WordStream’s detailed study on Google Adwords industry metrics includes very interesting (and useful!) industry-specific benchmarks across both Search and Display ads in the following categories:

• Average Click-Through Rate (CTR) in AdWords by industry, for both Search and Display
• Average Cost per Click (CPC) in AdWords by industry, for both Search and Display
• Average Conversion Rate (CVR) in AdWords by industry, for both Search and Display
• Average Cost per Action (CPA) in AdWords by industry, for both Search and Display

Search vs. Display Ads

If you’re a bit lost about the difference between Search and Display ads, here’s a quick rundown. Search Ads are the ads that appear at the top of the Search Engine Results Page (SERP) above all of the organic results, when a user searches for your product or service on Google. These are the PPC ads that most users are most familiar with and expect to see while browsing via a search engine.

Display Ads are ads that are displayed to users while they are browsing on a website. These are usually placed at the top of the page or along the sidebar, and usually contain videos, or moving graphics, or carousel displays — something that grabs the user’s attention. Highly effective, easy to implement and affordable to maintain, remarketing with Display Ads gives you the ability to essentially “follow” your website’s visitors around the internet, and show them your ads wherever they go.

Google Adwords Industry Benchmarks

Now let’s take a look at the benchmarks WordPress has published for each category, across both Search and Display ads.

Average Click-Through Rate (CTR):

The click-through rate refers to the percent of people that actually click your PPC ad out of the total number of people who view it.

Across all industries, the average CTR for a search ad is 1.91%, and 0.35% for a display ad. The details for each industry is in the infographic below:

Average Cost-per-Click (CPC):

The cost-per-click is the amount you pay each time a user clicks on your ad.

Across all industries, the average CPC for a search ad is $2.32, and $0.58 for a display ad. The details for each industry is in the infographic below:

Average Conversion Rate (CVR):

Average conversion rates track the average amount of conversions you get from a specific ad.

The average conversion rate in AdWords across all industries is 2.70% for search and 0.89% for display. The details for each industry is in the infographic below:

Average Cost per Action (CPA):

The average cost-per-action is the cost you pay every time a specific action is completed as a result of your ad. Examples of this include form submissions or event registrations.

The average CPA in AdWords across all industries is $59.18 for search and $60.76 for display. The details for each industry is in the infographic below:

What Next?

So, now what do you do with all of this data? If your current metrics are lower than the industry benchmarks that WordStream has published, it may be time for an audit of your AdWords setup, to catch any opportunities that may be slipping through the cracks.

You should also check out our free guide to Google AdWords, which will help you in picking the right keywords for your campaigns, and optimizing them to be as effective as possible. Click the image below to download your copy today!