EdTech Statistics

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EdTech Statistics

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

Statistical insights into the free-to paid-app subscription conversion rates as well as customer acquisition rates in the edtech industry have been provided below, including the average user acquisition costs, the average conversion rates, CPC, CTR, and CPM, among other benchmarks.

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.
  • 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.
  • 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.
  • 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.
  • 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.
  • 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

The research team scoured various Google Adwords and Facebook Ads reports, especially those providing marketing benchmarks based on product or industry. We also leveraged marketing reports published by Adcostly, Influencer Marketing Hub, LinkedIn, Unbounce, Invespcro, etc. Unfortunately, data specific to the average conversion rates from free app trials to paid app subscription in the edtech space is unavailable in the public domain; thus, data on the average conversion rates in the edtech sector has been provided.

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