45+ PPC Stats to Empower Your Marketing Strategy in 2020

26 years ago, several events took place and changed the course of history forever.

  • The Channel Tunnel connected France and England.
  • Sun Microsystems released the Java programming language.
  • Netscape Navigator became the most-used browser.
  • The first online ad appeared.

Yeah, back in 1994, there was only one ad.

Are you ready for some more PPC stats?

Wait, what is PPC?

The acronym stands for pay-per-click. In general, most of the ads you see all over the Web and apps are PPC. If companies want to advertise on any platform, they pay for each visitor the platform redirects toward their sales funnel.

The first online advertisement was part of AT&T’s “You Will” campaign in 1994.

Now there are billions of ads.

Alright, let’s look into some interesting PPC statistics to help you improve your marketing strategy in 2020.

The following stats will show you some breath-taking details about PPC you probably didn’t suspect.

Let’s start with some appetizers before we dig in the main course.

Worth-to-know PPC Stats

  • As of 2020, Google owns 92.7% of the global search market share.
  • Paid advertisements have a 200% ROI.
  • PPC generates twice the number of visitors compared to SEO.
  • Ads can increase brand awareness by 80%.
  • 65% of customers click on PPC ads.
  • 86% of Americans use the Web to find local businesses.
  • 62% of marketers increased their ad spend in 2019.

These PPC statistics are just the tip of the iceberg.

Still, they’re enough to grasp the importance and significance of paid ads.

Did you know that the average internet user is exposed to 4,000-10,000 ads daily, according to different studies?

Yes, we are bombarded with tailored content.

You probably don’t give this much thought, but now that you have the number in front of you – it’s astonishing!

It’s safe to say ads are all around us.

It’s not rocket science to understand how the advertisement business reached those heights.

With every passing year, the digital population of the world (netizens) increases. So does the number (and scope) of the advertising platforms.

26 years ago you could only find ads on websites. Today we have Youtube, applications, search engines, and so on. Ads are everywhere!

Let’s create order from this chaos by looking at some of the newest PPC statistics.

Eye-Opening PPC Stats for 2020

Keen to build a successful PPC campaign throughout 2020? 

There are lots of things you can do. 

Wanna know some tips and tricks? 

Dive into these PPC stats for more insight!

1. Customers are up to 70% more likely to buy your product when you use retargeting.

(Source: Web FX)

Based on these PPC stats in 2020, you really can’t afford not to include remarketing in your overall PPC strategy.

But what exactly is ‘remarketing’?

It’s when you reach out to those who already interacted with your website in some way. Google Analytics is a great tool for this, allowing you to segment your audience for the most effective campaign possible.

2. Over 50% of ad clicks happen on mobile devices.

(Source: Web FX)

Over 40% of online transactions now happen on mobile. But a surprisingly low number of businesses pay attention to mobile optimization and PPC strategies. And they go hand in hand. To maximize ROI for PPC campaign effectiveness, sites should be fast and functional on both mobile and desktop.

3. Conversion rates can be boosted beyond 40% by combining similar audiences with display remarketing campaigns.

(Source: Web FX)

Consider diversifying your audience on Facebook or Google ads for potentially better returns.

How?

You can rely on the platforms for that. Most of the process is automated. Simply provide the data, and they will do the rest.

4. On average, SMBs invest between $9K and $10K on PPC monthly.

(Source: Web FX)

While this is a reliable estimate on how much you might expect to pay monthly for PPC in 2020, it isn’t a fixed figure. You’ll need to evaluate both your own budget, and whether your sector is among the best industries for PPC. If you decide to do your own campaign, the average Google PPC cost may be considerably lower.

5. Featuring 1.2 million businesses and 1 million websites, Google is the main PPC player.

(Source: SERP Watch)

These figures refer to the number of businesses and websites which are part of the Google search and ad display network. It’s also worth noting that Google owns nearly 93% of the search engine market, including both paid and organic search. Display campaigns alone reach over 90% of all internet users around the world. 94% of them are US-based.

