Pay-per-click (PPC) advertising dominates the digital marketing and local SEO industry, raking in billions of dollars annually. To shed light on its significance and potential in today's sales landscape, we've compiled a comprehensive list of PPC statistics.
PPC has emerged as the go-to method for digital advertising, and for good reason: it's a powerful tool to attract new customers and drive sales.
Now, let's debunk the myth that PPC is only for deep-pocketed corporations. Small and medium-sized businesses can reap significant benefits without exorbitant investments, as you'll discover below.
Top PPC Stats for 2023 and Beyond
- The US retail industry spent nearly $65.55 billion on digital advertising in 2022.
- An average small or medium business spends $9,000–$10,000 annually on PPC ads.
- An average business doubles its Google Ads investment.
- Almost 9 out of 10 marketers were expected to start using social media for marketing in 2022.
- 5 out of 10 PPC visitors are more likely to make a purchase than organic visitors.
- As much as 80.5% of Google’s revenue comes from ads.
- Just over 4 out of 10 of all clicks go to the first three paid ad positions.
- Nearly 5 out of 10 internet users click on text ads.
- Disney spent $244.79 million on paid advertising in 2020.
- $279.8 billion is what Google’s ad revenue amounted to in 2022.
- At $815 per click, “offshore accident lawyer” is the most expensive keyword.
- The average PPC salary is nearly $60,000 a year.
Essential PPC Stats: 22 Facts to Inform Your 2024 Strategy
The US retail industry spent nearly $65.55 billion on digital advertising in 2022.
(Source: Statista)
Digital advertising has replaced most of the traditional forms of advertising. In the US, marketers are expected to spend $92.2 billion on digital advertising by 2025. Much of this attribution results from the rising internet penetration and popularity of digital platforms worldwide.
As much as 83% of marketers utilized social media in 2020.
(Source: Content Marketing Institute)
Most marketers have concluded that social ads are one of the best ways to invest in advertising. This is proven by the fact that 83% of marketers utilized social media in 2020, an increase from 60% in 2019.
The pay-per-click statistics further show that the number of marketers using search engine marketing increased from 51% to 65% between 2019 and 2020.
An average small to medium business spends $9,000 on PPC per month.
(Source: Webfx)
Average PPC expenses for small and medium businesses range between $9,000 and $10,000. Every year, an average company invests up to $120,000 total in this form of marketing.
PPC ads increase brand awareness by up to 80%.
(Source: WordStream)
Reaching the first page of Google for a specific organic term is difficult, and it may take months, if not years, to achieve. Paid ads are a much quicker way to reach an audience, and the PPC advertising stats favoring this statement show these ads increase brand awareness by 80%.
49% of people say they click on text ads.
(Source: Search Engine Land)
Even though more than half of the users who run into a text ad avoid clicking it, 49% still do. The most attractive ads are related to shopping—PPC statistics show that 31% of people click on these. Video ads attract 16% of internet users.
75% of users click on ads to find relevant information.
(Source: Clutch)
Most internet users clicking on ads say they do so to find the information they’re searching for more easily. A third of them find ads effective at providing the information relevant to their search, pay-per-click advertising statistics show.
The likelihood of PPC visitors making a purchase is 50% greater than it is with organic visitors.
(Source: WordLead)
Advertising through pay-per-click leads to more traffic, which leads to more sales. PPC attracts so many new customers that organic traffic doesn’t even come close. The conversion rates are 50% higher with PPC leads, as seen from the PPC trends.
41% of all clicks go to the top three paid advertising positions.
(Source: WordStream)
Splurging to get your ad among the top three Google search results pays off big time. According to AdWords statistics, Data that takes users across the globe into account shows that nearly half of all clicks go to the first three paid results.
Paid ads get 65% of clicks for high commercial intent searches.
(Source: Blue Corona)
With high commercial intent searches (the intention to buy a product or service) nearly 7 out of 10 times, all clicks go to the paid ads, as per pay-per-click ads statistics. Buyers seem more comfortable with businesses that invest in advertisements than those relying solely on organic traffic.
Around 47% of users worldwide use an ad blocker.
(Source: Digital Content Next)
Ad blockers are one of the greatest enemies of PPC advertising. With estimates showing that 47% of all internet users block ads, a large chunk of the market is out of reach for marketers. Further jeopardizing pay-per-click revenue, recent research shows that this number could increase significantly in the near future, with nearly half of all internet users using ad-blocking software.
In 2021, over 50% of the US’s total digital ad spend went to Facebook and Google.
(Source: Statista)
In 2021, Google accounted for nearly 30% of the total digital advertising revenue generated in the United States and was the largest digital ad publisher in the country. Facebook and Amazon followed, with nearly 25% and 11%, respectively.
