[2024 Updated]
If you are investing in Google Search Ad campaigns, it's essential to know if your efforts are paying off. But the question remains - what constitutes a successful campaign? The answer isn't one-size-fits-all. Indeed, a high-performing metric in one industry might be mediocre in another. So, how do you determine the benchmark for success in your specific industry?
In this blog post, we delve into the New Zealand Google Search benchmarks that our clients across various sectors are achieving. We focus on key Google Ads metrics, including:
• Average Click-Through Rate (CTR)
• Average Cost Per Click (CPC)
• Average Conversion Rate (CVR)
We'll provide insights across four main industries - E-Commerce, Financial Services, B2B/SaaS, and Consumer Goods & Services. So, whether you're a newcomer to SEM or looking to improve your current strategies, this article will offer the insights you need to understand how your campaigns measure against industry averages.
Understanding Click-Through Rate (CTR) is crucial for any Search Engine Marketing (SEM) campaign, as it provides a measure of your ads' relevance and appeal to your target audience. The higher the CTR, the more compelling and effective your ads are.
In the graph, you'll see a side-by-side comparison of our New Zealand average CTR (6.79%) versus the Global CTR average (6.3%). CTR will differ by industry depending on the effectiveness of tailored PPC strategies, which focus on understanding the unique needs and behaviours of the target audience and optimizing ad content to align with these insights.
In this next graph, we dissect the data further, presenting a comparative analysis of the average New Zealand Click-Through Rate (CTR) across four key industries: B2B/SaaS, E-commerce, Financial Services, Consumer Goods & Services. Each industry's CTR is juxtaposed against the corresponding global benchmarks.
Remember that these averages are just benchmarks, and results can vary based on numerous factors, such as the quality of your offerings, the competitiveness of your market, and the effectiveness of your overall marketing strategy.
Next, we delve into the realm of Cost Per Click (CPC), another crucial metric in the SEM landscape. As you know, the goal is not just to earn clicks, but to do so in a cost-effective manner. Our average New Zealand CPC stands at $1.77, significantly lower than the Global average of $6.51. This means that for every click earned, our clients save a substantial amount compared to their global counterparts.
A lower CPC doesn't just mean cheaper clicks. It's an indicator of higher-quality ads and a more targeted approach to keyword bidding. It shows that we're not just reaching more people, but more of the right people. This leads to less wasted spend and higher overall ROI.
Remember, these figures are averages, and actual CPCs can vary depending on factors such as industry competition, quality of ad copy, and the relevance of your keywords to your ad group and landing page.
The above graph looks at how the Cost Per Click (CPC) performs across various New Zealand industries, showcasing the specificity of our approach to each business sector.
Global CPCs are on the rise, but New Zealand Google Search ads are typically more cost effective. Outside of B2B (which can typically be more expensive to compete on), clicks tend to cost $0.80 - $2.30 for paid search in New Zealand.
Each industry presents its own unique set of challenges and opportunities. These figures underline our adaptive approach to creating effective ad strategies tailored to the specific needs and goals of each client, regardless of their industry.
Wrapping up our benchmark performance, we turn our focus to one of the most significant metrics of any SEM campaign - the Conversion Rate (CVR). This metric is critical as it gives an accurate picture of how well your ad campaigns are converting visitors into actionable leads or sales (calculated by the percentage of people who click an ad and go ahead and convert).
Web Antler’s overall New Zealand Conversion Rate stands at an impressive 4.7% against a global benchmark of 5.4%. If your lead rate or conversion rate is lower than these benchmarks, consider addressing your messaging and offer in market, and your landing page experience.
Remember, while these industry benchmarks are useful, they serve as just a guide. The true measure of success will always depend on your unique business goals and KPIs. That's why at Web Antler, we customise our strategy to your specific needs, combining industry knowledge with a deep understanding of your business to deliver a campaign that drives real results.
Do these figures include branded keywords or just generic keywords?
The figures omit advertisers who were exclusively bidding on branded terms.
What is the Global data?
The Global data is reflective of a sample of US-based accounts. Global Benchmarks are derived from WordStream benchmarks.
What currency is the Global Cost Per Clicks in
We have taken the global USD bench marks and converted to NZD.
Could you take a look at my Google Ads Account?
Yes, we are open to having a discussion around your current performance and areas where you can improve. Better yet, we guarantee that we can outperform you current results if you would like to know more, please see our Google Ads Management Services.