6. Customers are 155% more likely to search for brand-specific terms when exposed to display ads.

(Source: SERP Watch)

Additionally, 40% of all clicks on the first page of a search engine are for the top three ads at the top, according to recent PPC statistics in 2020.

7. 9.21% of Facebook ads convert, making it the highest converting platform available.

(Source: SERP Watch)

You might assume that Google is the king of conversions.

Nope.

Google only experiences 3.46% conversions.

Facebook, on the other hand, has 9.21% of ad conversion.

Average business websites lag behind, with a mere 1 to 3%.

8. 97% of people learn about local businesses online

(Source: SERP Watch)

This is significant because in most cases, users will then make a visit to that business. 28% of visits then result in an actual purchase. An impressive 46% of all Google searches are for local information.

Now.

For the last several years, there’s been a debate – what is better? PPC or SEO?

Coming up are the stats that reveal the answer.

SEO vs PPC Statistics for 2020

Unsure whether to use PPC or SEO?

There’s a couple of things to consider.

If you have a large budget and want instant results, you might want to use PPC. The opportunities for displaying ads across the web are virtually endless! Just be sure to check PPC cost per industry to make sure it’s worth the investment.

Alternatively, if you’re looking for something which can generate results in the background, SEO is the way to go. Here are some SEO vs PPC statistics to help you make the right choice.

9. PPC generates twice the number of visitors compared to SEO.

(Source: QUICKSPROUT)

If you’re just starting out in business, and lack good traffic or brand visibility, PPC comes to the rescue. Results generated are instant, drawing in twice as many visitors, compared to SEO. However, as you might have seen from various PPC advertising stats, it’s not the cheapest option.

10. The average agency charges between £2K and £4K (about $2.55-$5.11K) for a mid-level SEO campaign. 

(Source: One PPC)

PPC can be even more expensive.

If your budget is tight, SEO might be a better option. Do keep in mind that it takes time to see results.

11. B2B PPC stats indicate that the average yearly cost for this service is between $115K-$122K.

(Source: Search Engine Land)

If this sounds too expensive for you, you could always opt for SEO instead, which for a one-off project fee, costs between £4,000 and £24,000. However, based on your objectives, PPC might be the best option for you. It’s all down to your budget.

12. PPC takes around 3 weeks to learn, basic SEO can take up to 3 months.

(Source: Quora)

And this is just for the basics. Learning advanced SEO takes even longer.

No matter which you choose, you’re going to need to invest a decent amount of time to get anywhere with either. You can’t simply upload PPC ads, then achieve instant results without doing any background work. Optimizing ads to use low CPC while achieving a high CTR is an art in itself.

13. SEO works around the clock, but if you stop investing in a PPC campaign, your traffic will fall to zero.

(Source: QUICKSPROUT)

For PPC to work well, you need to pay attention to it constantly,  SEO vs PPC stats tell us.

SEO allows for free time. Even if you stop working on your SEO campaign for a short while, you’ll still get traffic. Moreover, SEO statistics show 82% of marketers notice a rise in SEO effectiveness.

14. 94% of users skip search ads and go straight to organic results.

(Source: Rank Pay)

We’re not saying that SEO is a better technique than PPC. In fact, when a PPC campaign exists in the top 3 results, users are more likely to be engaged.

But SEO has stats on its side. 94% of users actually head straight to the organic results and skip search ads.

15. While SEO only improves visibility on 2-3 search engines, PPC ads’ visibility is endless.

(Source: Search Engine Land)

Thanks to services like Google Ads, users can manage exactly where their ads will appear, giving them tighter control over their campaigns.

Of course, there are some factors affecting ad placement which need to be considered. Advertising statistics in 2020 tell us the main points to think about are budget, target audience, and the type of ad.

16. Bing has a low average CPC –  just $1.54.

(Source: Word Stream)

Looking to test new markets using PPC? Consider Bing.

