Statistics are not mere figures to entertain your website visitors. They are the windows through which we view the digital marketing world. They help you understand trends and paradigm shifts in the industry. In this article, I will show you some PPC Statistics every marketer should know.
But before then, we need to understand why statistics are crucial in the digital marketing industry.
Regardless of whether you are a content writer, SEO consultant, social media marketer, PPC advertising expert, etc., you need to understand statistical analysis.
If you understand statistical information, you can discover new trends, and make predictions and decisions based on the available data.
When marketers have access to statistical information, they stop relying on intuition alone, which gives them the ability to develop more effective strategies.
We now live in a data-driven world. And you can make more sales, boost your revenue, and secure a competitive position if you leverage data.
So, it won’t be wrong to say – data is now one of the most important currencies in the digital marketing world.
But the question now is, why is statistical information important to marketers, business owners, and corporate executives?
The focus of this article is to discuss some of the PPC statistics every marketer should know.
Before then, let’s understand the concept of data analysis and why statistical information is essential to business owners and marketers.
Why Statistical Information is Important to Business Owners and Marketers
Statistics involve the collection, organization, analysis, and interpretation of data for decision-making.
Businesses around the world have been leveraging statistics data to make crucial decisions that eventually improved their sales.
For instance, some years ago, Target (their online shopping website) observed a pattern in their customers’ shopping cart.
They observed that women during their pregnancy bought unscented lotions and pregnancy mineral supplements in large quantities.
Surprisingly, Target used this insight to create a list of 25 items that pregnant women frequently purchase.
With the list, Target created a model that helps them predict if a particular customer is pregnant. And if their predictions were correct, they provided the customer with great options. The strategy eventually increased their sales exponentially.
You see, because Target’s marketers were proactive, they analyzed the company sales data and discovered some unusual purchase patterns. And the insight they got helped them to make the decision that boosted their sales.
Now let’s discuss some unique marketing methodologies to help you understand why statistical information is important to marketers and business owners. After which, we will review some PPC statistics every marketer should know.
#1. Attribution Model
The attribution model is a digital marketing methodology that helps marketers determine how to assign credit for sales and conversions to touchpoints in conversion paths.
The interaction model in analytics gives 100% credit to the final click that immediately precedes sales or conversions.
Let me explain this better…
These days, companies spend a lot on digital marketing to promote their products across different platforms – search engine ads, website display ads, etc.
However, marketers find it difficult to calculate their ROI from each platform where they promote their products.
But with the help of statistical information, they use the attribution model to track the platform where the final sale or conversion is made.
Let’s assume you want to buy a smartwatch and search for the term “affordable smartwatch online”. Ads from different eCommerce platforms and websites will show up on the search page.
After searching for a while, a particular smartwatch catches your attention. You clicked the website but didn’t buy it that day.
A few days later, you saw another ad showing the same smartwatch. But this time, on a social media platform or random website. It rekindles your interest to buy the smartwatch. But something else distracted you.
After two days, you saw the same watch on Instagram ads, and this time, you decided to buy it.
The question now is – which of these platforms gets the credit for your purchase? Is it Instagram, Facebook, search engine ads, or the e-commerce platform?
This is where statistics comes in. With statistical information, marketers can easily give credit for the sale to the appropriate platforms.
Hey, Don’t worry! We will soon discuss the PPC Statistics every marketer should know.
Types of Attribution Models
Marketers and business owners use different types of attribution models. Some of them are;
First Interaction Model
Most brands use this model. The model gives full credit to the first click or interaction the customer has with the product.
And if we are to use this model in our earlier example of the smartwatch, the full credit goes to Google ads.
Last Interaction Model
This is another popular type of attribution model. It gives credit to the platform where the customer last interacted or clicked on the product. And in our earlier illustration, that would be Instagram.
The linear attribution model doesn’t give credit to a particular platform. Every platform or medium that the customer interacted with before buying the product gets the credit.
How Attribution Models Work
The diagram below gives a detailed analysis of how the attribution model works.
Going through the different attribution models and how they work, you will realize that none of these models accurately tell you the role each platform plays in the sale of the smartwatch. They all work on assumptions.
And that brings us back to my earlier statement – “marketers find it difficult to calculate their ROI from each platform where they promote their products.”
However, some brands use this statistical approach to analyze available data and build a model that considers the entire customer journey – a data-driven model.
The data-driven model uses statistics to calculate the attribution of every search ad click along the conversion funnel. And it provides better results than the last interaction model that most marketers use.
Several brands have used the data-driven (econometrics) model to understand their customers’ behavior.
For instance, the famous fashion brand – Adidas, used the econometrics model to understand its customers.
Adidas thought most of its sales were from loyal customers. So, the company paid less attention to sales and marketing and focused more on CRM.
But when the brand used econometrics, they realized that 60% of their sales came from new customers.
Now you understand the importance of statistics in digital marketing. And why I decided to share some scary PPC statistics every marketer should know.
The diagram below is an example of the econometrics attribution model;
#2. Market Research
Market research is another important methodology that will help you understand that you need statistical information. And that includes the PPC statistics every marketer should know, shared later in this article.
