Google Ads Benchmarks 2023: Why it matters to your shed business

Google Ads is an invaluable tool for shed businesses to establish a strong online presence. By utilizing Google Ads, shed businesses can significantly enhance brand awareness, precisely reach their target audience, exercise budget control, track campaign performance, and tap into customization options to create impactful advertising campaigns. Neglecting to leverage Google Ads means missing out on the immense potential of one of the most influential online advertising platforms available today.

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However, have you ever wondered if your search campaigns are truly optimized to their maximum potential?

Drawing from the latest analytics and report from WordStream of over 17,000 search advertising campaigns in the United States running between April 1, 2022, and March 31, 2023, here are key benchmarks for you to be aware of:

• Average click-through rate (CTR): 6.11%
• Average cost per click (CPC): $4.22
• Average conversion rate (CVR): 7.04%
• Average cost per lead (CPL): $53.52

Understanding these numbers

Click-through rate (CTR): is the percentage of people who view an advertisement and subsequently click on it. It measures the level of engagement and effectiveness of an ad campaign, indicating how compelling the ad is to the audience.

Cost per click (CPC): refers to the average cost an advertiser pays for each click on their ad. It is a metric that determines the financial investment required to drive traffic to a website or landing page.

Conversion rate (CVR): measures the percentage of people who take a desired action after clicking on an ad, such as making a purchase, filling out a form, or subscribing to a service. It reflects the effectiveness of an ad campaign in generating valuable actions from the audience.

Cost per lead (CPL): represents the average cost an advertiser incurs for acquiring each lead or potential customer. It measures the financial investment required to generate a lead, typically through actions such as form submissions, email sign-ups, or contact information collection. CPL helps assess the efficiency and profitability of marketing campaigns.

In summary, CTR indicates engagement, CPC determines ad click costs, CR reflects the effectiveness of converting clicks into desired actions, and CPL evaluates the cost of acquiring each lead or potential customer.

Why does it matter to your shed business?

The report presents industry-specific data on Google Ads benchmarks, including sheds businesses, revealing that the search ad performance is encountering increasing volatility driven by a mix of internal factors such as regulations and external factors such as recession concerns, while also highlighting additional noteworthy findings and emerging trends from the analysis.

• Click-through rate (CTR) increased year-over-year (YoY) for 22 out of 24 industries. The Business Services and Industrial and Commercial industries saw decreases, although these were not as significant as the increases seen in other industries.
• Cost per click (CPC) increased YoY for 14 industries, decreased for 8 industries, and remained the same for one industry – Apparel, Fashion, and Jewelry. This trend aligns with the overall increase in cost per click observed throughout 2022.
• Conversion rate (CVR) decreased by around 14% compared to last year for most industries, with only Beauty and Personal Care and Education and Instruction seeing increases. As a result, 91% of industries experienced an increase in cost per lead (CPL) and a decrease in conversion rate.
• CPL increased YoY for all industries except two – Automotive Sales and Beauty and Personal Care. This indicates that for others – including the shed industry, the cost of acquiring a lead through search ads increased.

It’s worth noting that the shed industry’s specific data is not provided in the report, so the direct impact on shed businesses cannot be precisely determined. However, based on the general trends and observations in CTR, CPC, CVR, and CPL, shed businesses should be mindful of the increasing volatility in search ad performance and may need to adapt their advertising strategies, budget allocation, and lead conversion optimization techniques to mitigate the potential effects.

Here are some tips for shed businesses that are using Google Ads:

• Target your ads to people who are likely to be interested in buying a shed. You can do this by using keywords that are relevant to your business, such as “sheds for sale”, “rent-to-own sheds” or “custom sheds”.
• Use negative keywords to exclude people who are not likely to be interested in your business. For example, you might want to exclude keywords like “free” or “cheap” because these people are likely to be looking for a bargain, not a quality shed.
• Write effective ad copy that highlights the benefits of your sheds. Make sure to include a call to action, such as “Click here to learn more” or “Call us today to schedule a consultation”.
• Track your results and make adjustments as needed. It’s important to track your results so that you can see what’s working and what’s not. This will help you optimize your campaigns and get the most out of your investment in Google Ads.

By implementing these effective tips, your shed business can leverage the immense potential of Google Ads to connect with your target audience, generate valuable leads, and achieve remarkable growth. If you’re seeking expert assistance to take your Google Ads campaigns to new heights, ensuring maximum ROI for your investment, we’re here to help!

Reference:

• WordStream – 2023 Google Ads Benchmark Report (link)