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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 Or, you have outdated data that is not useful in today’s advertising world.

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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%.

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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.

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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%.

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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.

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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.

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  • #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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Google On Hyphens In Domain Names

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What Google says about using hyphens in domain names

Google’s John Mueller answered a question on Reddit about why people don’t use hyphens with domains and if there was something to be concerned about that they were missing.

Domain Names With Hyphens For SEO

I’ve been working online for 25 years and I remember when using hyphens in domains was something that affiliates did for SEO when Google was still influenced by keywords in the domain, URL, and basically keywords anywhere on the webpage. It wasn’t something that everyone did, it was mainly something that was popular with some affiliate marketers.

Another reason for choosing domain names with keywords in them was that site visitors tended to convert at a higher rate because the keywords essentially prequalified the site visitor. I know from experience how useful two-keyword domains (and one word domain names) are for conversions, as long as they didn’t have hyphens in them.

A consideration that caused hyphenated domain names to fall out of favor is that they have an untrustworthy appearance and that can work against conversion rates because trustworthiness is an important factor for conversions.

Lastly, hyphenated domain names look tacky. Why go with tacky when a brandable domain is easier for building trust and conversions?

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Domain Name Question Asked On Reddit

This is the question asked on Reddit:

“Why don’t people use a lot of domains with hyphens? Is there something concerning about it? I understand when you tell it out loud people make miss hyphen in search.”

And this is Mueller’s response:

“It used to be that domain names with a lot of hyphens were considered (by users? or by SEOs assuming users would? it’s been a while) to be less serious – since they could imply that you weren’t able to get the domain name with fewer hyphens. Nowadays there are a lot of top-level-domains so it’s less of a thing.

My main recommendation is to pick something for the long run (assuming that’s what you’re aiming for), and not to be overly keyword focused (because life is too short to box yourself into a corner – make good things, course-correct over time, don’t let a domain-name limit what you do online). The web is full of awkward, keyword-focused short-lived low-effort takes made for SEO — make something truly awesome that people will ask for by name. If that takes a hyphen in the name – go for it.”

Pick A Domain Name That Can Grow

Mueller is right about picking a domain name that won’t lock your site into one topic. When a site grows in popularity the natural growth path is to expand the range of topics the site coves. But that’s hard to do when the domain is locked into one rigid keyword phrase. That’s one of the downsides of picking a “Best + keyword + reviews” domain, too. Those domains can’t grow bigger and look tacky, too.

That’s why I’ve always recommended brandable domains that are memorable and encourage trust in some way.

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Read the post on Reddit:

Are domains with hyphens bad?

Read Mueller’s response here.

Featured Image by Shutterstock/Benny Marty

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Reddit Post Ranks On Google In 5 Minutes

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Google apparently ranks Reddit posts within minutes

Google’s Danny Sullivan disputed the assertions made in a Reddit discussion that Google is showing a preference for Reddit in the search results. But a Redditor’s example proves that it’s possible for a Reddit post to rank in the top ten of the search results within minutes and to actually improve rankings to position #2 a week later.

Discussion About Google Showing Preference To Reddit

A Redditor (gronetwork) complained that Google is sending so many visitors to Reddit that the server is struggling with the load and shared an example that proved that it can only take minutes for a Reddit post to rank in the top ten.

That post was part of a 79 post Reddit thread where many in the r/SEO subreddit were complaining about Google allegedly giving too much preference to Reddit over legit sites.

The person who did the test (gronetwork) wrote:

“…The website is already cracking (server down, double posts, comments not showing) because there are too many visitors.

…It only takes few minutes (you can test it) for a post on Reddit to appear in the top ten results of Google with keywords related to the post’s title… (while I have to wait months for an article on my site to be referenced). Do the math, the whole world is going to spam here. The loop is completed.”

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Reddit Post Ranked Within Minutes

Another Redditor asked if they had tested if it takes “a few minutes” to rank in the top ten and gronetwork answered that they had tested it with a post titled, Google SGE Review.

gronetwork posted:

“Yes, I have created for example a post named “Google SGE Review” previously. After less than 5 minutes it was ranked 8th for Google SGE Review (no quotes). Just after Washingtonpost.com, 6 authoritative SEO websites and Google.com’s overview page for SGE (Search Generative Experience). It is ranked third for SGE Review.”

