Pay-per-click (PPC) is an internet advertising model used to drive traffic to websites, in which an advertiser pays a publisher (typically a search engine, website owner, or a network of websites) when the ad is clicked. They are used to assess the cost-effectiveness and profitability of internet marketing and drive the cost of running advertisement campaigns as low as possible while retaining set goals. Your business should be taking full advantage of these affordable digital ads.
Here are some statistics on PPC that we got from our partner, HubSpot, that will help you realize the importance of advertising and why it’s so popular.
Search Advertising Statistics
Search advertising is a powerful marketing tool that factors in the user’s search intent in determining the relevance of your ads. Take a look at the search advertising statistics below to see how users perceive and interact with ads so you can improve your quality score.
- Among all the different types of PPC ads, text ads are the most popular, with 49 percent of users preferring to click these over shopping ads (31 percent) and video ads (16 percent) (Clutch, 2018).
User preferences differ based on the intent behind each user’s search. People at different stages of their buying journey will click on a different type of ad. Most notably, text ads generally speak to buyers at the research stage and looking for information that could inform their buying decisions. Understanding user intent can help you create the type of ad most likely to lead to a click.
- Over 27 percent of users today use an ad blocker (Search Engine Journal, 2021).
Ad publishers reportedly lost approximately $35 billion in revenue in 2020 due to the increased usage of ad blockers. Among all ad-block users, 38 percent are desktop and laptop users, 25 percent are on smartphones, and 15 percent on tablets. Restricting your ads to only mobile users is one way to circumvent ad block software.
- The top three reasons why users use ad blockers include being shown way too many ads (49 percent), being shown annoying/irrelevant ads (47 percent), and ads being too intrusive (44 percent) (Global Web Index, 2019).
From the same study, 38 percent of users also highlighted ads taking up too much screen space and bugs/viruses in ads as reasons why they choose to use ad blockers. In a nutshell, the main culprit is the self-sabotaging behavior of some advertisers that hurt revenue, which is another reason you need to consider what the user wants when creating ads.
Google Ads Statistics
When it comes to online advertising, Google leads the pack as it controls about 90 percent of global search traffic. With its expansive ad network, Google Ads lets you increase web traffic and drive sales for your business. Look at the following Google Ads statistics to find useful benchmarks such as Google Ads CTR, the average cost per click, and other useful Google Ads statistics.
- According to pay-per-click statistics, 65.7 percent of people trust Google more than they do Facebook and TikTok (seoClarity, 2021).
In a recent survey, seoClarity found that out of all tech giants, including various ad publishers, Americans trusted Google (65.7 percent) the most, with Amazon (65.1 percent) and Microsoft (63.9) not far behind. The survey also revealed that 1 in 5 Americans will always trust Google because they believe that everything shown is properly vetted.
- The average Google Ads CTR is 1.91 percent (WebFX, 2019).
Surprisingly, Bing Ads had a 48.2 percent higher conversion rate with a CTR of 2.83 percent. The average cost per click for Google Ads is also higher at about $1 to $2, while Bing Ads average cost per click is under $1. However, do note that the Google ad network is broader than that of Microsoft.
- The average conversion rate for Google ads is 3.75 percent (WebFX, 2019).
In contrast, the average conversion rate for Bing Ads is at 2.94 percent. But don’t rule out Bing Ads just yet because of these PPC stats. While the Google network offers more reach, Bing allows you to access over 53 million desktop users that Google can’t. So, always consider your audience.
eCommerce PPC Statistics
PPC stats 2021 show that paid traffic for eCommerce PPC is some of the cheapest in the industry. This gives you plenty of flexibility in fine-tuning your PPC management strategy without making a significant dent in your marketing budget. Use these pay-per-click statistics to improve your PPC strategy.
- Seventy percent of search traffic comes from phrases that contain 4 to 6 words (QuanticMind, 2019).
Some of the more popular search terms in eCommerce contain unique modifiers. Some examples include gendered terms in 16 percent of searches for “bottoms” (i.e., men’s shirts, women’s shorts) and references to an event in 45 percent of “dress” searches (i.e., wedding dress, graduation dress).
- About 60 percent of eCommerce queries come from upper-funnel users looking for information to narrow down their search from a broad category to a specific product (Google, 2018).
This is a helpful piece of PPC info that can be used to improve your PPC strategy. By understanding who your audience is and the intent behind their search, you can improve the design of your eCommerce PPC ads to capture their attention and increase the likelihood of a conversion.
Social PPC Statistics 2021
There are over 5 billion users on social media every day. With tremendous numbers like that, your business stands to enjoy maximum visibility when you advertise your business on social media. In running a social media ad campaign, you can either work with a reliable PPC company or use the search advertising statistics below to learn how to create better ads that resonate with your potential customers.
- The average CTR for social media ads was 1.3 percent in 2020, up from 1.2 percent in 2019 (Statista, 2021).
These paid search statistics may look low at first glance. But when you consider the billions of users that populate social media and the potential reach of your social media ads, the amount of benefit you can gain from a well-executed social media ad strategy is invaluable.
- In business-to-business (B2B) advertising, 83 percent of marketers ranked social media advertising second (29 percent) behind search engine marketing (33 percent) as the most successful strategy in driving leads (Content Marketing Institute, 2021).
Social media remains one of the most used channels for pushing sponsored content to users, with LinkedIn leading the way as the go-to channel for B2B advertising.
- Thirty-seven percent of users find social media as the most influential factor when finding or shopping for products (PwC, 2021).
Product recommendations on social media act as social proof, influencing buying decisions on these platforms. Use this to your advantage through engaging social media ads that attract the attention of prospective buyers and past customers that will serve as product ambassadors, giving their vote of confidence.
- In determining a PPC strategy for social media, 32 percent of marketers found video to be the most effective format for ads, followed by image ads (26 percent), Instagram Stories (23 percent), and carousel ads (19 percent) (Search Engine Journal, 2019).
The effectiveness of your ads can depend on the type of ad you produce. As specific ad formats resonate with certain audiences, identifying the right type of ad to produce helps you create powerful ads that bring you closer to accomplishing your goals.
PPC Pays Off
PPC is still one of the best ways to generate revenue for your business. When done right, you can attract your target audience while keeping costs low and staying well within your budget. Harness the transformative power of PPC using the paid search statistics we provided above to inform your ad strategy. Read more about PPC here.
If you need help launching your PPC campaigns, let our agency give you a hand. For several years, we’ve helped countless clients maximize their growth potential by managing their PPC campaigns.