2020 PPC Statistics – A Comprehensive List of Pay-Per-Click Stats

They may have been around for a while, but pay-per-click advertising is still one of the most effective tools available to any marketer. Not only can these ads target specific populations of consumers, but they are also cost-effective. Here are some of the most important and informative statistics related to PPC advertisements to help you improve your strategy.

Why You Should Choose PPC Ads

With so many different advertising options available, many marketers wonder whether it is really in their best interest to choose PPC ads over other possibilities. However, these PPC statistics show that PPC ads pack more punch when it comes to reaching your target audience.

  • According to SocialMediaToday, more than 7 million advertisers invested a total of $10.1 billion in PPC ads just during 2017.
  • EMarketer reports that Facebook’s ad revenues are set to eclipse the entire print industry in 2019. As a result, marketers who invest 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 reports 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 alone 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 (ROI)

When you use PPC search ads, you want to bring in the best ROI possible. These statistics indicate that PPC has the ability to 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. According to SocialMediaToday, 72 percent of marketers are spending more on social ads in 2018 and 60 percent of marketers are spending more on text ads and mobile ads in 2018.
  • 40 percent of brands want to increase their PPC budget, indicating that this is an effective and lucrative tool for marketers (SocialMediaToday).
  • According to Formstack, 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

Search engine optimization and PPC are two different strategies marketers can use to bring in more traffic. Both strategies offer advantages and disadvantages. These statistics highlight some of the advantages of PPC advertisements over SEO.

  • New Media Campaigns reports that 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 (New Media Campaigns).
  • Many consumers are unable to tell the difference between paid ads and other content. According to ScienceDaily, fewer than one in five users is able to accurately identify native advertisements.
  • 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 (New Media Campaigns).

PPC and Local Search Ads

More consumers are using local search than ever before. These statistics describe the interactions between PPC and local searches.

  • 82 percent of smartphone users are actively searching for businesses near them (Google).
  • Nearly 30 percent of searches for something in a specific location will result in a purchase (Google).
  • Three out of four people who find helpful information based on their location consider visiting brick-and-mortar stores (Google).
  • Almost one-third of all searches made on mobile phones are location-based (Google).
  • More than 40 percent of consumers use their smartphones to conduct research while inside a brick-and-mortar store (Google).
  • 76 percent of people who search for something nearby on a smartphone will visit a business within one day (Google).
  • Consumers spend 10 percent more money in a store if they have clicked on the retailer’s Google search ad before visiting (Google).
  • 40 percent of in-store purchases begin online (Blue Corona).
  • Almost 70 percent of searchers on mobile will call a business using a link from the search (PowerTraffick).

PPC Statistics for Industry Benchmarks

According to WordStream:

  • The average click-through rate across all industries on Google AdWords in 2018 is 3.17 on the search network.
  • The highest average click-through rate in Google AdWords is found in the dating and personals 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 personals 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 personals 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.

Google Ads Industry Benchmarks 2018

What Makes People Click and Convert

Certain types of advertisements get more clicks and conversions than others. Understanding these trends helps marketers position themselves for the best conversion rates.

  • More than 40 percent of clicks go to the top three paid ads in search results (Wordstream).
  • 90 percent of consumers say they trust online reviews (Google).
  • More than 95 percent of clicks go to the top four search results (Blue Corona).
  • Retailers can raise conversions by 16 percent when they include cross-device data (Google).

Surprising PPC Statistics

  • 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, 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 for 2020

According to Social Media Today:

  • The industries spending the most on PPC advertising in 2018 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 2018.
  • Programmatic is gaining importance and popularity as a PPC channel in 2018.

Ready to Give PPC a Try for Your Business?

Valve+Meter Performance Marketing specializes in PPC strategies that lead to clicks and results. Request a free marketing analysis from our team today.