Digital Marketing Benchmarks: The Challenge
Digital marketing data tends to be heavily siloed. Companies jealously guard their information, and unless you’re a sizable agency or an ad vendor, it’s unlikely you have access to large amounts of online marketing data from many different sources.
In this reality, it’s difficult to create reliable digital marketing benchmarks (except against oneself, using historical marketing statistics). As a result, how can you compare your performance to others?
Creating Effective Digital Marketing Benchmarks
We addressed this challenge by aggregating the real-time performance data of the GoConvert customer network and combining it with digital marketing benchmarks from dozens of other sites and reports.
Our goal is to create a publicly-accessible, always-up-to-date list of digital marketing benchmarks that visitors can use to evaluate their own internal marketing statistics.
CPM (“cost per mille”) is the rate one pays for one thousand ad views or, more commonly, impressions. We’ve benchmarked agency CPM’s at around $25. That’s what you can expect to pay if you work with an agency. If you buy ads yourself, directly from a vendor like Facebook or Google, you can expect to pay about $10.
CTR (“click-through rate”) is the percent of users who click on an ad vs. the number who view the same ad. We’ve benchmarked average CTR at 1.13%.
CPC (“cost per click”) is the amount you pay per ad click. We’ve benchmarked average CPC at $1.66.
While campaign managers may think that they should always strive for the lowest CPC, that’s not necessarily the best strategy. Sometimes it’s necessary to bid higher to get more clicks and/or conversions. Therefore, if you’re paying more than these industry CPC benchmarks, don’t get down on yourself because your overall campaign performance may be better as a result — CPC is just one piece of the puzzle.
Lead Conversion Rate
Lead conversion rate (LCR) is the percent of site visitors who submit a lead form vs. the number who visit and take no action. We’ve benchmarked average LCR (or, what we call “RCR” or “relationship conversion rate”) at 2%.
Across all of the high-performing landing pages, we saw massively creative and differentiated offers. … [C]ome up with something different and unique; something more tangible and compelling than just sending them to a software trial to find their way around. … Brainstorm, ask your customers, and come up with more unique offers to test. You’ll never know which one is the winner until you try some new offers out.
CPL (“cost per lead”) is the amount you pay per lead. While lead costs vary by industry, we’ve benchmarked average CPL (or, what we call “CPR” or “cost per relationship”) at $55.50. See the table below for industry specifics.
A successful marketing strategy has many components, but the overall efficacy always boils down to one question: Are you acquiring new customers in a cost-efficient manner?
It’s the ‘cost-efficient’ part of the question that is crucial. Anyone can throw a ton of money into a campaign and come away with leads. But that’s like using ten gallons of gasoline to start a campfire when a single match will do. One match is less wasteful and far cheaper. By knowing your cost per lead, you can optimize your marketing campaigns so that you are using just the right amount of matches.
Win rate (or close rate) is the percent of customers you convert vs. the number of leads you generate. Traditional, non-digital win rates tend to be 15% while digital marketing benchmarks tend to be 3%.
Visitors’ intent as they browse your website has a direct impact on your conversion rates. Are visitors coming to your website to research products with the intention of buying online? Or are they taking information from your site back to brick-and-mortar stores to buy there? It depends on the nature of the product you offer and how visitors view it. This answer is focused on visitor-centric information and not on factors you control, such as website messaging, design, copy, etc.
ROI (“return on investment”) is the amount of income you generate for every dollar you spend. We’ve benchmarked average marketing ROI at 3x. That is, for every $1 you spend on marketing, you want to generate $3 worth of income.
Schedule a Demo
Submit the following form, and we'll be in touch to schedule a demo.