With SEO, serious time and effort are required when testing your brand on a new audience. Using PPC is essentially a shortcut, which can get you instant exposure. Just be sure to use the right search terms and try and achieve the best quality links possible.

Now.

These stats are just the tip of the iceberg.

Let’s check out some more fascinating PPC stats to show you how big it actually is.

General Pay-Per-Click Statistics

When used correctly, PPC is a powerful marketing tool, especially if you know your target audience well.

17. 96% of Google’s revenue comes from Google Ads.

(Source: Trend Statistics)

On July 24, 2018, Google AdWords changed its name to Google Ads. It wasn’t only a name change, however. Some of the former Google Adwords departments joined forces under the new name. Google Ads is now responsible for all ad channels – including Adsense and YouTube commercials.

Now, Google closed 2019’s Q3 with an income of over $40.3 billion. And Google Ads revenue was responsible for almost every dollar of this mind-blowing profit.

18. 96% of marketers spend money on search ads.

(Source: The State of PPC 2018-2019, Hanapin Marketing)

Search ads are still the best way to reach customers. Still, social media ads are on the rise and gaining ground. An overwhelming 88% of marketers advertise on social media. According to 89% of them, remarketing is the best option to reach customers.

19. 62% of marketers increased their PPC budgets in 2019.

(Source: Hanapin Marketing)

Advertising is at the core of digital marketing strategies. Every company aims to grow and therefore invests more of its budget on ads. Almost two out of every five interviewees responded their ads budget is now “much bigger.”

20. Digital ads account for more than half of the global ad revenue.

(Source: eMarketer)

In 2019 most companies spent more than half of their ad budgets on digital ads. Chinese companies lead the way – 69.5% of their ad spending goes for digital ads.

Advertising statistics show that digital ad spending will increase and surpass traditional advertising in almost every country. 2019 will mark the first time when companies in the US and Russia spent more than half of their ad budgets on digital ads.

21. Ads can boost brand awareness by 80%.

(Source: Valve+Meter)

If you want to improve your visibility, PPC links allow you to “buy” your way into the search results. The more people see your brand, the more likely it is they’ll interact with it. PPC increases brand awareness by an average of 80%. Keep in mind that for some brands, this can be higher still.

22. 65% of consumers click on PPC ads.

(Source: WordLead)

According to PPC stats, paid advertisements redirect 65% of the traffic. Organic results receive only 35% of clicks. When customers have made a buying decision, paid ads convert better. If you don’t have a well-optimized PPC campaign right now, you are simply missing out.

23. 86% of Americans use the Web to find local businesses.

(Source: BrightLocal)

Google Maps is a great tool to find local businesses. Google has become the go-to tool for finding a business’s location… or simply to read their reviews.

24. Google controls 92.7% of the global search engine market.

(Source: Statcounter)

Other search engines like Yahoo and Bing are not even in the same league. If you want to advertise online – Google’s PPC ads are among the best options. Google is the preferred search engine in almost every country, with small exceptions like China (they use Baidu).

Did you suspect that such a large company can be built on just ads? These are some mind-boggling numbers!

PPC Statistics for Businesses

Let’s see how PPC ads interact with people and the effects they can achieve.

25. 52% of online shoppers call the advertiser.

(Source: PPC Resellers)

PPC ads often propel consumers to call the advertiser, directly from the search results.

26. PPC converts 50% better.

(Source: Unbounce)

Undoubtedly one of the pros of PPC advertising is the ability to better target your market. PPC traffic results in a 50% higher conversion rate, compared to organic link visitors.

PPC statistics are also effortless to evaluate, and metrics like ROI and budget are easier to manage.

27. 84% of brands are pleased with the PPC market.

(Source: Hanapin Marketing)

Overall, brands see good results from their PPC campaigns. 15% describe the outcome of their PPC efforts as “fair” and only 1% as “poor.”  

It comes as no surprise, then, that 79% of marketers believe PPC is essential for their company.

