As the world’s top search engine, it’s no surprise that many marketers are wanting to promote their businesses with the help of Google Ads.
Paid advertisements allow you to take growth into your own hands, putting your business and its offerings front and center. No more waiting for people to discover you organically. Instead, you’re reaching your target audience faster and more efficiently.
Initially launched in 2000, Google’s ad platform has come a long way as it’s now a billion-dollar venture.
If you’d like to learn more about Google ads and PPC (pay-per-click), we’ve compiled some interesting statistics so you can gain a better understanding of how valuable it can be. These Google ads statistics cover things like costs, ROI, and more.
To get started, let’s cover some general Google ads statistics so you can see why people choose to invest their marketing budget into running ads on this favoured search engine.
Whenever someone needs to make an internet search, Google is most likely the platform they turn to in order to find their desired information. That’s because, when compared to other search engines, Google leads the way with 81.95% of the market share. In the UK alone, Google has a market share of 93.51%.
Given this tremendous user base, it’s no wonder that brands continue to invest in running Google ads. It provides a great opportunity to gain awareness and generate conversions.
According to the Global Search Network, 63% of people have clicked on a Google ad. Considering one of the main goals of an ad is to get the viewer to click through to the website, this shows promise for anyone running ads on Google. It assures them that people are taking action on these types of ads, not just ones seen on social media platforms like Facebook.
These days, we’re doing more and more shopping via our mobile devices. It’s become such a quick and easy way to make a purchase at a moment’s notice. As mobile ad spending continues to increase each year, 33% of that is said to go to Google. And who wouldn’t want their business’s offerings to be included in that data?
In 2023, Google cashed in big time, making a whopping 237.86 billion U.S. dollars from ads. They do this through Google Ads, a platform where advertisers can show off their ads, products, and services across Google's huge ad network, hitting up web users on properties, partner sites, and apps. It's like Google's way of saying, "Hey, check this out!"
Google offers different types of ads depending on what best suits your marketing needs. The types of campaigns they offer include display, video, shopping, app, local, and smart. These ads follow the PPC (or pay-per-click) model, in which you pay once the ad is clicked. In fact, Google is actually the most popular PPC advertising system there is. Here’s what you should know about it:
When it comes to conversions, paid search visits have a sweet spot, being 35% more likely to convert compared to organic search.
In the world of marketers, a solid 55% see search engine optimization as either "very important" or "extremely important" to their overall marketing strategy.
Here's a surprising stat: on average, small to medium-sized businesses are putting their money where their clicks are. They invest a whopping seven times more in PPC (pay-per-click) than they do in SEO (search engine optimization). Talk about putting your digital dollars in the right basket!
Click-through rate (CTR) is one of the most important metrics to track when running paid ads. You want people to see your ad, click it, and follow through to your website. That’s where they will hopefully make some sort of conversion, whether it’s joining your email list or making a purchase. Data shows the average CTR for Google ads is 4-6%. Anything over that is considered above average.
When searching for a certain product, placing your ad on Google can help you secure the purchase over your competition. That’s because 65% of people click on these ads when they’re looking to make a purchase. If your ad shows what they’re looking for, you may be the one to get the click-through and the sale.
With the help of a Google Shopping campaign, you can provide detailed information about your product, which viewers can see without having to click on your ad. It can be an effective way to drive sales for any product-based business. Here are some Google ad statistics that will impact Shopping campaigns:
Out of all of these Google ads statistics, this one is probably the least surprising. Considering people enjoy being able to shop from the comfort of their own homes and can place an order with just a few clicks, it’s no wonder it’s so popular.
Google says 98% of global consumers who were surveyed reported that they shopped online. This includes browsing, researching, and actually making a purchase.
With so many people turning to the internet to do their shopping, running ads is the perfect way to get your offerings front and center. Then, you’ll be able to generate more sales.
Google Shopping ads make up around 76.4% of retail search ad spend. As a result, they generate 85.3% of all clicks on Adwords campaigns or Google Shopping campaigns.
Before investing in running ads on Google, it’s smart to know what kind of ROI they can potentially deliver. After all, you don’t want to pour money into something that isn’t going to perform well in the long run. Luckily, Google ads statistics back up the platform’s success, making it clear it’s worthwhile.