It’s true, not only does that specific post (Google SGE Review) rank in the top 10, the post started out in position 8 and it actually improved ranking, currently listed beneath the number one result for the search query “SGE Review”.

Screenshot Of Reddit Post That Ranked Within Minutes

Anecdotes Versus Anecdotes

Okay, the above is just one anecdote. But it’s a heck of an anecdote because it proves that it’s possible for a Reddit post to rank within minutes and get stuck in the top of the search results over other possibly more authoritative websites.

hankschrader79 shared that Reddit posts outrank Toyota Tacoma forums for a phrase related to mods for that truck.

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Google’s Danny Sullivan responded to that post and the entire discussion to dispute that Reddit is not always prioritized over other forums.

Danny wrote:

“Reddit is not always prioritized over other forums. [super vhs to mac adapter] I did this week, it goes Apple Support Community, MacRumors Forum and further down, there’s Reddit. I also did [kumo cloud not working setup 5ghz] recently (it’s a nightmare) and it was the Netgear community, the SmartThings Community, GreenBuildingAdvisor before Reddit. Related to that was [disable 5g airport] which has Apple Support Community above Reddit. [how to open an 8 track tape] — really, it was the YouTube videos that helped me most, but it’s the Tapeheads community that comes before Reddit.

In your example for [toyota tacoma], I don’t even get Reddit in the top results. I get Toyota, Car & Driver, Wikipedia, Toyota again, three YouTube videos from different creators (not Toyota), Edmunds, a Top Stories unit. No Reddit, which doesn’t really support the notion of always wanting to drive traffic just to Reddit.

If I guess at the more specific query you might have done, maybe [overland mods for toyota tacoma], I get a YouTube video first, then Reddit, then Tacoma World at third — not near the bottom. So yes, Reddit is higher for that query — but it’s not first. It’s also not always first. And sometimes, it’s not even showing at all.”

hankschrader79 conceded that they were generalizing when they wrote that Google always prioritized Reddit. But they also insisted that that didn’t diminish what they said is a fact that Google’s “prioritization” forum content has benefitted Reddit more than actual forums.

Why Is The Reddit Post Ranked So High?

It’s possible that Google “tested” that Reddit post in position 8 within minutes and that user interaction signals indicated to Google’s algorithms that users prefer to see that Reddit post. If that’s the case then it’s not a matter of Google showing preference to Reddit post but rather it’s users that are showing the preference and the algorithm is responding to those preferences.

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Nevertheless, an argument can be made that user preferences for Reddit can be a manifestation of Familiarity Bias. Familiarity Bias is when people show a preference for things that are familiar to them. If a person is familiar with a brand because of all the advertising they were exposed to then they may show a bias for the brand products over unfamiliar brands.

Users who are familiar with Reddit may choose Reddit because they don’t know the other sites in the search results or because they have a bias that Google ranks spammy and optimized websites and feel safer reading Reddit.

Google may be picking up on those user interaction signals that indicate a preference and satisfaction with the Reddit results but those results may simply be biases and not an indication that Reddit is trustworthy and authoritative.

Is Reddit Benefiting From A Self-Reinforcing Feedback Loop?

It may very well be that Google’s decision to prioritize user generated content may have started a self-reinforcing pattern that draws users in to Reddit through the search results and because the answers seem plausible those users start to prefer Reddit results. When they’re exposed to more Reddit posts their familiarity bias kicks in and they start to show a preference for Reddit. So what could be happening is that the users and Google’s algorithm are creating a self-reinforcing feedback loop.

Is it possible that Google’s decision to show more user generated content has kicked off a cycle where more users are exposed to Reddit which then feeds back into Google’s algorithm which in turn increases Reddit visibility, regardless of lack of expertise and authoritativeness?

Featured Image by Shutterstock/Kues

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WordPress Releases A Performance Plugin For “Near-Instant Load Times”

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WordPress speculative loading plugin

WordPress released an official plugin that adds support for a cutting edge technology called speculative loading that can help boost site performance and improve the user experience for site visitors.

Speculative Loading

Rendering means constructing the entire webpage so that it instantly displays (rendering). When your browser downloads the HTML, images, and other resources and puts it together into a webpage, that’s rendering. Prerendering is putting that webpage together (rendering it) in the background.

