2020 has been a roller coaster year for businesses, and many are looking for fast, effective ways to get their brand, products, and services in front of qualified audiences.
One of the most efficient ways to do this is through pay-per-click (PPC) advertisements. PPC ads have become a critical component of many companies’ digital strategies. PPC is a form of digital advertising whereby a digital ad is presented to internet users based on a formula of terms entered into a search engine.
These ads appear alongside, atop, or below organic search results relevant to whatever the user is searching for. Companies bid on different variations and combinations of search terms to appear for, and measure the cost-per-click (CPC) for each conversion driven by their ads.
Are you interested in learning more about PPC stats and how consumers and businesses alike use paid ads? Here are 120+ PPC statistics you need to know in 2020:
49 percent of people said they click on text ads; 31 percent on Shopping ads; and 16 percent on video ads (Search Engine Land, 2019)
About four times as many people are more likely to click on a paid search ad on Google (63%) than on any other search engine – Amazon (15%), YouTube (9%), and Bing (6%) (Clutch, 2019)
Google Ads results receive 65% of the clicks that started with buying keywords, while organic results only receive 35% (Askmedigi, 2020)
PPC visitors are 50% more likely to purchase something than organic visitors (Unbounce, 2019)
In a survey of 506 people who said they have clicked on a paid search ad in the past month, 75% said the ads make it easier to find information they’re looking for, and they’re most likely to click on ads that answer their questions (Clutch, 2018)
Google Ads’ Display Network reaches 90% of internet users via 2 million websites (SmallBizGenius, 2019)
How people use other search platforms in 2020
$1 million is Pinterest’s expected ad revenue in the U.S. in 2020 (eMarketer, 2019) and 64% of Pinterest users described the platform as a place to find ideas, products or services they can trust (Pinterest, 2019)
The overwhelming majority of Americans own some type of cell phone, and of that 81% own smartphones with internet capabilities.
Digital marketers have seen a slow but steady transition from searches on desktop and laptop computers to ones done on a mobile device. As many Americans shift their reliance from computer to phone, digital advertisers need to take notice:
Search advertising on mobile is expected to reach $22.8 billion in 2020 (Statista, 2019)
$146 billion is how much mobile advertising spend will reach by 2023 (Statista, 2019)
Google and Facebook still hold the largest share of total U.S. digital ad spending, with 37.2% and 22.1% (AdAge, 2019)
Measuring PPC Results
Search engines and social platforms are serving up more and more ads to potential customers each year. With the seemingly exponential growth of paid ads on these platforms, businesses must be seeing excellent returns to justify the ad spend, right?
Facebook’s medium CPC for the first quarter of 2020 was $0.78, a 2.6% decrease since Q4 2019, but a 4% increase YoY (AdStage, 2020)
Instagram saw a median CPC of $3.35 in the 1st quarter of 2020, an increase of $1.82 from the previous quarter, while the majority of advertisers recorded median CPCs between $3.00 and $3.50. That equates to a roughly 118% increase from the fourth quarter, but a 93% decrease year over year (AdStage, 2020)
Twitter’s median CPC in the first quarter of 2020 was $0.58, which was up $0.32 cents from the fourth quarter of 2019. Similarly, their CPC was up 47% year over year (AdStage, 2020)
The average click-through rate in Google Ads is 3.17% for the search network and 0.46% on the display network (WordStream, 2019)
84% of advertisers who use paid search are currently using or planning to use Google’s new responsive search ads (Search Engine Journal, 2019)
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 (Valve+Meter, 2020)
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 (Valve+Meter, 2020)
While the average click-through rate for PPC advertisements is only 2 percent, the average click-through rate for the top paid result on the screen is almost 8 percent (Valve+Meter, 2020)
The average CTR is higher with Google Ads than with Bing Ads. A paid ad on the first position on the first page of Google has a CTR of 7.11% (99firms, 2020)
Google ads experienced a first quarter median CPC of $1.28, an 8.5% increase from the previous quarter but a 8.2% decrease year over year (AdStage, 2020)
PPC During Covid-19
Covid-19 has changed the way many companies do business. From trimming budgets and furloughing or laying off employees, to ramping up production to meet growing demand, no two businesses have had identical experiences during the pandemic.
Business management and office supplies, non-profits, medical advertisers, as well as beauty, skincare, and gifts have all experienced a positive increase in PPC engagement during the pandemic.
Business management and office supplies during Covid-19
Overall, business management searches grew by 23% since February 23 (Wordstream, 2020)
Searches for office supplies increased 90%, paid search ad clicks increased 35%, and search conversion rates increased 41% (Wordstream, 2020)
Packing and shipping supplies more than doubled their search ad conversions (up 123%) and search ad conversion rate (up 107%) (Wordstream, 2020)