Google Ads CPC Benchmarks: 2023 Insights for eCommerce

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To make the most of your Google Ads budget, you need to decide how much you want to pay for each click. But how do you know if your budget matches what others are paying? That’s where CPC benchmarks come in. In this blog post, we’ll explain everything you need to know about Google ads CPC benchmarks. We’ll start with the basics and then look at specific benchmarks for different types of campaigns. By the end, you’ll know how to get the most out of your ad budget. Let’s begin!

Imagine you’re driving a car without a speedometer. You wouldn’t know how fast you’re going or if you’re going too slow or too fast, right? Well, in the world of online advertising, benchmarks are like speedometers. They help you understand how well your ad campaigns are performing. Having a  Google ads CPC benchmark for all your campaigns is like having a target to aim for. It helps you set realistic goals and see if you’re on track.

The Google ads CPC benchmark for all campaigns is $0.62. So, think of the $0.62 CPC benchmark as a signpost on your advertising journey. It tells you what’s considered an average or typical cost for a click in your industry. Advertisers use it as a reference point to gauge if they’re spending too much or getting a good deal. If your CPC is close to $0.62 or lower, you’re doing well. If it’s higher, it’s like a warning sign that you might need to make some changes.

Google Ads CPC Benchmarks all campaigns graph

How to lower Google Ads CPC?

But what to do if your CPC is a lot higher than the average in your eCommerce industry? Don’t worry there are some different strategies you can try if you have a CPC that is too high.

  • Keywords Matter: Choose keywords wisely. Use ones that are relevant to your audience.
  • Quality Ads: Create eye-catching and informative ads that stand out.
  • Optimize Landing Pages: Make sure your website pages match your ads for a seamless experience.
  • Adjust Bids: Experiment with your bid strategy to find the sweet spot.
  • Regular Check-ins: Keep an eye on your campaigns and make tweaks when needed.

More detailed strategies on how to lower CPC can be found in our previous blog post.

Google CPC Benchmarks for Search Campaigns

Picture search campaigns as a focused spotlight in the world of advertising. Instead of showing your ads to everyone, they target people who are actively searching for something. Now, about that CPC benchmark – it’s like a target just for search ads. We’ll dig deeper to understand what makes search campaigns unique and why they have their own benchmark.

So, the average CPC for search campaigns is $0.56. Search CPC is like a price tag for clicks on search ads. It can be different from other types of ads because, in search, you’re competing with lots of other advertisers. It’s a bit like an auction, where the price you pay depends on how many others want the same thing. 

Strategies to achive a CPC of $0.56 in Search campaigns

Now, let’s get to the good stuff – how to reach or beat that $0.56 CPC goal in search campaigns. It’s like finding a bargain in a busy market. Here are some tricks of the trade:

  • Keyword Magic: Choose keywords that match what people are searching for.
  • Ad Brilliance: Craft attention-grabbing ads that stand out.
  • Landing Page Wizardry: Make sure your website matches what your ad promises.
  • Bid Wisely: Experiment with how much you’re willing to pay for clicks.
  • Regular Fine-Tuning: Keep an eye on your campaigns and make adjustments as needed.

By following these strategies, you’ll be well on your way to hitting that $0.56 CPC target or even spending less on each click in your search campaigns.

Google CPC for Shopping Campaigns

Now, let’s shift our focus to shopping campaigns. Shopping campaigns are like a dedicated showcase for your products. Unlike other ad types, they highlight images and prices right in the search results. 

So, the average CPC for shopping campaigns is $0.63. That $0.63 CPC benchmark in shopping campaigns is like a pricing guide specifically tailored for online shops. It tells eCommerce advertisers how much they should aim to spend for each click.

Here’s the key part: If you can keep your actual CPC close to $0.63 or even lower, it’s like getting a good deal – you’re spending less to bring people to your online store. But if your CPC is much higher, it’s like paying more for advertising, which can eat into your profits.

Optimizing product listing to meet benchmarks

Imagine your online store as a virtual shop, and your product listings are like the items displayed on the shelves. Just as a store owner arranges products to attract customers, you can optimize your product listings to catch the eye of online shoppers.

Here’s how you can do it:

  • High-Quality Images: Think of these as the attractive packaging of your products. Use clear, well-lit images that show your products from different angles. It’s like making sure your items look their best on the shelf.

  • Compelling Descriptions: Your product descriptions are like the labels that tell customers what each item is all about. Use engaging and informative language. Highlight the benefits and features of your products, just like a store owner might put up signs to showcase special deals.

  • Keywords: Just as people search for specific products in a physical store, online shoppers use keywords to find what they want. Make sure your product titles and descriptions include relevant keywords. It’s like putting the right labels on your products.

  • Pricing Strategy: Consider your pricing carefully. It’s like deciding how much to charge for your items on the store shelf. Be competitive while ensuring you can cover your costs and make a profit.

  • Customer Reviews: Positive reviews are like word-of-mouth recommendations in a store. Encourage happy customers to leave reviews, and respond to any feedback, just like a store owner would address customer concerns.

By optimizing your product listings in these ways, you’ll make your online store more appealing to shoppers, which can help you meet that $0.63 CPC benchmark and drive more traffic to your e-commerce site. It’s all about creating an enticing online shopping experience!

Google CPC for Performance Max Campaigns

Next, performance max campaign. The average CPC for Performance Max is $0.61. So, the $0.61 CPC benchmark for Performance Max campaigns is like a reference point. It tells you what’s considered a reasonable cost for each click in this specific campaign type.

Here’s why it’s essential: If you can maintain your actual CPC close to $0.61, it means you’re efficiently managing your advertising budget. However, if your CPC surpasses $0.61 significantly, it indicates that you might be paying more than necessary for each click, potentially impacting your overall campaign performance.

The Performance Max is a relatively new type of Google ad, so if you like more insights about it you can find it in your Performance Max pros and cons blog post.

Summing Up

And that’s it. Here you have all Google Ads CPC benchmarks in one place. We’ve journeyed through the world of online advertising, understanding the significance of these benchmarks and how they can impact your campaigns.

Remember, these benchmarks aren’t rigid rules but valuable guides to help you navigate the complex world of online advertising. Keep monitoring your campaigns, adapting to changes, and experimenting with strategies to achieve your goals.

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