If you’ve stumbled upon this, it’s possible that you already hold a layman’s understanding of pay-per-click (PPC) advertising and its primary advertising platform, Google Ads.
PPC advertising continues to be the number 1 tool for marketers globally, regardless of their budget, owing to its cost-effectiveness and accurate targeting, compared to other marketing avenues.
If you are unsure about whether the Google Ads (formerly Google AdWords) platform is a good investment for your business in 2023 and beyond, here are a few highlights comprising the most critical Google Ads statistics covered in this article for you to work through:
- In Q3 2022, Google generated over 57% of its revenue from Google Ads.
- 80% of businesses across the globe trust paid Google Ads for their PPC campaigns.
- Publishers earn 68% of the revenue when using AdSense for content.
- 92% of advertisers surveyed have at least one active, responsive search ad in their Google Ads search campaign.
- The average business will spend from $9000 to over $30,000 per month for Google Ads in 2023.
2023 Google Ads Statistics & Trends
Our roundup of the 20+ Google Ads statistics and trends can help you get an idea of what to expect once you begin your first Google Ads PPC campaign:
In Q3 2022, Google generated over 57% of its revenue from Google Ads.
In Q3 2022, Google generated over 57% of its revenue from Google Ads.Source: Oberlo ^
In just three months (July- September 2002), Google generated an eye-watering $69.1 billion.
$39.5 billion of that amount was thanks to Google Ad searches, while the rest came from Google Network and YouTube ads. In total, 78.9% of revenue from Q3 2022 came from ads alone.
More than 80% of global businesses trust Google Ads for PPC campaigns.
Source: WebFX ^
Despite other alternatives, 80% of businesses across the globe trust paid Google Ads for their PPC campaigns, according to a 2022 report.
In 2021, Google took down 5.6 million advertiser accounts and 3 billion ads.
Source: CNET ^
Google continues to crack down actively on abusive ad accounts that violate its terms and conditions.
After reinforcing its enforcement strategies, the company now employs a “three-strikes” rule around deceitful and misleading practices. The third strike for repeat offenders leads to account suspension.
85.3% of all Google Ad clicks are generated by Google Shopping.
Source: SmartInsights ^
People love to shop, and Google’s shopping ads have proven to be particularly effective.
So much so that 85.3% of all its clicks come from paid Google Shopping or Google Ads campaigns.
Meta and Google will account for 50.5% of digital ad spending in 2023.
Source: Insider Intelligence ^
While there’s no doubt that a 50.5% market share is colossal, the two digital giants must stay on their toes.
Both Google and Facebook are starting to lose out as other platforms like TikTok, Snapchat, Spotify, and Yelp gain traction.
Publishers receive 68% of the revenue if their ads appear on Google Ads.
Source: Google ^
Publishers earn 68% of the revenue when using AdSense for content and 51% of the money that Google recognizes for AdSense for search queries.
Google’s parent company – Alphabet, made $191 billion in revenue through Google Ads in 2022
Source: Statista ^
This colossal sum was up from $147 billion in 2020 and $172 billion in 2021. $162 billion came from Google Search ads, while the remaining amount was collected from YouTube ads.
According to a 2022 survey, almost 92% of advertisers surveyed have at least one active responsive search ad.
Source: Optmyzr ^
Responsive Search Ads allow users to easily create effective text advertisements, which is why Google’s all-new responsive search ads have quickly become a solid advertising strategy.
Out of 13,671 randomly chosen Google Ads accounts, 91% had at least one actively running responsive search ad with Google. Only 7.7% had never used responsive search ads, and a minuscule 0.4% had stopped using them altogether.
The average Google Ads CTR across all industries is 2%.
Source: Wordstream ^
The industry with the highest CTR is Dating and Personals (6.05%), followed by Travel and Hospitality (4.68%) and Advocacy (4.41%).
The industry with the lowest CTR is Technology (2.08%).
People are four times more likely to click ads on Google (63%) than on any other advertisement network.
Source: Clutch ^
On average, 63% of users are more likely to click on a paid search ad on Google. This is compared with other key advertisers, Amazon (15%), YouTube (9%), and Bing (6%).
The legal industry has by far the most expensive “Cost Per Click” for Google Ads.
Source: PPCHero ^
Lawyers are willing to pay handsomely for their ads. This is because a single client can net a big return on investment.
