“I want to know if my ad’s conversion rate is appropriate.”
“I want to understand what measures I should take to improve the conversion rate.”
Do these thoughts sound familiar?
This article summarizes the average CVR of Search Ads by industry.
It also includes useful information about factors that may cause low conversion rates and methods to improve them.
- Overview and calculation method of conversion rate
- Average CVR by industry
- Causes of low CVR
- Ways to improve CVR
By reading this article, you will be able to assess whether your ads need improvement and understand how to implement measures to boost your conversion rate.
This article is recommended for web ad managers who outsource ad operations to agencies and business owners who have just started running Search Ads.
Be sure to read to the end.
Table of contents
What is CVR (Conversion Rate)?
CVR stands for “Conversion Rate,” which is a metric indicating the percentage of users who visited a website and completed a desired action, such as making a purchase.
How to Calculate CVR
CVR is calculated using the following formula:
Conversion Rate (%) = (Number of Conversions ÷ Number of Clicks) × 100 (%)
【Example】
- Number of website visits: 200
- Number of purchases: 10
In this case, the conversion rate would be:
10 (Number of Conversions) ÷ 200 (Number of Visits) × 100 (%) = 5% (Conversion Rate)
The conversion rate is calculated as 5%.
Average CVR for Search Ads by Industry
This section lists the average CVR for Search Ads and Display Ads by industry.
Check the table below and compare it with your ad’s CVR.
Average CVR for Search Ads | |
Industry | Average CVR (Search) |
Education | 33.9% |
Employment Services | 5.13% |
Finance & Insurance | 5.10% |
Healthcare | 3.36% |
Legal | 6.98% |
Technology | 2.92% |
Source: Google Ads Benchmarks for YOUR Industry [Updated!] | WordStream | |
What do you think?
If your CVR is below average, you should promptly improve your ads or website.
To do so, it is essential to identify the factors contributing to a low CVR first.
The following sections explain the “causes of low CVR” needed to improve it.
Check if your ads fall under any of these causes.
Factors Causing Low CVR
Even if you want to improve your CVR, it’s hard to know the exact reasons why it’s low, right?
This section will explain the factors contributing to a low CVR.
The factors causing a decrease in CVR can be broadly categorized into the following three areas:
- Discrepancies between the Search Ads and the linked content
- Website or landing page structure issues
- External factors (seasonality and demand)
Factor 1: Discrepancies Between Search Ads and Linked Content
One factor contributing to a lower conversion rate is the “discrepancy between the ad content and the linked content.”
Users are more likely to leave the website when they feel they cannot find the information they need.
For example, suppose a Search Ad promotes “Business attire for women in their 20s,” but the linked webpage is about “Date night outfits.”
If users expect to find business attire but see date night outfits instead, the content doesn’t meet their needs.
Since users click ads expecting relevant information, they will leave the website if the linked content does not meet their expectations.
Although this example is extreme, even slight mismatches can increase the bounce rate, so caution is necessary.
To avoid losing user trust, ensure that the linked page contains content consistent with the ad.
Factor 2: Website or Landing Page Design and Structure Issues
If a website or landing page is too complex in design or structure, users may leave before completing an action.
This is because complexity can make users feel “inconvenienced.”
Examples include “too many fields in the inquiry form,” “unclear placement of purchase buttons,” and “a complex design that fails to highlight the product’s appeal.”
Studies have shown that unclear inquiry forms or website structures can cause users to leave. (*1)
It’s essential to design a website that does not cause stress to users.
First, check whether your website is structured in a way that’s easy for users to understand.
*1 Reference: b2b-web-usability-report-2015.pdf
Reference: 6 Steps for Avoiding Online Form Abandonment | November 2021
Factor 3: External Factors (Seasonality and Demand)
Seasonality or demand can also contribute to low CVR.
For instance, Christmas trees are in high demand during winter, but not in summer.
Similarly, if a competitor promotes a similar product, demand for your product may decrease.
It’s crucial to verify whether your product is meeting user demand effectively.
Ways to Increase CVR
This section will introduce methods for increasing CVR.
The following six methods will be discussed:
- Clarify your target audience
- Review negative keywords and match types
- Lower the conversion hurdle
- Clearly define benefits
- Optimize your CTA
- Simplify inquiry forms
Let’s go over each one in detail.
Method 1: Clarify Your Target Audience
Identify the users you want to attract to your ads and website, or your “target audience.”
Showing ads to users unlikely to convert will not yield results.
For example, running ads for “supplements for pregnant women” to male users is unlikely to generate interest or sales.
If the target audience is unclear, the ads may reach users who don’t need the product, resulting in clicks that don’t lead to conversions.
Focus on targeting users who are likely to convert and tailor your ads to them.
Method 2: Review Negative Keywords and Match Types
After defining your target audience, review and adjust “negative keywords” and “match types” accordingly.
- Negative Keywords
→ A feature that lets you exclude certain keywords from triggering your ads - Match Types
→ A feature that allows you to set the degree of match between your ad keywords and search queries
By reviewing these settings, you can reduce ad exposure to users who are unlikely to convert.
Consider excluding keywords in the following categories:
- Words with negative connotations
- Services, products, or features your company doesn’t offer
[Examples]
Words with negative connotations: “dirty,” “complaints,” “criticism”
Unrelated services, products, or features: “job openings,” “shuttle buses,” “open-air baths”
If you’re new to managing ads, consider using the “Phrase Match” type.
