Aug 4, 2023

How to find out the average % cost of Google Ads? (similar to marketplace commission)

If you sell on a marketplace they take a commission. Let's say they take 15%.

Revenue £100k and pay marketplace £15k.

In the last 90 days we have received approx £100k revenue from Google Ads campaigns and the Google Ads cost was over £7k.

In comparison this is a 7% commission which I think is very good.

What do you think? Is there an industry average?

Cheers.
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Aug 4, 2023
More commonly we refer to Return on Ad Spend (ROAS)

So if you spend $100 and get $1000 in revenue, that is 1000% ROAS.

While commission is kind of the same, commission is a fixed amount. In Google Ads, costs versus revenue can vary a lot from day to day.

Also, you can be on a marketplace but still need to advertise
Also, on your own website you will have payment processing costs.
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Recommended Answer
Aug 4, 2023
There is none.

It depends too much on the profit margins of your product, and lifetime values of customers. 
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Aug 4, 2023
Yes it is.
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Recommended Answer
Aug 4, 2023
More commonly we refer to Return on Ad Spend (ROAS)

So if you spend $100 and get $1000 in revenue, that is 1000% ROAS.

While commission is kind of the same, commission is a fixed amount. In Google Ads, costs versus revenue can vary a lot from day to day.

Also, you can be on a marketplace but still need to advertise
Also, on your own website you will have payment processing costs.
Original Poster RichlyIndexed marked this as an answer
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Aug 4, 2023
Yes I can see what you mean and it does highlight the importance of lifetime values. Retain the customer! There must be industry/category averages somewhere...
Aug 4, 2023
If you look around you can find, by industry (usually US):

Average CPC
Average CPL
Average CTR

They are taken from 3rd party optimisation services or large managers. But they are averages and cover a huge variety of circumstances. For one business a lead is only a call, for others it can be a form fill as well...

I've only ever used them, when they fit, to reassure clients. They never influence what I do. 
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