Google is the world’s biggest advertising platform.
But how big, exactly? What’s the typical cost of advertising on Google? And how does the cost differ by industry?
Let’s dive into the latest Google Ad statistics to find out.
General Google Ads Statistics
1. Google Made $237.8 Billion From Ads in 2023
Google’s total revenue in 2023 was around $305.6 billion (Statista, 2024). Which means the company made over 77% of its revenue from ads.
And by 2027, the company’s ad revenue is expected to reach $340.18 billion (Statista, 2023).
The fact that so many businesses choose to invest in Google’s advertising platform reflects its success at driving targeted traffic and delivering strong returns on investment.
2. In 2024, Google Was Expected to Generate $62.87 Billion in Search Ad Revenue in the US
And the company’s search ad revenue was forecasted to be bigger than 10 times the size of Microsoft’s by 2026.
This underscores Google’s continued dominance in the global search advertising landscape.
(Emarketer, 2024)
3. Ad Revenue From Google Display Network Sites Totaled $31.31 Billion in 2023
This figure highlights the importance of display advertising within Google’s ad ecosystem.
The Google Display Network (GDN) allows advertisers to reach a vast audience by placing ads across a wide range of websites, apps, and other online properties.
Here’s what a display ad looks like on a GDN site:
(Statista, 2024)
4. Google Accounted for 39% of Global Digital Ad Revenue in 2023
Followed by Facebook at 18%, Amazon at 7%, and TikTok at 3%.
In other words, Google is the world’s leading digital advertising platform—making over double the ad revenue of its closest competitor.
Image Data Source: Statista, 2024
5. In 2023, Google Was Responsible for Around 26.8% of Digital Ad Revenue in the US
Followed by Meta at 21.1%. And Amazon at 12.5%.
While Google’s share of U.S. digital ad revenue isn’t as large as its global share, this figure is another reminder it remains ahead of other major ad platforms.
(Emarketer, 2024)
6. In 2024, Search Advertising Spending Was Predicted to Reach $137 Billion in the US
This was compared to $105.8 billion in 2022. And by 2029, search advertising spending was expected to reach almost $222.3 billion.
This growth indicates that businesses are increasingly prioritizing search advertising as a key component of their digital marketing strategies.
(Statista, 2024)
Google Ads Reach Statistics
7. Google Makes up 90.01% of the Global Search Engine Market
Google’s position as the world’s leading search engine is essentially unrivaled.
It commands 79.6% of the global desktop search market. And a staggering 94.21% of the mobile market.
Meanwhile, Google’s second closest competitor—Bing—claims just 3.96% of worldwide searches.
The main countries in which Google doesn’t have a dominant share of the market are China (2.22%) and Russia (26.24%).
Image Data Source: StatCounter Global Stats, 2024
Further reading: 34 Eye-Opening Google Search Statistics for 2024
8. Over 2 Million Websites Make Up the Google Display Network
The GDN reaches the majority of global internet users—and all Google Ads customers have access to it.
This extensive reach allows advertisers to engage diverse audiences through targeted display ads. Which helps them build brand awareness and drive conversions.
(Google, 2023)
9. In 2024, the Average CTR for Google Ads Was 6.42%
In other words, around 1 in 16 people who saw a Google Search ad clicked on it (WordStream by LocaliQ, 2024).
This figure is slightly higher than the 6.11% average CTR for 2023. Which suggests that Google’s results pages may be becoming more ad-friendly.
However, it’s important to appreciate that the top organic search result alone has a 39.8% CTR (FirstPageSage, 2024).
This disparity highlights the significant impact of organic search visibility on driving organic (unpaid) traffic.
While paid Google Ads are effective for immediate results, investing in SEO can drive substantially more traffic over time.
Google Ads Cost Statistics
10. 44% of Surveyed Businesses Spend $100 to $10,000 on Google Ads Every Month
This demonstrates that Google Ads are an affordable way to start advertising.
It also demonstrates that bigger businesses are willing to spend more on Google Ads. Because ads can be a crucial investment for driving targeted traffic and achieving marketing objectives.
(WebFX, 2024)
11. In 2024, the Average Cost Per Click (CPC) for Google Ads Was $4.66
This means that, on average, advertisers were charged $4.66 for every click on their search ads.
This average CPC is $0.44 higher than in 2023. In part due to recent inflation.
(WordStream by LocaliQ, 2024)
12. In 2024, the Average Cost Per Lead (CPL) for Google Ads Was $66.69
This is a measure of how much it costs businesses to get a conversion from a Google search ad, on average.
