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How much some companies pay for a click?

CPC is a contamination of many factors – localization, industry, needs... What are the specific reasons for a price variation? See!

Zuza

Zuza

Digiffic’s backbone. On a daily basis she runs and optimizes campaigns on Google Ads and Facebook Ads. Privately – a lover of analog photography, candles and plants. Do you think there may be too many plants in your home or office? Tell it to Zuza – and see what happens.

The most expensive markets, countries and keywords in Europe. Do you know how much some companies pay for a click?

Cost-per-click (CPC) refers to the price advertisers pay in pay-per-click (PPC) marketing campaigns for each click. It depends on the popularity among Internet users and the actions of competitors. CPC is also a contamination of many factors – localization, industry, needs, economic conditions. What are the specific reasons for a price variation?

The importance of location

Firstly, research shows that prices are drastically based on location. It’s obvious, that depending on the country, users have different search priorities. But the popularity of the phrase itself doesn’t matter. Important is how much words are surrounded by advertisers. There are a lot of niche and long-tail keywords that can be expensive – it all depends on the competition.

More and more marketers run international campaigns. On this occasion, it’s worth remembering that the country in which we’ll conduct our activities very often determines the costs of the campaign. Which European countries have the most expensive cost-per-clicks? The benchmark will be the U.S. average CPC of 1-2 USD.

average-cpc-by-country1

According to the Word Stream research, we’d consider Austria as the most expensive country in Europe with average cost per click 2% less than in the United States. The second place goes to Great Britain with a result that’s 13% lower than American. Switzerland closes the podium being 21% below the U.S. average.

There may be several explanations. Firstly, it’d be connected with Google monopoly in these countries. This search engine has doubtless priority with almost no competition. It’s verified that presence of local search engines supports CPC discount – e.g. in Russia, where Yandex also allows us to search.

Bez-tytulu

Moreover, the UK and DACH countries are the most expensive, because firstly – they are rich, secondly – many people speak German or English, and it’s quite easy to start a campaign. After all they have quite large markets. All these factors made their CPC score as it is.

Markets that are in demand

We can list groups of markets that will always be among the most expensive in terms of CPC. It depends heavily on the amount of the competition number. For example, we’d consider business services vertical as the most expensive markets. New clients generally bring huge profits in these areas, so high CPC and expensive customer acquisition isn’t really an issue here.

adwords-industry-benchmarks-average-cpc

At this point, it’s worth mentioning one of the industries, where the fight for customers is sometimes the bloodiest. You guessed it. We have SaaS companies in mind. Also known as software as a service. Often the biggest problem in this industry is customer acquisition. When a business like this has a new customer, there are chances that this person will stay with the company for a longer period and pay for a regular subscription. That’s why SaaS companies often pay multiple subscription revenues for acquiring a new user. They can spend relatively much on getting a very profitable user.

Word Stream has analyzed the market in this field on the U.S. ground, and we know that the most expensive industry is legal with 6,75 USD average CPC. Consumer services is the second with 6,40 USD score. Technology closes the podium with 3,80 USD average CPC.

It’s worth knowing that the average CPC across all markets in Google Ads is 2,69 USD for search and 0,63 USD for display.

Record of the records

So let’s get to the point and compare the UK and U.S. CPC data of some chosen keywords. We are looking for the most impressive examples, yeah?

Within the legal industry the record holder in America is definitely “car accident lawyer” with 338,58 USD CPC. It’s hard to beat, isn’t it? We’ll pay much less for “criminal lawyer” – 57,27 USD and “criminal defense attorney” –  48.55 USD. But even the lowest figure is 18 times higher than the average CPC.

In the UK could be similar. As we wrote in the first paragraph, countries with a high English-speaking population are most likely to have an expensive CPC. The high scored keywords will always be in the English-speaking markets, because it’s easy to get there, and it has the biggest competition. So… let’s compare the UK in analogy to U.S. data.

The United Kingdom also has a high CPC for a “car accident lawyer” but definitely it’s far from the American result with 72,15 USD CPC. The second place goes in that case to “divorce lawyers” – 34,93 USD and third to “divorce lawyer” – 31.31 USD. “Criminal lawyer” which was supposed to be relatively expensive in the US, over the ocean has only 11,69 USD. 

Ah, those priorities…

In the field of customer services in the U.S. is worth to mention “online bookkeeping” with 25,22 USD CPC, “outsourced accounting services” – 22,73 USD and “online bookkeeping services” with 23,97 USD score.

In the UK “bookkeeping services for small business” has the most expensive CPC – 20,15 USD. Then – “small business bookkeeping” with 17,53 USD and also “online bookkeeping services” with 10,61 USD CPC.

Proper bookkeeping sounds like a necessary for a successful business, right?

And last but not least – technology. In the U.S. we have 79,25 USD for “cloud computing security” and 39,94 USD CPC for “cloud computing system”. Third is “cloud computing basics for beginners” with 33,29 USD.

For example for one click in “cloud computing security” marketers in the UK should pay 55,18 USD. For “cloud network technology” –  a little less, because 37,83 USD. “Cloud based technology” has 24,61 USD CPC.

What would we do without cloud nowadays?

All of these examples perfectly show international demand trends, isn’t it? 

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