Pay-per-click (PPC) advertising through Google Ads is a cornerstone of effective digital marketing, especially for the healthcare sector. The success of these campaigns varies greatly and largely depends on the digital marketer's ability to adapt to the continuous advancements in Google's AI-driven algorithms.
At S37 Media, we're committed to maintaining the cutting edge of PPC campaigns by rigorously comparing our results with Google's official benchmarks and our proprietary standards. We oversee a broad spectrum of campaigns across the United States, drawing insights from an array of healthcare specialties from dental services to urgent care clinics. Our benchmarks are derived from comprehensive data analyses tailored to each medical specialty.
Recognizing the localized nature of healthcare services is crucial. The factors that affect the cost per click (CPC) in major urban centers like New York City differ markedly from those in smaller cities like Cedar Rapids. Additionally, keyword costs can vary based on the level of competition and market density, such as for terms like "STI testing near me."
Our benchmarks aim to provide a realistic expectation for what healthcare practices should achieve from their digital marketing efforts.
Benchmark #1: Click-Through Rate (CTR)
CTR is a vital indicator of how many users click on your ad after searching for relevant terms. Industry reports, such as those from Wordstream, suggest the average CTR for medical practices is around 3.27%. However, at S37 Media, our campaigns that have been optimized and allowed to mature for at least 90 days frequently achieve a CTR of 4-5%. Our optimization strategies include:
Targeted geographic placement
Careful selection and management of keywords and exclusion of negative keywords
Engaging and persuasive ad copy
Well-calculated bids and controlled daily budgets
A robust CTR suggests that your target demographic is not only seeing your ads but also engaging with them.
Benchmark #2: Lead Conversion Rate (LCR)
LCR gauges the proportion of ad clickers who turn into actual leads. This metric considers conversions from different sources: direct interactions from the ad (such as calling the business from the ad or even clicking to navigate there), activity on associated landing pages (such as calling you, filling out a form, or scheduling a visit), and subsequent visits to your main website. Typically, the medical industry sees a conversion rate of about 3.36%. At S37 Media, our clients often experience conversion rates of 5-6%, with top performers reaching as high as 20%. Key elements of high-converting campaigns include:
Strong and clear landing page design and content
Effective and compelling calls to action
Enhanced engagement mechanisms for potential patients
Optimizing each step of a patient's journey towards booking an appointment can significantly improve conversion rates.
Benchmark #3: Cost Per Lead (CPL)
CPL measures the expense incurred for each potential patient lead generated through your ads. This is a precursor to understanding the overall cost of acquiring a new patient, considering all marketing and conversion activities. This number is fundamental to any business's marketing efforts, not just medical practices. We have observed that our most effective campaigns can achieve CPL values under $30, varying by specialty and local market conditions. The key to lowering your CPL and overall acquisition costs lies in maintaining high-quality ads and a strong CTR.
Leveraging Google Paid Media Benchmarks
The applicability of these benchmarks can differ based on the expertise, experience, and resources available to the campaign managers. They serve as a framework for expected outcomes from a Google Ads campaign when managed effectively.
Specialization in healthcare marketing, akin to specialization within healthcare itself, is vital. Collaborating with a dedicated healthcare marketing agency like S37 Media enables your practice to not only meet but exceed your digital marketing goals. Get in touch with us to explore how we can assist you in understanding and mastering your local healthcare marketing landscape.