82.61% of industries saw an increase in CPL between 2023 and 2024. With an average increase of 25%.
However, this is lower than the previous year’s 27% increase. Again, this is largely explained by recent inflation and economic instability.
(WordStream by LocaliQ, 2024)
Google Ads ROI Statistics
13. In 2024, the Average Conversion Rate for Google Ads Was 6.96%
Conversion rates are an essential PPC metric since they indicate how many ad clicks turn into actual sales or leads.
However, average conversion rates were higher in 2023 at 7.04%.
This could be because Google’s search ads often appear for keywords with low commercial intent. In other words, users who click on them may not be ready to convert.
(WordStream by LocaliQ, 2024)
Further reading: What Is Keyword Intent & How to Align Keywords with User Needs
14. Businesses Make $2 for Every $1 Spent on Google Ads, on Average
That amounts to a 100% ROI.
And Google considers this a conservative estimate.
So, it’s clear why so many businesses consider Google Ads a worthwhile investment.
(Google, 2023)
15. Businesses Make $8 for Every $1 Spent on Google Ads (If You Account for Organic Search Clicks)
This is because—as we saw earlier—businesses typically get five organic search clicks for every paid search click.
And Google estimates that organic clicks are 70% as commercially valuable as ad clicks.
So, if businesses make $2 for every $1 they spend on Google Ads, and they get five organic clicks for every ad click, the combined value of both translates to $8 for every $1 spent.
(Google, 2023)
Google Ads Business Statistics
16. 98% of PPC Professionals Surveyed Use Google Search Ads for Their PPC Campaigns
This underscores the dominance and widespread adoption of Google Ads in the PPC industry.
Other widely adopted ad platforms include Facebook, Instagram, and Bing.
(PPCsurvey, 2024)
Image Data Source: PPCsurvey
17. Between 80% to 85% of PPC Budgets Are Allocated to Google Ads
And 15% to 20% to Microsoft Advertising.
This stat again emphasizes Google Ads’ dominance in the PPC market, with businesses prioritizing the platform for its broad reach and proven ability to drive results.
(WordStream by LocaliQ, 2024)
18. Google Blocked 5.5 Billion Ads on Its Network in 2023
These ads were removed for violating Google’s policies.
Additionally, 2.1 billion publisher pages were restricted or blocked. And 12.7 million advertiser accounts were suspended.
This demonstrates Google’s commitment to maintaining a safe and compliant advertising environment, protecting its users from misleading or harmful content.
(Google, 2024)
Local Advertising Statistics
19. Over a Billion People Use Google Maps Every Month
Businesses can use Google Ads’ location-based features to connect with a highly engaged audience actively seeking local information and services.
Here’s an example of a sponsored listing in Google Maps:
(Google, 2019)
Further reading: 8 Google Maps Marketing Tactics to Drive Local Business
20. In 2023, Google Maps Was Downloaded Over 21 Million Times in the US
And this is despite the fact that Google Maps comes pre-installed on all Android devices.
The continued popularity of Google Maps reinforces the value of the platform for location-based advertising.
(Statista, 2024)
Mobile Advertising Statistics
21. In 2021, 73% of Google Search Ad Clicks in the US Happened on Mobile
For perspective, only 29% of Microsoft Advertising clicks took place on mobile devices.
This stat highlights the importance of businesses optimizing their ads and landing pages for mobile users.
(Merkle, 2021)
Image Data Source: Merkle
Further reading: Google’s Mobile SERP: Everything You Need to Know
22. 70% of Global Digital Ad Spending Will Be Generated Through Mobile by 2028
This projected shift again emphasizes the growing importance of mobile advertising.
Businesses need to prioritize mobile-friendly ad strategies to stay competitive and effectively reach their target audiences.
(Statista, 2023)
23. Global Mobile Ad Spending Was Expected to Surpass $400 Billion in 2024
For comparison, this figure was $362 billion in 2023. And $336 billion in 2022.
This is another reminder of the accelerating shift towards mobile advertising.
(Statista, 2024)
24. Mobile Search Advertising Will Reach Over $123.59 Billion in the US by 2028
That’s according to 2024 data from Statista.
Globally, that figure is higher—at $251 billion globally by 2028 (Statista, 2024).
This highlights users’ increasing reliance on mobile devices for search activities and the need for businesses to adjust their search strategies accordingly.
25. Mobile Will Account for 66% of Search Ad Spending in the US by 2029
Once again, the importance of mobile-optimized paid search campaigns will only increase with each passing year.
(Statista, 2024)
26. Shopping Ads Receive a Third of Paid Clicks
Google Shopping is a central feature of the U.S. online retail space.
