Covid-19 has changed everything & around the world, be it our daily lives, priorities, our jobs, businesses, and the way we spend our money.
The pandemic has impacted varied upshots on different aspects of life and the economy. Advertising & Marketing are no exceptions. Different Industries have seen huge highs & lows and are still thinking of ways to come out of the crippled state.
Advertising benchmarks or key performance indicators (KPIs) are the crucial metrics marketers use for specifying the parameters of digital campaigns and their other aspects like budget, creatives, and the success of campaign objectives. The key to successful digital marketing is a progressive trial, calculative risks, continuous evolvement, and fine-tuning of marketing & advertising strategies.
Knowledge of important digital marketing benchmarks helps marketers identify effective advertising fundamentals and optimize campaigns to run successfully.
Google releases these vital KPI benchmarks intermittently for different industries & sectors, like Beauty & Personal Care, Education, Finance, Food & Groceries, Health & Medical, Real Estate, Retailers, Sports & Fitness, and Travel & Tourism to name a few.
Here is a peek into advertising KPI benchmarks compiled through data collected from across industries:
Average CTRs Have Increased During COVID-19
The average CTR (click-through rate) of PPC ads has increased during and after the pandemic, specifically on Google search campaigns.
Google Search
5.90%
Google Display
0.46%
Google Shopping
0.77%
Bing Search
3.24%
Bing Shopping
1.27%
Google Ads CTR Benchmark
Many industries saw a surge in the number of Impressions & clicks during the COVID wave. Industries like Food & Groceries and Charities & Non Profits, saw a high in CTR, previously never reached. And as most of the advertisers pulled back in the pandemic, cost-per-clicks have also seen a dip in PPC advertising.
Decline In The Average Cost Per Click (CPC) During Pandemic
Some industries like Food and Restaurant Business noted lower & below average CPCs as ad competition was less competitive due to temporary closures and those remaining, limited their services to only “Take-Out” and “Delivery”.
Surprisingly, professional services industries like Legal, Real Estate, Medical & Health, etc., are seeing increased competition and Cost Per Click.
Legal Services has seen a spike in Cost-Per-Click, during lockdown when people were bound to remain at home & the major population is still spending time online or working from home.
Effect On Average Conversion Rates (CVR) During COVID-19
During the pandemic, the Google Ads Conversion Rates across industries have seen a tremendous change, and the Avg. Conversion Rate in 2021 is at 3.75% on the Search Network and 0.77% on the Display Network. Search Network CVR has seen a little increase and on the contrary GDN CVR has seen a drop.
Conversion Rates
Average Cost Per Action (CPA) After Covid-19
Post-COVID, the search network Avg. CPA has seen an unexpected decrease in a long time, and that too, lower than Display Network.
The current average CPA on Search across all industries is $56.11 whereas it is $90.80 for GDN.
The Automobile and Vehicles industry had the lowest CPA at $26.17 and the Computers & Electronics industry saw the highest average CPA at $101.40.
CPA
Industry Trends Post COVID-19
As is evident with data over the years, Advertising spend has been and presumably will increase over time. But as the drop in Search CPA & CPC, and increase in CTR & CVR data over the period suggests, Google’s Search Network will always have an upper hand over Display, because of the HIGHER INTENT of the active user on Search when they precisely type their requirement.
The Top Gainer Industries:
The Dating & Personal Services industry is leading the pack with Avg. CVR over 9%, followed by Legal Services, Automobiles, and Consumer Services.
Nonprofits and Charities have seen a 20% increase in search ad conversion rate and a 23% increase in search ad conversions in these difficult times. The Health and Medical industry has also noticed a significantly higher than usual CVR.
During these uncertain times, with people working-from-home, Business Management, Office Supplies, Packing and Shipping Supplies saw a two-fold rise in the search ad conversions.
The Beauty and Personal Care industry is also seeing much higher CVRs with people focusing on self-care during the pandemic.
Another industry that saw a boom with doubled-up conversions is On-Demand Media, with people confined to their homes and spending more time on digital entertainment.
Industries With Average Google Ads performance
The Real Estate & Housing Market industry is seeing a steady decline in search traffic & conversion rates in the Construction & Property development sector while real estate agents and brokers have observed an approximately 30% increase in search & conversion rate.
Moving and relocation services are also witnessing some rise in their search volume at decent CTR & spend.
