Google Ads and PPC Statistics in 2024: Top Revenue & ROI

Picture Google as the big boss of the internet jungle, popping up on everyone’s phones and computers like a boss. Companies want to get in on this Google coolness, using Google Ads to show off their best stuff.

Since 2000, Google Ads has been like a fast pass for companies to jump to the front of the line in search results when people look up what they sell or do online.

No more sitting around, waiting for people to notice you. Just set up a Google Ads account, pop your ads on there, and ta-da! You’re among the top results people see whenever they’re online searching for your products or services. 

Does Google Ads or PPC work? (Spoiler: Yes)

Does Google Ads or PPC work? (Spoiler: Yes)

Here’s the scoop: we’ve dug up some super cool facts that prove these tools are total game-changers. Stick with us to find out how Google Ads and PPC might just be the winning moves your business needs to level up big time:

Top Google Ads Statistics

Ever wondered why some marketers spend the top dollar on Google Ads? 

It’s because it works. 

Google’s success isn’t just a stroke of luck. The real MVP? Google Ads. It’s that straightforward. Every click is practically money in Google’s pocket. 

Ever thought about the hefty amount top companies spend on Google Ads? We’re talking somewhere between $40 to $50 million each year. So why would they invest that much if they weren’t getting substantial gains in return?

Let’s look at statistics:

Google Made U$224.47 Billion in Revenue in 2022

In 2022, Google really hit the jackpot, raking in an impressive $224.47 billion from advertising alone. How? Through Google Ads. 

The platform gives advertisers a stage to showcase their ads, products, and services all across Google’s extensive ad network. It reaches people browsing on Google’s own sites, partner sites, and even apps.

The following table displays the Google Ads revenue generated over the years.

Year  Google Ads Revenue    
2013  U$51.07 billion       
2014  U$59.62 billion       
2015  U$67.39 billion       
2016  U$79.38 billion       
2017  U$95.58 billion       
2018  U$116.46 billion      
2019  U$134.81 billion      
2020  U$146.92 billion      
2021  U$209.49 billion      
2022  U$224.47 billion      
2023  U$237.855 billion     

Google Ads has a 61.73% market share in the pay-per-click (PPC) market.

General PPC Stats Simplified

  1. 65% of SMBs Are Already on Board: Yup, about 65% of small- to medium-sized businesses have taken the plunge into the world of PPC. They’ve got their campaigns running. 
  2. Average Conversion Rate? 2.35%: Across the board, when it comes to PPC, the average success rate hovers around 2.35%. Not too shabby, right?
  3. Mobile vs. Desktop: Hold onto your hats because paid ads are up to five times more effective on smartphones than on desktops.
  4. Personalization Pays Off: Getting personal isn’t just good manners; it boosts sales by 30%. Ads that speak directly to the customer’s needs and wants just do better.

Advertising Stats

  1. Nearly 8 out of 10 (79%) marketers believe PPC and Google Ads are key to their success story.
  2. Small to mid-sized businesses are going all in on paid ads, spending 7 times more there than on SEO.
  3. Most companies, over 80%, choose Google Ads for their pay-per-click strategies.
  4. Looking into the future, over 84% of businesses are eyeing Google Ads for their 2024 marketing plans.
  5. For roughly 4 in 10 businesses, snagging new leads is the top reason they’re using Google Ads.
  6. And interestingly, 9 out of 10 businesses working with Google Ads lean heavily on the Google Ads Editor to keep their campaigns in check.

Online User Stats and Google Ads

Curious how folks interact with ads online? We’ve got you covered with some straightforward stats:

  1. 98% love to shop from their couch, choosing online shopping.
  2. 75% find that Google search ads actually make finding what they need easier.
  3. 63% have clicked on a Google Ad at least once – curiosity wins.
  4. Trust in paid ads? 41% of users say, “Yes, please.”
  5. 50% struggle to tell apart paid search ads from organic stuff.
  6. Dodging ads? 94% scroll past paid search ads like professional skippers.
  7. 65% are keen on clicking ads if they’re in a buying mood.
  8. Ad influence is real – 90% admit ads sway their shopping decisions.
  9. When it’s ad clicking time, 63% go for Google Ads first.
  10. Mention a local business in an ad and 80% are more tempted to click.
  11. 33% click on ads that seem like the answer to their pressing questions.
  12. Ads that name-drop a familiar brand get clicks from 26% of users.
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Here’s a concise list that showcases just how influential Google Ads can be, based on various statistics related to its reach and the results it drives:

