Despite rising trends in users turning to platforms like TikTok as a search engine, it’s no surprise that Google remains the most popular search engine globally. Their diverse offering of ad inventory across Search, Shopping, Display, Video/CTV and beyond make it a brilliant option for advertisers of all shapes and sizes.
It has been the market leader in online advertising for more than ten years and in spite of Google Ad revenue falling marginally in Q4 of last year, it remains dominant in its share of the online advertising market.
In 2023, Google’s ad revenue is expected to increase by 8.2% compared to 2022. However, this is a slowdown from the previous two years, with 2021 seeing a 40.4% growth in ad revenue and 2022 having a 13.4% increase. Google’s ad revenue is projected to reach $81 billion in 2024, with an average annual growth rate of 14.8% between 2019 and 2024.
Read on to learn more about Google ads and pay-per-click (PPC), statistics on costs, return on investment (ROI), and more.
Google Ads Statistics
Google has a range of ad options that can be tailored to suit your marketing needs. These include display, video, shopping, app, and smart campaigns. The way these ads work is through a pay-per-click (PPC) model, where you only pay when someone clicks on your ad. Google’s PPC system is the most widely used advertising system available.
Here are the statistics you need to know about these ad options in 2023.
Google is the Leader When it Comes to Market Share
Google has the largest market share among search engines with 83.84% globally and 86.31% in the UK. This vast user base makes Google ads a great opportunity to gain awareness and generate conversions for brands.
PPC Generates Twice the Visitors As SEO Does
Many content creators use SEO (search engine optimization) to rank their content at the top of Google searches. However, PPC (pay-per-click) ads generate twice as many visitors as SEO does, making them a good investment for those looking for quick results.
When people are looking to purchase a product, 65% of them click on Google ads, giving businesses a better chance to make a sale. Google Shopping campaigns are also effective, with 85.3% of clicks coming from them.
98% of Global Shoppers Surveyed Shop Online
It’s not surprising that many people prefer to shop online because it’s convenient and they can buy things quickly and easily. In fact, according to a survey conducted by Google, 98% of global consumers reported that they shop online for things like looking at products, researching them, and actually buying them.
With so many people shopping online, advertising is a great way to make sure your products get noticed. By running ads, you can increase your sales and get your products seen by more people.
Users who visit a website through Google Ads’ PPC ads are 50% more likely to purchase
According to a survey conducted by MOZ, an SEO company, people are 50% more likely to buy from a website if they find it through Google Ads compared to discovering it through organic searches. This means that users are less inclined to make a purchase on a website if they come across it through organic searches as opposed to finding it through a Google Ad.
The Average Click-Through Rate on Google Ads is 2%
When you run paid ads, it’s important to keep track of your click-through rate (CTR). This measures the percentage of people who click on your ad after seeing it. The ultimate goal is to get people to click through to your website, where they can take a specific action, such as making a purchase or subscribing to your email list.
On Google, the average click-through rate for ads is 2%. If your ad is able to get a higher click-through rate than this, it is considered above average. This is an important metric to monitor because it can help you evaluate the effectiveness of your ad and make changes to improve its performance.
The Average Conversion Rate on Google Ads is 4%
When businesses advertise online, one of their main goals is to get people to take a specific action, such as making a purchase or filling out a form. This is called a conversion. On Google’s search network, the average rate at which people take this action is 4.40%, which is considered a good result. However, on the display network, this rate is lower at around 0.57%.
8:1 ROI on Google Ads
If you’re thinking about running ads on Google, it’s important to know how much money you can make in return. The good news is that according to Google’s statistics, their ads are successful and worth the investment. In fact, for every dollar spent on an ad, businesses can make an estimated $8 in profits. This means Google’s advertising platform has an 8:1 return on investment.
Google Shopping Statistics
Google Shopping Ads Generate 85.3% of Clicks
When retailers advertise their products on Google, 76.4% of their spending goes towards Google Shopping ads. These ads are very effective, as they generate 85.3% of all clicks on Google Ads and Google Shopping campaigns. This means that when people search for products on Google, they are more likely to click on Google Shopping ads than on other types of ads.
Google Shopping is Responsible for 76% of Ad Spend
Shopping ads are responsible for 76% of the search ad spending in the eCommerce industry. This indicates that these ads are receiving a considerable number of clicks and that brands are investing significant portions of their advertising budgets in this platform.
49% of shoppers surveyed say they use Google to discover new products
Google is a popular platform for people to discover new products, 49% of shoppers surveyed say they use Google to discover new products. It’s possible that they use specific search terms to find new products, or they might come across them while browsing through related search results.
Google Ads Cost Statistics
The Average Cost-Per-Click on Google Ads is £0.75-£1.50
The cost-per-click for ads on Google AdWords usually ranges from $1 to $2, which is also equivalent to £0.75 to £1.50. If your cost-per-click falls within this range, it’s a good sign.
Google Recommends a Daily Budget of £10-£50
But, keep in mind that the cost-per-click can vary depending on the competitiveness of the industry you are advertising in. If you’re new to Google ads and aren’t sure how much to spend on your first campaign, Google recommends setting a daily budget of £10-£50. This is a good starting point for beginners. Once you see that your ad is resulting in conversions, you can increase your budget.
Google Mobile Advertising Statistics
Nowadays, mobile devices have become an essential part of our daily lives. We use them to browse the internet and come across a lot of ads, whether on websites or social media. To cater to these mobile visitors, it’s important to be aware of where your traffic is coming from.
61.9% of Google Ads Clicks Come From Mobile Devices
Interestingly, 61.9% of ad clicks on Google come from mobile devices, which is not surprising given how frequently we use our smartphones. This underscores the importance of creating mobile-friendly content, including ads that are easy to consume on smaller screens.
60% of Smartphone Users Have Contacted a Business Through Search
Additionally, many smartphone users are using search features like “click to call” to contact businesses directly. In fact, Google reports that 60% of smartphone users have contacted a business through a search they conducted. Therefore, businesses must make sure their online presence is optimized for mobile devices to take advantage of these opportunities.
Google is the most popular search engine and a highly effective marketing platform, with an 8:1 return on investment for businesses. Google’s global user base makes it a great opportunity for brands to gain awareness and generate conversions.
The statistics on costs, return on investment, conversion rate, and click-through rate demonstrate Google’s effectiveness in generating great results, and it is not surprising that 63% of people have clicked on a Google ad in their life. In short, Google’s advertising platform continues to grow, and running ads on Google can increase sales and get products noticed by a larger audience.
Get in touch with our team today to request a free proposal!