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Daniel Law

October 26, 2020

50 Paid Advertising Statistics in 2020

Paid advertising has been around since the dawn of digital marketing. Today, hundreds and thousands of marketing channels are as effective and as reliable as paid ads.

Despite that, leading brands and enterprises in and outside Australia still streamline their content using paid ads because of a few things. One is that Google Ads PPC is relatively cheaper than other channels. Secondly, paid ads can boost your content to your target audience whenever and wherever they need your product.

But before you set foot and invest in streamlining your Bing or Google PPC marketing campaign,  having a headstart can be practical. With that, here are timely and relevant paid advertising statistics to help you gear up and anticipate the trends that work best in improving your conversion rates.

Paid Advertising Channel Breakdown

We will break down our PPC advertising statistics into:

  • Paid Ads Relevance Statistics
  • Search Ad Statistics
  • Mobile Advertising Stats
  • Google Local Services Ads
  • PPC Display Ad Stats

Read on through the statistics and gain substantial insights that you can mobilise to develop a cunning and actionable marketing strategy to boost your sales and dominate the Australian market.

Why You Should Paid Ads in 2020

The primary reason large-scale enterprises invest in PPC ads is that they can engage with their target audience when and where they want to reach them. Here are some stats and facts you might find helpful in clearing up the cloud of doubt surrounding paid ads.

  1. You can achieve as much as an 11.38% click-through-rate with paid ads on Google.
  2. Roughly 75% of people find their queries on paid search ads. 33% of these people click on a search ad mainly because it directly answers their question.
  3. About half of people claimed to have clicked on a text ad. Moreover, 31% of online users click on shopping ads, while only 16% engage in video advertisements.
  4. In terms of Google paid ads, 63% of people claimed that they would click on a Google ad in SERPs.
  5. Organic search results that begin with buying keywords receive 35% of clicks, while Google Ads get 30% more clicks.
  6. Large-scale enterprises claim to earn about $2 income for every dollar they invest in Google advertisements.
  7. The top three paid ads on Google SERPs get about half (41%) of the total clicks.
  8. For users searching for something to buy online, paid ads share 65% of all engagements and clicks.
  9. On average, an ad placed in the first spot in SERPs gets 7.94% of click-through rate, a significant increase from the average 2%.
  10. Users who click on paid ads are 50% more likely to buy a product on the website than organic visitors.
  11. 65% of large-scale B2B brands claimed to have acquired a customer through their paid ads on LinkedIn.
  12. Facebook Retargeting can increase your brand’s pay-per-click ROI by roughly 2.5 times.
  13. Investing in paid search ads can improve brand awareness by more than 80%.
  14. About three-fourths (75%) of internet users who acquire relevant and locally targeted information in SERPs are more likely to physically visit the brand store.
  15. You can acquire as much as 25% of new consumers by developing a targeted search campaign on Google.
  16. Implementing display ads can improve your website traffic by up to three-folds (300%).
  17. To date, there are more than 300,000 mobile applications in the Play Store that display Google Mobile advertisements.
  18. About half (43%) of online users have bought a product that they found in a YouTube Ad.
  19. You can promote and streamline your products and services using Google Ads. With its competitive rate of roughly 87%, you can compete with other big brands within your niche.
  20. Out of all industries operating in Google, the Legal Industry gets the lion’s share of the highest average cost per click: $135.17.
  21. Aside from the legal industry, Insurance and Finance receives the highest average conversion rate for paid Google Search Ads for 7.19%.
  22. For Google Display Ads, the Home Goods industry gains the highest average conversion rate at 2.19%.
  23. Outbound marketing strategies are overrated, according to one-third (30%) of online marketers.

Search Ad Statistics

Google and Bing search display ads that are relevant to a user’s current search behaviour. These search engines make sure that the ads you see are relevant to your search queries, so you get whatever info you need.

Paid search ads appear above and below SERPs. Besides, if your brand is sitting on the #1 spot, then you’re pretty much golden.

