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What is Pay-Per-Click (PPC) Advertising? History, Trends, Best Practices, Industry Averages, and Statistics

A question that I still get asked by mature business owners is whether or not they should do pay-per-click (PPC) marketing or not. It’s not a simple yes or no question. PPC offers an amazing opportunity to push ads in front of audiences on search, social, and websites that you may not ordinarily reach through organic methods.

What is Pay Per Click Marketing?

PPC is a method of online advertising where the advertiser pays a fee each time their advertisement is clicked. Because it requires a user to actually take action, this method of advertising is quite popular. Marketers can find PPC opportunities across search engines, social media, and a plethora of advertising networks. Unlike traditional ads that are charged a CPM (cost per thousand impressions), PPC charges with a CPC (cost per click). The CTR (click-through rate) is a percentage of how many times users click versus see a PPC ad.

Douglas Karr, Martech Zone

Should you do PPC? Well, I’d recommend having a foundational content library and website with all the bells and whistles before you start spending a ton of money on ads. An exception, of course, is if you’re not sure what content will actually produce conversions. Testing keyword combinations and ad copy in PPC can save you a ton of money and time spent on content marketing if you’re not sure.

I generally advise clients to get a baseline site, a library of content, some great landing pages, and an email program… then use PPC to augment their overall digital marketing strategy. Over time, you can build your organic leads and use PPC sparingly when you need the leads.

The State of Pay-Per-Click Advertising

This infographic by Serpwatch.io offers a wealth of valuable insights into the world of PPC, providing essential information for businesses to maximize their marketing efforts. This article summarizes the key points from the infographic, highlighting important statistics and trends.

  • Tremendous growth in PPC spending – PPC spending has seen a significant increase in recent years, with businesses spending $10.1 billion in 2017, $13.5 billion in 2018, and a projected $25.1 billion in 2020. This demonstrates the growing importance of PPC advertising as a marketing tool.
  • Google Ads dominates the market – As the leading platform for PPC advertising, Google Ads accounted for 73.1% of the total ad spend in 2020. Bing Ads and Yahoo! Gemini followed, capturing 7.8% and 6.5% of the market, respectively.
  • The role of mobile in PPC advertising – Mobile devices have become an indispensable part of people’s lives, and this is evident in PPC advertising. In 2020, mobile ad spending reached $247 billion worldwide, surpassing desktop ad spending. This highlights the need for businesses to optimize their PPC campaigns for mobile users.
  • The significance of location targeting – Location targeting is an essential aspect of successful PPC advertising. As the infographic reveals, businesses can witness a 20% increase in conversions by utilizing location-based targeting in their ad campaigns.
  • Remarketing is a powerful tool – Remarketing is the process of showing ads to users who have previously visited your website. This technique is highly effective in improving conversions, with 76% of PPC marketers stating that remarketing is an important part of their overall PPC strategy.
  • Top industries leveraging PPC – The infographic highlights several industries that make the most of PPC advertising. These include retail, travel and tourism, education, and financial services. However, businesses in any industry can benefit from a well-executed PPC campaign.
  • Quality Score matters – Google Ads utilizes a metric called Quality Score to determine the relevance and quality of ads. A higher Quality Score results in lower costs per click (CPC) and better ad placements. Therefore, businesses must prioritize improving their Quality Score for enhanced PPC performance.

PPC advertising is a powerful marketing tool that allows businesses to drive traffic, increase visibility, and generate leads. The infographic offers valuable insights into PPC trends, emphasizing the importance of mobile optimization, location targeting, remarketing, and maintaining a high Quality Score. By understanding these key points, businesses can effectively leverage PPC advertising for increased growth and success.

Be sure to check out the entire infographic below for more than 80 other statistics! Be sure to read the accompanying article at Serpwatch.

How does PPC Work?
How PPC Ads are ranked and priced
History of PPC
Why Choose PPC?
PPC versus SEO
PPC Conversion - Why People Click
Local Search Ads and PPC
Average Industry PPC CTR, CPA, CPC Rates
Top PPC Mistakes
PPC Trends

Douglas Karr

Douglas Karr is CMO of OpenINSIGHTS and the founder of the Martech Zone. Douglas has helped dozens of successful MarTech startups, has assisted in the due diligence of over $5 bil in Martech acquisitions and investments, and continues to assist companies in implementing and automating their sales and marketing strategies. Douglas is an internationally recognized digital transformation and MarTech expert and speaker. Douglas is also a published author of a Dummie's guide and a business leadership book.

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