It is estimated that around 7% to 8% of a small business budget should be spent on marketing. This is not a lot, so it pays to ensure your spending brings as good of a return on investment as possible. But how do you do that online?
One way is with Google and advertising across their network. Read on as we discuss Google display ads.
What Are Google Display Ads?
A display ad describes a range of advertisements that appear on digital platforms. They usually take the form of text and images and can appear in various shapes and sizes.
Google ads are specifically ones that appear across Google’s network. This may be on its AdSense platform or its properties like YouTube and Gmail.
What Is the Difference Between Search Ads and Display Ads?
When using Google marketing services, search ads and display ads serve two purposes. Search ads appear when people type queries into search engines. For this, you will bid to appear when specific keywords get typed in.
Displays ads don’t appear in search engines. These Google advertisements appear across the network as people visit websites and online platforms. Targeting is based on previous users browsing history or what they are currently watching.
For example, if someone is on a legal advice website or watching a YouTube video about how to claim compensation after an accident, they will probably have an interest in hiring an attorney. In this instance, relevant ads will be displayed. The advertiser then pays whenever the ad gets clicked on.
What Is the Google Ad Cost?
This will differ depending on the type of industry and how you decide to advertise. However, there are two methods you can use.
The first is the cost per impression. This charges you every time your ad has been seen 1000 times. Please note that this will work slightly differently with video ads.
However, most people opt for a cost per click, which only charges you when an ad gets clicked. You should be aware of two other metrics: the click-through rate (CTR) and conversion rate.
A CTR measures how many people who see the ad will click on it, based on an average. A conversion rate is how many of these will act once they have, such as making a purchase.
What Industries Benefit the Most From Google Display Ads?
All industries can benefit from Google display advertisements if their campaign is done effectively. However, some sectors tend to use display ads more. Below are the most common ones.
Attorney and Legal Services
Legal services are well known to have a high cost per click. This is because when an accident occurs, the first place people seek advice is from a trusted attorney they find online. As competition is stiff, it drives up prices.
Expect around $8.67 per click for this industry. A CTR rate of about 4.24% is expected, with a conversion rate of just under 10%.
Finance and Insurance
The finance and insurance industry is one of the biggest spenders on Google display ads yearly. This works on the simple principle that consumers want to make money and remain financially secure. Very often, the first place they look to do this is online.
Of course, this also brings competition. Display ads cost around $4.57 per click for finance and insurance ads, though this can rise much higher. A click-through rate of about 5.7% is standard, with a similar conversion rate.
Retailers & Goods
This area applies to all the major retailers, online ones such as Amazon, and physical ones such as Sears and Macy’s. Getting display ads right for retailers such as this is an enormous task, as they have a varied inventory. This means their ad budget is often complex to manage.
The average cost per click for this is just over $2. However, the click-through rate is relatively high at about 30%, with a conversion rate of about 3%. Remember that many shoppers like to browse, which explains these metrics.
Travel and Tourism
The travel and tourism industry has taken a considerable dip in the last few years so metrics can be tumultuous. However, it is starting to get back on its feet, and companies are once again beginning to invest in marketing.
Travel and tourism cover a lot of different facets. It may cover tickets for attractions, hotels, and even flights. The cost per click is low at around $1.63, with a click-through rate of just over 9%. However, actual conversion rates are much lower at about 5%.
Employment and Education
The career and employment sector covers a vast area. On the one hand, it can incorporate job listings, recruitment companies, and related organizations. When it comes to education, self-directed courses, universities, and even private tutors for sectors like driver’s education, fall under it.
An average cost per click for career and employment is around $3.94. The CTR rate is approximately 5.93%, with a lower conversion rate.
Home and Improvement
The home and improvement sector is another one that experienced massive growth during the global pandemic. Instead of going out, many people turned to their property and began to make improvements they had long put off. This has continued, meaning home improvement is still a buoyant sector.
A click will set you back somewhere around the $6 mark. It will have a click-through rate of around 4.62% and a conversion rate of just over 11%.
Starting a Google Ads Campaign
Now you know how Google display ads work and who is using them, you should consider starting a campaign. By using a PPC campaign, you will get a great return on investment. If you don’t know how then hire experts to help.
Media Shark should be your first stop when it comes to digital marketing. We can help drive sales, leads, and tangible results. Contact us here and let us help you thrive in the digital economy.