Over the past decade, pay per click advertising has revolutionized digital marketing forever. With its huge reach, amazing personalization and high volume of clicks, millions of businesses worldwide are taking advantage of this highly effective marketing medium.
But not everyone is utilizing this powerful digital marketing strategy. In a recent small business survey by Clutch.io, they reported that 40% of businesses don’t currently invest in PPC advertising.
If you’re an agency who has clients that aren’t running pay per click campaigns, then they’re potentially missing out on lots of additional revenue and sales. Not only are they behind with the times, but they’re also giving competitors traffic which could be theirs.
To show them what they’re missing out on, here are some of the most important PPC statistics that will help convince them to invest in pay per click marketing.
PPC Statistics For 2020
74% of brands say PPC is a huge driver for their business
Businesses who already run pay per click ads will know how important they are for their revenue, but for those who don’t, it can be hard to appreciate their significance.
In a recent survey by Hanapin Marketing for their State of PPC 2019-2020 report, businesses reported that PPC advertising was a huge revenue driver for their business. 74% of respondents said that pay per click advertising drives them a significant number of sales.
That’s 7 in 10 business owners that can relate a lot of their profits directly to PPC advertising. Whether that’s on Google Ads, Facebook Ads, Instagram or LinkedIn Ads, when done correctly, PPC advertising can be directly attributed to a large percentage of a business’s sales.
96% of brands are spending money on Google Ads
The pay per click industry currently has plenty of huge competitors, including the likes of Google, Facebook, LinkedIn, Twitter, Instagram and Reddit, to name a few. But with so many PPC networks out there, which is the most popular?
As you’ve probably guessed, Google Ads takes the crown.
In the State of PPC 2019-2020 report, businesses were asked a simple question: “do you run pay per click ads on Google?”. Surprisingly, 96% of brands said they did.
The fact that 96% of respondents said they were running ads on Google, still shows that they’re the market leader when it comes to pay per click advertising. With millions of searches up for grabs every day, advertising on Google is key to increasing brand awareness and getting those sales. Don’t be the 4% who get left behind!
Google made over $134 billion from advertising revenue in 2019
Google is the largest pay per click network in the world, serving millions of ads to users every single day. But what you might not know is that Google makes 90% of its entire revenues just from advertising revenue.
Last year Google made over $134 billion from their range of PPC ads, and based on the current trend, it looks like 2020 is going to beat that record.
Ever since 2001, Google’s revenue from advertising has grown at a steady rate with recent years showing yearly gains of 19% or more. These rising numbers show that PPC marketing shows no signs of going away and businesses are continuing to invest money into the likes of Google. With new ad types and changes being introduced to its platform regularly, Google really is the market leader in PPC advertising as their profits show.
Search advertising on mobile is expected to reach $22.8 billion in 2020
PPC advertising spend has been increasing year on year for nearly a decade and a significant shift in spending is beginning to take place. By 2022 mobile ad spend is expected to outpace desktop ad spend with the trend continuing into 2023. With the rollout of fast 5G networks currently in progress, mobile advertising is likely to eat into desktop ad share over the next ten years.
In 2020 search advertising on mobile is expected to reach a whopping $22.8 billion in ad spend. Traditionally, Google only allowed businesses to run desktop ads known as text and display ads on their network. But in recent years, thanks to the advancement of technology and new smartphones, mobile ads have started to grow at an accelerated rate.
Many businesses are now starting to invest in mobile ads for the first time due to the exciting new features they allow. Different to desktop ads, mobile ads allow businesses to target users in new ways and open up a new list of ad formats such as call only, in-app and app promotion types.
Amazon earned $10 billion in ad revenue from the US in 2019
The pay per click industry might be heavily focused around Google and their Google Ads network, but there are still plenty of networks that are growing exceptionally fast.
Launched in the early 2010s, Amazon quietly released its own PPC network and since then it’s been growing pretty steadily ever since. In 2019 Amazon earned $10 billion in ad revenue just from their sponsored results and product ads.
It might not be anywhere close to Google’s $134 billion, but it’s also nowhere near as old. According to eMarketer, in 2018, Amazon was the 3rd most popular PPC platform behind Google and Facebook.
As time goes on, Amazon’s PPC network could become a big competitor to Google’s shopping ads. With 54% of product searches now starting on Amazon instead of Google, a huge change in user behaviour is slowly happening. If this continues, Amazon advertising could become extremely important for brands in retail and e-commerce industries. With plenty of interesting data points collected from Amazon ads, businesses can use this data to improve their other paid search campaigns on the likes of Google and Facebook.
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