Updated: March 3rd, 2017
One of the main reasons we love digital marketing is that it’s easy to measure success. You can measure page views, click-through rates, impressions, conversion rates, the list is endless!
The objective of this blog is to understand advertising benchmark conversion rates so you can compare your results against others. However, please bear in mind, there are many factors to consider when comparing your results to others. For example, your country, your target audience, your industry vertical, your call to action, your value proposition etc. We will try to include as many industry specific statistics as possible so you can accurately compare your results within your industry. We will also endeavour to focus on Australian rates. Although tracking down country-specific rates is becoming increasingly difficult.
We will cover the following ad platforms
- Google Ads
If you are interested in email benchmarks, please refer to the How to Optimise your Email Marketing blog.
If you’re not happy with your conversion results, contact Results 2Day. Getting the results you want from digital marketing is what we do! That’s why we’re called Results 2Day!
Now for the benchmarks…
Let’s first take a look at general conversion rates including mobile. The following chart from Optimal indicates average B2B website benchmark conversion rates by industry:
There are many possibilities for the variability of conversion rate performance among the different industries in the above chart, ranging from customer motivation to promotional budgets to marketing channels used.
However, another likely difference is the very definition of a conversion. A conversion can refer to any goal a marketer has, from the sale of a product to a lead form fill, newsletter subscription or free-trial software download.
How do you define conversion? What are your conversion goals for your website, and how do they affect your conversion rates? Do you adjust your conversion rate expectations based on the objective that you wish to achieve? A conversion rate for a click through from an ad may be very different to an email download.
Optimal looked at another perspective, tactic:
Let’s turn our focus to mobile conversion rates. Mobile eCommerce research from Mobify indicates that conversion rates are highest on desktops, especially for expensive items. Which is probably understandable.
When we compare Australia to other countries, our retail mobile conversion rate is better than the US and Netherlands but worse than Japan and the UK and marginally worse than South Korea and Germany
Let’s take a look at Facebook advertising.
Wordstream indicates the following worldwide conversion rates for Facebook Ads by industry. Data is sourced from the US between November 2016 and January 2017:
Average worldwide Facebook click through rates across all industries is 0.90%
However, here comes the shocker. Let’s see the view by country by cost per click from AdExpresso as at Q3, 2016:
The one time when you don’t want to see Australia at the top of the chart, there we are! Interestingly it is increasingly difficult to track the average CPC by country, thank you AdEspresso for publishing these figures.
Salesforce published country-specific Facebook CPM and CTR as at Q2 2016:
The last breakdown we had by Australian industry was Salesforce Q2 2016 benchmark report. We recommend that you use the industry figures below to benchmark your results against since we believe that your industry is most likely to determine your conversion rate. We have included both Q2 2015 and Q2 2016 tables to enable comparisons.
The first table is the from the Q2 2105 report:
It’s unfortunate that the industry classifications in the Q2 2016 report were significantly reduced and CPC was removed:
Nanigans also produce Facebook conversion benchmark reports. Unfortunately, figures for Australia and New Zealand are now combined into APAC figures. In the Nanigans Q4 2016 facebook report, Australia is grouped into the APAC figures.
Here are the APAC Q2 2016 figures for reference:
Prior to 2016, Australia and New Zealand figures were separated from APAC. However, these are now out-of-date, representing the period: September 1, 2015 to January 31, 2016
LinkedIn costs have been increasing as B2B organisations see the value in this platform. LinkedIn enables excellent targeting for B2B organisations. For example, you can target based on roles, seniority, company as well as much other company specific information. However, the cost per click can be expensive.
Salesforce indicates that rates have increased globally since Q1 2015. The Australian rates are surprising since LinkedIn is a particularly expensive advertising platform. However, when we compare the Australian rates to the rest of the world, we are significantly less expensive (without considering the exchange rate).
We have left the Q2 2015 table here since the latest report only refers to a global CPM of $29.43 for Sponsored Updates.
In the latest report only global CPM figures are indicated:
LinkedIn Australia states that a good benchmark click through rate for Sponsored Ads is between 0.3% and 0.5%
Let’s review both Display and Search Network Ads.
Google Display Ads are typically an image or video ad that is placed on the outer edges of your screen on a variety of news sites, blogs and other niche sites across the internet to reach more potential customers.
Search Ads appear when you are searching in Google
AdWords conducted research to understand the conversion rates of Google Display and Search Ads. The latest results were published on February 3, 2017:
Average Click through rates for both Search and Display Ads:
The average click-through rate in AdWords across all industries is 1.91% for search and 0.35% for display.
Average Cost per click for both Display and Search Ads:
The average cost per click in AdWords across all industries is $2.32 for search and $0.58 for display.
Average Benchmark Conversion Rates for both Display and Search Ads:
The average benchmark conversion rate in AdWords across all industries is 2.70% for search and 0.89% for display.
Unfortunately, worldwide Google AdWords CPM rates were not available through Wordstream nor anywhere else that we could find. Please let us know if you are able to source them.
Google Rich Media Gallery indicates the following conversion Australian averages for Google’s Display Network for the period Nov 2015 to November 2016:
The worldwide figures averaged CTR of 0.19% for the equivalent period November 2015 through to November 2016.
Finding Australian figures for Google AdWords search was not easy. In fact, impossible, please let us know if you can shed some light. From experience, these seem to be escalating to many tens of dollars per click. Perhaps that is why the information is hard to obtain.
It is very difficult to obtain CPM and CPC information for Australia. However, Wordstream conducted their own CPC research using the Google Keywords tool across 93 countries. The US averaged between $1 to $2 a keyword and was ranked the highest on the Google search network. Whilst Australia was ranked three in the world at 5% less than the US which equates to $1.43.
Summary – Benchmark Conversion Rates
The statistics are summarised in the table below. Figures are broken down into Australian and worldwide averages:
The purpose of this blog was to give you some benchmark conversion rates for you to measure your digital marketing success. There are many factors determining KPI success including your value proposition, call to action, competition, campaigns etc. However, it is important to constantly measure, test and ensure you are improving. At the end of the day, it’s all about achieving your goals. Whether your goals are customer acquisition, retention or brand awareness as long as you are improving and attaining your goals you’re winning.
Results 2Day is a results-focused digital marketing company that can help you over-achieve your digital marketing goals with the constant focus on your business objectives. We’re keen to work with you to achieve your business goals and outperform your industry ad benchmarks. If you are too, contact us here:
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