By Dennis - Comments: 2

Last Updated on September 14, 2020

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Google Shopping can be a black box for many advertisers.

It’s not always that easy to know if you’re doing well, especially if there aren’t a lot of sales coming in.

The goal of this article is to give you an idea of what kind of metrics other advertisers are hitting. And to give you something to aim for.

Let’s jump in!

Google Shopping vs Search Ads Budget Split

Taking note of the improved performance, more retailers are allocating more of their media budget from Search to Shopping Ads.

  • Google Shopping: 80%
  • Google Search Ads: 20%

Source: Sidecar 2020 Benchmarks report (Q1 2020)

Why should you care?
This trend has persisted over the last couple of years, increasing the competition and cost per clicks for Shopping Ads. With retailers moving away from Search Ads, opportunities might arise for those store that have solid performance.

Average Monthly Shopping Budget

Advertisers are spending $770.41 per month on Google Shopping. This varies pretty wildly if we look at the different industries:

Industry Average monthly Shopping budget
Medical Supplies  $423.37
Health & Beauty $1,815.12
Child & Infant Care $381.46
Pet Care $384.73
Clothing & Apparel $801.74
Food & Alcohol $1,065.09
Home & Garden $864.87
HVAC & Climate Control $1,116.21
Automotive Supplies $988.34
Travel & Luggage $273.35
Entertainment & Events $770.41
Educational Supplies $296.43
Computers & Technology $1,473.32
Office & Business Needs $835.77
Art & Music $421.02
Chemical & Industrial $638.66

Source: Wordstream Shopping Benchmarks (Q2 2019)

Why should you care?
Knowing what the average advertiser in your industry can give you a better idea what kind of budget you should be allocating to Google Shopping.

Especially starting out, knowing the ballpark can be useful.

That said, these budgets are pretty small for Shopping campaigns that work. So I would look at these numbers as a minimum spend to properly test the channel.

Average Google Shopping Cost Per Click

Next to deciding how much to allocate to Shopping, the next step is to decide how much you’re willing to pay per click. (If you’re using Smart Shopping campaigns, Google will set the CPCs for you).

The average cost per click on a Google Shopping ad is $0.66. Again this price varies depending on the industry:

Industry Average Shopping CPC
Medical Supplies  $0.63
Health & Beauty $0.87
Child & Infant Care $0.36
Pet Care $0.82
Clothing & Apparel $0.82
Food & Alcohol $0.42
Home & Garden $0.58
HVAC & Climate Control $0.47
Automotive Supplies $0.56
Travel & Luggage $0.40
Entertainment & Events $0.48
Educational Supplies $0.83
Computers & Technology $0.89
Office & Business Needs $1.09
Art & Music $0.34
Chemical & Industrial $0.66

Source: Wordstream Shopping Benchmarks (Q2 2019)

Why should you care?
These CPCs should give you an idea where to start with your own bids.

It are averages, so some advertisers will pay less while other will pay more. How successful you are at a particular CPC level will depend on your quality score.

Average Google Shopping Clickthrough Rate (CTR)

The average clickthrough rate for Google Shopping Ads is 0.86%, and for Bing Shopping Ads it is 1.25%.

The table below breaks it down by industry:

Industry Average Shopping CTR
Medical Supplies 0.87%
Health & Beauty 0.74%
Child & Infant Care 0.71%
Pet Care 0.68%
Clothing & Apparel 0.76%
Food & Alcohol 0.91%
Home & Garden 0.90%
HVAC & Climate Control 1.12%
Automotive Supplies 1.20%
Travel & Luggage 0.99%
Entertainment & Events 0.92%
Educational Supplies 0.94%
Computers & Technology 0.55%
Office & Business Needs 0.65%
Art & Music 0.76%
Chemical & Industrial 0.89%

Source: Wordstream Shopping Benchmarks (Q2 2019)

Why should you care?
Clickthrough rates will vary widely, even within the same industry. But these metrics will give you something to aim for.

As soon as you’ve gathered some data in your account, you can get a more personalized benchmark based on the products in your account. (Look for the Benchmark CTR columns in your account)

Google Shopping Revenue share (by device)

  • Desktop: 48%
  • Mobile: 42%
  • Tablet: 10%

Source: Sidecar Google Shopping Benchmarks (Q1 2018)
Note: data was taken from 300 US customers

Why should you care?
Mobile keeps rising and gaining in importance and ROAS. So you need a good plan on how to capture mobile traffic. The days of -100% bid adjustments are definitely over.

