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TBG Digital are one of the largest agencies managing Facebook advertising campaigns worldwide, so ita€™s interesting to see their summary of trends in effectiveness in Facebook advertising across different sectors. As would be expected lifestyle-related sectors are highest, but transactional sectors like Retail, Travel and Computer and Electronics arena€™t significantly lower. Again it would be good to have specific CPCs, but this data is useful in that it shows there has not been a significant increase in CPC across these markets in 2011 apart from in the US.
The biggest takeaway from this report is that lowest Cost per Click (CPC) rates are available to advertisers running campaigns that *recruit fans directly within Facebook *, or require users to install applications. Pay Per Click (PPC) Advertising is now recognized as one of the most efficient ways for businesses to quickly receive targeted, measurable website traffic. In the new online market, quality scores, A-B ad testing, match types, and conversion-based optimization are for beginners. HTP Company will then group those keywords into narrow categories and write relevant ads for each category.
Together, we will determine appropriate bid amounts based on your overall budget, with the goal of maximizing relevant traffic and conversions. These steps represent a highly simplified version of our process, but they are the initial aspects of setting up a profitable PPC campaign. Phase 1 (Account Setup Phasea€”Five to Ten Business Days): In Phase 1, we take steps to learn about your product or service in order to create the most efficient PPC campaign possible. Phase 2 (Initial Account Management Phasea€”One Month): This phase includes a thorough analysis of the best-performing aspects of the PPC account. Phase 3 (Continuing Management and Maintenance): The effectiveness of a PPC campaign varies significantly over time due to outside factors such as competitors raising or lowering bids, search engine algorithm changes, and changes in customer search habits. Pay-per-click (PPC) advertising campaigns are priced on a cost-per-click (CPC) basis, which means that you are only charged when someone clicks on your PPC ad.
PPC advertising pricing, or cost per click, is determined by placing a bid on a particular keyword or string of keywords.
Competitive pricing for PPC advertising campaigns varies significantly by industry, but legal advertising is the most expensive.
While the above reference gives an idea of competitive bid prices and the potential cost-per-click (CPC) associated with general personal injury keyword search terms, broad national PPC campaigns are not effective for law firms that have a single location or are regionally located. In the example below (Table 3), there are six potential variations of the keyword phrase “car accident lawyer los angeles.” Depending on the exact keyword phrase used, the same search concept can vary significantly in competitive pricing. Suggested bids are associated with different pay-per-click (PPC) advertising platforms for campaign planning purposes. To provide a simplified example, say you are willing to spend $3,000 a month on PPC advertising, so you set a daily limit of $100 per day.
Due to your high maximum CPC, every time that someone conducts that search phrase your ad shows up in the top three spots on the first page of Google. So how does pay-per-click (PPC) advertising translate into personal injury leads and new case opportunities, and what can be expected in terms of the cost involved in generating leads from PPC advertising? Pay-per-click (PPC) advertising is designed to place an ad in front of users conducting related keyword searches. For example, let’s look at what it may take to generate one new client from PPC advertising using round number estimates based on good industry performance. There are a lot of factors that impact the overall cost of pay-per-click (PPC) advertising and lead generation, including the actual PPC ad, its search engine placement and performance, a website’s design and organization, and the PPC ad response landing page. In the infographic above, good performance rates are used to take a look at the process of running a PPC ad to generate personal injury leads and land new clients.
This small business from California reached out to us to design and develop a website for them to replace a flash based website that they initially had. 99MediaLab’s Pay Per Click (PPC) Marketing helps you dominate the all-important search engine result pages (SERP). An integral part of search engine marketing, pay per click marketing complements search engine optimization and if executed properly it remarkably increases targeted traffic.
If you’re looking to reach a local market, we can trim the focus of our PPC campaign and zoom in on specific geographic areas e.g. When it comes to Facebook advertising, there are vast differences between the performance and effectiveness of the ads across different countries.
The full report (registration required) looks at data for 100 countries, and then analyzed the performance of ads in those countries for which the data set included 100 million impressions or more.
Mexico won the gold in cost, with an average CPM of just under 7 cents, followed by Turkey at 7.3 cents, and Brazil at 13 cents. Turkey couple low average CPMs and CPCs with the best exposure rates — the percentage of the entire desired target audience that a brand is actually reaching and exposing to its ads. India has the third-lowest CPC, the highest average CTR, the second-highest exposure rate (45%), and a low maximum recommended bid.
Subscribe To Our NewsletterJoin our mailing list to receive the latest news and updates from our team. This new research, released today, is based on 326 billion impressions for 266 clients across 205 countries.
