Stat Attack: The Key Statistics You Need to Shape Your PPC Strategies
Maybe you’ve been using pay-per-click advertising for some time or you’re adopting it now. Either way, you need the right information to create successful campaigns.
That’s why knowing the statistics is so important for developing PPC strategies. We’ve collected some of the most important stats about PPC. Let these numbers guide you as you shape your strategies for today and tomorrow.
PPC Statistics about Conversion Rates
As you shape your PPC strategies, you might ask if putting money behind it makes sense. After all, how many clicks can you really expect to get from an ad at the top of the Google search results page?
The answer is quite a few, actually. The average click-through rate for the top paid ad is about eight percent. That means eight percent of all people who see that ad will click on it.
Click-through rates do depend on the industry you’re in. The highest industry average for search ads goes to insurance and finance. The home goods industry has the highest conversion rate for display ads.
Another question you might have is whether clicks turn into sales. Although PPC advertising can drive brand awareness or meet other marketing goals, you want your ads to drive revenue.
People who click ads are more likely to buy something when they visit the store. They also spend more when they do buy something. Add in the fact that nearly half of in-store sales start online, and you can see how crucial PPC ads are to your sales.
ROI Statistics Prove PPC’s Effectiveness
Generally speaking, companies make back every penny they spend on PPC ads and then some. The average is about 2:1. For every dollar you spend, you’ll make $2.
That’s a good ratio, although it changes depending on the industry. In competitive industries, such as law, you may find ROI isn’t as high. That’s because the cost of the ads is higher, thanks to fierce keyword competition.
If a PPC campaign isn’t performing, it’s also easy to increase ROI. Some companies have found success simply by adding a remarketing strategy to the mix.
Think About Which Devices to Serve
Mobile has overtaken desktop as the preferred way to surf the web. The percentage of users who use mobile-only is expected to continue increasing. If you’re designing PPC strategies for your company, think about the devices your audience is using.
More than half of consumers click on at least one mobile ad once per week. Most people can also recall a brand they’ve seen a mobile ad for in the last week. Mobile far outperforms desktop in terms of driving brand awareness.
Your competition is already moving to mobile as well, so you’ll need to move quickly. Marketers say they’re splitting their budgets between mobile and desktop. Mobile now takes the lion’s share.
Mobile advertising makes up the majority of U.S. digital ad spending and Facebook’s advertising revenue.
Get on the Local Search Bandwagon
Another key change in the PPC marketing landscape is the advent of local search. People are conducting more “near me” searches than ever.
This makes perfect sense. People searching from mobile devices may be out and about, wondering where the best place to grab lunch is or where they can pick up a certain product.
Almost three-quarters of people conducting local searches result in a visit to a store. About half of those searches lead to a sale. Local search also increases traffic to stores and offline sales.
Local search drives revenue for businesses that leverage it properly, and that includes thinking about it in your PPC ads. On Google, more than a quarter of clicks are on paid ads, and more than half of those clicks are on local ads.
Local ads also affect the number of clicks on every other type of result. It’s one of the best arguments for adding pay-per-click advertising to your local SEO efforts.
Consumer Attitudes Toward PPC Strategies
People like ads. Over 60 percent of consumers say they’ll click on them, provided the ad is a good fit for their search. About half will click on text ads, while shopping and video ads get less love.
Most people click on the top three paid ads on the search results page. The people who click are also more primed. They’re more likely to buy something.
You can also see this reflected in statistics about high commercial intent searching. People who use keywords like “buy product near me” are ready to buy. They’re also more likely to click on ads because the ad gives them exactly the information they’re looking for.
In this category, paid search is far and away the winner. Organic search results usually net a much lower click-through rate.
Perhaps the most astounding fact is how much the millennial set likes ads. Seventy percent of them said they liked when they could click a product from an ad. Although they’re more skeptical of advertising, they like the ease and convenience of good PPC marketing.
PPC Does More Than Drive Sales
Pay-per-click statistics tell a bigger story about how the right strategy can help you do more for your brand. Yes, PPC creates sales and boosts revenues. It also does more.
PPC ads boost brand awareness. Remember how most mobile users were able to recall the brands they saw advertised? That’s awareness.
PPC also increases traffic, both to physical stores and online shops. While you hope many of these turn into sales, increased traffic boosts brand awareness.
Give Your Digital Marketing a Boost
Developing stellar PPC strategies can help you reach your marketing goals with ease. These numbers can give you the insight you need to give your strategies laser focus.
PPC isn’t the only part of a great digital marketing plan. Check in with us for the latest tips on SEO, content marketing, and more. We’ll help you stay ahead of the curve to find marketing success. Contact WSI Proven Results to discuss how PPC could benefit your business.