Library > B2B Google Ads Benchmarks 2024
B2B Google Ads Benchmarks 2024
Written by Alexandra Flygare
Wondering how your Google Ads performance compares to industry benchmarks?
With Google Ads accounting for over 50% of the paid budget for B2B companies on average, this is a critical question.
Google Ads remains the primary pillar for paid marketing as it’s unparalleled for B2B companies looking to capture high-intent traffic from individuals actively searching for solutions related to their industry.
B2B Google Ads can be broken down into several subgroups, each with unique benchmarks:
Google Search Ads
Branded and Non-Branded
Google Display Ads
Youtube Ads
So let's get into Dreamdata’s insights into the benchmarks that B2B marketers should consider when planning their advertising strategies for the year ahead including data on web traffic, ad budget, and ad performance.
Let’s get into it.
Google Search Ads
Google Search Ads account for 37% of B2B web traffic, making them a significant contributor to engagement and lead generation for B2Bs.
These ads can be categorized into branded and non-branded, both playing essential roles across the entire marketing funnel. Non-branded ads, for example, target top-of-funnel prospects searching for broader industry terms like "what is attribution," while branded ads capture bottom-of-funnel leads with queries like "Dreamdata alternative."
With 39% of the total B2B ad budget allocated to Google Search Ads, they command the largest portion of advertising spend.
Non-Branded Google Search Ads
Non-Brand Google Search Ads target industry-related keywords without mentioning your company’s specific brand name.
These ads are ideal for B2Bs looking to generate demand by reaching potential clients who may not be familiar with their brand but are searching for solutions that align with their offerings.
Non-Branded Google Ads represent a significant 39% share of the B2B ad budget, but despite this large allocation, they only account for 11.2% of traffic and have a return on ad spend (ROAS) of 78%.
With a cost per influenced contact of €253, a cost per influenced company of €235, and an average CPC of €21.1, Non-Branded Google Ads are more expensive than other ad networks like LinkedIn, where the cost per influenced company is half as much.
This suggests these ads may not be as cost-effective in acquiring B2B customers compared to other channels.
B2B companies might consider diversifying their approach by balancing branded search ads or using retargeting strategies to enhance the ROI of Non-Branded campaigns.
For more information on closing the gap between ad spend and return for non-branded campaigns, check out this article on Branded vs. Non-Branded Google Search ads.
Branded Google Search Ads
Branded Google Search Ads focus on keywords containing the brand’s name, making them highly effective for capturing high-intent users who are already familiar with the company and are further down the funnel.
These ads can also help protect market share by ensuring their ads appear when potential clients search directly for their company or branded products and safeguard your brand from competitors bidding on the terms and stealing your traffic.
Branded Google Ads make up 7% of the total ad budget and cost significantly less than Non-Branded ads, with an average CPC of €5.5.
Despite only driving 2.1% of B2B web traffic, they deliver a ROAS of 1299%, with a cost per influenced company of €45 and a cost per influenced contact of €65.
While Branded Google Ads offer an excellent return on investment with significantly lower costs and higher conversion rates, there is more to the story. The inflated ROI can be attributed to lower cost, less variety of keywords, and a greater chance of conversion as branded keywords are by definition further down the funnel. Be sure to utilize Branded Google Search Ads alongside other methods to reach every stage of the funnel.
Google Display Ads
Google Display Ads allow B2Bs to showcase banner or visual ads across a broad network of websites, apps, and videos.
These ads are particularly useful for building brand awareness and retargeting potential leads who have already interacted with your website or content.
While display ads typically, and expectedly, have lower conversion rates compared to search ads, they are highly effective in nurturing leads throughout the buyer journey.
Google Display Ads account for 1.3% of web traffic and 2.5% of the total B2B benchmark budget. The cost per influenced company is €115, and the cost per influenced contact is €127.
While Google Display Ads are not as effective for direct lead generation, they are useful for maintaining visibility and nurturing potential customers.
Their relatively high cost and low traffic contribution suggest they are better suited for long-term brand building and awareness, rather than driving immediate conversions.
Youtube Ads
YouTube Ads, provide an opportunity for B2B brands to engage with potential customers through video content.
This is particularly valuable for sharing product demos, case studies, and educational material, helping to build trust and establish authority in the industry.
Despite their potential, YouTube Ads only account for 0.9% of the total ad budget, as B2B companies tend to prioritize more direct-response channels. The cost per influenced company is €352, and the cost per influenced contact is €231.
In terms of traffic, YouTube Ads contribute a minimal 0.2% to overall web traffic.
YouTube Ads are relatively expensive and contribute little to direct traffic. However, their value lies in brand positioning and educational content.
While they should not be a primary channel for lead generation, YouTube Ads can play a strategic role in influencing decision-makers at critical points in the buying journey, making them ideal for content-driven branding initiatives.
Conclusion
Understanding the nuances of B2B Google Ads benchmarks is crucial for optimizing your advertising strategy in 2024.
Google Search Ads, particularly branded campaigns, should be prioritized for capturing high-intent traffic, but not solely. On the other hand, non-branded search ads, while a significant budget investment, may require a more balanced approach to ensure cost-effectiveness. Meanwhile, Google Display Ads and YouTube Ads, though less effective for direct lead generation, play important roles in long-term brand building and nurturing leads throughout the buyer journey.
By leveraging these insights, B2B marketers can allocate their ad spend more strategically, maximizing their impact across different stages of the customer funnel.