Google Shopping Ads Metrics: Average CPC, CTR, Monthly Budget, and More

Ecommerce advertisers understand the significance of shopping campaigns, as a substantial portion of paid clicks on search engine results pages (SERPs) are directed towards shopping ads. However, determining the effectiveness of your shopping campaigns can be challenging, especially since they often exhibit performance metrics distinct from traditional search campaigns. To address this, an analysis of shopping campaign benchmarks across various industries was conducted, encompassing metrics like click-through rate (CTR), cost per click (CPC), conversion rate (CVR), cost per action (CPA), and average monthly budget.

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This data spans sixteen common ecommerce sectors, including Medical Supplies, Health & Beauty, and more. Additionally, benchmarks for search, social, and mobile advertising are available for those interested.

Average shopping ads click-through rate (CTR) by industry

The automotive industry, known for its visually appealing advertisements, benefits greatly from the visual nature of Google Shopping ads, resulting in a higher CTR compared to other sectors. Similarly, industries like HVAC & Climate Control and Travel & Luggage also experience high CTRs due to the visual aspect of their products. Conversely, industries prioritizing functionality over visual design, such as Technology and Office & Business Needs, tend to have lower CTRs. Therefore, it is crucial to utilize high-quality images that stand out on the SERP to maximize CTR.

Bing Shopping ads consistently outperform Google Shopping ads in terms of CTR across most industries, with an average CTR exceeding 1%. This trend aligns with the observed difference in CTR between Google and Bing search benchmarks. The average shopping click-through rate (CTR) across all industries is 0.86% for Google Ads and 1.25% for Bing Ads. [Table displaying Average Shopping Click-Through Rate (CTR) by industry]

Average shopping ads cost per click (CPC) by industry

Shopping ads generally have lower CPCs compared to search keywords. While the most expensive keywords on Google Search can exceed $50 per click, shopping campaign clicks remain significantly lower. For instance, the highest CPC in Google Shopping is observed in the Office & Business Needs industry, averaging $1.09 per click. Conversely, the Child & Infant Care industry boasts the cheapest clicks, averaging $0.36 on Google Ads and $0.11 on Bing Ads.

Bing Ads typically offer lower CPCs than Google Ads, including shopping ads. On average, Bing Shopping ads have a 30% lower CPC compared to their Google counterparts. However, certain industries, such as Office & Business Needs, Art & Music, and Health & Beauty, experience higher CPCs on Bing Shopping, exceeding $1 per click. The average shopping cost per click (CPC) across all industries is $0.66 for Google Ads and $0.46 for Bing Ads. [Table displaying Average Shopping Cost Per Click (CPC) by industry]

Average shopping ads conversion rates (CVR) by industry

Unlike search ads, shopping ads always display product images and prices. This proves advantageous for cheaper and competitively priced products, as it allows potential customers to make informed decisions. However, for “experience goods” or luxury items where visual representation might not be the primary purchase driver, conversion rates may differ. Factors like audience targeting, shopping remarketing lists, customer match for shopping, In-Market Audiences, Google Merchant Promotions, and Google’s “Buy on Google” feature significantly impact conversion rates.

Despite a significant overlap in Google and Bing user bases, their usage patterns differ, influencing shopping ad performance. Bing, often the default search engine on Windows-powered desktop computers, tends to excel in B2B segments like Office & Business Needs and Computers & Technology. The average shopping conversion rate (CVR) across all industries is 1.91% for Google Ads and 1.74% for Bing Ads. [Table displaying Average Shopping Conversion Rate (CVR) by industry]

Average shopping ads cost per action (CPA) by industry

CPA varies greatly depending on factors like business goals, profit margins, and product pricing. Businesses selling high-priced goods with higher profit margins might be comfortable with a higher CPA to attract more sales. Consequently, industries with lower-priced products often aim for lower CPAs.

Consistent with its lower CPCs, Bing Ads also exhibit cheaper conversions. The average shopping cost per action (CPA) across all industries is $38.87 for Google Ads and $23.05 for Bing Ads. [Table displaying Average Shopping Cost Per Action (CPA) by industry]

Average monthly budget for shopping ads by industry

Determining the optimal budget for shopping campaigns depends on various factors. While a small budget can still generate traffic due to the relatively low average CPC on Google Shopping, scaling the budget can unlock significant growth opportunities.

Industries like Health & Beauty and Computers & Finance allocate larger budgets towards Google Shopping campaigns, while sectors like Education and Travel might find search text ads more effective for driving traffic.

Bing Ads command a notable share of the shopping market, even exceeding its share of the desktop search market. This is attributed to factors like its integration with Amazon’s Alexa devices and its reach across various websites, including OfferUp, attracting a large user base. The average shopping monthly budget across all industries is $770.41 for Google Ads and $392.53 for Bing Ads. [Table displaying Average Shopping Monthly Budget by industry]

What does it all mean?

Lower-than-average performance metrics highlight areas for improvement in shopping campaigns. Success in shopping ads necessitates a different approach than search campaigns, relying on a robust Google Merchant Center Feed, a well-structured Google Shopping Campaign, and continuous optimization of bids and negative keywords.