Key Takeaways

• On average, EdTech companies generate about 3,000 to 3,500 organic leads with only a 2% — 3% conversion rate.
• According to research, the average CPC in India increases 5-7% every year organically. Estimates indicate that in 2020 it could have been as high as (~30%) for edtech companies.
• According to Adcostly, in 2020, the average CPC for interest "Blended learning" on Facebook Ads was $0.14, with an average CPM (cost per thousand) of $7.9.

Introduction

Average Conversion Rates

• Conversion rates for online courses vary based on multiple factors, including target market, price, and topic, among others.
• According to Influencer Marketing, there are three categories characterizing the different conversion rates estimates for the edtech sector.
• Low Conversion Rate: 0.1%–1% 
• Mid-range Conversion Rate: 2%–5% 
• High Conversion Rate: 6%–10%
• Edtech Startup spend on average 20-25% of their annual revenue on marketing and branding activities that generate leads, which sales executives have to convert through O2O counseling.
• According to China-based Meten EdtechX, customer acquisition cost was $631 per student in 2017, which declined to $503 in 2018, and finally to $474 in 2019, primarily driven by cross selling.
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• Research estimates the average ecommerce conversion rate for the education category at approximately 12.5% as shown in the image above.
• Further, the average lead generation conversion rate for the higher education sector is 2.6% and 6.1% for vocational studies, and training.
• On average, EdTech companies generate about 3,000 to 3,500 organic leads with only a 2% — 3% conversion rate.

Average App Conversion Rate

• Data published by AppTweak indicates that the average install rate on the App Store between January to October 2021, was 4%, across all categories.
• Equally, during that period, the average conversion rate across categories in the U.S. on the App Store was 30.3% and 33% on Google Play.
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• The education category had an average conversion rate of 40.3% on the U.S. App Store.
• On Google Play, the education category had an average conversion rate of 46.2%.

Average Click Through Rate

• According to Google Adwords industry benchmarks, the average click-through rate (CTR) in Adwords across all industries in 2020 was 3.17% and 0.46% on the search network.
• The average CTR for the education sector was 0.53% on the display network and 3.78% on the search network.
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• The image above shares more details regarding the other industries.

Average Cost Per Click

• According to Adcostly, in 2020, the average CPC for interest "Blended learning" on Facebook Ads was $0.14, with an average CPM (cost per thousand) of $7.9.
• For the edtech segment, specifically on Facebook Ads, the CPC was 300.0% greater than Blended learning, while the CPM was 30.38% less than Blended learning. Meaning the CPC for edtech was $0.42 (300% greater than $0.14) and the CPM was about $5.5 (30.38% < $7.9).
• In 2020, the average cost per click (CPC) in Adwords across all industries was $2.69 on the search network and $0.63 on the display network.
• The average CPC for the education sector was $2.40 on the search network and $0.47 on the display network. Insights into the rates of other industries are shown in the image below.
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• According to research, the average CPC in India increases 5-7% every year organically. Estimates indicate that in 2020 it could have been as high as (~30%) for edtech companies.

Research Strategy