Home Furnishings & Home Improvement industry data is kind of consistent. Economic uncertainty has not pulled down the curtains. People aren’t spending on high-value products & services but search & conversions are ensuing on home furnishings & small appliances.
The Automotive industry is slightly consistent with no major fall but saw a drop of around 30% in the first quarter accounting for the seasonal lull in March and possibly pandemic uncertainty. Search trends and conversions are more aligned towards vehicle maintenance & repair works.
The Retail industry, which was expected to soar through e-commerce has been consistent during the pandemic owing to financial insecurity, even though more and more people have shifted towards online shopping for their needs. This low in Retail industry CVR has been evened out by retail giants like Amazon etc. as they have towed their advertising budgets on Google Ads, resulting in reduced CPC.
The Jobs and Education sectors are seeing search traffic on careers and vocational training, however, the high conversions look bleak owing to the temporary closure of institutions because of the ongoing pandemic. People seem more inclined towards eLearning & online training courses.
Industries That Suffered And Continue To Take A Hit
The Travel and Tourism industry is still trying to recover from the blow that COVID-19 posed last year to the entire world. Though domestic travel restrictions are easing, there still are stringent controls on international travel, hence not much search is happening around travel and bookings. There has been a huge decline in Travel conversion rates post-COVID and searches on flight delays, flight cancellations, flight restrictions, etc. are further burning a hole in pockets. Many travel advertisers have either pulled back their budgets or paused their operations for a while.
Hotels, Bars and Restaurants: Though COVID curbs are lifting in a few countries, people are still not very keen on visiting these places yet. Hence booking conversions and related searches are still low resulting in a Search Ads CVR drop of -59%. Live Entertainment & Conferences have also seen a decline of 30% in their conversion rates.
The Industrial and Manufacturing sector has also witnessed a slowdown post-COVID outbreak. It’s not just Search traffic and CVR that has dropped; the Cost Per Click has also increased by 5%.
We will further observe Google Benchmark changes in the coming days & the shifting strategies in marketing to help business and online PPC campaigns. And hopefully, the world will come out of the pandemic completely and life will be NORMAL soon. Until then, keep safe and strive to survive.
How to Strategize Highly Profitable Google Ads?
Google ads have the potential to grow your business exponentially only if you know the technique of building the right campaign.
Watch: Google Ads Benchmarks Across Industries Post-Covid
For Curious Minds
The post-pandemic rise in average click-through rates (CTR) signals a more engaged and digitally-reliant consumer base, making it a pivotal metric for gauging ad relevance and performance. This shift means your ads must resonate more deeply to capture attention. A higher CTR, such as the Google Search average of 5.90%, directly impacts your campaign's health and budget efficiency.
Understanding its importance helps you make smarter strategic decisions:
Indicates Ad Relevance: A strong CTR shows that your ad copy and keywords align with user search intent.
Impacts Quality Score:Google rewards high-CTR ads with a better Quality Score, which can lower your cost-per-click (CPC) and improve ad positioning.
Informs Budget Allocation: By identifying campaigns with high CTRs, you can confidently allocate more budget to what is clearly working, maximizing your return on investment.
Analyzing your CTR trends against these benchmarks provides a clear roadmap for refining your creative and targeting. Discover how to apply these insights to your specific industry by exploring the full report.
The dramatic CTR increase in sectors like Food & Groceries and Charities & Non Profits was driven by a direct response to global events and a fundamental shift in consumer priorities. People spent more time at home, leading to a surge in online food orders, while a heightened sense of community spurred charitable giving. These industries succeeded by meeting an immediate and pressing need.
Other sectors can learn valuable lessons from this trend by adapting their strategy to reflect current consumer mindsets. Key takeaways include:
Address Immediate Needs: Your messaging should connect your product or service to the customer's current reality.
Capture Emergent Demand: Be agile enough to identify and serve new patterns of behavior as they appear.
Find Opportunities in Less Competition: As some advertisers pull back during disruption, you can gain visibility and market share at a lower cost.
This adaptability is crucial for navigating market volatility. A deeper look into the data reveals more about how you can position your own brand for similar success.
The significant difference in conversion rates between Google Search and Display networks underscores their distinct roles in the marketing funnel, which should guide your budget allocation. The Search Network excels at capturing high-intent users actively looking for a solution, while the Display Network is primarily for building brand awareness and reaching users earlier in their journey. Your budget split should reflect these separate goals.
