Hitwise of Connexity published a data fact about online searches by industry particularly for mobile device. We think, the data is very important to formulate more robust strategy for CPC advertising publishers.
By using the data, publishers can determine which niche or category they should join when planning to expand their website portfolio. The graphic below shows the share of mobile device domination in 11 industries.
Over 60, Under 60
To simplify the analysis, we split the industries into two categories. One, industries that have over 60% mobile searches and two, industries with under 60% mobile searches.
First category consist of food & beverage, health, sports, news & media, lifestyle, and automotive. Second category consist of retail, travel, real estate, entertainment, and banking (finance).
Industries’ Average CTR and CPC
The income of publishers from CPC advertising is highly correlated with ad CTR on their websites. Higher CTR more likely to generate more revenue. The question is does particular industry has its own average CTR?
Based on WordStream.com study on Google Ads CTR benchmark above, the mobile display ad CTR is around 0.60%. But when the desktop display ad CTR is factored in, the CTR declines to 0.46%. In other words, we can safely assume that the desktop CTR is 23% lower than mobile’s.
In the Value of Industry section in this article, using the assumption above, ad clicks on desktop will be derived from mobile device ad clicks minus 23%.
Not only Google Ads CTR, but also Google Ads CPC must be considered as a part of fundamental strategy to build website portfolio. From the same source, WordStream.com has also compiled the average CPC in the study.
The Value of Industry
To do this industry valuation, we use the assumption that a publisher has 10,000 daily visitors. Let’s compare healthcare and finance websites’ performance.
Ad Revenue Per Month on Healthcare Website
Based on Hitwise, mobile searchers contribute 68% of total search in healthcare industry, let’s assume it’s also the visitors. Therefore, the website has 6,800 mobile visitors and 3,200 desktop visitors.
The mobile ad CTR in healthcare industry is 0.51%. Taking that into account, then there are around 35 ad clicks will be generated from mobile device per day. On the other side desktop will generate 27 ad clicks.
The average CPC is $0.68 in healthcare industry based on WordStream.com data. The revenue from mobile and desktop respectively – $28 and $21.6. The total publisher revenue per day is $49.6, or will hit around $1,488 per month.
Ad Revenue Per Month on Finance Website
Based on Hitwise, mobile searchers contribute 39% of total search in finance industry, let’s assume it’s also the visitors. Therefore, the website will have around 3,900 mobile visitors and 6,100 desktop visitors per day.
The mobile ad CTR in finance industry is 0.53%. Taking that into account, then there are around 21 ad clicks will be generated from mobile device per day. On the other side desktop will generate 24 ad clicks.
Using the same source for CPC average, the CPC is $0.69 in finance industry, then the revenue from mobile and desktop respectively – $14 and $17. The total publisher revenue per day is $31, or will hit around $930 per month.
Takeaway and Limitation
Calculation above will be helpful for publishers when planning to create a new source of ad revenue. The monthly revenue per month between industries can be vary. Taking the example from above, the monthly revenue gap is $558 between healthcare and finance industry. That’s huge gap.
Fail to do careful strategic planning will only make the gap wider. It depends on publishers’ resources such as human resource, and capital to allocate on what to build.
For instance, if a publisher wants to create a niche website in healthcare category, which is very competitive in terms of SEO, it is mandatory to check the capital availability to do link building and content development in middle term. Otherwise, the gap will be wider.
In a nutshell, if a publisher spent $5,000 to build a healthcare website, but the competition requires $15,000 to rank on the first page of SERP. The effort won’t work for sure.
The limitation of above analysis is we don’t provide how many search volume and the competitiveness of each industry. We just assumed that each website has 10,000 visitors per day no matter how much the search volume is.
- Donnely, G. (2018). Google Ads Mobile Benchmark For Your Industry.
- Fetto, J. (2016). Mobile Search: Topic and Theme, What do consumers search for from their smarthphone and tablets?
- Sterling, G. (2016). Report: Nearly 60 percent of searches now from mobile devices.