PPC Statistics

Pay-per-click (PPC) advertising has become one of the most legitimate strategies in the world of digital marketing. While traditional search engine optimisation (SEO) will earn you the top spot in the organic search results, you can use PPC ads to achieve virtually the same result in a much shorter space of time.

Around 9 in 10 (90%) internet users claim to encounter paid ads when browsing Google search results, with almost two-thirds (65%) admitting to clicking on these ads to make a purchase. With paid search now accounting for nearly two-fifths (39%) of digital advertising budgets, marketers are looking to embrace the use of paid ads as part of their overall quest to dominate the search engine results page (SERP) for their respective fields.

With this in mind, search marketing agency Reboot Online has crunched the numbers to bring you the latest PPC statistics, including typical PPC cost data, average click-through-rate (CTR) data for Google and Amazon ads, average PPC conversion rates, and an appraisal of pay-per-click statistics when it comes to organic vs. paid search techniques.

Top PPC statistics

• The average cost of PPC advertising in 2024 is between $100 - $10,000 (£80 - £8,000) a month.
• According to WebFX, the average cost for PPC management is somewhere between $1,001 and $3,000 (£80 - £2,400) per month.
• As of 2024, the monthly average cost of a Google Ad campaign is between $100 and $10,000 (£80 to £8,000), a figure reported by more than 2 in 5 (44%) businesses.
• WebFX also found that three-fifths of companies (61%) typically pay between $0.11 and $0.50 (£0.08 and £0.40) per click.
• The average Amazon PPC cost in 2024 was between £0.20 - £3.00 ($0.25 - $3.80) for Sponsored Products and £0.10 - £2.00 ($0.13 - $2.51) for Sponsored Brands.
• According to an analysis of ahrefs data by Reboot Online, the average CPC on Amazon Ads range from $0.03 (£0.02) per click in India to $0.55 (£0.44) in the U.S.
• Wordstream found that companies in the arts and entertainment sector have the lowest average CPC on Google Ads at $1.72 (£1.37), with attorneys and those offering legal services having the highest ($8.94/£7.13).
• According to Statista, the amount of money spent globally on search advertising is expected to reach more than $221 billion (£175 billion) in 2024 – an increase of almost 7.2% from the previous year.
• As of August 2024, there were just over 2,000 searches per month on average for “PPC agency” across the UK – almost 4 times more than 5 years earlier.
• The average CTR for Google Ads in 2024 is approximately 7.37%, according to a report by Wordstream.
• SERP analysis from Wordstream shows the average conversion rate for Google Ads to be 6.96% in 2024.

PPC cost statistics

Average PPC cost statistics

For most businesses, the average PPC cost is somewhere between $100 and $10,000 (£80 - £8,000) a month. However, on Ad networks such as Google and Meta, you can expect to pay anything from $0.11 to $0.50 (£0.09 to £0.40) per click.

That said, these are only average figures. In reality, the average cost per click you pay may depend on many factors, including:

• Levels of competition within your industry
• Keyword choices
• The Google quality score of your ads.

Monthly average PPC cost statistics

According to a marketing survey by WebFX, around a fifth (22.62%) of marketers have pay-per-click advertising costs of between $5,001 and $10,000 (£3,991 and £7,980) a month, with a similar percentage (22.02%) spending somewhere in the region of $100 - $5,000 (£80 - £3,990) per month.

Generally speaking, as the monthly average PPC cost increases, the proportion of marketers spending that amount decreases. Pay-per-click rates are typically lowest for those spending between $750,001 and $1 million (£594,300 and £792,400), with just 3.57% of marketers surveyed paying this amount monthly.

Average monthly spending on PPC by company type

According to the State of PPC Report 2024, around two-fifths (39.33%) of companies have an average PPC cost of between $50,000 and $500,000 (£39,992 and £399,000) per month.

When broken down by company type, agencies tend to have higher average monthly spends on PPC, with a fifth (20%) typically paying out more than $3 million (£2.3 million) – a figure contrasted by just 3% of freelancers.

Freelancers, on the other hand, are more likely to have lower average monthly PPC costs, with a third (33%) shelling out $5,000 - $50,000 (£3,990 - £39,902) per month on PPC expenditure. Around half this amount (16%) face monthly PPC costs of less than $5,000 (£3,990).

Average monthly PPC spending per team member (agency vs. in-house)

Source: PPCsurvey.com

It’s little surprise that agencies with a larger team tend to spend more each month on their pay-per-click campaigns.

PPC agency spending between $15,000 and $50,000/£11,970 and £39,902 on PPC each month tend to have around six members in their team. This results in an average monthly PPC cost of $5,417 (£4,323) per person.

However, agencies spending more than $20 million (£15.78 million) per month on their PPC campaigns typically have around 26 employees, at an average cost of $962,067 (£767,780) per team member.

For businesses with an in-house PPC team, monthly average PPC costs tend to be much lower. Those with a pay-per-click cost of less than $5,000 (~£3,990) per month tend to have an average team size of 1.6, at a cost of $1,585 (~£1,265) per employee. For those with monthly average PPC spends of $1 million - $3 million (~£789,150 - £2.36 million), these figures rise to 6.2 members per team at $323,699 (~£323,699) per person.

Incidentally, paid media agencies with the same average monthly PPC spend tend to have around two-and-a-half times more employees (15.2 vs. 6.2) than those who don’t. Despite this, they face an average cost that is almost two-and-a-half times less by comparison ($131,705 vs. $323,699/£105,107 vs. £258,328).

Average PPC management cost

According to a 2024 survey by WebFX, the average cost for PPC management is between $1,001 and $3,000 (£799 and £2,394) per month, with more than a fifth (21.2%) of marketers spending this amount per month on external PPC support.

How much businesses pay for PPC management each month, on average

This was followed by an identical percentage of businesses (15.2%) that typically face a monthly PPC management cost of either $501 - $1,000 or $5,001 - $8,000 (£400 - £798 or £3,991 - £6,384).

Incidentally, very few businesses surveyed (3%) have an average cost of less than $100 (£80) per month – slightly less than those who pay more than $15,000 (£11,970) per month (4.5%).

