Pay-per-click is one of the most effective online marketing methods courtesy of its superior audience targeting based on data such as demographics, keyword, and period of usage. The PPC market, however, has changed a lot over the past few years. It is no longer Google-exclusive with Facebook and Amazon claiming spots on the list of the best PPC platforms. We prepared these vital PPC stats to help you craft a well-thought marketing strategy and choose the right platform to advertise your products.
PPC Stats (Editor’s Choice)
- Nearly 50% of users can’t tell the difference between PPC and an organic result.
- 90% of PPC ads are not seen by users.
- 75% of people say they click on ads because they expect an answer to their question.
- Google recommends a PPC budget of $10-$50 per day for beginners.
- Google pay per click ads have one of the biggest ROI (200%).
- 15% of US smartphone users are currently using ad blockers on their devices.
General Pay per Click Statistics
1. Search ad spending is expected to reach $132 billion by 2022.
Statista’s report on search ads indicates that companies spent $106.5 billion on search advertising in 2019. The amount is projected to grow even more and reach $132 billion by 2022. Data further shows that display advertising reached $161 billion, accounting for the largest ad spend share in 2019.
2. Nearly 50% of users can’t tell the difference between a paid and an organic result.
PPC trends indicate many people regard this method as poor advertising because they think users evolved and started avoiding sponsored results. There is some truth to this, but a recent study shows that nearly half of the users didn’t recognize the difference between an organic search result and a sponsored ad.
3. 25.8% of users used ad blockers in 2019.
Ad blockers continue to be problematic for PPC ads. Users feel overwhelmed by the ads shown on every website and platform. PPC stats reveal that 25.8% of users use ad blockers. They also state that the percentage will only increase in the coming years and will reach 27% by 2021. Marketers must either be more careful with placing ads everywhere or find a more intelligent solution.
4. 40% of businesses say their PPC budget is lower than what they want it to be.
As more businesses experience the excellent conversion rate of PPC ads, their appetites grow bigger. Not every company, however, has the budget to invest more in pay-per-click advertising. Pay per click statistics reveal that more than 40% of brands and agencies would gladly increase their ad spending but lack the funds to do so.
5. The average PPC wage in the US is $49,941 per year.
The growth of the market, as PPC agencies reveal, has brought some good job opportunities for those who are part of it. The average salary in the sector amounted to nearly $50,000 per year. What this means is that their hourly wage is approximately $17. Since 2019, the average PPC salary has increased by almost $2,000 which is more than good news for those working in this niche.
(Digital Third Coast)
PPC Advertising Statistics
6. PPC advertisers are spending more on social ads.
The most recent PPC industry facts and figures from SocialMediaToday reveal that 72% of marketers spend more on social ads. With more than 2.4 billion active social media users, it’s understandable that marketers are shifting their advertising on social media. On the other hand, text and mobile ads are preferred by 60% of advertisers which is not a bad investment as mobile usage is also experiencing a revolution of its own.
7. PPC advertising stats show nearly half of small businesses invest in this method.
Many small business owners find PPC advertising convenient for reaching audiences, developing brand awareness, driving profits, and converting buyers which is why 45% of small businesses invest in it. A recent PPC industry report also shows 74% of businesses with more than 50 employees are actively investing in PPC advertising.
8. Display advertising generates 300% more traffic.
Pay per click ads statistics reveal that this type of advertising generates 300% more traffic to a website. Display advertising, also known as banner advertising, is a form of marketing that uses photographs, videos, or animation to convey the commercial message of a brand. With these ads continually moving, they succeed in capturing the attention of users and produce a higher conversion rate than text and picture ads.
9. Traffic generated via PPC advertising brings 50% more conversions than organic advertising.
Organic vs paid search statistics confirm this advertising method is better able to target the market you want and the customers you need. Compared to other advertising methods, stats show PPC is much more effective in creating conversions. So much so, that compared to organic advertising or SEO, PPC advertising yields 50% more conversions and traffic.
10. 75% of people say they click on ads because they expect an answer to their question.
In case you were wondering why people click on ads, Clutch’s PPC stats reveal that 75% of people believe they provide answers to their queries. 33% of users state that they click the ad because they think it contains the right answer.
The number one rule for success on search engines is to write content that provides answers to search queries. When the SEM team does their job right, people will appreciate the search query result and reward it with a click.
11. Nearly half of people click on text ads.
According to pay per click statistics, people are more likely to click on text than video ads which kind of makes sense. For example, if you are scouting for new running shoes and you see an ad saying “sale,” “deal”, or “clearance”, chances are you will check it out. Stats show 49% of people tend to click text ads while 31% click shopping ads in such cases. And although videos are the latest fad in marketing, only 16% of potential shoppers would click on video ads.