YouTube ads are responsible for 43% of new customer purchases.
(Source: WhoIsHostingThis)
With almost half of all new customers purchasing products because of a YouTube ad, advertising your products or services here is the right choice. Additionally, YouTube stats reveal that 80% of consumers watch videos on this platform to help them with their purchase decisions.
Facebook: 2.8 billion monthly active users as of 2020
(Source: Statista)
Imagine reaching an audience of 2.8 billion active users worldwide. That's the potential Facebook offers to advertisers. As the largest social network on the planet, the data-driven pay-per-click leads it generates are invaluable.
Facebook: $84.2 billion in ad revenue in 2020
(Source: Statista)
In 2020, Facebook raked in a staggering $84.2 billion in ad revenue. This accounted for 97.9% of the platform's earnings, highlighting its heavy reliance on paid advertisements.
Users spend an average of 34 minutes on Facebook daily
(Source: Hootsuite)
Even during the challenging times of 2020, the average user devoted more than half an hour to Facebook daily. Within that time, they were exposed to many clickable ads, creating ample opportunities for exceptional pay-per-click results.
Over 10 million active advertisers on Facebook in 2020
(Source: Statista)
In Q3 2020 alone, Facebook boasted over 10 million active advertisers. This represented a growth of 1 million advertisers from the previous quarter and a staggering increase of 7 million advertisers since 2016. The platform's vast revenue is largely driven by advertising, cementing its position as the ultimate pay-per-click advertising platform.
The average user clicks on 12 Facebook ads per month
(Source: Hootsuite)
While not all Facebook ads require user engagement, those that do garner clicks are especially effective. With an average of 12 ads clicked per month, or one click every 2.5 days, it's clear that Facebook users actively engage with ads.
Google AdWords Rebranded: Introducing Google Ads
(Source: Google)
In July 2018, Google AdWords underwent a transformation and emerged with a refreshed look and a new name, Google Ads.
The Widest Reach: 90% Exposure to Internet Users
(Source: PowerTraffick)
While some may hesitate to invest heavily due to ad blockers, Google Ads reaches 90% of Internet users. With such extensive reach, businesses can take confidence that their ads will reach and resonate with their target audience without hindrance.
An average business doubles its Google Ads investment.
(Source: PowerTraffick)
For every dollar invested in Google ads, an average business earns two. Not many advertising mediums can brag about having a 200% ROI, except for email marketing, with an ROI of $38 per dollar spent.
Google AdWords statistics show that 90% of internet users see Google ads.
(Source: PowerTraffick)
Due to the threat that ad blockers present, business owners are still wary of investing large sums of money in online advertisements. However, with their ads reaching 90% of internet users, Google Ads shouldn’t be a source of concern or doubt.
63% of people say they’d click on Google ads.
(Source: Search Engine Land )
Internet users will most likely click on the ads they find during their Google searches. Even though Google reports low click-through rates, 63% of people say they trust Google to display ads that are relevant to them—and they say they’d click them.
Conclusion
Although it can get expensive (in some business sectors more than others), PPC ads are a worthwhile investment. And the PPC stats we’ve shown you here prove it. Our goal was to address any questions, doubts, or concerns you may have had about PPC advertising. With PPC's benefits, there’s no reason to resist adding it to your business’s advertising strategy.
FAQ
How effective is PPC?
A PPC ad’s effectiveness depends on numerous things. Some include the keywords used, the landing page, and the ad copy. If these—as well as other basic criteria—are satisfied, PPC can be highly effective for any business that sells services or products online.
How much is pay-per-click?
The typical rate of running a PPC ad is $1 to $2 per click. For some industries, the rates go as low as a few cents per click. The higher the competition for the keyword that triggers the ad, the higher the cost. Highly competitive fields, such as law and real estate, can cost a business an arm and a leg for every ad click.
What percentage of clicks do PPC ads get?
The average click-through rate for Facebook ads is somewhere around 0.1%, give or take. Google is doing significantly better, with a CTR of 0.4%. Even though the percentages seem low, the number of people who see the ad determines the ad campaign’s success.
What is a good ROI for Google Ads?
Any business that expects a quick return on its investment in PPC will likely be disappointed. The revenue highly depends on the time of year, what audience is targeted, how effective their website is, and factors related to shoppers’ economy. A gross margin ranging between 50–100% of the invested funds can be considered a good ROI for Google Ads.
How much do PPC ads pay?
When PPC ad implementation is conducted accordingly, statistics show that businesses double their investment using the best advertisers available. We mentioned that $120,000 was the average yearly investment amount, and that amount can bring $240,000 in new business.