Different PPC agency charging structures

PPC agency costs can vary depending on what your objectives are, what work you need, and how involved you want your PPC partner to be in your campaign management. Below we have listed some of the common agency charging structures and the average costs associated with each one:

1. Hourly rate PPC costs

If you’re going for an hourly rate, then expect to pay at least £25 ($31) per hour for freelancers and anything from £45 - £250 ($56 - $313) per hour for an agency – with the average cost being somewhere between £80 - £150 ($100 - $188).

2. Fixed-rate PPC costs

If you opt for a fixed rate, then expect monthly average retainer fees of £450 - £2,000 ($564 - $2,506).

3. Percentage-only PPC pricing

Some agencies also adopt a percentage-only pricing method based on the amount you spend on your ads (in addition to your ad spend). This is commonly between 10% and 20%, but could be as much as 100%.

For example, if you were on a 20% agreement and spent £10,000 ($12,531) per month on Google Ads, your agency would charge you £2,000 ($2,506) per month to manage your PPC campaigns.

4. Performance-based PPC pricing

This is normally an agreed cost per lead or a percentage of sales. The main benefit of this is that if your PPC campaigns are unsuccessful then you don’t pay. However, there are key things that you will need to agree on, such as:

• What defines a sale?
• What data is being used to determine the ‘success’ of your campaigns?
• How does the process work for defining success?
• Do you still have control over your ad accounts?
• Can you approve and recommend changes or is this under the control of the agency?

As the agency only receives payment based on the success of your PPC campaign(s), a PPC agency will typically expect full control of your accounts. This could result in less autonomy for you and your business when it comes to organising campaigns (for many busy business owners however, this will be a good thing).

Average Google PPC cost statistics

As of 2024, the average cost of a Google Ad campaign is somewhere between $100 and $10,000 ($80 and $7,980) a month – a figure reported by more than two-fifths (44%) of businesses.

A survey by WebFX found that most businesses (61%) typically shell out between $0.11 and $0.50 (£0.09 and £0.40) per click when running PPC ads.

Average Amazon PPC cost statistics

With around 310 million active users worldwide, Amazon has become the go-to place for online shopping for many people. While Amazon does not provide specific figures for the number of sellers on their platform, they do indicate around one million people join the marketplace each year as new sellers. This equates to an approximate average of 2,740 new Amazon sellers each day.

As Amazon continues to dominate the global retail market, it’s no surprise that so many businesses are turning to Amazon advertising to boost their visibility, drive sales, and increase profits.

With PPC, you only pay when a shopper clicks on your ad. As of 2024, the average Amazon pay-per-click cost was between £0.20 - £3.00 ($0.25 - $3.76) for Sponsored Products and £0.10 - £2.00 ($0.13 - $2.51) for Sponsored Brands.

However, the cost is not fixed and can be affected by numerous factors, including:

• Level of keyword competition
• Product category
• Time of year/season (i.e. holidays, key retail events such as Black Friday)
• Quality of your ads
• The amount you’re willing to bid

According to an analysis of their software users, Ad Badger found that Amazon’s average cost-per-click (CPC) was $0.95 (£0.76) as of 2024 – an increase of a third (33.8%) from 2020 when the average stood at $0.71 (£0.57).

According to an analysis of their software users, Ad Badger found that Amazon’s average cost-per-click (CPC) was $0.95 (£0.76) as of 2024 – an increase of a third (33.8%) from 2020 when the average stood at $0.71 (£0.57).

The Amazon 2.5 Rule

Jungle Scout believes it’s possible to estimate your PPC advertising costs using a method known as the 2.5 Rule.

Based on an assumed conversion rate of 10% and an advertising cost of sales (ACoS) at 25%, this means your PPC keyword cost should be no more than 2.5% of the product’s sales price.

For example, imagine you’re selling a wall-mounted photo frame for $29.99 and you discover the Amazon PPC cost for the keyword “wall-mounted photo frame” is $0.55 per click. This would be a good keyword to target as $0.55 is less than 2.5% of your sales price.

However, if the Amazon PPC cost for a broader keyword, such as “photo frame” is $1.28 per click, then this would be around 4.3% of your sales price, so this might not be the best keyword to target from a campaign profitability perspective.

Average CPC statistics for Amazon across different countries

According to an analysis of ahrefs data by Reboot Online, the average cost-per-click on Amazon Ads varies depending on which country you’re located in.

Those in India typically face the cheapest average CPC when selling on Amazon at $0.03 (£0.02) cost-per-click, followed by Turkey at $0.04 (£0.03).

By contrast, U.S. sellers commonly face the highest CPCs, with an average cost-per-click of $0.55 (£0.44) – around 18 times more than a typical seller in India. This was followed by the UK and Australia with an average CPC of $0.37 and $0.32 (£0.30 and £0.26), respectively.

Highest CPC statistics for Amazon across different countries

When looking at the highest average CPC for Amazon Ads across each country, Reboot Online also found that some countries come out considerably higher than others. For example, the Tablette Fire HD 8 in Canada averages $1,000 (£798.05) per click – the most expensive from this study – followed by the Amazon Store App in Brazil at $927.06 (£739.84).

By contrast, some countries have a very small range between their most and least expensive Amazon Ads based on cost-per-click. Poland has a relatively low average CPC at $0.09 (£0.07) across all Amazon Ads, with Sprzedawaj na Amazon having the average highest cost-per-click at $2.37 (£1.89).

Sweden, incidentally, has an average CPC for its Amazon Ads two-and-a-half times greater than Poland, yet its most expensive ad (Ventilslipmaskin till lågt pris) is just $3.61 (£2.88) per click (one-and-a-half times greater than Poland’s most expensive Amazon Ad).

Average cost-per-click (CPC) by industry

A 2024 study by Wordstream found that companies in the arts and entertainment industry typically have the lowest average cost-per-click on Google Ads at $1.72 (£1.37). This was followed by travel ($1.92/£1.53) as the only other industry to average less than $2 (£1.60) per click across Google Ads.