PPC Stats on Mobile Advertising
12. A little over half of paid clicks are made on mobile devices.
The latest models of smartphone devices have some enhanced features that make desktops almost redundant. People are switching to mobile browsing at a rapid tempo, and marketers should be taking advantage of it. The larger screen size in combination with the intuitive UX and interactive mobile web design, makes users almost willingly click on search ads which has resulted in mobile generating 53% of paid search clicks. Optimizing your ads for mobile access could be the key to boosting your ad campaign.
13. More than 90% of mobile users are more than likely to click on the first set of results.
Pay per click advertising statistics reveal mobile PPC advertising can be extremely effective as long as there is an optimized and visible presence in search results. A total of 60% of mobile users are very likely to click on the first two or three search engine results while an additional 30% are likely to do so. So, chances are that nine out of ten mobile users will click on PPC ads that are always on top.
(Search Engine Land)
14. PPC stats reveal 70% of all paid search impressions are on mobile.
With mobile platforms accounting for more than half of search ad spending, it appears advertisers are more than prepared to meet mobile user needs by making a shift in paid search ad spending from mobile to desktop. The good news is their efforts paid off as more than 70% of paid search impressions at the end of 2019 were made on mobile devices.
15. 15% of US smartphone users are using ad blockers on their devices.
The use of mobile ad blocking is growing, especially stateside, and yet numbers show ads prevail. Data shows that currently, 15% of US smartphone users browse websites without the inconvenience of display ads slowing them down. PPC statistics for mobile further indicate a total of 67% of users are aware that such software exists but have never bothered to install it, while 18% of smartphone users are not even aware that there is a tool that can make ads go away ‘almost’ for good.
Google Ads Statistics
16. Google rules the PPC market with a 37.2% share.
It was Google that started PPC advertising in the first place. Facebook comes in second with a 19.6% market share. Both Google and Facebook, however, have slightly decreased their market share, while Snapchat and Amazon are growing theirs.
17. Google says PPC ads increase brand awareness.
The official Google advertising statistics reveal that the platform’s advertisements increase brand awareness. A study covering four industries and more than 800 users ran simulated queries for specific keywords. The users were later shown a test SERP, where they placed a couple of test brands in the top ad positions. The results suggested a significant increase in brand awareness for the automotive and B2B sectors.
18. Google Ads across all industries have an average CTR of 3.52%.
Google Adwords statistics show, however, that some industries perform better than others. The Arts & Entertainment and Travel & Tourism point to an almost excellent average CTR of around 9% which could be due to the fact that these industries have more customization qualities. Led by these data, marketers consider Google’s CTR above average which is why they use it as a way to generate leads. Even though the focus for many marketers has shifted towards social media, the way Google displays sponsored ads still proves more effective.
19. Google ads statistics point to an average conversion rate of 3.17%.
And every year, the conversion rate increases. SearchEngineWatch’s stats for using PPC reveal that the greatest conversion rates on Google come from the Dating and Personal industry with 9.64%, Legal with 6.98%, and consumer services with a 6.64% conversion rate.
20. Google recommends a PPC budget of $10-$50 per day for beginners.
PPC facts show that Google typically recommends new users to spend between $10 and $50 on PPC per day. You should also check daily and see how your ads performed. If you think it is good enough, leave it as it is. On the other hand, if you think it’s too little or too much, then make adjustments. Test until you figure out what works best for you.
21. The Google advertising network reaches 90% of internet users.
The world’s largest advertising network for placing ads of all types, Google Display Network (GDN), as Google advertising statistics reveal, reaches an incredible 90% of all internet users through their 2 million websites. When you place ads, you can also do so on Google’s properties like YouTube and Gmail to expand your reach even more.
22. Google pay per click ads have one of the biggest ROI (200%).
For every dollar companies spend on pay-per-click advertising, they earn two dollars on average from Google Ads. With 200%, Google paid advertising provides the highest ROI from all digital advertising formats, according to a recent PPC industry report.
PPC Statistics on Bing
23. Cost per click trends indicate Bing is more affordable and less competitive than Google.
Bing’s pay-per-click advertising rates are 33.5% lower than Google’s. Bing also has a better interface for setting the audience and goals. Plus, the ads occupy better positions and produce better CTR.
24. Bing supports SMEs with less money spent on ads than Google.
To acquire a Bing rep, you need only to spend $500 per month on advertising. With Google, you must spend more than half a million dollars per year for a dedicated account rep.
