What Are Good Google Ads Benchmarks In 2024?
When running Google Ads campaigns, understanding how your performance stacks up against industry benchmarks is key. These benchmarks give you an idea of whether your ads are performing as expected or if there’s room for improvement. But what exactly are “good” Google Ads benchmarks in 2024? Let’s take a closer look at the metrics that matter most, such as click-through rate (CTR), cost per click (CPC), conversion rate, and return on ad spend (ROAS), and what you should aim for this year.
Why Benchmarks Matter
Before diving into the numbers, it’s important to understand why benchmarks are so valuable. Google Ads benchmarks serve as a guideline for measuring your campaign’s success. They allow you to compare your performance against industry standards, helping you identify areas where you’re excelling and where you might need to optimize.
Benchmarks are not hard-and-fast rules but rather reference points. Your actual numbers may differ based on your industry, target audience, and campaign goals. Still, knowing the averages can give you insight into whether your campaign is on track or needs adjustment.
1. Click-Through Rate (CTR) Benchmarks in 2024
Click-through rate (CTR) is the percentage of people who see your ad and then click on it. It’s one of the most important metrics because it indicates how engaging and relevant your ad is to users. A high CTR means your ad is resonating well with your audience.
In 2024, the average CTR across industries typically falls between 3-5% for search ads and 0.5-1.5% for display ads. Search ads generally perform better because they appear when users are actively looking for something, while display ads appear on websites and apps, where users may not be in “search mode.”
If your CTR is below these averages, you might want to review your ad copy, keywords, and targeting to ensure they’re as relevant and compelling as possible.
2. Cost Per Click (CPC) Benchmarks in 2024
Cost per click (CPC) is the amount you pay each time someone clicks on your ad. It’s a crucial metric because it impacts your overall ad budget and the cost-effectiveness of your campaign.
In 2024, the average CPC varies significantly by industry. For search ads, you can expect a typical CPC range of $1 to $3. However, highly competitive industries like law, finance, and insurance might see CPCs as high as $5 to $10 or even more. For display ads, CPCs are generally lower, with averages around $0.50 to $1.50.
To keep your CPC in check, focus on improving your Quality Score (which measures the relevance of your ad and landing page to the user’s search), and refine your keyword strategy by adding negative keywords to eliminate unwanted clicks.
3. Conversion Rate Benchmarks in 2024
Conversion rate is the percentage of users who click on your ad and then complete a desired action, such as making a purchase, signing up for a newsletter, or filling out a contact form. A high conversion rate means your landing page and offer are highly effective.
In 2024, the average conversion rate for Google Ads search campaigns is typically between 2-5%, depending on the industry. E-commerce and lead generation campaigns often fall on the higher end of this spectrum, while display ads tend to have lower conversion rates, often below 1%.
If your conversion rate is below average, it may be time to revisit your landing page experience, check for any issues with the user journey, or test different offers to see what resonates better with your audience.
4. Cost Per Acquisition (CPA) Benchmarks in 2024
Cost per acquisition (CPA) measures how much it costs to acquire a new customer or lead through your Google Ads campaign. It’s calculated by dividing the total amount spent on ads by the number of conversions.
The average CPA in 2024 for search ads typically ranges from $20 to $70, with some industries like finance or legal seeing higher CPAs that can reach into the hundreds. For display ads, the CPA is usually lower, averaging around $30 to $60.
To lower your CPA, focus on improving both your conversion rate and Quality Score. You can also experiment with different bid strategies, such as target CPA or maximize conversions, to help Google optimize your budget toward driving more affordable conversions.
5. Return on Ad Spend (ROAS) Benchmarks in 2024
Return on ad spend (ROAS) is one of the most critical metrics because it shows how much revenue you generate for every dollar spent on ads. A high ROAS means your campaign is profitable.
In 2024, a “good” ROAS depends on your business model and industry. Most businesses aim for a ROAS of at least 3:1, meaning they earn $3 in revenue for every $1 spent on ads. For e-commerce companies, the ideal ROAS might be higher, around 4:1 or 5:1. On the other hand, for industries with longer sales cycles or higher customer lifetime values, a ROAS of 2:1 or 3:1 could still be considered strong.
If your ROAS isn’t where you want it to be, consider optimizing your ad targeting, improving your conversion rate, or adjusting your bidding strategy to ensure you’re maximizing your return on investment.
6. Impression Share Benchmarks in 2024
Impression share is the percentage of times your ad is shown compared to the total number of times it could have been shown, based on your keywords and targeting settings. A high impression share means your ads are competitive in the auction.
In 2024, a healthy impression share for search campaigns typically falls between 70-90%, meaning your ads are appearing most of the time when relevant searches occur. For display campaigns, impression share is usually lower, around 50-70%, due to the broader and more passive nature of display advertising.
If your impression share is low, it could mean that your budget is too small, your bids aren’t high enough, or your Quality Score needs improvement. Increasing your impression share can help ensure your ads are seen by more potential customers.
Conclusion
Keeping an eye on Google Ads benchmarks is essential for running successful campaigns in 2024. Metrics like CTR, CPC, conversion rate, CPA, ROAS, and impression share all play a role in determining how well your ads are performing and whether they’re providing a solid return on your investment.
At DigitLeap, we specialize in helping businesses achieve and exceed industry benchmarks. By optimizing your Google Ads campaigns for better performance, we can help you maximize your ad spend and improve your overall results. Whether you’re just starting out or looking to fine-tune your existing campaigns, we’re here to guide you every step of the way.
FAQs
Q1. What is a good click-through rate (CTR) in 2024?
A good CTR in 2024 for Google Ads search campaigns is between 3-5%. For display ads, a CTR between 0.5-1.5% is considered standard.
Q2. What is the average cost per click (CPC) in Google Ads for 2024?
The average CPC in 2024 for search ads typically ranges from $1 to $3, with competitive industries like legal or finance seeing higher costs, sometimes reaching $5 to $10. For display ads, CPC is usually lower, around $0.50 to $1.50.
Q3. What is considered a good conversion rate in 2024?
A good conversion rate for Google Ads search campaigns in 2024 is typically between 2-5%. For display campaigns, conversion rates tend to be lower, usually under 1%.
Q4. How can I lower my cost per acquisition (CPA)?
To lower your CPA, focus on improving your Quality Score, refining your targeting, and optimizing your landing pages. You can also try different bidding strategies, such as target CPA or maximize conversions, to improve your results.
Q5. What is a good return on ad spend (ROAS) in 2024?
A good ROAS in 2024 is generally considered to be at least 3:1, meaning you generate $3 in revenue for every $1 spent on ads. For e-commerce businesses, a ROAS of 4:1 or 5:1 is often the target.
