This document provides benchmarks for key search advertising metrics including average cost per click (CPC), click-through rate (CTR), cost per lead (CPL), and conversion rate (CVR) across different industries. It analyzes the data collection strategy and discusses the meaning and factors that influence each metric. Industry experts are quoted discussing CPC, CTR, CPL, and CVR. The importance of benchmarking metrics against industry standards and adjusting strategies accordingly is emphasized. The presentation concludes that search ads can help businesses' bottom lines by setting realistic goals, knowing what matters most to each business, using benchmarking as a tool, and having backup plans since different metrics may perform better in different situations.

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Search Advertising Industry
Benchmarks
Where You Stand, Why it Matters, & What to Do Now

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LOGISTICS
• The webinar will be recorded.
• Check your inbox for the materials.
• Submit your questions for the Q&A
segment!

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Susie Marino
• Content Marketing Specialist @
LOCALiQ
• Former Digital Marketing Consultant @
WordStream
• Boston Based

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Quick Poll!
Type Your Industry in the Chat

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Agenda
• Our latest data on:
Average CPC
Average CTR
Average CPL
Average CVR
• What these numbers mean for you
• The importance of benchmarking
• How to adjust accordingly for 2022

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Our Data

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The Data Collection Strategy
Exact
• 18,316 North American-based LOCALiQ client campaigns
• Running search ads across all engines
• May 1, 2020 - June 25 2021
• Minimum of 69 unique active campaigns per industry
• Averages = median figures
• USD

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Average Cost Per Click

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Understanding Your CPC
● CPC = Average Cost Per Click
● Based off keyword bids for search queries
● Can vary between campaigns and accounts
● Depends on:
○ Keyword average cost
○ Industry
○ Competition
○ Your accounts’ health

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What the Experts Are Saying About CPC

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Average CTR

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Understanding Your CTR
● CTR = Average click-through rate
● On average, how often does this component pull in a click?
● Can vary!
● Depends on:
○ Ad copy
○ Intent match

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What the Experts Are Saying About CTR

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Average CPL

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Understanding Your CPL
● CPL = Cost Per Lead
● AKA: cost per acquisition (CPA), cost per action (CPA), cost per conversion
● Total spend/conversions
● A go-to ROI metric
● Depends on:
○ CPC
○ Spend, budgets, bids
○ Your tracking

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What the Experts Are Saying About CPL

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Average CVR

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Understanding Your CVR
● CVR = Conversion Rate
● Of all your clicks, how many convert?
● Total clicks/conversions
● Depends on:
○ Your ad copy
○ Intent/query matching
○ Landing page
○ Your chosen tracking methods

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What the Experts Are Saying About CVR

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Why These Metrics Matter

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Look at Your Search Marketing Holistically
○ High CPCs? Look at your:
■ Keywords and bids
■ Ad copy and quality score
■ Other networks and
channels
○ Low CTR? Look at your:
■ Keywords and bids
■ Ad copy
■ Search queries
○ High CPL? Look at your:
■ Keywords and bids
■ Competitors
■ Targeting
○ Low CVR? Look at your:
■ Landing page
■ Offer/CTA
■ Targeting
Budget

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Final Thoughts

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What can search ads do to help
your bottom line?
1. Know What Matters To You.
3. Benchmarking is a tool.
2. Set realistic goals.
It may not always be what you’d
initially think!
4. Always have a back-up plan!
Where one metric fails another
metric thrives! Know what works
for your business.
Key takeaways
Know your industry as well as
you do your own account
performance.

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Thank You!