Average CPC statistics for Google Ads across different industries

At the other end of the scale, the cost of a Google click tends to be highest for businesses in the attorneys and legal services sector. With an average CPC of $8.94 (£7.13), this makes it around five times more expensive than a typical cost per click in the arts and entertainment industry.

The second most expensive cost per click was found for those advertising in the home and home improvement sector ($6.96/£5.55) – almost $2 (£1.60) less on average than a typical click for attorneys and legal services.

Average CPC statistics for Google Ads across different industries (search vs. display)

When comparing the average cost of a Google click, we can see that this tends to be higher on Google Search compared to Google Display across all industries.

The legal sector sees the biggest gap ($6.03/£4.81) in its average per click cost between Search ($6.75/£5.39) and Display ($0.72/£0.57) compared to a relatively small difference ($0.71/£0.57) for those in the e-commerce industry.

Generally speaking, the average cost-per-click for Google Display Ads tends to be less than $1/£0.80 (except for dating and personals at $1.49/£1.19), with the cheapest average coming from the e-commerce sector.

Average cost-per-click (CPC) statistics between businesses

According to a 2024 survey by WebFX, around three-fifths (61%) of businesses pay between $0.11 - $0.50 (£0.09 - £0.40) per click for their Google Ads.

When comparing the average cost of a Google Ad per click between the Google Search Network (GSN) and Google Display Network (GDN), just under two-fifths (37%) typically pay $0.11 - $0.50 (£0.09 - £0.40) on the GSN compared to just under a quarter (24%) on the GDN.

Average monthly spend by marketers on Google Ads

Most marketers spend an average of $5,001 - $10,000 (£3,991 - £7,980) per month on Google Ads, accounting for more than a fifth (22.58%) of marketers surveyed by WebFX in 2024. A similar percentage (21.94%) also have average monthly PPC costs of $100 - $5,000 (£79.81 - £3,990), which means more than two in five (44.52%) businesses have a monthly Google Ad expenditure of between $100 and $10,000 (£79.81 - £7,980).

After $10,000 (£7,980), the average amount spent on Google Ads each month tends to decrease with each price bracket, down to just under 4% who allocate more than $1 million (£789,150) each month for Google Ad spending.

Average CPC for Google Ads (Google Search Network vs. Google Display Network)

In terms of average CPC for Google Ads on the Google Search Network (GSN), more than a third (36.73%) of marketers surveyed by WebFX in 2024 typically spent between $0.11 - $0.50 (£0.09 - £0.40) per click. This drops to around one in eight (12.24%) for those who spent around $0.51 - $0.70 (£0.41 - £0.56) per click.

Generally speaking, as the average cost-per-click rises, the percentage of marketers spending that amount tends to decrease. That said, around 7.14% buck this trend by typically spending $5.01 - $7.00 (£4 - £5.59) per Google Ad click.

Similarly, for the Google Display Network (GDN), marketers typically pay around $0.11 - $0.50 (£0.09 - £0.40) for the average CPC on their Google Ads, with almost a quarter (23.61%) reporting this figure. That said, the proportions fluctuate as the average cost-per-click increases, with around one in seven (13.89%) typically paying around $3.01 - $5.00 (£2.40 - £3.99) per click on the GDN.

Average PPC investment statistics

According to the World Advertising Research Center (WARC), global spending on advertising is set to reach $1 trillion (£789.15 billion) in 2024, at a growth rate of 8.2% from 2023.

More than half (51.9%) of the global advertising market can be accounted for by the world’s five biggest tech firms (Alibaba, Alphabet (owner of Google and YouTube), Amazon, ByteDance (owner of TikTok and Douyin) and Meta, owner of Facebook and Instagram).

With growth rates exceeding the general market, these five companies are predicted to see their ad revenue rise by around 10.7% in 2024, with all other media owners combined expected to see a relatively flat rate for the year.

Global spending statistics on advertising

Social media is forecast to be the fastest-growing medium of 2024. With an annual spend of $227.22 billion (£179.31 billion), this constitutes more than a fifth (21.8%) of total ad expenditure representing a rise of 12.8% from 2023. This is marginally behind search media in terms of total spending for the year at $229.23 billion (£180.99 billion).

Total global advertising spend by category ($bn)

Retail media is also expected to be amongst the fastest-growing advertising channels in 2024. Accounting for less than a seventh (13.6%) of total global ad spending, companies are expected to invest around $141.7 billion (£111.8 billion) into retail media in 2024 – a rise of almost 10.5% in the space of 12 months.

Percentage share of the global advertising market by category

Search media has dominated the global advertising market for several years and constitutes more than a fifth (22%) of the overall market as of 2024. This is marginally ahead of social media (21.8%), suggesting the gap between the two is getting narrower.

Between 2022 and 2024, the percentage market share of social media in global advertising spend has risen by 2.2 percentage points (pp) compared to just +0.5% for search over the same period. During this time, retail media also saw an increase of 1pp, while the market share of online display and online classified decreased by 0.1pp and 0.2pp, respectively.

Average PPC investment over time

According to Statista, the total global spend on search advertising is expected to exceed $221 billion (£174.5 billion) in 2024 – a rise of almost 7.2% from the previous year.

The amount spent on search advertising has risen year-on-year since 2018 and is expected to have more than doubled (+106%) by the end of 2024.

Total global spend on search advertising (2018-28)

If current trends continue, by 2028 the total global spend on search advertising could reach $260.97 billion (£205.94 billion) – an increase of almost a quarter (23.24%) from 2024 predicted figures.

Average PPC investment by time of year

Since 2019, search volume statistics for the phrase “PPC agency” indicate some significant variations in its popularity over time.

As of August 2024, there were just over 2,000 searches per month for “PPC agency” across the UK, with an average search volume of 2,153 for the year to September.

Average search volume statistics for the term “PPC agency” in the UK (2019-25)

Between January 2019 and September 2022, there were some large fluctuations in the number of monthly searches for the “PPC agency” keyword, reaching a low of 423 in August 2019 and a high of 5,342 in June 2020.

That said, since August 2023, the general trend suggests a gradual decline in the average number of searches for “PPC agency” across the UK. In the 12 months before August 2024, this figure has dropped by more than a fifth (22.28%). Estimates suggest that should this pattern continue, there could be more than a third (36.72%) fewer searches for the keyword “PPC agency” in the UK by August 2025.