A lawyer for dog bites will pay around $50 per click, while location-based ads (Los Angeles Lawyer, for example) can cost up to $400 for a single click.
Amazon’s total digital ad revenue share is expected to increase to 7.1% in 2023, while Google’s is projected to be 28.6%.
Source: Statista ^
It is reported that although Google will remain the dominant market player in the recent future, its share is dropping as more product searches begin on Amazon.
Facebook is another strong contender, with a 28.6% share.
Google Ads have an average 8:1 ROI (Return on Investment).
Source: Google Economic Impact ^
Google Ads publishers receive up to an 8:1 return on investment. In other words, an advertiser receives $8 for each dollar spent.
Consumers are twice as likely to visit a physical store if they see a geo-located ad.
Source: LinchpinSEO ^
Consumers want ads tailored to their location. 80% of consumers want location-based ads from businesses and are twice as likely to pay you a visit if they see a geo-located ad.
63% of internet users have engaged with a Google ad before.
Source: HubSpot ^
This shows that Google Ads are effective for businesses, with almost two-thirds of internet users clicking on an ad at some point.
And when people are shopping for a specific product or service, 65% will click on a relevant Google ad.
Around 50% of internet users fail to spot the difference between paid and organic search results.
Source: WebFX ^
It’s easy to think that no one clicks on Google Ads, but the statistics say otherwise.
And while you may be able to spot a paid ad from a mile off, around half of all the people on the internet don’t notice the difference.
This is good news for advertisers and an incentive to make your ad appear as an organic search result would.
The average business will spend from $9000 to over $30,000 per month for Google Ads in 2023.
Source: WebFX ^
With an average cost per click of $1 – $2, that’s a lot of ads per business.
However, since the average rate of return is 8:1, a business spending $9,000 could see a $72,000 return, while an organization splashing out $30k could see a $240,000 return.
The top three paid ads on a Google search results page receive 46% of the clicks.
Source: WebFX ^
SEO is just as crucial for paid ads as it is for organic web search results.
This means it’s important to ensure your paid ads are of high quality so Google will rank them higher on results pages.
If your ads aren’t up to scratch, then google will shove them to the bottom of the page.
33% of advertisers use paid advertising to increase brand awareness.
Source: HubSpot ^
Google Ads is a crucial component when building a brand’s awareness.
The company Purple Mattress received a 34.6% uptick in brand awareness after investing in Google Ads. Schmidt’s Naturals received a 48% boost, and Williams Sonoma enjoyed a massive 70% increase in mobile sales after using Google Ads.
If you’re a beginner, Google recommends the daily Google Ads campaign budget be capped at $50.
Source: Google ^
Google recommends $10-$50 as the daily budget for a Google Ads campaign; for inexperienced beginners or businesses setting out to invest in Google Ads for the first time.
Summary – Google Ads Statistics, Trends & Facts For 2023
If you want to explore Google Ads further, its starter guide could offer the search giant’s outlook on how to proceed with it. These stats can help you gauge Google Ads for your business, but as with other platforms, you won’t know its true effectiveness, until you begin to use it.
Sources
- https://www.oberlo.com/statistics/how-does-google-make-money
- https://www.webfx.com/blog/marketing/ppc-stats/
- https://www.smartinsights.com/digital-marketing-strategy/the-rise-of-google-shopping/
- https://www.insiderintelligence.com/content/meta-google-s-hold-on-digital-advertising-loosens-tiktok-others-gain-share
- https://support.google.com/adsense/answer/180195.
- https://www.statista.com/statistics/633651/alphabet-annual-global-revenue-by-segment
- https://www.optmyzr.com/blog/optmyzr-study-responsive-search-ad-performance/
- https://www.wordstream.com/blog/ws/2016/02/29/google-adwords-industry-benchmarks
- https://www.ppchero.com/the-most-expensive-keywords-for-2022/?cn-reloaded=1
- https://www.statista.com/statistics/290629/digital-ad-revenue-share-of-major-ad-selling-companies-worldwide/
- https://economicimpact.google.com/methodology/
- https://www.hubspot.com/marketing-statistics
- https://www.webfx.com/ppc/learn/ppc-facts/
- https://support.google.com/google-ads/answer/2375454?hl=en
