Here's what we found when we duplicated Wordstream's analysis using our data. Unsurprisingly, the results were very similar to Wordstream's findings. The median conversion rate was 2.18%. 27.5% of accounts had a conversion rate of 0-1%. The richest 25% of accounts had a conversion rate of 5.34% or higher. Advertising Continue reading below Here's what the data looks like when you break it down into conversion rate ranges: Inadequate conversion tracking distorts AdWords conversion rate estimates It's not immediately obvious from this graph, but a conversion rate above 11.03% means your AdWords account outperforms 90% of AdWords accounts (in Wordstream's study, the top 10% of accounts have converted 11.45% or more of their traffic).
The only problem is that this analysis fax list included a large number of accounts that we knew our audit process was not tracking their conversions effectively . Advertising Continue reading below These accounts meet Wordstream's criteria, but their data skewed our results. [pullquote] The top 10% of AdWords accounts have a conversion rate above 20%. [/pullquote] Here's how the data changed when we only included the few hundred accounts with good conversion tracking: The median conversion rate for a well-tracked AdWords account is 3.16%. Only 15.2% of AdWords accounts have a 0-1% conversion rate. The richest 25% of accounts have a conversion rate of 7.82% or higher.
Again, here's the data if you break it down into conversion ranges: Conversion rate tracking for well-followed AdWords accounts Obviously, if you don't have solid tracking in place, you're probably missing out on a huge percentage of your conversions! Advertising Continue reading below And here's the thing, if you don't know if your most of your AdWords budget. Effectiveness of ad spend It's clear that most AdWords accounts don't do a good job of tracking conversions. The question is: how does this affect campaign performance? To get this data, we need to look at where your AdWords budget is actually going.