Average search volume statistics for the term ”PPC agency” in the UK by month

When broken down by month, the average search volume for “PPC agency” does vary throughout the year in the UK. Typically, these figures are highest at the start of the year at 1,981 in January before gradually falling to an average of 1,482 in April – a drop of virtually a quarter (25.19%) in just four months.

This relatively high interest in PPC agencies during Q1 could indicate companies getting their ads out early in the year in preparation for the Easter period.

Average search volumes for “PPC agency” peak again in June and August, with both months typically experiencing more than 1,900 monthly searches across the UK.

After this point, there is a gradual month-on-month decline in the number of monthly searches for “PPC agency”, reaching a low of around 1,554 per month in December. This elevated interest in Q3 is possibly linked to an increase in PPC ad spending and wanting to get prepared for the forthcoming Black Friday sales and Christmas period.

Average PPC spending by device type

By 2024, total global spending on mobile advertising is expected to reach almost $400 billion – a rise of more than a fifth (22.16%) from 2022.

Global traffic share by platform (August 2024)

As of August 2024, more than two-thirds (68.98%) of global web traffic was from mobile devices, with less than a third (29.4%) from desktops and just 1.62% from tablets.

Average PPC spending by platform

According to the State of PPC Report 2024, virtually all (98%) of companies surveyed use Google as part of their PPC spending. This is followed by more than three-quarters (76%) who adopt Facebook for pay-per-click advertising and around 7 in 10 (70%) who leverage Instagram.

Most commonly adopted platforms by businesses as part of PPC spending

More than two-thirds (67%) of businesses admitted using either Microsoft Bing or YouTube, whereas just under half (48%) incorporate LinkedIn into their PPC expenditure.

PPC platform adoption rates by average monthly PPC spend

Generally speaking, as a company’s average monthly PPC spend increases, so does the adoption rate for the 10 most commonly used PPC platforms.

Around 9 in 10 (91%) businesses that spend less than $5,000 (£3,990) a month on pay-per-click advertising use Google as their primary platform, rising to 100% for those spending $500,000 - $3 million (£399,026 - £2.36 million).

Similarly, almost 3 in 5 (58%) companies with a PPC budget below $5,000 (£3,990) use Facebook for advertising compared to 4 in 5 (80%) with a budget of more than $3 million (£2.36 million) a month.

One of the biggest increases is for the usage of Microsoft Bing, from just under a fifth (19%) of those with the smallest PPC budget (<$5,000/£3,990 a month) up to almost 9 in 10 (89%) with a budget between $500,000 - $3 million (£399,026 - £2.36 million).

Yearly advertising revenue on PPC spending by platform in $bn (2020-24)

As of 2023, Google had the largest share of PPC advertising revenue at $175 billion (£138 billion) – roughly five-and-a-half times more than the money spent on YouTube adverts for the year. This represents a rise of more than two-thirds (68.27%) from 2020.

With an expected compounded annual growth rate (CAGR) of almost a fifth (+19%), this could mean the amount spent by companies on Google ads could reach $208.25 billion (£164.3 billion) by the end of 2024.

This is followed by Meta, who received $132 billion (£104.2 billion) worth of PPC spend in 2023 – an increase of almost three-fifths (57.14%) from 2020. A CAGR of +16% means that this could be valued at $153.12 billion (£120.8 billion) by 2024.

TikTok saw the biggest growth in PPC ad spend by companies in recent years, rising from $1 billion (£789.15 million) in 2020 up to $13 billion (£10.26 billion) in 2023. With an expected CAGR of 111%, this means TikTok ad spending could exceed $27 billion (£21.3 billion) by 2024.

Average PPC investment by company size

More than two-fifths (43%) of startups have average PPC costs of between $100 - $5,000 (£80 - £3,990) a month, according to a 2024 survey by WebFX.

Typical PPC costs for different-sized companies

PPC spending statistics suggest that around a third (33%) of small businesses pay out $100 - $5,000 (£80 - £3,990) a month on paid advertising compared to less than a fifth (19%) of enterprises.

Average click-through-rate (CTR) for PPC

Average CTR for Google ads

According to Wordstream, the average CTR for Google Ads in 2024 is approximately 7.37%.

Average CTR for Google ads by Google rank position

SERP analysis by Smart Insights suggests that Google’s average CTR tends to decrease along with search rankings. For example, those in search position 1 can expect a CTR of around two-fifths (39.8%), which then almost halves to less than a fifth (18.7%) for those in position 2.

Average CTR for different Google search features and positions

By the time you reach position 5 in the SERP, around 1 in 20 (5.1%) people will click through to your page – a figure that drops by more than half to 1.6% by position 10.

In terms of Google Ads’ average CTR, those in ad position 1 can expect around twice as many people to click through to their ads as position 4 (2.1% vs 1.2%, respectively).

Average CTR for featured snippets and their rankings

A similar pattern is shown in the average CTR for featured snippets. Less than a quarter (23.3%) of people will click through to those in position 1 and drops to just over a fifth (20.5%) for position 2.

Those in position 10 have an average CTR of around 2.3%, meaning people are 10 times more likely to click on your featured snippet in position 1 compared to position 10.

Average CTR for Google ads by industry

When analysing Google Ads' average CTR, there are some significant variations when it comes to companies from different industries. As of 2024, the industry average CTR for Google Ads stands at 7.37%.

According to research by Wordstream, those in the arts and entertainment sector tend to have the highest average CTR for Google Ads (13.04%) followed by travel (10.16%) as the only other industry to reach double figures.

Average CTR for Google Ads by industry

At the other end of the scale, businesses linked to attorneys and legal services were found to have the lowest average CTR on Google Ads. Around one in 20 (5.3%) tend to click through on Google Ads relating to this field, which means people are almost two-and-a-half times more likely to click through for arts and entertainment-related ads than those in the legal sector.

This is followed closely by dentists and those offering dental services (5.38%) and home and home improvement companies (5.59%).

