Paid Search Benchmarks: Beauty and Fitness
August 12, 2016
In the past, we’ve covered how industries such as Insurance, Manufacturing, and Retail perform on local paid search compared to national benchmarks. Typically, we find that when a local strategy is applied at scale, standard KPIs such as cost per lead and click through rate are dramatically improved, simply by localizing national campaigns using our proven method.
But, how about Beauty and Fitness? How does that industry perform when localized? Think about it: when it comes to gyms, hair salons, yoga studios, and med-spas, consumers want search results that directly correlate to their location or a specific location of their choosing, such as a neighborhood or suburb.
Because of this, we fully expected to see greater results with local in this industry, and we weren’t disappointed once we analyzed the data across Balihoo customers. Take a look at what we found:
Clearly, approaching paid search with a local strategy in hand can improve results for even the largest brands in this industry.
Why should these local benchmarks be a big deal to national search advertisers? Because in 2015, in the Beauty & Health industry, 45% of traffic and 57% of revenue came from paid search (MarketLive Performance Index 2015). This medium is too big of an opportunity to come up short on strategy.
So, why does localized paid search consistently outperform national across industries?
Consider this: Cost per click (CPC) increases a whopping 400% when your AdWords Quality Score is “Poor,” and that’s only in comparison to “Average.” This increasingly high cost of low Quality Scores has driven search marketing professionals away from standard mass-management of campaigns and toward those processes and tools that provide a more relevant search experience to consumers. Brands executing with a micro relevance strategy and spreadsheet-free automation typically see lower CPC, higher CTR, and improved Quality Scores (QS) than when they apply basic and advanced relevance across wide swaths of markets. (Read more about QS and relevance.)
So, if you’re a national beauty/fitness advertiser with local locations, partners, or outlets to drive traffic to, consider investing in truly localized paid search efforts, even on a small scale to test the results compared to national. At Balihoo, we have found that a successful and telling pilot program can be run with as few as 50 locations and 90 days.
Author’s Note: The last time that a leading online advertising platform published benchmarks in ‘Beauty and Fitness’ was in 2012. Since then, that platform has recategorized fitness under ‘Health and Medical’ and have not reported on Beauty benchmarks.