It’s hard to imagine calling any campaign in any industry a success when over 90% of its budget is wasted. But this is what happens in digital advertising.
Conversion rates from 0.29% to 7.98% are considered “average” on Google’s advertising networks, which means that as much as 99.71% of traffic does not convert in the average campaign.
However, the term “average” in this case is distorted by the advertising industry’s lack of equipment for scaled personalization. Ultimately, if you’re a digital advertiser, average range isn’t anywhere near where you want to be.
Average aim makes for average campaigns
Imagine you’ve built a post-click page that’s producing a 2% conversion rate on the search network. Meaning, almost none of your visitors (98%) are completing your page’s goal action. At first this might seem bad enough to warrant starting again from scratch. But then, you see a report on industry average conversion rates:
According to this report, since you’re in the apparel industry, you’re actually not far below average. And instead of feeling like 98% is far too much budget to waste, you feel content knowing that most businesses in the apparel industry are also wasting 97-98% of their budget.
This page converting at 2% becomes the blueprint for new pages, which, though better, only convert at around 3-4% (way above average!). Instead of wasting 98% of your budget, you’re only wasting 96-97%. Success! (Right?)
The problem with industry averages
The problem with using averages as a benchmark is that you’re comparing yourself to the average marketer. You don’t want to be an average marketer.
Today’s average marketer is content with conversion rates that reflect a glaring problem with the digital ad campaign. Specifically: It’s not personalized from end to end.
Though advertisers invest heavily in targeting, segmenting, and scaling advertisements, the same isn’t true of the pages they drive paid traffic to. These pages are often:
- Built manually and used as a catch-all for every audience segment.
- Created with a landing page builder that can’t scale personalization to the number of segments in an ad campaign.
Both solutions lack four key elements:
- Automated Creation: Like each audience segment must have its own personalized ad, it must have its own personalized post-click landing page as well. With hundreds of segments, an advertiser must be able to create and scale these pages as quickly as they scale ads with popular platforms.
- Ad mapping: When several campaigns can mean a thousand or more audience segments, each ad must be connected to its post-click landing page to ensure a seamless user experience across the pre-click and post-click stages. Advertisers must be able to organize, manage, and visualize assets in each stage from a single location.
- Personalization: Solutions like dynamic text replacement aren’t sufficient in the post-click stage. These don’t provide meaningful personalization. On post-click pages, personalization needs to be deeply connected to audience desires, objections, and environment, to create a narrative that will generate conversions.
- Optimization & AI: The only way to boost conversion rate is with analysis and experimentation. That’s why the capacity to quickly test and implement new solutions, across groups of pages, is necessary for every advertising team.
Hindered by the lack of these elements, advertising teams are forced to settle for impersonalized post-click pages, which translate to a mismatched user experience. Data shows that when these elements are present, though, “average” conversion rates look much different.
What average conversion rate should be
Post-Click Automation (PCA) is a class of software that emerged from advertisers’ lack of means to scale post-click pages to match pre-click ads. PCA is built on technology that addresses each of the elements above, and for the last eight years, advertisers have been using it to personalize their campaigns from the first impression to the final click:
- With Ad Mapping, PCA allows advertisers to import their Google ads account and link ads with post-click pages. Then they can visualize their campaign on a single dashboard from end-to-end and ensure that it’s personalized.
- With customizable content blocks, users have the capability to automate the creation of hundreds of landing pages that are optimized for maximum conversions.
- With a Personalization solution, PCA enables advertisers to create many different experiences on each landing page, delivering to each audience segment a 1:1 personalized experience.
- With Optimization and AI, PCA will automatically test and update your page layout, as well as recommend content, based on machine learning insights.
So far, PCA users have created 1.8 million pages for their campaigns, reflecting the scalability of the platform to match the personalization of pre-click segments. More impressively, average conversion rates are above 35% in the retail industry:
Don’t settle for average
Advertisers don’t have to settle for what the industry considers “average.” Equipped with the right platform and expertise, conversion rates can soar to levels once considered achievable by only a small handful of experts.
To achieve this we would like to offer you a complimentary analysis of your ad campaigns including competitive insights against your top 5 competitors and the top sites in your industry. We will review your campaigns to analyze your post-click health, compare your site against industry and competitive benchmarks, and identify the most effective opportunities to increase your ROAS. Request your analysis here.