Average CTR for Amazon ads

Based on research by Ad Badger and AI Hello, the average CTR on Amazon Ads is somewhere between 0.35 and 0.4%.

Anything above this is considered a decent click-through rate. However, below 0.3% and this could suggest customers are not impressed with your ad or it’s not relevant to what they’re looking for.

In reality, you should be aiming for at least 40 clicks for every mille (1,000 ad impressions).

Average PPC conversion rate

Research by WebFX suggests the average PPC conversion rate for 2024 is 2.35%. If you want a good conversion rate for your PPC ads, then you should be aiming for at least 10%. However, this figure will vary depending on the industry you work in, your location, and the level of competition for your target keywords.

What is the average conversion rate for Google ads?

According to SERP analysis from Wordstream, the average conversion rate for Google Ads in 2024 is 6.96%.

Average Google Ads conversion rates by industry

When broken down by industry, there is some variation in the average conversion rate for Google Ads. Those in the automotive sector (repairs, service, and parts) tend to have the highest average conversion rates across all industries at 12.96%, followed by companies dealing with animals and pets (12.03%).

Average conversion rate statistics for Google Ads across different industries

At the other end of the scale, the businesses in the furniture sector and finance and insurance industries typically have the lowest average conversion rate for Google Ads, at 2.53% and 2.78%, respectively.

In reality, this means customers are around 5 times more likely to click on a Google Ad for a company in the automotive sector than one working in the furniture trade.

Average cost-per-lead statistics for Google Ads across different industries

Many advertisers use cost per lead as their core metric for tracking success as this determines the average cost of a conversion from a search ad for your business.

As of 2024, the average cost per lead for Google Ads was $66.69 (£53.22).

When broken down by industry, those in the automotive sector dealing with repairs, services, and parts typically have the lowest average cost per lead at $27.94 (£22.30), followed closely by restaurant and food companies ($26.67/£21.28).

Conversely, attorneys and legal services have the highest average cost per lead at $144.03 (£114.94) – around 5 times more expensive than the typical Google Ad for an automotive company.

Incidentally, 3 other industries all averaged more than $100 (£80) per lead in 2024, including those dealing with furniture ($119.10/£95.05), career and employment ($117.92/£94.11), and business services ($105.84/£84.47).

Average Amazon conversion rate

According to Ad Badger, Amazon’s average conversion rate for 2024 is 9.44%. However, like all metrics, these averages can vary depending on the type of industry and what is being sold. For example, more expensive products (i.e. above $100/£80) typically have a lower conversion rate on Amazon as customers like to shop around and compare prices before executing their final purchase.

It’s worth noting the average eCommerce conversion rate for websites other than Amazon is around 1.33%, making Amazon’s average conversion rate roughly 7 times greater by comparison.

That said, research by Ecomcrew suggests the figure could be close to 10-15%, with Amazon Prime members converting around three-quarters (74%) of the clicks they make. This is mainly because those who visit Amazon tend to have something in mind that they want to buy – if not that day, then in the future.

Average return on investment (ROI) for PPC

Estimating the average return on investment (ROI) for Google Ads relies on 2 main assumptions:

1. According to a study headed up by Google’s chief economist Hal Varian, businesses make an average of $2 (£1.60) in revenue for every $1 (£0.80) they spend on Google Ads.
2. Based on an analysis of search log data by academic researchers Bernard Jansen and Amanda Spink, companies receive an average of 5 clicks on search results for every click on their ads.

Using these assumptions, Google estimates that search clicks are about 70% as valuable as ad clicks. In reality, this means advertisers receive around 8 times the profit they spend on Google Ads.

Best paid social media platform for PPC

A study by First Page Sage into the average advertising benchmarks between paid social media platforms and PPC highlights that PPC has a superior average CTR of 6.42% compared to 0.9% for Facebook. This means consumers are around 7 times more likely to click on a standard PPC ad than one from Facebook.

In terms of average cost-per-click (CPC), PPC comes out as the second most expensive ($4.66/£3.72) behind LinkedIn ($5.58/£4.45). A typical YouTube ad costs around $0.20 (£0.16) per click – around 23 times cheaper than the average PPC ad.

Social media advertising benchmarks and average cost statistics vs. PPC

Source: First Page Sage and various sources inc. Wordstream, Mayple, Shnoco, TheB2BHouse, Upbeat Agency, Yotpo, and WebFX

*A mid-point average was taken in the event of a range given by the source

According to First Page Sage, PPC ads have an average conversion rate of around 6.96% – about the same as those on Twitter (X) at 6.46%. That said, LinkedIn statistically has the best conversion rate across all social media platforms analysed at 0.55% (almost 13 times better than the average PPC ad).

How much companies typically spend on social media advertising each year

Market research from WebFX indicates that companies usually spend between $10,001 and $25,000 (£7,981 and £19,951) a year on social media advertising with more than 1 in 6 (17%) marketers surveyed admitting this amount.

Almost three-fifths (59.2%) spend less than $25,000 (£19,951) a year on advertising via social media, with less than 1 in 10 (7.8%) indicating average social media advertising costs of more than $250,000 (£199,513).

Revenue contributions and average return on ad spend (ROAS)

Facebook leads the way for average revenue contributions from social media advertising, with almost a third (32.37%) of its revenue coming from paid ads. This is followed closely by YouTube (28.19%), yet drops off to around a ninth (11.47%) of LinkedIn’s annual revenue.

In terms of average RoAS, Twitter (X) generated the highest figure in 2023 at 6.8 – more than double the return for Facebook ads (which incidentally had the lowest average RoAS across all platforms analysed).

SEO vs. PPC statistics - organic search vs. paid search

When it comes to organic search vs. paid search, the former still accounts for more than half (53.3%) of all web traffic with around 15% coming from paid sources. Users tend to trust organic search results more than paid ads because they believe those results are more relevant to their search query. This would explain why consumers are more than twice as likely to click on organic results than paid ones (70% vs 30%, respectively).

Furthermore, ranking highly for organic search is important, with up to 80% of users admitting they completely ignore paid advertisements when searching online.