Phrase Match triggers ads under the following conditions:
- The keyword you registered is included
- The user’s search intent matches your keyword
This type strikes a balance between being too specific and too broad, making it easier to use.
Method 3: Lowering the Conversion Barriers
Lower the standards for the desired outcomes on your website or landing page (LP).
Outcomes refer to the actions you want users to take on your website or LP.
For example:
- Requesting materials
- Event reservations
- Inquiries
- Purchasing products
These are common examples.
If the outcomes are difficult for users to act upon, it becomes harder to achieve conversions.
For instance, imagine a website listing rental properties that only has a “Contract” button. What would you think?
You would likely feel uneasy signing a contract without knowing the condition or ambiance of the property.
If users perceive the outcomes as risky or anxiety-inducing, it becomes harder to drive conversions.
Therefore, it is important to ensure that the outcomes on your website encourage user actions effectively.
Outcomes like the ones below are likely to encourage user actions:
- Requesting materials
- Free consultations
- Free trials or samples
- Registering for free events
Method 4: Clarify the Benefits
Benefits refer to the future advantages users will gain by purchasing your product.
For example, if your product is a “thick coat,” the benefit could be, “You can walk outside stylishly and comfortably even during winter.”
If the benefits are not clearly defined, users may not understand how they will personally benefit, making it harder to achieve outcomes.
Thus, it is necessary to clearly articulate the benefits.
Method 5: Optimize the Call to Action (CTA)
CTAs are strategies to encourage users to take action.
Examples include:
- Writing promotional copy to encourage product purchases
- Adding an entry form to encourage inquiries
- Including purchase buttons to encourage product purchases
Optimizing CTAs by creating an environment where users are inclined to act or find it easy to do so can significantly increase conversions.
When optimizing CTAs, focus on the following points:
- Button Color
→ Check if the button color stands out or is easy to recognize. - Button Placement
→ Consider whether placing the button in the header, footer, sidebar, or within the text will make it more noticeable to users. - Button Text
→ Use phrases like “Click here for inquiries” or “Request materials” to guide users. Additionally, phrases like “Free shipping for a limited time!” or “Takes only 1 minute to complete!” can help lower psychological barriers and be more effective. - Number of Buttons
→ Ensure there are not too many buttons. - Content of Text
→ Check if the text encourages user actions.
Method 6: Simplify the Inquiry Form
Make your website’s inquiry form easier for users to use.
A global study revealed that 81% of users abandon inquiry forms halfway through. (*2)
The main reasons for this are “mistrust” or “inconvenience” caused by issues such as security concerns or excessively long forms.
Therefore, it is essential to take measures to eliminate user “mistrust” or “inconvenience.”
Focus on the following points to improve inquiry forms:
- Ensure the input fields or text size in the form are not too small.
- Check that there are not too many required fields.
- Make sure error messages are clear and understandable.
- Avoid requiring users to re-enter fields for every error.
- Indicate the progress of form completion.
*2 Reference:6 Steps for Avoiding Online Form Abandonment | November 2021
How to Handle Cases Where Results Are Not Achieved
If you cannot improve your CVR despite your efforts, it may be a good idea to entrust your ad operations to an advertising agency.
The advantage of hiring an advertising agency lies in having professionals manage your ads.
They monitor essential metrics for ad operations and strategically optimize your campaigns.
Our company has assisted over 2,000 clients with their ad operations, achieving significant CVR improvements.
Below are some examples of CVR improvements we have achieved:
Examples of CVR Improvement | |||
Industry | Platform | Improvement Period | Improvement Rate |
Legal Services | Search Ads | 9 months | Initial CVR: 2.97% Improved by approximately 3.5 times |
Recycling | Google Ads | 2 months | Initial CVR: 1.47% Improved by approximately 1.8 times |
Healthcare | Search Ads | 1 month | Initial CVR: 2.3% Improved by approximately 2.3 times |
By outsourcing to an agency, you can focus on your core services.
If you’re struggling to see results, consider consulting with an advertising agency.
[Summary] Understand Your Company’s CVR and Improve Your Advertising
In this article, we explained the average CVR for Search Ads and methods to improve CVR.
The average CVR for Search Ads is as follows:
Average CVR for Search Ads | |
Industry | Average CVR (Search) |
Education | 33.9% |
Employment Services | 5.13% |
Finance & Insurance | 5.10% |
Healthcare | 3.36% |
Legal | 6.98% |
Technology | 2.92% |
Reference: Google Ads Benchmarks for YOUR Industry [Updated!] | WordStream | |
If your industry’s CVR is below average, immediate improvement is needed.
The CVR improvement methods introduced here are as follows:
- Define your target audience clearly
- Review negative keywords and match types
- Lower the barriers for conversions (CV)
- Clarify the benefits
- Optimize your CTA
- Simplify the inquiry form
If you try these methods and still find it difficult to achieve results or figure out how to improve, consider outsourcing ad management to an advertising agency.
Professional advertisers at agencies manage ads using their expertise and strategies.
This allows for effective initiatives without requiring your company to manage ads directly.
Our company also provides ad management services. If you’re interested, feel free to consult with us via the contact link below.
