Let’s start by looking at some key Google ads conversion rate benchmarks in 2022.
On average, Google Ads has a 4.30% conversion rate on the search network.
The average conversion rate for Google Ads on the display network is 0.65%.
The Dating & Personals industry has the highest conversion rate of all industries (9.64 percent).
The average CPA in Google Ads is $48.96 for search and $75.51 for display.
Google Ads Conversion Rate By Industry
|Industry||Average CVR (Search)||Average CVR (Display)|
|Dating & Personals||9.64%||3.34%|
|Finance & Insurance||5.10%||1.19%|
|Health & Medical||3.36%||0.82%|
|Travel & Hospitality||3.55%||0.51%|
Google Ads Conversion Rate Formula
The Google Ads Conversion Rate Formula is ((Conversions)/(Impressions))*100.
You can use this formula to calculate the conversion rate of your ad group, campaign, or account.
This formula is based on the following:
Conversions: The total number of conversions you’ve tracked across all your conversions in the selected time period.
Impressions: The total number of times your ads were shown during that same time period.
Average Conversion Rate For Display Ads
The average conversion rate for display ads is .65%. However, this number can vary greatly depending on a number of factors, including the quality of the ad, the relevancy of the ad to the user, and the user’s own purchasing habits.
Good quality ads that are relevant to the user are more likely to be clicked on and converted than those that are not. Additionally, users who are in the habit of making impulse purchases or who are looking for a specific product or service are also more likely to convert when they see an ad for it.
So while .65% is the average conversion rate for display ads, your individual results may vary depending on these and other factors.
Google Hotel Ads Conversion Rate
The average Google Hotel Ads conversion rate is 3.55%. However, this rate can vary greatly depending on the season and the location of the hotel. For example, during peak travel times such as summer and winter holidays, the conversion rate can be higher than average. Conversely, during slower periods it may be lower than the average rate.
Location is also a major factor in determining the conversion rate. Hotels near airports or other popular tourist destinations will naturally have a higher conversion rate than those located in more rural or suburban areas.
How To Improve Google Ads Conversion Rate
Write compelling ad copy
Ad copy is the text that appears next to your ad. It’s what encourages people to click on your ad when they see it in their search results. The more compelling and enticing, the better chance you have at increasing your conversion rate.
To write compelling copy, you first need to understand why people aren’t clicking on your ads. Are they boring? Are they not relevant? Are they too long or too short for their intended audience?
After identifying any problems with current ads, ask yourself how you can make them more relevant and interesting for potential customers. If a certain phrase doesn’t work well with an audience, try changing it up by adding more details or removing unnecessary information while keeping the same message overall (this will help avoid confusing users). Also keep in mind that one size does not fit all—every campaign should be optimized based on who it’s targeting and where it’s running so different audiences will respond differently depending on what works best for them!
Segment your audience
The first step in improving your ad performance is understanding who you’re targeting and how they interact with your brand. You can use Google Analytics and Google AdWords to segment audiences based on demographics, interests, intent and more.
Google Analytics helps you understand what types of people are visiting your website by looking at their country locations, browsers they use and other factors that may influence their decision-making process.
You can also use Google AdWords’ demographics report to better understand the age range of visitors coming from a certain region or country, as well as their gender breakdown:
Use ad types that work best
The next step is to choose the ad type that best fits your goals. If you’re trying to get more people to watch branded content, video ads are a great option. If you want to promote products and services, responsive display ads are ideal. Dynamic search ads can help you drive traffic to your website or app, while gmail ads are great for driving downloads and sign-ups for apps and software.
If you want more information on how each ad type works and what they’re good for, check out our article on How To Set Up Google Ads Conversion Tracking In Google Analytics: A Step-by-Step Guide (Adwords).
Set up the right bid strategy
Bidding on keywords that are relevant to your business and audience is one of the most important things you can do to improve your Google Ads conversion rate. It’s also one of the easiest things to get wrong, because there are so many factors that go into deciding how much to bid for a keyword.
What not to do: Set each keyword at a fixed value like $1 or $2 per click. Instead, use dynamic bidding strategies (also known as automated bidding) so you can increase or decrease bids based on competition and other signals like historical performance and ad rank (how well an ad ranks among competitors). Dynamic Bidding allows your ads to compete more effectively as they move up in position over time, which means higher-quality leads for you!
Focus on Quality Extensions
Google Ads extensions can be a great way to improve your ad’s performance and boost conversions.
You can use extensions to add links relevant to your business, which may help you get more clicks. They also allow you to provide more information about products or services on Google Search, making it easier for people who are interested in what you have to offer.
The most important thing is that the extensions you choose are relevant with your business. If there’s nothing useful in them for customers, they won’t click through! It’s also important not just focus on the number of clicks – one high quality impression is worth much more than 100 poor quality impressions (and this includes how long users spend looking at each one).
Add Negative Keywords
Negative keywords are words or phrases that you don’t want to be associated with your ad. You can use negative keywords to prevent ads from showing when someone searches for specific terms, like “car insurance” when you’re actually selling boat insurance.
Optimize Your Landing Page
You can improve your landing page in a few ways.
- Use a clear call to action on the page. The main idea of the ad is to get people to click, so make sure that you’re saying exactly what you want them to do when they get there! For example, “Click here for free shipping!”
- Match your landing page with your ad text and headline. If you advertise something in an ad about free shipping, don’t lead them somewhere else (like a form where they have to put their email address first).
- Use specific keywords in the headline and subheadline of your landing page—it will help Google understand what it is about more quickly and boost its relevance score for those terms which will help increase clicks from search results in turn that go straight through into conversion rate improvements