One of the best ways to measure how your marketing efforts stack up against the competition is by using industry benchmarks. When it comes to revenue-driving performance, that data is often hard to come by or doesn’t even exist.
Because Bizible tracks B2B marketing performance at a revenue level, we have a unique perspective and an unprecedented trove of performance data.
We did some digging and a lot of analyzing to create the first ever B2B paid search benchmarks for seven industries: travel, agency, education, finance, manufacturing, professional services, and software/SaaS. (Ok, so they aren’t all B2B industries, but they all have sales teams, so the marketing approach more closely aligns with B2B than B2C.)
Overall, the benchmarks should give you a wider understanding of the role that paid search plays in filling and moving leads down the customer pipeline.
This benchmark below highlights the three critical stages of the marketing funnel. It shows the amount of leads, opportunities, and revenue driven that Adwords contributes as a percentage of total marketing efforts.
AdWords Contribution to Business Benchmark, by Funnel Stage
The first thing that pops out in this benchmark is how much AdWords contributes to the marketing results in certain industries. In every industry, AdWords contributes to at least 20% of all leads. But in the travel industry, nearly 50% of all leads come from AdWords. And about 40% of the finance industry’s leads, opportunities, and revenue comes from AdWords. PPC is clearly an important, if not the most important, marketing channel for those two industries in particular.
Next, looking at the shape of the graph tells us a lot about the quality of leads that B2B marketers are getting from AdWords. The steeper the drop off, the lower the quality of leads. Travel for example, gets nearly half of their leads from AdWords, but just 25% of their revenue comes from AdWords. This could tell us two things: 1) leads from AdWords don’t convert at as high of a rate as from other marketing channels, or 2) deals from AdWords leads aren’t as big as deals from other marketing channels.
However, one benchmark alone can only tell you so much. When you take a look at several benchmarks together, you can stitch together a better picture of paid search’s impact, and you will be able to get a much deeper understanding of where your marketing efforts stand.
In the full benchmark report, we’ve got a lot more data and analysis for you, including average revenue per AdWords lead compared to average revenue per lead from all marketing channels, and a revenue benchmark that splits out closed revenue and projected revenue, which gives insight into the PPC sales cycle time.