Google Shopping ROAS (by vertical)

The most useful metrics to evaluate your overall performance are those that relate to revenue (and ideally profit).

This table shows the ROAS for different industries:

Vertical AOV CVR ROAS
Apparel & Accessories $76 2.69% 3.47
Automotive $230 1.03% 10.61
Books, Music & Video $71 2.18% 3.98
Computer & Electronics $252 1.61% 5.99
Flowers & Gifts $73 1.00% 3.67
Food & Drugs $85 1.38% 5.76
Health & Beauty $76 3.67% 4.15
House & Home $185 2.45% 6.08
Jewelry $453 0.81% 4.94
Mass Merchant $118 1.40% 4.05
Office Supplies $107 4.01% 7.09
Pet Care $90 2.11% 6.28
Sporting Goods $133 2.43% 6.52
Toys & Hobbies $73 3.08% 8.82

Source: Sidecar 2020 Benchmarks report (Q1 2020)

Why should you care?
This table gives some insights into the numbers other advertisers are hitting.

Although I have to say they are on the high side to what I’m used to, they will tell you how well your optimization efforts are going.

Average Google Shopping Conversion Rate (by vertical)

The average conversion rate of a Google Shopping visitor is 1.91%.

Broken down by industry:

Industry Average Shopping CVR
Medical Supplies 2.94%
Health & Beauty 2.78%
Child & Infant Care 2.20%
Pet Care 1.07%
Clothing & Apparel 2.70%
Food & Alcohol 2.16%
Home & Garden 1.31%
HVAC & Climate Control 3.30%
Automotive Supplies 1.29%
Travel & Luggage 2.07%
Entertainment & Events 1.98%
Educational Supplies 1.88%
Computers & Technology 2.20%
Office & Business Needs 2.45%
Art & Music 1.77%
Chemical & Industrial 0.83%

Source: Wordstream Shopping Benchmarks (Q2 2019)

Why should you care?
If you compare this with the table above you’ll notice many differences. That’s because the types of stores included in each study are different.

So what’s the use of this? It’s to give you something to aim for. Let’s say your competitors are hitting these conversion rates, are you able to survive?

Average Google Shopping Cost Per Action (by vertical)

The average cost per action (or conversion) from a Google Shopping click is $38.87. But this number widely varies by industry:

Industry Average Shopping CPA
Medical Supplies $19.23
Health & Beauty $35.89
Child & Infant Care $49.36
Pet Care $26.01
Clothing & Apparel $19.29
Food & Alcohol $35.80
Home & Garden $58.00
HVAC & Climate Control $7.28
Automotive Supplies $54.76
Travel & Luggage $36.34
Entertainment & Events $17.51
Educational Supplies $30.67
Computers & Technology $75.92
Office & Business Needs $68.55
Art & Music $19.03
Chemical & Industrial $91.21

Source: Wordstream Shopping Benchmarks (Q2 2019)

Why should you care?
While the conversion rate drops some hints, the CPA gives you some insights into the actual performance of an advertiser. While they all feel pretty high, it depends a lot on the types of products you sell.

If you’re average order value is too close to this number, you’ll need to fix that equation!

Take the Google Ads Test to start with!

Showcase Shopping Ads Clicks vs Standard Google Shopping

Showcase Shopping Ads make up 4.4% of mobile clicks.

Source: Sidecar 2020 Benchmarks report (Q1 2020)

Why should you care?
Google is constantly experimenting with different ads formats. So experimenting with these new formats ensures you get maximum visibility, while also offering arbitrage opportunities.

What’s Next?

Armed with these statistics, you’re ready to excel at Google Shopping. Discover every single tactic that I use to optimize Google Shopping campaigns. Grab my list of 26 Google Shopping Optimization tactics. Get access now!

About the author

Dennis

Dennis is the founder of Store Growers. He's an ecommerce PPC expert from Belgium and has been running Google Ads campaigns for over 8 years.

His goal is to cut through the BS when it comes to ecommerce advice and provide you with tactics and strategies that will make you more money.

Read more

2 responses to “9 Important Google Shopping Ads Benchmarks (2020)

  1. Thanks so much for the information, it looks incredible and well detailed. It was quite surprising to see the budget split 80/20. Even though I always recommend a higher budget for Shopping campaigns, in most of the cases, clients go towards search campaigns instead.

    1. Thanks for chiming in Leo!

      I see the same thing happening, people unfamiliar with Google Ads stick with their Search Ads, while us pros know that it’s in Shopping where the money awaits 😉

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