  1. Google Display Network Visibility: Every day, approximately 80% of online users encounter ads via the Google Display Network.
  2. Global Reach: This network stretches across the globe, reaching more than 90% of internet users worldwide.
  3. Extensive Content: The network is vast, containing over 2 million websites, videos, and apps where ads can appear.
  4. Clicks on Top Ads: The top three paid ads in Google search results snag an average of 41% of clicks.
  5. Click-Through Rate (CTR): Generally, Google Ads experience a CTR of about 4–6%.
  6. Return on Investment (ROI): Google projects an impressive 800% ROI for advertisers using Google Ads.
  7. Conversion Rate: The average conversion rate for Google Ads falls between 3–6%.
  8. Top-Ranking CTR: The highest-ranking ad in Google search results enjoys a CTR of 7.94%.
  9. Brand Awareness Boost: Using paid ads can elevate a business’s brand awareness by up to 33%.

  1. Starting Small: For those dipping their toes into advertising, Google suggests beginning with a modest daily budget of $10 to $50.
  2. Monthly Spend for SMBs: On average, small to medium-sized businesses allocate $100 to $10,000 per month on Google Ads.
  3. Management Costs: A significant portion of the advertising budget, about 12% to 30%, typically goes towards managing Google Ads campaigns.
  4. Click Costs: The cost per click (CPC) on the Google Search Network averages between $0.11 and $0.50.
  5. Leads Costing: For Google Local Services ads, businesses can expect the average cost per lead (CPL) to range from $6 to $30.

These figures provide a clearer picture of the financial commitment required for leveraging Google Ads, shedding light on its accessibility and potential for scalable marketing efforts.

psg digital marketing

Google Shopping Ads

Google Shopping Ads have revolutionized the online retail landscape, transforming how sellers reach potential customers. These ads are far from ordinary, acting as compact displays that feature your products with eye-catching images, pricing, and more. Delving into the statistics reveals their significant impact: 

  1. An impressive 75% of U.S. retail search ad spend is allocated to Google Shopping Ads. They also command 85% of clicks across Google Ads, underscoring their effectiveness in attracting attention. 
  2. With a formidable average conversion rate of over 1.91%, these ads are proven to deliver results, not just views. 
  3. Their average click-through rate (CTR) stands at approximately 0.86%, reflecting their capacity to engage prospects. 
  4. Furthermore, with an average cost-per-click (CPC) of merely $0.66, Google Shopping Ads present an economical approach to reaching your desired audience.

Google Owns 91.54% of the Search Engine Market

Google Ads and PPC: Google Owns 91.54% of the Search Engine Market

Google’s dominance in the search engine market is evident, with a staggering 91.54% of the market share worldwide. Except for China, where Baidu leads with 68.65%, Google maintains a near 90% grip on the search engine landscape across the globe. 

Region       Google Search Engine Market Share 
China        2.43%                           
North America  88.62%                          
Asia         91.25%                          
Europe        91.39%                          
Oceania      94.31%                          
South America  95.68%                          
Africa       97.31%                          

This table highlights Google’s pervasive presence in various regions, showcasing its unparalleled influence and reach in the search engine market.

Publisher and revenue

Let’s divert our focus to ad publishers’ stats—the websites that display ads—and the distribution of revenue with Google:

  1. Global AdSense Usage: An impressive 58.5 million websites globally use Google AdSense. 
  2. Annual Revenue to Publishers: Each year, Google allocates approximately $10 billion to its AdSense publishers. This substantial sum reflects Google’s commitment to sharing advertising revenue, thereby supporting website owners and content creators across the digital landscape.
  3. Google’s Share in Mobile Ad Spending: Google accounts for 33% of all expenditures on mobile advertising within its network. 
  4. Revenue Share for Publishers: About 68% of the revenue from ads hosted on publisher sites is returned to the publishers themselves. This generous revenue-sharing model ensures that a significant portion of advertising income benefits the content providers, incentivizing high-quality content creation and maintenance of engaging websites.
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Why Do Users Click on Ads?