That said, paid search can still be a valuable investment, with some studies suggesting it can increase web traffic by more than half (53%) and three-quarters (75%) of users claiming paid search ads make it easier to find the information they need.

These trends are supported by market research from Agency Analytics, which suggests that paid search visits are over a third (35%) more likely to convert than organic search. This might explain why the average small and midsize business (SMB) invests 7 times more in PPC than they do in SEO.

A key success metric of any marketing strategy is the conversion rate and return on investment (ROI). Studies suggest that organic search has an average conversion rate of 14.6% compared to 10% for paid search. However, PPC tends to have a better ROI, with an average of $2 (£1.60) for every $1 (£0.80) spent compared to SEO (but this can vary considerably between different industries).

In reality, when it comes to organic vs. paid search as a marketing strategy, the ideal solution probably lies in blending the two. Business2Community found that marketers using both organic SEO techniques and PPC advertising saw around a quarter (25%) more clicks and 27% more profit than those who only used one technique.

Average CTR for organic search vs. average CTR for PPC

When it comes to average CTR by SERP position, there is some variation depending on which marketing tools you use.

For those in position 1, the average CTR can vary by almost 15%, from more than two-fifths on Ignite Visibility (43.3%) down to more than a quarter (28.5%) on Sistrix.

Average CTR by SERP position between different SEO tools

For position 2, the average click-through rate drops by almost 6% on Ignite Visibility compared to position 1 and almost halves on Sistrix to 15.7%.

Those ranking in position 3 can expect a CTR up to almost a third (29.9%), meaning roughly 1 in 3 of users will click through to the page. That said, this figure can be as low as 11%, resulting in approximately 1 in 10 customers clicking on your page.

Average CTR (organic search vs. paid search)

When comparing the average CTR for organic search vs. the average CTR for search ads, the results tend to favour PPC. This is certainly the case for positions 1 - 2. However, positions 3 - 10 seem to suggest a higher average CTR for organic rankings.

For example, almost two-fifths (39.8%) of users will click through to a PPC ad in position 1, according to SERP analysis from Smart Insights. This is 5.6% higher than the average CTR for organic search. Similarly, the average CTR for PPC ads in position 2 is just under a fifth for both PPC and SEO, with the former coming out marginally on top (18.7% vs. 17.1%).

As anticipated, average click-through rates then drop off to 10.2% for PPC and 11.4% for organic search results.

For those ranking in positions 3 - 10, you can expect a slightly higher average CTR for organic search compared to paid adverts from anything between 0.7% and 2.3%.

Average Google search CTRs (mobile vs. desktop)

When comparing CTRs between device types, desktops tend to produce a higher average click-through rate compared to mobiles.

Results from Smart Insights show that:

• More than 2 in 5 people will click through to a search result for both mobile and desktop, with the latter having a slightly higher rate (45.1% vs. 43.1%).
• More than a quarter (25.6%) of users on desktop will click through from zero click results compared to less than a fifth (17.6%) on mobile.
• The average CTR for Google keywords is almost a third (29.3%) for mobile devices yet less than a fifth (17.9%) for desktops.

How does PPC compare to other forms of marketing?

Generally speaking, SEO channels tend to produce a higher average conversion rate for both B2C and B2B marketing compared to SEM/PPC.

According to analysis from First Page Sage, PPC adverts typically receive an average conversion rate of 1.2% for B2C and 1.5% for B2B, compared to 2.1% and 2.6% for SEO, respectively.

Digital marketing conversion rates across different channels

PPC does perform slightly better than display advertising and influencer marketing for its average conversion rates for both B2C and B2B marketing strategies. However, it falls 1.6% below typical B2C conversion rates for email marketing and 1.1% below B2B rates for SEO (both the highest percentages in their respective categories).

Highest conversion rates amongst different industries and channels

Conversion rate statistics for different marketing channels vary considerably between industries.

SEM/PPC tends to be highest for companies in the B2B automotive industry (1.4%) – marginally ahead of email marketing (1.3%) – whereas SEO typically has the highest average conversion rate in the addiction treatment sector (2.8%). This means users are twice as likely to convert when browsing for addiction treatments compared to those looking in the B2B automotive trade.

SEO marketing strategies resulted in the highest average conversion rate for half of the industries analysed by First Page Sage compared to just 1 in 20 (5%) for SEM/PPC.

Incidentally, First Page Sage also found that webinars had the highest conversion rates for the biotech (2.5%), oil and gas (2.1%), and B2B construction industries (1.7%).

PPC and the public

Most popular questions about PPC

An analysis of ahrefs search volume data by Reboot Online found that the most commonly asked question relating to PPC in 2024 is “What is PPC?”. With an average of 1,200 searches per month between July 2023 and July 2024, this was around 4 times more popular than the next most common FAQs (“What is PPC in digital marketing?” and “What is PPC marketing?”).

Most common FAQs about PPC

Furthermore, approximately 250 people per month want to know “What does PPC stand for?” and “What is PPC advertising?”.

Most misunderstood terms in PPC

To understand PPC, it’s important to get your head around the range of terminology and phrases associated with the topic.

In the 12 months before July 2024, around 700 searches took place each month for “What is lead generation?”, making it the most commonly searched PPC terms of the year. This was followed by “What is lead time?”, with an average of 600 searches per month.

Most frequently searched PPC terms

Source: Reboot Online via ahrefs

Search queries around conversion rates were also popular during this time, with 450 searches per month for ‘how to work out conversion rate’ and 350 for ‘what is conversion rate’.

Attitudes towards PPC in 2024

The State of PPC Report 2024 indicates that the majority of marketers are looking for efficient PPC growth in 2024. Just under three-quarters (72%) of those surveyed want to grow their PPC efforts, but only if efficiency targets are met within the company.

Just under a fifth (19%) of marketers are aiming to improve efficiency when it comes to their PPC strategy (i.e. trying to get more volume of leads without increasing their PPC budget).

Most popular PPC goals for 2024

At the other end of the scale, around 1 in 14 (7%) are looking to adopt an aggressive approach towards their PPC campaigns. By doing this, they demand growth whilst accepting efficiency may decrease as a result.