Savings reached 45% compared with those that directed traffic away from Facebook a€“ a strong incentive for companies to build their presence within Facebook.

Once funds have been reallocated to the most successful campaigns, ad groups, and keywords, we begin the most important part of the phasea€”A-B ad testing. For this reason, we offer ongoing account management, which entails continued ROI analysis, bid adjustments, A-B ad testing, and reporting. HTP Companya€™s best practices require an ad group for each product or service category, which tends to increase the relevance of the ads to the customera€™s search query.
We have found that other PPC management firms consistently underutilize this process due to its labor-intensive nature, which gives us (and you) a substantial advantage. HTP Company focuses on these secondary match types as a means to drive clicks at a lower cost.
While you can place any bid amount, if it is not competitive enough, your ad will not show up in the advertising spots available on each search engine results page (SERP).
And when you focus in on personal injury keywords, placing a competitive keyword bid becomes much more expensive. Local PPC advertising campaigns are critical for law firms trying to generate personal injury leads in the areas they serve, and competitive keyword terms can vary significantly by geographic area. In the Table 2 reference above, you will notice that the more targeted a keyword search term, such as “car accident lawyer los angeles,” the less average monthly searches that occur.
Suggested bids provide a general idea of the maximum cost-per-click (CPC) required to have a competitive PPC advertising placement; competitive bidding is associated with a page 1 search engine results page (SERP) listing. The maximum CPC is the highest amount that you are willing to pay for one click on your PPC ad. You would like to place a PPC ad for an exact phrase match of “los angeles car accident lawyer.” You would like to be aggressive and make sure that you are at the top of Google when someone conducts that search, so you place a $100 maximum cost-per-click (CPC). In this case, your remaining daily limit is likely not going to produce a bid that is competitive enough for the 1st page of Google.
When a user sees a PPC ad that they are interested in viewing, they click on the ad and are taken to a website landing page. Table 4 below, which uses all of the same numbers from the above infographic, illustrates the PPC advertising cost to generate five personal injury leads based on a range of average cost-per-clicks (CPC).
They developed our social media strategy and have continued to support and manage our social media networks.
To help visitors go the distance and actually click on the ads we create compelling ad copy. For example, financial services firms often direct users back to their own websites to complete a quotation or sign up process but building tailored applications that perform the same function within Facebook sees a reduction in advertising costs.
This process entails creating multiple ads within your account and testing them against each other to discover the advertisements with the highest click-through-rates (CTR) and conversion rates. In the example below (Table 1), “lawyer,” “personal injury lawyer” and “car accident lawyer” are all compared using Google AdWords. In the example below (Table 2), there is a list of six search terms in Google AdWords based on “car accident lawyer” that is qualified by a city. For this case, roughly 480 “car accident lawyer los angeles” searches are conducted per month. Because PPC auction-style bidding is always changing, your actual CPC is likely to be lower than the maximum CPC. When users view a PPC ad it is called an impression, and each time a user clicks on a PPC ad it is called a click-through. This is counted as a click-through, and you are charged for each click-through visit to your website. Once a visitor is on the website, 10% of them contact you with their claim and interest in hiring a personal injury attorney. For smart online marketing specialists like us it is a means to drive quality traffic to your website. Need from extensive keyword analysis to smart bidding a lot goes into our PPC strategy that makes sure you get the targeted traffic.
You can also have your ads run at specific times of the day to target specific people who are online at certain parts of the day, or night. Whether these companies are primarily using search ads to generate leads for mobile plans or whether they’re selling phones and other hardware, it appears that AdWords is working for them.The finance industry has the second highest average conversion rate – as well as the highest cost per click (CPC) of the bunch.
This takes the total increase for 2011 to 23% and means that Facebook has earned substantially more during the course of the year from its advertisers due to changes to ad placements within the template layout.
In order to get enough PPC advertising exposure, which are referred to as “impressions,” PPC campaigns are structured around variations of a keyword or keywords in order to account for different search behavior and increase the chances of being displayed when a relevant search is conducted.
That person is then counted as a click-through, directed to your website landing page, and Google updates your AdWords account with the actual CPC.
If you exhaust your daily limit completely, your PPC ad is not displayed during search queries until the following day.
Once a user lands on the website, the objective is to convert that user into a prospective client through a phone call or form submission. Of the 10% that contact you as personal injury leads, after qualifying and processing them, 20% of them become new clients. Telford had started a new management company, Cedar Creek Cabin Rentals, and was spending $140,000 a year on pay-per-click advertising to promote the 45 cabins in his charge.
