.

Check out our guide to writing a blog post to learn more.

Step 9. Monitor your website for technical issues

A regular part of maintaining your WordPress website is keeping plugins and themes up to date, as well as monitoring your website’s technical health.

WordPress automatically notifies you of updates to your plugins or themes with a red circle next to Dashboard > Updates. Log in to your dashboard at least once a week to update everything.

WordPress updates dashboard

Beyond weekly updates, use the free Ahrefs Webmaster Tools to run a technical audit on your site and see any issues your site may have, such as broken links, missing metadata, or slow loading speeds. 

Ahrefs website audit overview, via AWT

If you click the All issues tab, you can see every issue your site has—with an overview of what the issue is and how to fix it if you click on the ? icon.

All issues report, via AWT

You’ll also get email alerts when anything on your site changes, such as a link breaking or a page returning a 404 code. It’s a helpful tool to automatically monitor your WordPress site.

Final thoughts

Congratulations, you now know the basics of using WordPress. It may have a large learning curve, but learning how to use this CMS is one of the most valuable skills you can have in today’s digital age.

You can use your WordPress website to make money blogging, promote your services as a freelancer, or even sell products online. Knowing how to build a website is almost mandatory these days for anyone who wants to start a business.

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