Incidentally, just 2% of companies surveyed indicated they intend to decrease their PPC spend in 2024, suggesting it is still a relatively high priority for the vast majority (98%) of businesses.

Is managing PPC campaigns harder or easier in 2024 compared to 2022?

Almost two-fifths (38%) of companies surveyed in the State of PPC Report admitted that managing PPC campaigns was somewhat harder in 2024 compared to 2022.

This was followed by more than a third (35%) who felt it was about the same, with around 1 in 7 (14%) indicating overseeing and controlling their PPC campaigns was somewhat easier compared to 24 months earlier.

Main challenges facing PPC agencies in 2024

Around 2 in 5 (40%) companies claim finding talent within the industry is the most challenging aspect of PPC management in 2024, with more than a third (34%) often struggling to grow their agency’s revenue.

Just over half (51%) of PPC agencies claim that meeting clients’ expectations and retaining their custom can be challenging some of the time, with a quarter (25%) stating that they never struggle with increased competition from other agencies.

Main challenges facing in-house PPC teams in 2024

Similar to PPC agencies, companies with an in-house PPC team tend to struggle the most with finding talent, something quoted by two-fifths (40%) of businesses as ‘very challenging’.

Conducted by PPCsurvey.com as part of their State of PPC Report 2024, the study also revealed that an identical percentage (40%) found changes and support from ad platforms challenging. A slightly larger proportion (43%) of businesses also struggle with staying up-to-date in terms of the latest technological developments.

Conversely, almost a quarter of marketers surveyed from in-house PPC teams claim to not struggle with retaining talent (24%) and coaching/training team members (23%) in the PPC industry.

Pay-per-click FAQs

What is PPC?

PPC (pay-per-click) is a form of online advertising where companies pay a publisher each time a user clicks on one of their ads.

What does PPC stand for?

PPC stands for pay-per-click and refers to how much it costs a company every time a user clicks on an advert.

What is Amazon PPC?

Amazon PPC is an advertising platform that enables Amazon sellers to promote their products online via pay-per-click advertising on the Amazon website.

How does PPC work?

PPC works by allowing advertisers to:

• Bid on keywords that they want their ads to appear for in the search engine results pages (SERPs).
• Create ads that target those specific keywords.
• Set a maximum bid that they are willing to pay for each click.
• Explore the use of a search engine algorithm to impact which ads show where and in what order.
• Pay a fee when a user clicks on the ad.

How can PPC help your business?

PPC can help your business in many ways, such as:

1. Reaching a larger target audience.
2. Increasing the amount of web traffic to your site.
3. Enhancing brand reputation and awareness.
4. Generating quicker results (compared to more traditional, organic approaches like SEO).
5. Helping you to measure the performance and relative success of your ads in an easily testable way.
6. Being more resourceful and cost-effective (as you only pay when someone clicks on your ad).
7. Allowing flexibility and adaptability alongside other marketing approaches, such as social media marketing and SEO.

How much does PPC cost?

The cost of PPC can vary depending on numerous factors, such as the industry you work in, consumer behaviour, the relative popularity of keywords you wish to target, and where you’re located. In 2024, the average cost of PPC was between $100 and $10,000 (£80 and £7,980) a month.

How much to spend on PPC

Choosing how much to spend on PPC is not an easy decision and certainly one that should not be taken lightly. The amount you spend on PPC advertising will depend on your business goals and budget, the industry/sector you work in, and how competitive the market is for your target keywords.

As a general rule of thumb, between 5-10% of your total revenue should be dedicated to marketing and 20-30% of that to your PPC strategy.

Smaller businesses may be in a position to spend a few hundred/thousand per month on PPC, whereas larger enterprises may be able to afford tens of thousands if not millions, per month on pay per click advertising.

Where do PPC ads appear?

PPC ads can appear in multiple places, the most common of which is in the search engine results pages (SERPs). This tends to be as text ads at the top or bottom of the page.

PPC ads can also appear as display ads (i.e. banner, video, and native ads) on websites, apps, and social media platforms. They can also be displayed as local ads on places such as Google Maps. Companies, such as Amazon and Microsoft Bing, may also have sponsored product ads on their respective sites.

What is PPC management?

PPC management is the process of overseeing and taking control of a company’s PPC advertising campaigns and spending. This usually involves hiring a PPC agency to undertake several tasks, such as:

• Keyword analysis and deciding on the best ones to target.
• Choosing which channels are best to advertise on.
• Monitoring and tracking the success of PPC campaigns (i.e. ROI).
• Designing, implementing and running PPC campaigns.
• Bid optimisation.
• Tracking conversion rates and optimising campaigns for better results.
• A/B testing to identify new opportunities for further growth.

What is a PPC agency?

A PPC agency is a digital marketing company that manages and controls pay per click advertising campaigns on behalf of another company. They will help you stay within budget and get your PPC campaigns performing as profitably as possible.

How much do PPC agencies charge?

PPC agencies can charge for their services in many ways, including:

1. Hourly rate - this could be anything from £25 ($31) an hour up to £250 ($313) an hour depending on the type and scale of work being completed.
2. Fixed monthly - this tends to come with average cost of £450 - £2,000 ($564 - $2,506) per month.
3. Percentage-only pricing - this will typically be between 10% and 20%, although it could theoretically be 100%.
4. Performance-based - this is usually an agreed cost per lead or percentage of sales before work commences.

How much should I charge for PPC management?

Knowing how much to charge for PPC management does not come with a simple answer. The average monthly PPC management cost tends to be around $10,000 (~£7,980), but this can vary depending on the extent and type of work being completed, the company’s goals and expectations, how much they are willing to invest, and the industry they work in.

What is a PPC campaign?

A PPC campaign is a type of digital marketing strategy where advertisers pay a fee every time a user clicks on one of their ads. They tend to appear on search engine results pages, websites, and social media platforms.