With a well-run PPC campaign, your business will start to receive targeted leads the day the campaign is activated, and you will have the ability to control every aspect of the PPC account on a moment-by-moment basis.

For example, if your daily limit is used up by noon, it will no longer display for the rest of the day.
The programs had become increasingly popular and competitive, which meant that in order to retain his ranking in search results, he had to pay about $1.25 a click, double what he had paid initially.
This could be because people tend to shop around a lot before pulling the trigger on travel purchases like plane tickets and hotel rooms.
The calculation becomes more complicated when you factor in Ad Rank into the bidding process, but that’s the basic concept. Telford agreed to pay more for his keywords, he said he did not see a commensurate increase in sales. Note that for most industries, cost per conversion is lower on the display network, but not in every case.So What’s a Good Conversion Rate on Google AdWords?
Another example: Say that you are a freshly-graduated Boston personal-injury attorney who wants to gain clients for your individual practice through paid online advertising.
If you work in one of the above “top 10” industries, use the industry-specific averages as a benchmark.
So, PPC is now benefiting large companies (and large law firms) who can afford the increase in costs more so than small businesses and start-ups (and private law practices). The same increase in PPC prices has been occurring in nearly every industry and sector.Telford, the vacation rental manager, has not been the only one to notice problems in PPC advertising today. If you work in the finance, Internet or another industry with high average conversion rates, aim for the higher end of that range.A good cost per conversion will vary widely based on your particular business model and the lifetime value of a newly acquired customer. A cost per conversion under $10 is great – but many businesses can afford to pay much more than that for each conversion (sale or lead generated) and still get good ROI form paid search.Find Out How You Compare to Other Advertisers In Your IndustryStill wondering how your own AdWords performance measures up? This is why used alone, it can only ever offer limited returns.It is brand-unawarePPC is purely about the ad and about capturing the interest of window shoppers. It’s a fast, free way to see how you compare to other advertisers in your industry and with similar budgets. With no brand awareness or value proposition around it, the PPC campaign tends to attract window shoppers who are focused on cost rather than quality.The issue also stems from a fundamental disconnect between the interests of publishers and those of advertisers. I do not generally care whether the clicks ever actually help the business that is advertising. If I am the business, I want to make sure that I am getting the most leads and sales for my advertising dollars. Average Conversion Rates by Industry by Larry Kim November 4, 2012 Twitter Facebook Google+ LinkedIn Flipboard 4 213 SHARES Marketers are always looking for benchmarks and averages so they’ll have some idea of what to shoot for when conducting and measuring their marketing campaigns. And the first option is usually more expensive for the advertiser.Now, this is not to say that PPC advertising as a whole is worthless.
When it comes to Google AdWords, some benchmarks are easier to come by than others – for example, when asked “What’s a good click-through rate,” Google reps have recommended aiming for a click-through rate of 2-5%. In Google Analytics and other advertising platforms, one can see which traffic from which keywords is leading to more conversions and sales. But as for what’s a good conversion rate, it’s pretty much anyone’s guess – as least until now.We recently conducted what we believe is the most extensive study of the economics of the Google AdWords model to date. By crunching data from our AdWords Performance Grader, which has analyzed over a billion dollars in aggregate spend, we were able to determine averages and benchmarks for top-level key performance metrics across the Google search and display networks, including conversion rate and cost per conversion.
We also drilled down into the top 10 industries that spend the most money on Google advertising to determine industry benchmarks for AdWords conversion rate and more. Still, CPA campaigns as a whole are often less expensive – but you need to test to be sure.Take a hypothetical client example. As long as the CPA cost would be less than $18, the CPA alternative would have saved the company money.
Some businesses use AdWords to generate leads, and they may count a range of different activities as leads.For this reason, it can be helpful to break out the average conversion rates by industry.
The total cost of the one-day PPC campaign would have been $485 – but if the CPA, for example, would have been $7, the total cost would have been $189. For example, in the finance and insurance industry, advertisers generally use paid search for lead gen, so filling out a form to “get a quote” or to contact the company would count as a conversion.
We analyzed data from 2,600 AdWords accounts, examining key metrics like the total number of number of clicks, impressions, costs, etc.
It all depends on your specific business and marketing goals.The key, as in many aspects of online marketing, is to test to see which method is best for your business. And as PPC costs continue to increase, it is likely that CPA campaigns will deliver the greatest value over the long term – especially if you are a small business or a start-up company.Thanks for reading!
When determining conversion rates, I ignored data for accounts that didn’t have Google conversion tracking enabled, which was roughly half the dataset.
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Click here for the full methodology of my study.As with any benchmark data, it’s best to take these numbers with a grain of salt.

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