Financial PPC Stats – Budget, Cost, and ROI 

28. The investments in PPC ads exceeded $10.1 billion in 2017.

(Source: Social Media Today)

Crossing into 11-figures for the first time was a huge milestone for PPC. Digital ad statistics show there were 7 million advertisers who used PPC ads.

29. PPC ads return $2 for every dollar invested.

(Source: Wordlead)

The average ROI for Google Ads is 200%. You can only imagine how the better-than-average businesses are doing.

30. Almost half of marketers operate with a monthly PPC budget under $50,000.

(Source: Hanapin Marketing)

Although most companies agree that PPC helps them a lot, 49% of them only see the need to spend less than $50K/month for PPC traffic. More than a quarter spend $50-250K. Only 3% of advertisers spend over $5 million on their PPC campaigns every month.

31. The average cost per click is between $1 and $2.

(Source: Wordstream)

The average cost for display advertisements (the ads in websites, not in the search results) is under $1.

Now, imagine you are the owner of a grocery store and you want to advertise it online. You choose Google Ads to promote your store. The average CPC for your business is $0.42. This will be your Google advertising cost for every customer you attract.

Google doesn’t make this much money because of $0.42 keywords, though. Let’s see what Google search statistics have to say about that.

Here we go.

32. “Insurance” is the most expensive keyword.

(Source: Wordstream)

If you are in the insurance business, get ready to pay over $59 per click.

Google keyword trends aren’t much of a surprise as we go down the list – “Mortgage,” “loans,” and “attorney” come next with a CPC of over $40.

Why?

You’ve probably noticed these keywords refer to industries that can turn a lot of profit from a single customer. Naturally, businesses are willing to pay more for a good lead.

When you have to pay such amount of money for a visitor it’s no wonder that:

33. 40% of brands and agencies think their PPC budget is lower than it should be.

(Source: Hanapin Marketing)

Things are bound to change, though. Most advertisers who use PPC ads report good results. More than that, over half of them plan to increase their PPC budget for 2020.

The CPCs widely differ, depending on the industry and platform. Make sure you do the math before you start a PPC campaign! This will allow you to pace yourself and spend your budget more effectively.

For example – if you want to use PPC ads on LinkedIn, your minimum cost will be $2 per click.

I want to repeat that.

The minimum cost.

Alright, so despite making so much money – Google is still better than most in terms of value offered.

Google Ads Statistics

You’ve probably heard how Google collects information on mostly all its users. There is a good reason for that. Actually, several billion reasons.

34. In 2020, there are 6.9 billion searches a day on Google.

(Source: Internetlivestats)

This is over 80,000 searches a second.

These Google search stats put a simple truth in numbers.

Google is enormous beyond belief.

35. 86% of Google’s revenue came from advertising in 2018.

(Source: Digiday)

According to Statista, until 2007 99% of Google’s earnings came from advertising.  As of 2018, Google’s revenue was over $32 billion and $28 billion were in advertising revenue. The pay per click ads on Google rose by 58% YoY.

36. 90% of internet users see Google display ads.

(Source: Power Traffick)

If you want to talk efficiency – Google Ads does it right! Despite the increased number of ad-blockers and the rise of social media advertising Google is still among the best choices for investors.

Time-machine fact – the first Google Ads’ (AdWords back then) ad appeared in the year 2000. It promoted live mail-order lobsters.

37. 80% of businesses focus on Google Ads for PPC ad campaigns.

(Source: LyfeMarketing)

If your competitors use Google PPC ads, maybe you should too. If they can make ads profitable, it’s a matter of time before you learn the ropes as well.

38. 78% of marketers advertise on Google Ads and social media.

(Source: Formstack)

Undoubtedly Google’s websites and social media are the best channels to reach your potential customers. Both B2B and B2C businesses focus their efforts on Google Ads, Facebook Ads, LinkedIn Ads, and Twitter Ads. Yikes, that’s a lot of ads!

Why is that?

YouTube and social media are where people spend most of their time online.

Therefore, if you want people to click your ads (and even find them at all) – these are the places you’d want to spend your money on.