What this plugin does is to enable the browser to prerender the entire webpage that a user might navigate to next. The plugin does that by anticipating which webpage the user might navigate to based on where they are hovering.

Chrome lists a preference for only prerendering when there is an at least 80% probability of a user navigating to another webpage. The official Chrome support page for prerendering explains:

“Pages should only be prerendered when there is a high probability the page will be loaded by the user. This is why the Chrome address bar prerendering options only happen when there is such a high probability (greater than 80% of the time).

There is also a caveat in that same developer page that prerendering may not happen based on user settings, memory usage and other scenarios (more details below about how analytics handles prerendering).

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The Speculative Loading API solves a problem that previous solutions could not because in the past they were simply prefetching resources like JavaScript and CSS but not actually prerendering the entire webpage.

The official WordPress announcement explains it like this:

Introducing the Speculation Rules API
The Speculation Rules API is a new web API that solves the above problems. It allows defining rules to dynamically prefetch and/or prerender URLs of certain structure based on user interaction, in JSON syntax—or in other words, speculatively preload those URLs before the navigation. This API can be used, for example, to prerender any links on a page whenever the user hovers over them.”

The official WordPress page about this new functionality describes it:

“The Speculation Rules API is a new web API… It allows defining rules to dynamically prefetch and/or prerender URLs of certain structure based on user interaction, in JSON syntax—or in other words, speculatively preload those URLs before the navigation.

This API can be used, for example, to prerender any links on a page whenever the user hovers over them. Also, with the Speculation Rules API, “prerender” actually means to prerender the entire page, including running JavaScript. This can lead to near-instant load times once the user clicks on the link as the page would have most likely already been loaded in its entirety. However that is only one of the possible configurations.”

The new WordPress plugin adds support for the Speculation Rules API. The Mozilla developer pages, a great resource for HTML technical understanding describes it like this:

“The Speculation Rules API is designed to improve performance for future navigations. It targets document URLs rather than specific resource files, and so makes sense for multi-page applications (MPAs) rather than single-page applications (SPAs).

The Speculation Rules API provides an alternative to the widely-available <link rel=”prefetch”> feature and is designed to supersede the Chrome-only deprecated <link rel=”prerender”> feature. It provides many improvements over these technologies, along with a more expressive, configurable syntax for specifying which documents should be prefetched or prerendered.”

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See also: Are Websites Getting Faster? New Data Reveals Mixed Results

Performance Lab Plugin

The new plugin was developed by the official WordPress performance team which occasionally rolls out new plugins for users to test ahead of possible inclusion into the actual WordPress core. So it’s a good opportunity to be first to try out new performance technologies.

The new WordPress plugin is by default set to prerender “WordPress frontend URLs” which are pages, posts, and archive pages. How it works can be fine-tuned under the settings:

Settings > Reading > Speculative Loading

Browser Compatibility

The Speculative API is supported by Chrome 108 however the specific rules used by the new plugin require Chrome 121 or higher. Chrome 121 was released in early 2024.

Browsers that do not support will simply ignore the plugin and will have no effect on the user experience.

Check out the new Speculative Loading WordPress plugin developed by the official core WordPress performance team.

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How Analytics Handles Prerendering

A WordPress developer commented with a question asking how Analytics would handle prerendering and someone else answered that it’s up to the Analytics provider to detect a prerender and not count it as a page load or site visit.

Fortunately both Google Analytics and Google Publisher Tags (GPT) both are able to handle prerenders. The Chrome developers support page has a note about how analytics handles prerendering:

“Google Analytics handles prerender by delaying until activation by default as of September 2023, and Google Publisher Tag (GPT) made a similar change to delay triggering advertisements until activation as of November 2023.”

Possible Conflict With Ad Blocker Extensions

There are a couple things to be aware of about this plugin, aside from the fact that it’s an experimental feature that requires Chrome 121 or higher.

A comment by a WordPress plugin developer that this feature may not work with browsers that are using the uBlock Origin ad blocking browser extension.

Download the plugin:
Speculative Loading Plugin by the WordPress Performance Team

Read the announcement at WordPress
Speculative Loading in WordPress

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See also: WordPress, Wix & Squarespace Show Best CWV Rate Of Improvement

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