  • Ads Answer a Question (33%): A significant portion of users, one-third, are attracted to ads because they provide immediate answers to their queries. This underscores the importance of tailoring ad content to respond to a client’s question.
  • Ads Mention a Familiar Brand (26%): More than a quarter of the clicks are driven by brand recognition. This suggests that incorporating well-known brands into ad content or highlighting familiar aspects of lesser-known brands can significantly increase user engagement and trust.
  • Ads are Listed Before Other Results (20%): Ranking at the top matters, with 20% of users clicking on ads simply because they appear before organic search results. This positions the ad as the first point of contact for users seeking information, making top placement a strategic advantage.
  • Ads with a Compelling Title, Description, or Image (19%): The allure of an ad often lies in its presentation. 19% of clicks are attributed to compelling titles, descriptions, or captivating images that grab attention and pique curiosity, emphasizing the need for creative and relevant ad visuals and copy.

Source: Demand Sage

Google Ads Cost Variation by Industry in 2024

The cost of advertising through Google Ads significantly varies across different industries, reflecting a dynamic and competitive digital advertising landscape. On average, businesses should expect to pay about $4.22 per click (CPC). Note that, this figure can fluctuate widely depending on the specific market and audience targeted.

Average CPC for Google Ads in Various Sectors

The expenditure on Google Ads CPC across diverse industries is illustrated below, highlighting the fluctuation in costs:

Industry                Average CPC for Search Network  Average CPC from the Display Network 
Legal                   $6.75                           $0.72                                
Consumer Services       $6.40                           $0.81                                
Technology              $3.80                           $0.51                                
Finance and Insurance   $3.44                           $0.86                                
B2B                     $3.33                           $0.79                                
Health and Medical      $2.62                           $0.63                                
Industrial Services     $2.56                           $0.54                                
Auto                    $2.46                           $0.58                                
Real Estate             $2.37                           $0.75                                
Education               $2.40                           $0.47                                
Home Goods              $2.94                           $0.60                                
Dating and Personals    $2.78                           $1.49                                
Employment Services     $2.04                           $0.78                                
Travel and Hospitality  $1.53                           $0.44                                
Advocacy                $1.43                           $0.62                                
E-commerce              $1.16                           $0.45                                

Industries with higher CPC rates, such as Legal and Consumer Services, tend to invest more in their Google Ads campaigns, aiming to capture highly competitive markets. On the other hand, sectors like E-commerce and Advocacy show more modest advertising costs, reflecting different strategic priorities and market conditions.

Monthly Google Ads campaign costs for businesses range from $1,000 to $10,000.

Approximately 36% of marketers spend between $501 and $3,000 per month on PPC management through an agency.

Monthly costs paid to PPC management agencies, along with the percentage of businesses incurring these costs:

Less than $100 3%
$100 to $500 12.1%
$501 to $1,000 15.2%
$1,001 to $3,000 21.2%
$3,001 to $5,000 12.1%
$5,001 to $8,000 15.2%
$8,001 to $11,000 9.1%
$11,001 to $15,000 76%
More than $15,000 4.5%

Companies allocate $15 to $800 each month for PPC Management Tools.

Concurrently, the expenditure on managing Google Ads ranges from $350 to $5000, or accounts for 12-30% of the monthly ad budget. Additional expenses related to Google Ads are detailed below. This table outlines the expected costs associated with Google Ads.

Pricing Factor               Average Cost                       
Ad Spend                     $9000 – $30,000 monthly         
Professional Google Ads Management  $350 – $5000 or 12-30% of ad spend monthly
PPC Management Tools         $15 – $800 monthly        

Nearly all small businesses (94%) plan to spend more on marketing soon. 

  1. Google Ads could bring in $81 billion by 2024, with over 84% of advertisers using or planning to use it. 
  2. Ads with voice-overs get remembered more and cost less, showing the impact of specific ad features. 
  3. Businesses also look to add AI to their Google Ads and adjust for more voice searches. Plus, with Google dropping third-party cookies by late 2024, advertisers will be forced to rely on their own data. 

About the Author

Tom Koh

Tom is the CEO and Principal Consultant of MediaOne, a leading digital marketing agency. He has consulted for MNCs like Canon, Maybank, Capitaland, SingTel, ST Engineering, WWF, Cambridge University, as well as Government organisations like Enterprise Singapore, Ministry of Law, National Galleries, NTUC, e2i, SingHealth. His articles are published and referenced in CNA, Straits Times, MoneyFM, Financial Times, Yahoo! Finance, Hubspot, Zendesk, CIO Advisor.

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