To make an informed decision, you must weigh several factors:
Campaign Objective: If your goal is immediate sales, prioritize budget for the Search Network. For brand visibility or remarketing, allocate funds to the Display Network.
Audience Intent: Search targets users with explicit needs (e.g., “buy running shoes”), while Display targets users based on interests and demographics.
Sales Cycle: For products with a longer consideration phase, a combined approach works well, using Display for initial exposure and Search for closing the deal.
The optimal mix depends on your business model and objectives. Understanding the nuanced performance of each network is the first step toward building a more effective media plan.
The primary mistake was making a fear-based decision to pause spending entirely, rather than a data-driven one to adapt. This retreat from the market meant they missed a valuable opportunity to acquire customers at a lower cost-per-click while competitors were absent. A reactive pause surrenders market share and momentum that is difficult and expensive to regain.
To avoid this pitfall during future disruptions, shift from a mindset of pausing to one of pivoting. A stronger approach involves a few key actions:
Monitor Real-Time Data: Keep a close eye on metrics like CPC and CTR to spot emerging opportunities instead of relying on assumptions.
Adjust Messaging, Not Visibility: Change your ad copy to be more empathetic and relevant to the current situation instead of going silent.
Focus on High-Value Segments: Reallocate your budget toward the products, services, or audiences that remain most active.
Maintaining a flexible but consistent presence is key to navigating uncertainty. The complete data offers more guidance on how to build this resilience into your advertising strategy.
With heightened competition in the Real Estate sector, your agency must adopt a more precise and efficient advertising strategy to avoid wasting its budget on expensive, broad clicks. The goal is to attract high-quality leads who are more likely to convert, thereby justifying the higher Cost Per Click. A generic approach is no longer sufficient.
Here is a stepwise plan to refine your campaigns for a better return:
Implement Hyper-Local Targeting: Focus your ads on specific neighborhoods, zip codes, or even a radius around a property to reach the most relevant buyers.
Target Long-Tail Keywords: Bid on highly specific phrases (e.g., “three-bedroom house with yard in [neighborhood]”) that indicate stronger buyer intent.
Optimize Landing Pages: Ensure the page a user lands on after clicking your ad is directly relevant to the ad's content and has a clear call-to-action.
By adopting a more granular and user-centric approach, you can effectively navigate the competitive landscape. Further analysis of industry benchmarks can reveal additional opportunities for optimization.
This sustained digital shift means that online channels are no longer just one part of the customer journey, they are the primary arena for competition and growth. For sectors like Computers & Electronics, which saw the highest average CPA at $101.40, this demands a more sophisticated strategy focused on long-term value over short-term conversions. Simply paying to acquire a customer is not enough.
Your strategy must evolve to thrive in this new environment:
Focus on Customer Lifetime Value (CLV): Justify a high CPA by implementing strategies to increase repeat purchases and customer loyalty.
Invest in Sophisticated Retargeting: Use audience segmentation to re-engage past website visitors with personalized offers and messages across different platforms.
Personalize the Customer Journey: Use data to create a tailored experience, from the first ad impression to the post-purchase follow-up.
Viewing advertising as an investment in a long-term customer relationship is essential. The full dataset provides more context on how to build a resilient e-commerce advertising plan for the future.
Cost Per Action (CPA) is a metric that measures the average cost you pay for a single, specific action, such as a sale, a form submission, or a download. The recent inversion, with the Search Network CPA at $56.11 and the Display Network CPA at $90.80, is highly significant because it shows Search has become more cost-effective for driving direct-response actions.
This trend highlights a major shift in digital advertising efficiency and user behavior:
Higher Intent on Search: Users on the Search Network are actively seeking solutions, making them more likely to convert efficiently.
Increased Top-of-Funnel Cost: The higher CPA on the Display Network suggests it costs more to acquire a customer through awareness-based advertising.
Strategic Re-evaluation is Needed: You should reassess how you use each network, potentially dedicating Search to bottom-funnel conversions and Display to branding and remarketing efforts.
The changing relationship between these core metrics is a critical signal for advertisers. Examining the full context of these benchmarks is key to refining your campaign goals and budget.
The spike in CPC for Legal Services was driven by a confluence of increased demand and heightened online competition. As the pandemic created uncertainty around employment, business contracts, and estate planning, more people turned to search engines for legal advice. Simultaneously, law firms that traditionally relied on offline marketing were forced to shift their budgets online, intensifying the ad auction.