25. Bing has a better quality score reporting than Google.
PPC statistics show that while Google ads have many tools to help track your campaign, they lack quality score reporting. Microsoft Adcenter meanwhile lets you pull data from the first to the last day and generate a historical quality score report.
26. Keywords with four or more words have the highest CTR on Bing.
It seems that long-tail keywords work best on Bing. Their internal data reveals that four-word keywords have the highest CTR with 5.83%. Additionally, one-word queries have 1.71 CTR, and two words have 1.95%.
Facebook Advertising Stats
27. Nearly 60% of people say that they have visited the brand's website after seeing their ad on Facebook Stories.
As many as 58% of surveyed Facebook users visited the brand’s website after they saw an advertisement on Facebook Stories. So, in this case, clicking is not so important as the brand awareness created by the ad. No clicks on your ads don’t necessarily mean you lost — impressions count as well.
28. Facebook Ads have an average conversion rate of 9.21%.
Facebook advertising stats point to fitness studios as the sector with the highest conversion rate with 14.29%. Since the sector also has the lowest CTR, every click could be a potential customer. The healthcare industry’s average PPC conversion rate meanwhile stands at 11%, followed by Education with 13.58%, and the B2B sector with 10.63%. At the other end of the spectrum are retail and technology that fail to produce high conversion rates on Facebook, even if their CTR is higher than others.
29. PPC stats show 30% of US ad buyers say that Facebook offers the highest ROI from all of their advertising investments.
Almost a third of all US advertisers get the biggest ROI from Facebook ads, as suggested by eMarketer’s PPC spending facts and figures. Facebook earned more than $16 billion in ad revenue in the second quarter of 2019, and their biggest boost came from Instagram ads.
30. 72% of marketers use Facebook to advertise.
Who would have thought 15 years ago that nearly every marketing campaign would revolve around Facebook? Today, Facebook advertising stats confirm 61% of all marketers deem Facebook as the most important social media for their business. The most recent Facebook data about PPC advertising shows that 59% of all marketers will increase their spending on Facebook Ads in 2020.
(Social Media Examiner)
31. Small businesses spend $1,000-$2,000 per month on Facebook advertising.
Because small businesses have limited budgets, Facebook PPC advertising stats indicate this medium might be most affordable compared to other online marketing platforms. The average CPC on Facebook is $1.86 while the cost-per-thousand-views or CPM is $11.20, and this depends on factors starting from ad quality to ad competition. If you belong to an industry with a low PPC rate, you can double or even triple your revenue on Facebook.
PPC Statistics for Amazon Marketers
32. The average CTR on Amazon is 0.41%.
More than 0.41% means you are doing a great job. Any less, and you need to change something. The leading causes behind low CTR on Amazon come from low title quality, high pricing, bad image quality, and poor review scores. However, the charts from AdBadger show that the average CTR of Amazon has changed over the past six months from 0.30% to 0.60% to 0.30% again in June 2020.
33. Amazon’s pay per click statistics reveal the average PPC conversion rates for this platform hover at 10%.
Statistical data show that just like any other metric, the averages do not represent all industries. For instance, products that exceed $100 suffer low PPC conversions, because customers usually compare them with other products before they make the final purchasing decision.
34. Sponsored products make up 85% of Amazon’s ad spend.
Being the third most popular advertising platform, after Google and Facebook, Amazon provides an excellent opportunity for marketers to see their PPC campaigns reach full potential. After all, regardless of the type of search, organic vs paid search statistics reveal 66% of product searches worldwide start on Amazon. And the fact that Amazon made $10 billion in ad revenue in 2019 should come as no surprise but should serve as an incentive to invest more in sponsoring products.
Wrapping It Up
Some say PPC is too expensive, or that SEO is the better option. Others argue that it rarely generates profit. Reality check — it works if you know what you are doing. The PPC stats in this article will help you understand how this advertising method works and where it fails, and they will hopefully give you an idea of how to incorporate it in your advertising strategy this year and beyond.
Sources: Statista, WordStream, Statista, SocialMediaMarketing, Digital Third Coast, SocialMediaToday, The Manifest, Visual, Disruptive Advertising, Clutch, SearchEngineLand, Power Traffick, SearchEngineLand, Mobile Marketer, Statista, eMarketer, Google, WordStream, SearchEngineWatch, Google, Google, WordStream, WordStream, Entrepreneur, PPC Hero, Bing, Facebook, WordStream, eMarketer, Social Media Examiner, FitSmallBusiness, AdBadger, PPC Protect