67+ Shocking Google Ads Stats To Know In 2021
If you’ve ever had a client ask “but how much do Google ads cost?” or “are you sure they really work?” or “but aren’t they super expensive? We have very small budgets and can’t afford to be wasteful” – then this guide is for you.
We’re going to dive right into the Google Ad PPC space and rip it apart – pulling out all the stats and figures you need, to not only understand it yourself, but to give your clients that reassurance they’re looking for.
This video by WordStream, expertly breaks down exactly what you can expect from online advertising – answering the question: how much does online advertising cost?
Our intent here is to arm you with the tools that you need to present yourself intelligently to clients, to build trust and close deals.
How do we know for sure that Google Ads work? Because we practice what we preach and run them ourselves.
We wouldn’t keep wasting money if it wasn’t working.
Here we’re going to break down 67+ shocking Google Ads stats to help you understand how they can help your business grow.
So let’s get into it.
So Why Use Google Ads In The First Place?
Google Ads (formerly known as Adwords) is a form of PPC advertising (pay-per-click) that gives you the power to reach your customers right at that moment they’re searching for you.
Google Ads is one of the most comprehensive and competitive advertising tools available on the market for growing your business through: building awareness, generating site traffic, collecting leads, getting phone calls and driving online sales
Here are some key stats why:
- Users who see an ad are 50% more likely to purchase (Source)
- Digital advertising increases awareness of brands by 80% (Source)
- 3.8 Million Google searches are done each minute, that’s 5.4 Billion (with a B) each day (Source)
- Google is king: accounting for 90% of desktop searches (Source)
- Google has 76% of the search engine market (Source)
- Google has 73% of the paid search market share (Source)
- 65% of all small to medium sized businesses run PPC campaigns (Source)
- The top three search results account for 46% of all clicks (Source)
- 35% of customers will purchase their product within 5 days of Google searching it (Source)
What Makes Google Ads So Effective?
Google Ads have been designed from the ground up to be effective – by why exactly do they work? Good marketers need to have an in-depth understanding of these core mechanics.
How is Google Ads so good at getting users to not only engage with ads, but also to take action on them? How does Google know?
These stats should shed some light on the situation:
- 90% of purchasers said that ads influenced their decision to purchase (Source)
- 75% of purchasers agreed that paid search ads made it faster to find important information (Source)
- 66% of customers said they preferred shopping online rather than in-store (Source)
- 63% of users have engaged with a Google ad (Source)
- 59% of users said they prefer online reviews and purchase recommendations (Source)
- 58% of millennials have made a purchase because of a digital marketing ad (Source)
- 50% of people are unaware of the difference between paid ads and organic listings on Google search (Source)
- 49% of users say they’ve engaged with text ads (Source)
- 47% of Gen X’ers made a purchase because of a digital marketing ad (Source)
- 43% of people have made a purchase after seeing an online advertisement (Source)
- 41% of people trust the ads they see online (Source)
- 33% of customers engage with search ads due to its relevance to their search (Source)
- 22% of Baby Boomers have made an online purchase due to a digital marketing ad they’ve seen (Source)
And How Much Do Google Ads Cost?
This video by Marketing 360 gives a detailed and behind the scenes look at exactly how much marketing could cost and what to set your expectations around:
As with everything, someone can tell you how ‘amazing’ something is – but you need to know the hard numbers to determine whether it is effective for your specific business or not.
This means considering the costs. Many business owners find Google Ads to be highly cost-effective as the platform gives you complete control over your budgets, your bids, and gives you the flexibility to change at any time.
Imagine buying a billboard ad and then deciding that you only want to invest half your budget. Good luck just getting half a billboard.
