ppc audit

Pay-per-click advertising is still one of the most effective tools available despite being around forever. These ads can target specific populations of consumers and they are very cost-effective. There are a few important statistics you should be aware of to improve your strategy in relation to PPC ads.

Why Choose PPC Ads?

With so many different advertising options available, is PPC the best choice to make over other possibilities? These PPC statistics show that these ads pack more punch when it comes to reaching your target audience and need to be in your strategy:

  • According to SocialMediaToday, more than 7 million advertisers invested a total of $10.1 billion in PPC ads just during 2017.
  • Facebook’s ad revenues eclipsed the entire print industry in 2019. As a result, marketers who invested in these advertisements are on the right track to reap benefits.
  • Other social media platforms are also expected to continue to grow with regard to advertising revenues (EMarketer).
  • Google reported that search ads can boost brand awareness by as much as 80 percent, making consumers more likely to remember your brand and interact.
  • Google Ads reaches a network of more than $2 million websites and applications (Google).
    Consumers make more than 160 billion searches per month on Google alone (Statista).

PPC Search Ad Stats and ROI

When you use PPC search ads, you want to bring in the best ROI possible. The statistics included below support the fact that PPC can provide a high ROI under the right circumstances.

  • For every $1 spent on Google Adwords, businesses earn an average revenue of $2 (Google).
  • Ad spending is increasing, with reports showing that 72 percent of marketers spent more on social ads in 2019 and 60 percent of marketers spent more on text ads and mobile ads in 2019.
  • 40 percent of brands want to increase their PPC budget, indicating that this is an effective and lucrative tool for marketers (SocialMediaToday).
  • Studies show that PPC ads are one of the top three generators of on-page conversions.
    65 percent of all clicks made by users who intend to make a purchase go to paid ads (Wordstream).

SEO versus PPC Statistics

SEO and PPC are two very different strategies that you as a marketer can use to bring in more traffic. Both strategies offer advantages and disadvantages. These statistics highlight some of the advantages of choosing PPC advertisements over SEO.

  • Paid search results gain 1.5 times as many conversions from click throughs as organic search results.
  • PPC ads can put you on the first page for a given search term within a day
  • Many consumers are unable to tell the difference between paid ads and other content. Fewer than one in five users is able to accurately identify native advertisements, according to Science Daily.
  • PPC visitors are 50 percent more likely to make a purchase than organic visitors (Unbounce).
  • PPC statistics are easier to measure than SEO statistics, making it easier for marketers to track ROI and manage budgets (Unbounce).
  • PPC is more effective when used in conjunction with SEO.

PPC and Local Search Ads

More consumers are using local search than ever before. Below is what you can expect to see regarding interactions between PPC and local searches.

According to Google:

82 percent of smartphone users are actively searching for businesses near them.

Nearly 30 percent of searches for something in a specific location will result in a purchase.

Three out of four people who find helpful information based on their location consider visiting brick-and-mortar stores.

  • Almost one-third of all searches made on mobile phones are location-based
  • More than 40 percent of consumers use their smartphones to conduct research while inside a brick-and-mortar store.
  • 76 percent of people who search for something nearby on a smartphone will visit a business within one day.
  • Consumers spend 10 percent more money in a store if they have clicked on the retailer’s Google search ad before visiting.

PPC Statistics for Industry Benchmarks

According to Wordstream:

  • The average click-through rate across all industries on Google AdWords in 2019 is 3.17 on the search network.
  • The highest average click-through rate in Google AdWords is found in the dating and personal ads industry, while the lowest click-through rate is found in the legal industry.
  • The average cost-per-click across all industries in Google AdWords on the search network is $2.69. The highest cost-per-click is found in the legal industry, while the lowest cost-per-click is found in the dating and personal ads industry.
  • The average conversion rate across all industries in Google AdWords on the search network is 3.75 percent. Conversion rates are highest in the dating and personal ads industry at over 9 percent. Conversion rates are lowest in the advocacy industry at 1.96 percent.
  • The average cost-per-action across all industries in Google AdWords on the search network is $48.96.
  • Cost-per-action is highest in the technology industry at over $133. Cost-per-action is lowest in the auto industry at $33.52.

What Makes People Click and Convert?

  • Studies show that certain types of advertisements get more clicks and conversions than others.
  • Understanding these trends will help you position yourself for the best conversion rates.
  • Wordstream reports that more than 40 percent of clicks go to the top three paid ads in search results.
  • More than 95 percent of clicks go to the top four search results.
  • According to Google, retailers can raise conversions by 16 percent when they include cross-device data and 90 percent of consumers say they trust online reviews.

Surprising PPC Statistics

Some things you may be surprised to know about PPC:

  • While the average click-through rate for PPC ads is only 2 percent, the average click-through rate for the top paid result on the screen is almost 8 percent (Accuracast).
  • More than half of all searches are longer than four words (Wordstream).
  • Click-through rate declines considerably as position on the first page of search results drops. However, the last position on the first page of search results and first position on the second page of search results have a slightly higher click-through rate than some higher positions on the first page (Accuracast).
  • More than 96 percent of Google’s total revenue comes from paid advertisements (PowerTraffick).
  • The most expensive keyword is “insurance” (PowerTraffick).

PPC Statistics and Trends You Need to Know for 2020

According to Social Media Today:

The industries spending the most on PPC advertising in 2020 include retail, travel, publishing and education. The consumables, automotive and home improvement industries are spending the least on PPC advertising.

The most effective PPC channels are text ads, remarketing and mobile.

  • 4 out of 10 marketers want to increase their PPC budget.
  • Google AdWords, Facebook and mobile are the most popular PPC platforms.
  • 80 percent of respondents surveyed view artificial intelligence as an important player in the digital advertising industry during 2019.

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