  1. Users who visit a brand’s Google search ad before visiting their physical store is about 30% more likely to buy a product or service they offer in the store.
  2. Additionally, users who visited a Google search ad about the brand tend to spend 10% more than those who didn’t.
  3. To develop interesting content that you can supercharge in paid search ads, you’ll need an average of a 1,200-word count.
  4. You can reinforce your search ads with testimonials, as 90% of consumers trust product reviews from real people.
  5. Additionally, 66% of keywords focusing on buyer-intents are paid search links.

Mobile Advertising Statistics

After Google rolled out their mobile-first indexing, paid advertising is also slowly skewing towards mobile devices, especially with the rise of mobile users worldwide. Here are some stats and facts about mobile advertising to help you craft a stunning mobile ad campaign.

  1. Large-scale enterprises and leading brands invest about 51% of their resources into mobile-friendly ads.
  2. Mobile ads perform better over desktop-optimised ads, delivering better brand awareness and branding effectivity.
  3. For mobile devices, Google delivers a whopping 95% of paid search advertisements.
  4. Roughly 66% of online users can remember the brands and companies they saw advertised on search engines and streaming sites since the previous week.
  5. About 60% of users will visit a mobile ad every week.
  6. Last year, mobile advertising was responsible for about 73% of digital advertising spendings.
  7. 87% of advertising revenue earned by Facebook directly comes from mobile devices.

Google Local Services Ads Statistics

  1. 13.8% of SERP visits from Google are about local service provider ads.
  2. The existence of Local Service search ads impacts the number of visits for other types of search engine results pages.
  3. By using Latent Semantic Analysis (LSA), you can harvest as much as 25.3% of engagements through paid local service ad results. Without LSAs, statistics only show a shy 14.6% clicks.
  4. With LSAs present, organic results can garner the most clicks than paid links of all SERP types.
  5. Aside from paid ad links, organic results that rank #1 get the most clicks among all SERP types.
  6. People trust honest product reviews, and review ratings are the most significant driver for online visits and engagements, especially in local search results.

Pay-Per-Click Display Ad Statistics

Aside from paid advertisement links, display ads are critical for brand awareness, especially for big brands who want to carve their branding into the market. On the other hand, not all consumers receive and digest display ads well.

Hence, selecting the right PPC keywords and using these statistics as benchmarks should help you drive traffic that turns into leads.

  1. On average, display ads present across all placements and formats is merely 0.06%.
  2. Last year, more than 30% of all internet users had an ad-blocker installed on their devices.
  3. Internet users within the younger age-groups are more likely to install an ad-blocker in their devices than their elders, making it about three out of ten internet users.
  4. From a study, roughly 2.8% of people believed that digital ads present on a website were relevant.
  5. When it comes to mobile ad engagements, statistics show that about half (50%) of mobile ad clicks are unintentional.
  6. More than half (54%) of online users avoid clicking banner ads because they seem trustworthy for the users.
  7. About a third (33%) of online users think that display ads are outright unbearable.
  8. Consumers aging 25-34 years old will most likely ignore digital ads and banners in search engines and social media just as they were in television, radio, and print ads.
  9. About 67% of online users are fully aware of ad-blockers but claimed to have never used them.

Summary

There is a lot to look forward to when it comes to paid advertising in 2020. While Google paid ads work simple, they can be incredibly comprehensive and complex, especially for those unfamiliar with paid results.

With that, the facts and figures we discussed above should give you a headstart in crafting and maintaining a robust and data-driven paid advertising campaign, be it on Google, Bing, and other search engines.

Achieving your long-term objectives can be possible through comprehensive data and a best-in-class digital marketing strategy. G Squared recommends outlining your brand objectives first, then using our data to develop a groundbreaking digital marketing campaign.

Still have questions? Call us at (02) 9339 4500 or submit an enquiry and speak with us today.

Daniel Law
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