Google Shopping ads appear at the top of Google’s results pages for product-related keywords.
Like this:
(WordStream by LocaliQ, 2023)
Further reading: Google Shopping Ads: Everything You Need to Know
27. In 2023, the Average Google Shopping Ad Had a 0.86% CTR
The highest CTR was found in the automotive supplies industry (1.20%). And the HVAC and climate control industry (1.12%).
The computers and technology industry had the lowest CTR at 0.55%.
(WordStream by LocaliQ, 2023)
28. 71% of US Consumers Familiar with Google Shopping Like the Brand
This demonstrates that Google Shopping has strong brand recognition and trust among consumers.
Many users see it as a reliable and useful platform for discovering and buying products online.
(Statista, 2022)
User Behavior Statistics
29. 31.5% of Online Customer Journeys Begin with Google in the US
For many consumers, Google is the first port of call when researching products or making purchases.
50% of consumers start their buying journey on Amazon.
(PowerReviews, 2023)
Image Data Source: PowerReviews
30. 68.2% of UK Consumers Don’t Know Which Google Results Are Paid Ads
This suggests that Google Ads effectively blend into surrounding organic results—potentially leading to more paid clicks.
It’s worth noting that 25% of survey respondents did recognize the difference between paid and organic results and chose not to click the ads.
(Varn, 2022)
31. 91.8% of Google Searches Consist of Long-Tail Keywords
These are highly specific (often niche) search terms.
Typically, long-tail keywords have a lower CPC than generic, higher-volume keywords. And since they target specific user intents, they usually convert better than short-tail keywords.
Which is why optimizing Google Ad campaigns for long-tail keywords can help maximize ad efficiency.
(Backlinko, 2020)
Industry-Specific Google Ads Statistics
32. 70% of Industries Saw a CTR Increase in 2024
With an average year-on-year increase of 5%
The industries with the highest CTRs were arts and entertainment (13.04%), travel (10.16%), and sports and recreation (9.66%).
Those with the lowest CTRs included attorneys and legal services (5.3%), dentists and dental services (5.38%), and home and home improvement (5.59%).
(WordStream by LocaliQ, 2024)
33. Google Ad Conversion Rates Dropped Slightly in 2024
The average conversion rate was 6.96% in 2024. Compared to 7.04% in 2023.
The industries with the highest conversion rates were automotive repair, service, and parts (12.96%), animals and pets (12.03%), and physicians and surgeons (11.08%).
The lowest conversion rates were found in furniture (2.53%), finance and insurance (2.78%), and real estate (2.91%).
(WordStream by LocaliQ, 2024)
34. 86% of Industries Saw a CPC Increase in 2024
The average year-on-year increase across affected industries was 10%.
The increase was over 25% for some industries—including real estate and personal services.
Industries with the lowest CPCs were arts and entertainment ($1.72), travel ($1.92), and real estate ($2.10).
(WordStream by LocaliQ, 2024)
35. At $27.94, the Automotive Repair, Service, and Parts Industry Had the Lowest Average CPL in 2024
The highest CPLs were found in the attorneys and legal services ($144.03) industry. Followed by the furniture ($119.10) and career and employment ($117.92) industries.
However, it’s important not to read too much into CPL differences between industries. After all, a lead for an attorney may be worth more in absolute terms than a lead for an automotive repair service.
(WordStream by LocaliQ, 2024)
36. The Legal Industry Has Some of the Most Expensive Google Ads Keywords
The most expensive keyword is “motorcycle injury lawyer,” with an average CPC of $210.
This high cost reflects the intense competition and the high value of each new lead within the legal services industry.
(Fraud Blocker, 2024)
Image Data Source: Fraud Blocker
Stay Ahead in Your Google Ads Game
The stats are clear: Google Ads is an advertising giant that seems set to continue growing for the foreseeable future.
If you run paid search campaigns, you can’t afford not to use Google Ads. The ability to reach so many potential customers just isn’t available with any other search platform.
But what can you do to give your Google Ads campaigns the best shot at success?
A good place to start is with Semrush’s Advertising Research. This tool allows you to identify your closest PPC competitors and analyze their keyword bidding strategies and campaign creatives.
Start by entering a competitor’s domain into the search bar and click “Search.”
In the “Positions” tab, you’ll see the number of paid keywords driving traffic to that site, how much paid traffic they get, and the estimated cost of appearing for those keywords.
In the “Ad Copies” tab, you can see the actual ad copy your competitors are using. And the corresponding keywords they’re targeting.
Source link : Semrush.com