Google Ads put you in the driver’s seat. But here are some specific stats to drive the point home:
- Google Ads has been found to deliver an 8:1 return on investment (ROI) — or $8 of revenue for each $1 spent (Source)
- $9-$10k per month is the typical ad spend for small to medium sized businesses (Source)
- For optimal results, $10-$50 per day ad spend is typically recommended for your Google Ads campaign budget (Source)
- Depending on the industry, the average cost-per-click (CPC) for Google Ads is between $1-2 (Source)
- The Google Display Network typically costs less with clicks generally less than $1 CPC (Source)
For a more detailed breakdown of Google Ads costs by specific industry, split between Google Search and Google Display networks, check out this table:
|INDUSTRY||AVERAGE CPC (SEARCH NETWORK)||AVERAGE CPC (DISPLAY NETWORK)|
|Dating and Personals||$2.78||$1.49|
|Finance and Insurance||$3.44||$0.86|
|Health and Medical||$2.62||$0.63|
|Travel and Hospitality||$1.53||$0.44|
What Are Typical Conversion Rates On Google Ads?
Cost is a major factor when selecting your ideal ad platform – however it isn’t the only thing you should be concerned about.
You must also be aware of the typical conversion rates to understand how well an ad platform will translate into sales for you.
So we know that Google Ads are great at connecting with your ideal customer, but are they able to get them to convert and generate sales for you?
Let’s dive into the stats:
- Google Ads have an average conversion rate of 3.75% (Source)
- Google Display Network has a typical conversion rate of 0.46% (Source)
So to give a real example – let’s say you sell a $300 product in the B2B space.
At a 3.04% conversion rate, you’ll need approximately 33 clicks to make a sale. With an average CPC of $3.33 – that’s going to cost you about $110 to make a sale.
Assuming you have a 50% margin, that gives you $150 per sale, and subtracting your $110 ad costs, leaves you with $40 of profit.
That is $40 of pure profit you can turn out like clockwork on auto-pilot. Sound good?
To get even more specific on conversion rates across industries, check out this table. It also includes a distinction between Google Search and Google Display Network conversion rates.
|INDUSTRY||AVERAGE CONVERSION RATE (SEARCH NETWORK)||AVERAGE CONVERSION RATE (DISPLAY NETWORK)|
|Dating and Personals||9.64%||3.34%|
|Finance and Insurance||5.10%||1.19%|
|Health and Medical||3.36%||0.82%|
|Travel and Hospitality||3.55%||0.51%|
Why Should You Advertise On The Google Search Network?
Google Ads is a versatile all-encompassing ad platform, including Google Search, Google Display and YouTube Ad Networks.
Google Search is a highly popular ad network, as it allows you to specifically reach customers at that moment when they’re searching for you.
Additionally it allows you to reach users over Google Maps, Google Images and Google Shopping Networks.
To get more specific, these stats highlight specific benefits of the Google Search Network:
- The Google Search Network offers 6 ad types, including text, responsive, dynamic, call-only, image and shopping ads (Source)
- 63% of users have admitted to clicking on paid ads in Google search results (Source)
- 55% of users who’ve engaged with Google Search Network ads like text based ads (Source)
- 49% of users engage with Google text ads (Source)
- The Google Search Network has an average click-through rate of 1.91% (Source)
Why Advertise On The Google Display Network?
We’ll cover this more in a future article, but the Google Display Network offers your business to engage with users all across the web.
On most major websites and apps, the Google Display Network can be found – allowing you to show your ads to your customers wherever they are.
How big is the Google Display Network? It’s over 2 Million websites across the entire web. Let’s just say, it’s big.
More importantly – Google Display Ads can be used for more advanced remarketing strategies, which will be essential as your business grows.
These stats break down exactly how powerful the Google Display Network is for your business:
- 90% of all online consumers can be reached through the Google Display Network (GDN) (Source)
- The Google Display Network offers 8 types of ads, including photo, video, text, banner, responsive, shopping and app promotion (Source)
- The GDN is made up of more than 2 Million unique websites – meaning that your target audience is already there (Source)
- 55% of businesses run some form of display ads (Source)
- 0.35% is the average click-through rate for GDN ads (Source)