PPC Statistics for Social Media

PPC is so effective that some social media platforms went out of their ways to incorporate them in the user experience.

39. The average cost per click of Facebook ads is $1.72.

(Source: Wordstream)

Average means that you can probably go lower, depending on your industry. Facebook’s Power editor is designed to help you do just that.

There, you can adjust all kinds of details about your campaign – from your target audience to ad bids.

Facebook pay-per-click ads don’t differ much from Google Ads in that regard.

Unsurprisingly – the finance and insurance industries have to pay more on Facebook as well. The average CPC for this industry is $3.77.

40. 49% of marketers spent more money on Social Ads in 2018.

(Source: Hanapin Marketing)

Social Ads reach billions daily. The advantage of social media is you get to target your audience with laser-like focus. This is probably why they’re constantly stealing PPC advertisers from the likes of Google. According to Hanapin Marketing’s research, most marketers buy Google ads and Social media ads.

  • Social – 53%
  • Google – 52%

Amazon is on the rise with 27% of advertisers focused on this platform.

41. LinkedIn controls 14.6% of the PPC ads market share.

(Source: Formstack)

According to Formstack’s statistics, Facebook ads were most attractive to 21.5% of marketing agencies. Second is LinkedIn with 14.6%, and Twitter comes third 12.4%.

Naturally, LinkedIn ads are usually B2B, while Facebook ads target more customers than businesses. Twitter strikes an almost perfect balance between B2B and B2C ads.

We can’t talk about social media without mentioning:

The Mobile PPC Stats

Smartphones change user behavior, marketing, SEO, gaming, and whatnot.

42. 53% of PPC ads clicks come from mobile devices.

(Source: Power Traffick)

It doesn’t take a giant leap of the imagination to figure out you need an optimized website for mobile devices. If you haven’t done this already, you’re missing out on a lot of opportunities. Over half of paid clicks come from mobile devices.

43. 60% of mobile users click on a PPC ad at least once a week.

(Source: Businesswire)

The PPC rate for mobile devices looks promising. Almost two-thirds of users click on an ad, and 20% make at least one purchase per week. That’s a fantastic conversion rate for mobile ads.

Also, 69% of mobile users call the business directly from Google search.

44. Alibaba owned 12.5% of the mobile-ad revenue share worldwide in 2019.

(Source: eMarketer)

China’s biggest online commerce company holds the third place, right after Google and Facebook. More than 73% of pay per click advertising goes to these three companies.

Everything looks good in the advertising business, except for one tiny detail.

45. There are more than 615 million devices with ad blockers worldwide.

(Source: Sativant)

Let’s face it – some ads are outright annoying.

No wonder the number of devices with ad blockers has increased from 142 million in 2018 to 615 million in 2019.

Ads statistics show 83% of people would like to filter the most irritating ads. Furthermore, considering most new antivirus solutions and VPN services come with built-in ad-blockers, this number is set to grow even further.

Conclusion

Okay, ladies and gents – we looked at the search engines statistics, as well as those for social media and mobile. We discovered a wide variety of PPC stats and found out they are a suitable and profitable way to reach customers.

A PPC campaign done correctly can lead to impressive conversion rates. Those, in turn, can provide your business with the new clients it needs to grow.

FAQ

What is a good PPC conversion rate?

For search, it is around 3.75% and for display networks, it is 0.77%.

How effective is PPC?

Potentially very effective, according to PPC stats. Make sure to pick keywords with low CPC and high CTR.

What percentage of Google ads are clicked?

2% – that’s the average click-through rate for PPC ads. However, results displaying at the top of the page can be as high as 8%.

ABOUT AUTHOR

I've been fascinated by technology my whole life. From the first Tetris game all the way to Falcon Heavy. So writing for Techjury is like a dream come true, combining both my passions - writing and technology. In my free time (which is pretty scarce, thanks to both my sons,) I enjoy traveling and exploring new places. Always with a few chargers and a couple of gadgets in the backpack. Follow me on Twitter @DeyanGeorgiev87

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