Google and Facebook benchmarks are still a relatively new concept for many, but they’re important to understanding how many people your business is digitally reaching daily. Digital marketing is ever changing and expanding and staying ahead of the curve will only help your business thrive and grow. Let’s see how your Google and Facebook benchmarks stack up to the competition and what that means for you as a Realtor.
There’s a lot of lingo out there regarding digital benchmarks, and it can get confusing, so let’s take a look at the basics.
A benchmark is a tool within Google or Facebook (among others) that compares how your ad campaigns, social media, and website are performing against others in your industry. It relays information in areas where your business is succeeding digitally and shows where there is room for growth.
It also gives you the opportunity to measure how one campaign is doing versus another from a different year or quarter, meaning you can see how well your business is doing against itself, not just how it compares to other real estate businesses.
We understand there’s a lot to retain and learn when it comes to these benchmarks, including figuring out the acronyms for different benchmarks and what they mean.
Here’s a breakdown of some common benchmarks you may see:
- CTR: This means click-through rate, or the people who view your ad and then choose to actually click on it.
- CPC: This stands for the cost-per-click which is exactly what it sounds like. It tells you how much it costs each time someone clicks on your ad.
- CVR: This means conversion rate, and it lets you know how many people followed through on what your ad wanted them to do, like go to your website or perhaps fill out a form.
- CPA: This is your cost-per-action which lets you know how much each click that led to a sale cost you.
The average click-through rate for 2019 Facebook ads in the real estate industry was .98% which falls 5th overall across all benchmarks*! The cost per click came in at $1.81 which is average across all benchmarks. It’s important to note that the higher your click-through rate, the lower your cost-per-click will be. Knowing this, we can recognize how imperative it is that your social media and ad presence draws clients in. After all, it won’t only generate revenue, but it will keep your ad costs down!
Google tends to be more expensive to run ads on compared to Facebook, and the use of keywords is of added significance here. To rank high on Google, your SEO, or search engine optimization needs to be honed in. SEO is basically the keywords used to increase visibility to your website. The more people your SEO draws in, the more likely people will be to click through and then do what you’re asking them to do in an advertisement.
Google benchmarks were up overall in 2020, and experts are attributing this to the amount of time people spent at home due to the pandemic. We will more than likely see a change in this since the world has mostly opened back up again. However, it’s notable that with how hot the housing market is, real estate may stay on the higher end of benchmarks.
How to Stand Out Against Other Realtors:
You may be asking yourself what you can do to stand out amongst your peers in the world of benchmarks. We recommend tailoring your online presence to the client. While it’s certainly of value to market yourself, it’s more important to market for the client. They can see your face and hear what you have to offer, but they need to know what’s in it for them.
For example, we know it’s almost impossible to get a home at asking price right now. People are willing to pay above and beyond, and that makes it hard for the average person to buy. By addressing that in your marketing and showcasing how you’re working within such a competitive market, you’re going to draw in those who are feeling frustrated as they home search.
Or, on the other hand, perhaps you work exclusively with people who can pay well above asking price and don’t mind doing so. By setting your advertising up to cater to clients who can and want to do that, you will see a higher return on your advertisements in the form of CPC and CVR.
The Bottom Line:
Benchmarks are a fantastic tool when utilized properly, and they're constantly evolving as more Realtors strategize new ways to reach clients and expand your networks. At Churchill, we believe everything starts with making sure people know we're putting them first. Yes, even when reaching our benchmarks, we believe it's more about the person clicking than the actual click-through rate. We know many Realtors feel the same way, and we're here to help you and your clients with financing and education, as needed.