While the average PPC click-through rate may seem modest at just over 3%, the real story is found in the powerful revenue metrics, like an average return-on-ad-spend of 200% and PPC contributing a hefty 28% of total revenue for e-commerce brands.
Key Takeaways
- In 2023, the average click-through rate (CTR) for Google Search Ads across all industries was 3.17%
- The average CTR for Google Display Ads in 2023 was 0.46% across all industries
- For the legal industry, Google Search Ads CTR averaged 2.93% in 2023
- Average CPC for Google Search Ads across industries was $2.69 in 2023
- CPC for legal industry Google Ads reached $6.75 in 2023
- Average Display Ads CPC was $0.63 in 2023
- Average Google Ads CVR for Search was 3.75% in 2023
- Display Ads conversion rate averaged 0.57% in 2023
- E-commerce industry CVR on Google Search was 4.40% in 2023
- Average ROAS for Google Search Ads was 200% in 2023
- E-commerce ROAS from PPC averaged 4:1 ($4 revenue per $1 spent) in 2023
- Facebook Ads ROAS averaged 2.5:1 in 2023 benchmarks
- Global PPC ad spend reached $152 billion in 2023
- PPC market projected to grow 12% CAGR to 2028
- 65% of enterprises increased PPC budgets in 2023
Google Ads have a higher click-through rate than social media ads overall.
Conversion Statistics
- Average Google Ads CVR for Search was 3.75% in 2023
- Display Ads conversion rate averaged 0.57% in 2023
- E-commerce industry CVR on Google Search was 4.40% in 2023
- Facebook Ads average CVR was 1.11% in 2023
- Legal services CVR from PPC averaged 5.65% in 2023
- Average post-click conversion rate for Shopping Ads was 1.02% in 2023
- LinkedIn Ads CVR for B2B leads was 2.7% in 2023
- Amazon PPC CVR averaged 9.87% for sponsored products in 2023
- Bing Ads CVR was 2.94% similar to Google in 2023
- Instagram Ads CVR averaged 0.88% in 2023
- TikTok Ads CVR for e-commerce was 1.5-3% in 2023
- Pinterest Ads CVR averaged 1.85% for shopping campaigns 2023
- YouTube Ads CVR from view-through was 0.8% in 2023
- Snapchat Ads CVR averaged 0.92% in 2023
- Twitter Ads CVR for website clicks was 1.2% in 2023
- Programmatic display CVR averaged 0.45% in 2023
- Google Performance Max CVR averaged 4.5% in 2023 pilots
- Average CVR uplift from ad extensions was 15% in 2023
- Mobile CVR was 1.1x higher than desktop for local services 2023
- Remarketing CVR averaged 70% higher than cold traffic in 2023
- Landing page A/B testing improved CVR by 25% avg in PPC 2023
Conversion Statistics Interpretation
In the grand auction of attention, Google Search is the bustling farmer's market where transactions happen, Display ads are the billboards on a highway that most drive past, and Amazon is the pushy salesperson already in your cart—proving that intent, not just interruption, is what ultimately opens the wallet.
Cost Analysis
- Average CPC for Google Search Ads across industries was $2.69 in 2023
- CPC for legal industry Google Ads reached $6.75 in 2023
- Average Display Ads CPC was $0.63 in 2023
- Facebook Ads average CPC was $0.97 in 2023
- LinkedIn Ads CPC averaged $5.26 for B2B in 2023
- Amazon PPC CPC for search terms averaged $0.89 in 2023
- Bing Ads average CPC was $1.39 in Q4 2023, lower than Google's $2.69
- Average CPM for Google Display Network was $3.12 in 2023
- Instagram Ads CPC averaged $1.23 for feed placements in 2023
- TikTok Ads average CPC was $0.50-$2.00 depending on targeting in 2023
- Snapchat Ads CPC averaged $0.70 in 2023
- Twitter Ads CPC ranged from $0.50 to $2.00 per engagement in 2023
- Pinterest Ads average CPC was $0.10-$1.50 in 2023
- YouTube Ads average CPV was $0.10 in 2023
- Programmatic ads average CPM was $2.80 in 2023
- Google Shopping Ads average CPC was $0.88 in 2023
- Average cost per lead (CPL) from PPC was $48 in 2023
- B2B SaaS PPC CPC averaged $3.33 in competitive keywords 2023
- E-commerce fashion CPC hit $1.16 on Google in 2023
- Average daily budget for small business PPC was $50-$100 in 2023 surveys
- Cost per acquisition (CPA) averaged 23% of revenue in PPC 2023
- Google Ads auction-time bid adjustments increased CPC by 15% avg in 2023
- Mobile CPC premium was 20% higher than desktop in 2023
- Long-tail keywords CPC 50% lower than head terms in 2023
- Remarketing CPC averaged 30% lower than prospecting in 2023
Cost Analysis Interpretation
In the cutthroat arena of PPC, we see the stark reality that the cost of a click is essentially a popularity tax, where Google Search is the premium downtown address at $2.69, while being sued sends you to the financial guillotine at $6.75, proving it's far cheaper to look at cat memes on Display Ads for $0.63 than it is to actually land a client.