How to run a PPC campaign

Running a PPC campaign requires several steps starting from the initial set-up through to monitoring the relative success of your ad groups, ads and campaigns. The key steps are as follows:

1. Work out your goals and expectations - what do you want to achieve due to this campaign?
2. Location - where do you want to advertise? Search engines? Websites? Social media platforms? A hybrid approach?
3. Keyword research - Which keywords do you want to bid on?
4. Budget - How much are you willing to bid for different keywords? How does this fit within your budget to remain as profitable as possible?
5. Ad writing - put together your ad with a link to a target landing page on your site.
6. Monitor the performance of the ad and adjust as you learn what works/doesn’t work.

How to optimise PPC campaigns

Knowing how to optimise a PPC campaign requires an in-depth understanding of paid media and what success looks like. The key steps to optimise a campaign are as follows:

1. Undertake effective keyword research that allows you to target specific keywords relevant to your products, services and target audience.
2. Ensure your website is fully optimised for high conversion rates.
3. Have a clear bidding strategy and research how much to bid and what you can afford within your budget to remain as profitable as possible.
4. Create compelling ad copy that appeals to your target audience and is optimised for those important keywords.
5. Your landing pages should match the search intent for each search term you are targeting.
6. Organise your campaigns into intuitive ad groups for greater focus and better monitoring of success.
7. Track performance in line with your overall business objectives and tweak them accordingly.

How do you do competitor keyword gap analysis for PPC?

To complete a competitor keyword gap analysis for PPC, you need to:

1. Identify your competitors.
2. Analyse their keywords (what do they currently rank for? Is it worth going up against them for these or are there any that you could target instead?).
3. Examine their landing pages for keywords, and use of calls to action (CTAs). How have they designed their site to maximise conversions? What is it like from a user experience perspective? What is the branding like? How does the site function? How fast does it load? This might give you some ideas for improving your site which can help you make your PPC campaigns more profitable.
4. Analyse competitor ads and note relevant strengths, weaknesses, and areas for improvement to give you ideas to improve your own approach.
5. Track display ads over time to see how the performance changes and take learnings from it.

How to do keyword research for PPC?

To do keyword research for PPC, you first need to identify what keywords you want to bid on as part of your PPC campaigns. The best way of doing this is to create a Google Ads account, although other analysis tools are available, such as ahrefs, Semrush, or Mangools.

Log in to your keyword tool of choice, and start entering relevant keywords to the product/service you are wanting to advertise. It’s best to try a mixture of short-tail and long-tail keywords to see how the search metrics change for each type. You can also get further inspiration and keyword ideas by entering a URL (either yours or a competitor's) to see what words it ranks for (organically and in the paid results).

How to improve PPC performance

You can improve PPC performance by implementing a range of strategies, such as:

• Carrying out additional effective keyword research to help you target keywords which will drive a greater volume of conversions at a lower cost per action (CPA).
• Using negative keywords to prevent irrelevant traffic from triggering your ads.
• Providing additional contact information in your ads (e.g. phone number, address, or web link).
• Optimising your ad copy to make your ads as compelling, engaging, and persuasive as possible.
• Making your landing pages as user-friendly as possible for improved ad quality scores and enhanced conversion rates.
• Tracking performance regularly so you can see what’s working and what isn’t for rapid intervention.
• A/B testing your PPC campaigns and landing pages to judge their relative success and to channel more ad spend into the best performing ones.

How PPC and SEO work together

PPC and SEO work together in numerous ways. Ultimately, they are trying to achieve the same goals: boost web traffic, increase your leads, and generate more revenue for your business.

Improving the SEO performance of your website should increase your chance of ranking for keywords that you may be targeting in your PPC campaigns. Purchasing PPC ads for those same keywords allows your site to appear multiple times near the top of the page when someone inputs that search term. Combined, this should raise your brand awareness, allowing you to dominate the search results and boost the chance of getting those important clicks.

How does SEO affect PPC?

SEO can affect PPC performance in various ways. When a site already ranks strongly in the organic search results, any PPC ads ran to the same page may experience higher click-through rates (CTR) and quality scores given the pages clear relevance for those search terms.

Pay-per-click glossary

Click-Through-Rate (CTR)

The ratio of clicks to impressions for a particular ad or search result. In other words, the proportion of visitors who see your ad who “click-through” to your web page.

Conversion Rate

An evaluative performance metric often used in digital marketing to determine the average number of people who complete a desired goal once seeing or interacting with your ad. It is usually defined as a percentage of the overall number of visitors.

Cost-Per-Click (CPC)

An amount paid each time someone clicks on a PPC ad.

Cost-Per-Lead (CPL)

A measure of how much is paid to generate a new ‘lead’ (commercial enquiry).

Featured Snippet

A highlighted section of text that appears at the top of the Google search engine results page (SERP) and usually provides a summary or quick response to a user’s search query.

Google Display Network (GDN)

A collection of websites, apps, and videos where Google Ads are displayed, such as YouTube, Gmail, and Google Finance, as well as partner sites and mobile apps.

Google Search Network (GSN)

A collection of websites, apps, and videos where Google Ads can be displayed. This may include search results, Google sites (such as Maps, Shopping, and Images), as well as partner sites of Google.

Organic Search

Unpaid listings that appear on the search engine results page (SERP) once a user has inputted a search query. These are normally determined by the relevancy of the results, as opposed to paid search results which appear once a company pays for it to do so.

Paid Search

A digital marketing strategy that involves paying search engines to display ads on the SERP, with the primary aim of driving traffic to a company’s website.

Pay-Per-Click (PPC)

A type of online advertising where companies pay a publisher each time someone clicks on one of their ads.

Return on Ad Spend (ROAS)

A marketing metric used to determine the amount of money earned (i.e. revenue) for every dollar/pound spent on advertising. This is often used by digital marketers as an evaluative measure of how effective a paid advertising campaign has been.

Return on Investment (ROI)

A calculation that measures how profitable a campaign has been compared to the amount spent to set it up. This is expressed as a percentage or ratio and calculated using the following formula: (profit minus cost) / cost.

Search Volume

A measurement of how many times people are searching for a particular keyword/phrase within a given time frame (usually a month).

Search Engine Optimisation (SEO)

The process of improving your company’s website to increase its visibility on search engines and boost traffic to your site.

Sources and methodology

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• https://blog.hubspot.com/marketing/ppc-keyword-research#how-to-research

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