In the fast-paced world of Australian digital marketing, many small business owners make the mistake of looking at their marketing channels in isolation. Channel performance benchmarking is the process of setting internal and external standards to measure how your Facebook ads, Google Search, and email marketing are actually performing against each other and your industry peers.
Without a structured benchmarking system, you’re essentially flying blind. You might think a 2% click-through rate on LinkedIn is poor, when in reality, for your specific industry in the Brisbane market, it might be an outlier of success. This guide will show you how to build a robust system to track, compare, and optimise your marketing spend.
Prerequisites
Before you begin, ensure you have the following:- Access to Google Analytics 4 (GA4).
- Native platform access (Facebook Ads Manager, Google Ads, Mailchimp, etc.).
- A spreadsheet tool (Google Sheets or Microsoft Excel).
- At least 3 months of historical marketing data.
- Your Business ABN (sometimes required for industry-specific benchmarking reports).
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Step 1: Define Your Core Metrics (KPIs)
Not all data is created equal. To benchmark effectively, you need to choose metrics that can be compared across different platforms. While 'Likes' are great for Facebook, they don't exist for Google Search. Focus on 'Universal Metrics'. Common Universal Metrics include:- CTR (Click-Through Rate): Efficiency of your creative/copy.
- CPC (Cost Per Click): How much you pay for traffic.
- CPA (Cost Per Acquisition): How much a lead or sale costs.
- ROAS (Return on Ad Spend): The revenue generated for every dollar spent.
Step 2: Gather Historical Internal Data
Look back at your performance over the last 6 to 12 months. Calculate the average performance for each channel. This becomes your 'Internal Baseline'.Australian seasonality plays a big role here. For example, if you are in retail, your November/December benchmarks will naturally be higher due to Black Friday and Christmas. Ensure you note these seasonal fluctuations in your data set.
Step 3: Research Australian Industry Benchmarks
External benchmarking requires looking outside your business. You need to know what a 'good' result looks like in the Australian landscape.- Resources: Look for reports from WordStream, SocialBakers, or Australian-specific industry bodies like the ACMA or IAB Australia.
- Local Nuance: Remember that Australian CPCs in industries like Real Estate or Legal Services are often significantly higher than global averages due to the competitive nature of our capital cities like Brisbane and Sydney.
Step 4: Segment Your Channels
Group your marketing efforts into logical categories. Benchmarking works best when you compare 'apples with apples'. Create categories such as:- Paid Search: Google Ads, Bing Ads.
- Paid Social: Facebook, Instagram, LinkedIn.
- Organic: SEO, organic social posts.
- Direct: Email marketing, SMS.
Step 5: Establish the 'Gold Standard' for Each Category
Based on your research in Step 3 and your data in Step 2, set a 'Target Benchmark'. This should be aspirational but achievable. For example, if your current Email Open Rate is 22% and the Australian average for your industry is 28%, set your benchmark at 25% for the next quarter.Step 6: Normalise Your Data
To compare a $500 Facebook spend with a $5,000 Google Ads spend, you must normalise the data. Use percentages and ratios rather than raw totals.Pro Tip: Use the formula (Total Conversions / Total Clicks) * 100 to find your Conversion Rate for every channel. This allows you to see which channel is most 'persuasive', regardless of how much money you throw at it.
Step 7: Build a Centralised Dashboard
Stop checking five different apps. Use a tool like Looker Studio (formerly Google Data Studio) to pull all your data into one view. Screenshot Description: In Looker Studio, you should see a series of 'Scorecard' charts at the top showing your total ROAS, followed by a 'Table' chart comparing each channel side-by-side against your set benchmarks.Step 8: Set a Monthly Review Cadence
Benchmarking isn't a 'set and forget' task. Schedule a 30-minute meeting on the first Tuesday of every month to update your figures. What to look for:- Variance: Is a channel performing 20% below its benchmark?
- Trends: Has the CPC been rising for three consecutive months?
- Anomalies: Did a specific campaign skew the results?
Step 9: Use Benchmarks to Reallocate Budget
This is where the magic happens. If your Benchmarking System shows that Email Marketing has a ROAS of 10:1 while Facebook Ads has dropped to 2:1 (well below your 4:1 benchmark), it’s time to shift some of that Facebook budget into growing your email list or improving your email flows.Step 10: Document Your Learnings
Keep a 'Change Log' alongside your benchmarking spreadsheet. If you changed your Google Ads bidding strategy in May, note it down. This helps you understand why a benchmark was met or missed when you look back a year from now.---
Common Mistakes to Avoid
- Ignoring the Sales Cycle: Don't compare a high-intent channel like Google Search (where people are ready to buy) directly against a low-intent channel like Awareness Display ads without adjusting your expectations.
- Using Global Data Only: US or UK benchmarks often don't translate to the Australian market due to different levels of competition and currency values.
- Over-complicating the System: Start with 3-4 key metrics. If you try to track 50 metrics per channel, you’ll likely stop updating the system within two months.
Troubleshooting
- Data Discrepancies: If GA4 says you had 100 conversions but Facebook says you had 150, this is due to 'Attribution Models'. Pick one source of truth (usually GA4) for your benchmarking system to maintain consistency.
- Small Sample Sizes: If a channel only gets 10 clicks a month, the data isn't statistically significant. Wait until you have at least 100-200 clicks before setting a firm benchmark.
- Technical Tracking Issues: If your conversion rate suddenly drops to 0%, check your tracking tags using Google Tag Assistant before assuming the channel is failing.
Next Steps
Now that you have your benchmarking system in place, the next step is to perform a deep-dive audit on your lowest-performing channel.If you need help setting up automated dashboards or interpreting your Australian industry benchmarks, the team at Local Marketing Group is here to help. Contact us today to streamline your marketing analytics.