Performance Metrics
- In 2023, the average click-through rate (CTR) for Google Search Ads across all industries was 3.17%
- The average CTR for Google Display Ads in 2023 was 0.46% across all industries
- For the legal industry, Google Search Ads CTR averaged 2.93% in 2023
- Google Display Ads CTR for e-commerce was 0.51% in 2023
- Average position for Google Search Ads was 2.1 across industries in 2023
- Impression share for top-of-page Google Ads averaged 38.4% in 2023
- Quality Score for Google Search Ads averaged 5.1 out of 10 in 2023
- In Microsoft Advertising, average CTR for Search was 2.74% in Q4 2023
- Facebook Ads average CTR was 0.89% across all objectives in 2023
- LinkedIn Ads CTR for lead gen campaigns averaged 0.45% in 2023
- Average CTR for Google Shopping Ads was 0.77% in 2023
- Bing Ads Search CTR averaged 2.94% for Q1 2023
- YouTube Ads average view-through rate was 24.5% in 2023
- Average CTR for Amazon PPC Search Ads was 0.42% in 2023
- Pinterest Ads CTR averaged 0.27% in 2023
- TikTok Ads average CTR was 0.84% for in-feed ads in 2023
- Snapchat Ads CTR averaged 0.35% in 2023
- Twitter (X) Ads average CTR was 0.86% in 2023
- Instagram Ads CTR averaged 0.22% for feed ads in 2023
- Average CTR for programmatic display ads was 0.35% in 2023
- Google Performance Max CTR averaged 4.2% in early 2023 tests
- Average ad rank for high-performing PPC campaigns is 7.5 out of 10
- Impression share lost due to rank averaged 18% in 2023
- Video ad completion rate on Google Ads was 28% in 2023
- Average engagement rate for PPC carousel ads was 1.2% in 2023
- Search impression share for branded terms averaged 82% in competitive industries
- Average CTR for mobile Search Ads was 4.8% vs 2.9% desktop in 2023
- Google Discovery Ads CTR averaged 0.72% in 2023
- Average bounce rate from PPC traffic was 46% in 2023
- Time on site from PPC clicks averaged 2:45 minutes in 2023 benchmarks
Performance Metrics Interpretation
While the average click-through rate across platforms reveals that most digital ads are met with the universal shrug of a 0.46% CTR, a glimmer of hope remains for the well-crafted search ad, which, when placed second from the top and viewed on a phone, can still briefly capture our divided attention before we bounce 46% of the time to do something else.
ROI and Revenue
- Average ROAS for Google Search Ads was 200% in 2023
- E-commerce ROAS from PPC averaged 4:1 ($4 revenue per $1 spent) in 2023
- Facebook Ads ROAS averaged 2.5:1 in 2023 benchmarks
- Average PPC revenue per click was $12.52 across industries 2023
- B2B PPC ROI averaged 300% annually in 2023 surveys
- Amazon PPC ROAS for top sellers was 5:1 in 2023
- Lifetime value impact from PPC acquisition averaged 3x CAC in 2023
- Google Shopping ROAS was 423% for apparel in 2023
- Performance Max campaigns achieved 18% higher ROAS than standard 2023
- Average customer acquisition cost (CAC) from PPC was $45 in 2023
- PPC contributed 28% of total revenue for e-com brands in 2023
- ROAS for video ads was 1.8:1 vs 2.2:1 for search in 2023
- Branded search ROAS exceeded 10:1 in 2023 benchmarks
- PPC payback period averaged 3 months for high performers 2023
- Multi-channel attribution showed PPC uplift of 35% to revenue 2023
- Average profit margin after PPC costs was 22% for DTC brands 2023
- Enterprise PPC ROAS averaged 5.2:1 in Q4 2023
- Seasonal ROAS peaked at 6:1 during holidays 2023
- Long-tail keywords delivered 2.5x ROAS vs short-tail 2023
- AI bid management improved ROAS by 20% avg in 2023
ROI and Revenue Interpretation
While the headline numbers are seductive, the smart money knows that in PPC advertising, a 200% ROAS can be either a triumph or a tragedy depending entirely on whether that $12.52 per click is funding a profitable customer journey or just buying expensive, anonymous applause.
Trends and Future
- Global PPC ad spend reached $152 billion in 2023
- PPC market projected to grow 12% CAGR to 2028
- 65% of enterprises increased PPC budgets in 2023
- Mobile PPC traffic share hit 59% of total clicks in 2023
- AI-driven PPC adoption rose to 42% of advertisers in 2023
- Privacy changes reduced PPC effectiveness by 15% in 2023
- Video PPC spend grew 25% YoY to $20B in 2023
- Performance Max usage reached 33% of Google Ads spend 2023
- Social commerce PPC grew 30% to $50B in 2023
- 78% of local businesses used PPC for visibility in 2023
- Voice search PPC keywords increased 40% in 2023
- Sustainability-focused PPC campaigns up 22% in 2023
- Cross-device tracking improved attribution for 55% of PPC in 2023
- Shoppable ads in PPC rose 45% usage in 2023
- B2B PPC personalization lifted performance 28% in 2023
- PPC fraud losses estimated at $84B globally in 2023
- Zero-party data integration in PPC up 35% in 2023
- 52% of PPC pros predict more automation by 2025
- E-commerce PPC reliance hit 41% of acquisition channels 2023
- Global average CTR declined 5% due to ad fatigue in 2023
Trends and Future Interpretation
In a digital gold rush where everyone's digging deeper for clicks, the sobering reality is that even as PPC budgets ballooned to $152 billion and AI began calling more shots, the combined forces of privacy headwinds, ad fatigue, and a staggering $84 billion in fraud are proving that this landscape is as perilous as it is profitable.
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