This situation reveals a key insight about professional services: demand can be counter-cyclical, and a digital presence is no longer optional. To succeed in this more expensive environment, firms must:
Differentiate through expertise by creating content and ads that target niche practice areas.
Focus on high-value keywords that indicate strong client intent rather than general informational queries.
Emphasize trust and authority in ad copy and on landing pages to justify the premium click cost.
Understanding these competitive dynamics is essential for any professional service looking to grow. The full analysis provides more examples of how different industries adapted to new market pressures.
The core problem with a one-size-fits-all approach is a fundamental misalignment of strategy with platform capabilities, which leads to wasted ad spend and poor results. The huge gap in conversion rates confirms that Search and Display serve entirely different user intents. Treating them the same means you are showing awareness-style ads to users ready to buy, and sales-focused ads to users who are just browsing.
To correct this, you must implement strict campaign segmentation based on network function. This involves several distinct actions:
Create Separate Campaigns: Never run Search and Display ads from the same campaign. This allows for dedicated budgets, bidding strategies, and targeting.
Tailor Ad Creatives: Use text-based, keyword-focused ads for Search and visually engaging, brand-centric ads for Display.
Set Distinct KPIs: Measure Search success by CPA and CVR, but measure Display success with metrics like reach, impressions, and view-through conversions.
This structured approach ensures you are using each network to its full potential. Exploring the benchmark data further can help you set more realistic and effective goals for each channel.
This trend created a temporary window of opportunity, making PPC advertising more accessible for small businesses that were previously priced out by high competition. Lower costs and higher engagement allowed them to gain visibility and acquire customers more affordably. However, this environment is unlikely to last, as larger competitors will eventually return and bid prices up.
To prepare for this normalization, small businesses should focus on retention and brand building now, not just cheap acquisition. Strategic priorities should include:
Build Owned Audiences: Use the lower-cost traffic to grow your email lists and social media following, creating channels you control.
Invest in Organic SEO: Complement your paid efforts with SEO to build a sustainable, long-term source of traffic that is not dependent on ad spend.
Master Remarketing: Create remarketing campaigns to stay in front of the new customers you have acquired, encouraging loyalty and repeat business.
This period is best seen as a chance to build a stronger foundation for future growth. The full report offers more insights on how to balance short-term gains with long-term strategy.
To effectively capitalize on favorable CTRs, a nonprofit must structure its Google Ad Grant account with precision and clear objectives, moving beyond broad awareness campaigns. High engagement is only valuable if it leads to meaningful actions like donations or sign-ups. A strategic plan is essential to convert that high click interest into tangible support for your mission.
Follow this four-step plan for optimization:
Segment Campaigns by Goal: Create separate campaigns for distinct calls-to-action, such as 'donations', 'volunteer recruitment', and 'newsletter sign-ups'.
Use Compelling, Emotional Ad Copy: Your ads should tell a story and clearly state the impact of a user's action.
Create Dedicated Landing Pages: Each ad group should lead to a landing page that matches the ad's message and makes it simple to complete the desired action.
Track Conversions Meticulously: Set up conversion tracking for every goal to demonstrate the grant's value and identify what is working.
By tying every click to a measurable outcome, you can turn high CTRs into real-world impact. Analyzing detailed benchmarks can further refine your targeting and messaging.
A B2B company's decision to use Bing should be based on audience demographics and cost-efficiency, not solely on a lower average CTR. While Google offers unparalleled scale, Bing provides access to a distinct, often overlooked audience that can be highly valuable. The lower CTR is often offset by other strategic advantages.
You should consider Bing when certain factors align with your goals:
Targeting a Professional Demographic:Bing's user base often skews older and has higher income levels, which can be ideal for B2B services.
Seeking Lower Costs: With less competition, CPCs on Bing are frequently lower than on Google, allowing your budget to go further.
Accessing the Microsoft Audience Network: Your ads can appear across Microsoft properties like LinkedIn, providing unique professional targeting opportunities.
Choosing Bing is a strategic play for efficiency and audience quality over sheer volume. Exploring platform-specific data can help you determine if this is the right move for your business.
Amol has helped catalyse business growth with his strategic & data-driven methodologies. With a decade of experience in the field of marketing, he has donned multiple hats, from channel optimization, data analytics and creative brand positioning to growth engineering and sales.
Growth Strategy and Planning
