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A benchmark is a reference number - often an average or percentile - for metrics like spend, CPM or conversion rate, used to judge whether your campaign over - or under-performs the market.
They show how efficiently you reach and convert audiences compared with similar brands, turning raw results into context that clients or executives can trust.
Divide campaign profit by cost, then compare the ratio to peer averages; a higher return signals efficient spending, while lower ROI suggests optimisation is needed.
Common metrics include impressions, reach, CPM, CPC, CPA, conversion rate, share-of-voice and total spend across channels.
Refresh digital metrics weekly or monthly; review strategic indicators like annual share-of-voice at least quarterly to keep comparisons accurate.
Choose brands with similar industry, audience size, geography and media budget; excluding giants or niche players prevents skewed averages.
Comparing your Google Ads CPA to the median CPA of five direct competitors to decide if bid adjustments or creative changes are needed.
“Good” depends on industry and funnel stage; use peer medians and top-quartile figures to define realistic targets instead of a single universal number.
Incomplete channel data, seasonality spikes, last-click bias and different attribution windows can mislead; normalise periods and validate with first-party analytics.
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