According to Google, it’s estimated that for every $1 a business spends on an ad, it generates $8 in profits. That means they believe their advertising platform delivers an 8:1 return on investment, which they feel is a conservative estimate.
Based on Databox's Benchmark data, the typical conversion rate for Google Ads hovers around 2.85%. This benchmark is derived from anonymized insights collected from over 2000 companies. Interestingly, from our survey findings, most participants are seeing a conversion rate ranging from 3.1% to 6% for search ads.
When it comes to display ads, the conversion rate is a bit on the lower side, falling between 0 and 1%.
Zooming out to see the big picture, the average conversion rate across all industries for search ads stands at 4.2%, while for display ads, it's a tad lower at 0.55%
When it comes to running ads on any platform, there’s never going to be a clear-cut price. That’s because it’ll change based on a number of factors. For instance, these are a few of the factors that will influence your ad spend - type of ad, when your ad runs, device targeting, bidding strategy, and your industry. To gain some idea of what it may cost, here are a few Google ads statistics:
When diving into ad rates, it's key to explore the average cost per click (CPC) for both Google Ads and Bing Ads. In the world of online advertising, CPC represents what you pay when someone clicks on your ad, not just when they see or interact with it, like making a purchase. So, what's the scoop on the average CPC for Bing Ads and Google Ads?
Bing Ads clocks in with an average CPC of $1.54. On the Google Ads side, the average CPC falls within the $1 to $2 range (or £0.75 to £1.50). Now, while Bing Ads may boast a lower cost, it's crucial to keep an eye on your ad's performance.
When you’re new to Google ads, you may be unsure of how much to budget for your first campaign. Google’s advice is to set a daily ad spend of £10-£50. This is an ideal place for beginner advertisers to start. Your daily budget can be increased once you know your ad is converting.
These days, we’re all about our mobile devices. They allow us to access the web from anywhere with just a few clicks. As a result, we encounter a lot of ads on mobile, whether they’re on websites or social media. Being aware of where your traffic originates from helps you to cater to those visitors.
Mobile search has become an integral part of our daily routine, with 80% of individuals not stepping out the door without their trusty mobile device. Impressively, 61% of smartphone owners engage in searches directly from their devices every single day. The significance of this trend goes beyond just daily convenience – consumers are dedicating more than 15 hours each week to researching and exploring the vast world of information right from their smartphones.
Features like “click to call” have made it even easier for people to take action through a Google search. Google states 63% of smartphone users have contacted a business directly through a search they conducted.
Local ads are commonly run by brick-and-mortar businesses that want to reach potential customers in their area. Here’s some data on the effectiveness of Google’s local ads:
Embracing personalized advertising has the potential to boost sales by an impressive 30%. This strategy empowers businesses to pinpoint their audience with remarkable precision, fostering customer loyalty and encouraging repeat business. The beauty of personalized advertising lies in its ability to provide insights into customer preferences, helping businesses tailor their offerings to what truly captures their audience's interest.
And finally, let’s wrap this up with some Google ads statistics geared specifically towards businesses. Advertising can be so beneficial in generating web traffic and conversions, but sometimes you need to see the data to really seal the deal that it’s worth investing your money into. Here are some stats:
Don’t get left in the dust! 65% of small-to-midsized businesses are running their own PPC campaigns, helping them to land new customers. Businesses that aren’t jumping on board could get beaten out by their competitors since they’re not getting themselves in front of potential buyers.
The bigger companies are getting in on the action too. Purple invested in Google ads, only to see some impressive results. Their ultimate goal was to drive consideration of Purple mattresses. This is what they were able to achieve:
Another company seeing great success with Google ads? Williams Sonoma. The retailer used Google to run mobile ads in an attempt to drive in-store and mobile sales. Here’s what they achieved:
As this data shows, Google is a powerful platform for businesses to run ads promoting their products and services. Take what is shared in this post and use it to create an ad of your very own.
Set a campaign goal and assemble an ad that will speak to your target audience’s interests. With the right ad, you’ll be able to boost awareness, website traffic, and conversions, helping you to increase profits.
Or, you can work with one of the top PPC agencies in the UK here.