Google AdWords
Benchmarks for
Real Estate
CTR, CPC, CVR, CPA — here are the numbers that define how the real estate industry performs on Google's search and display networks, and what they mean for your marketing budget.
Google AdWords Pay Per Click remains the most widely used online advertising platform. ROI is measurable, budgets are controllable, and the data is actionable. But none of that matters without a clear baseline.
Before you set goals or allocate spend, you need to know what good looks like for your industry. These are the benchmarks for real estate.
Four Metrics That Matter
AdWords performance in real estate is measured across four core metrics: Click-Through Rate, Cost Per Click, Conversion Rate, and Cost Per Action. Each applies to both the search network and the display network, and each tells a different part of the story.
Click-Through Rate (CTR)
The percentage of people who see your ad and click it. Real estate averages 2.03% on search and 0.24% on display, compared to the all-industry averages of 1.91% and 0.35% respectively.
Cost Per Click (CPC)
What you pay each time someone clicks your ad. Real estate averages $1.81 on search and $0.88 on display — both below the all-industry averages of $2.32 and $0.58.
Conversion Rate (CVR)
The percentage of clicks that result in a completed action. Real estate performs well here — 4.40% on search and 1.49% on display, both above the all-industry averages of 2.70% and 0.89%.
Cost Per Action (CPA)
The total cost to acquire a conversion. Real estate averages $41.14 on search and $59.06 on display, versus all-industry averages of $59.18 and $60.76 — a meaningful advantage on search.
What the Numbers Tell You
"Real estate advertisers pay less per click, convert at nearly twice the all-industry rate, and acquire leads at a significantly lower cost. On search, the economics are strong."
The display network tells a different story. Real estate CPC on display ($0.88) runs above the all-industry average ($0.58), while CTR runs below. That means display requires tighter creative and audience targeting to perform efficiently.
Use these benchmarks as a baseline. If your campaigns are converting at significantly less than 4.40% on search, there is room to improve. If your CPA on search is well above $41.14, the issue is likely in your landing page experience or audience targeting — not your bids.
The Bottom Line
Real estate is one of the stronger-performing industries on Google AdWords search — lower cost, higher conversion rate, lower cost per action. The opportunity is real. Whether your campaigns match these benchmarks, or fall short of them, now you have a number to measure against.
Benchmarks are only useful if you act on them. Know your numbers, compare them to the industry, and close the gap.
Data sourced from WordStream industry benchmarks. Figures reflect averages as of January 2017 and are intended as directional reference points, not guarantees of performance.