Market research is the activity of gathering information about your customers and target market. It gives you an idea of how your prospects and customers perceive your company and how you can use it to your advantage.
Depending on your goal, market research can either be qualitative or quantitative.
Qualitative research doesn’t deal much with data. It focuses on non-quantitative data like audio, videos, and personal interviews to gain insights and opinions.
Quantitative research, gathers, organizes, and analyzes information like numbers. Examples of quantitative information are; height, income, age, etc.
When collected and analyzed correctly, quantitative research can help you predict future outcomes and identify hidden patterns in data.
#3. Marketing Mix Modeling
The marketing mix is the methodology brands use to quantify the impact of several marketing inputs on sales or market share.
It helps you understand how much you spend on each marketing input and what they are contributing to sales.
For instance, if your company wants to increase the sales of a product, let’s say a Smartwatch.
You may decide to reduce its price and increase your ad spending on TV and newspapers at the same time.
Interestingly, this action increases the sales of the product and gets the company more revenue.
The question now is – what exactly led to the increase in sales and which of the factors played a major role?
Was it the TV ads, Newspaper ads, or price reduction?
It’s questions like this that marketing mix and its modeling will answer. The mix consists of changes made to product, price, place, positioning. And some people refer to it as the 4Ps of marketing.
However, the marketing mix model is a statistical analysis of your marketing mix variables, so you know their effectiveness.
11 Scary PPC Statistics Every Marketer Should Know
Sometimes, watching your PPC ads running is like watching a scary movie. And if you aren’t smart about the placement of your ads, you may not get the best from them.
That is why companies these days prefer to outsource their PPC advertising campaigns to Experienced Advertising professionals who can help them achieve their campaign goals with the right advertising strategy.
But if you don’t have the budget to outsource your PPC advertising campaign, study these statistics carefully.
I will try to break them down so that you know some of the things to avoid the next time you launch your PPC advertising campaign.
Are you ready?
So, here are some of the PPC statistics every marketer should know;
#1. 94% of People Skip Search Ads
Oh! The first statistic scared you, right? Well, you read it right! 94% of search engine users go straight to organic results.
Wait! That is not all. 41% of paid clicks go to the top three ads of Search Engine Result Pages (SERP). Therefore, you need to put in more effort in writing your ad copy and optimizing your ad to rank better.
I know you are concerned already. But you can still find your way around this. Here’s what you should do;
Test Your Ad Copy regularly:
Don’t just create your ad copy and forget about it. It’s important to test it. You can either run A/B tests or responsive search ad formats. When you test your ad copy, you can see areas that need improvement. This will help you secure the top three ad spaces for your keywords.
Make the Ad copy Eye-catching and Compelling:
The more compelling your ad copy is, the higher the chances of search engine users clicking through it. Here are a few tips to make your ad copy eye-catching and compelling;
- Include more emotional words and phrases in the ads.
- Make your ad headlines irresistible.
- Avoid making mistakes in the ads.
- Consider your buyer persona when writing the ad copy.
- Try to have a strong presence on organic search.
#2. 96% of iOS Users Have Opted Out of App Tracking
The fact that most iPhone users are opting out of app tracking is one of the scary PPC statistics every marketer should know.
As you already know, APPLE rolled out the infamous iOS 14 updates in 2020. The update allows users to opt-out of app tracking.
And as of today, 96% of iPhone users in the United States already opted out of app tracking. Yeah, it’s a terrible nightmare for every marketer, especially those who use Facebook to promote their products and services.
Image Source: ARS TECHNICA
Marketers’ concern about the iOS 14 update is that it makes the Facebook pixel ineffective. And without an effective pixel, your tracking data on Facebook will be inaccurate.
It affects your conversion tracking and retargeting. But here’s what you can do to make your ads work perfectly for people with iOS devices;
- Leverage the Facebook conversions AI.
- Use broad targeting and audience expansion.
- Upload customer lists.
- Rely on Facebook sources.
#3. 80% of Advertisers Rely on Third-Party Cookies
This statistic is also one of the scariest PPC statistics every marketer should know. Most times, paid advertising relies on third-party cookies.
And that is because these cookies help you to understand how people interact with your ads on your website, the action they took while on your website, and what they did after they left.
Because of this behavioral data that cookies capture, it’s easy to track your conversion and retarget people who visited your websites without taking action.
Cookies also allow Google and Facebook to suggest new audiences for you to target based on interests.
However, third-party cookies aren’t as effective as they used to be in the past. So, advertising platforms are developing new tools that can capture behavioral data like third-party cookies, but you have to prepare.
Here are things you can do to get the best from your PPC advertising campaign.
- Improve how you collect first-party data. You can create lead magnets and build your email lists with irresistible calls to action.
- Try to set up Google ads tags on your website. They will help you to track your first-party data.
- Try to implement conversions API when using Facebook ads.
- Learn more about Google FLoC.
#4. 60% of Consumers Intentionally Provide Bogus Form Info
Sometimes, your website visitors may not want to be on your email radar. So, they may deliberately give you bogus information about themselves. It’s one of the scary PPC statistics every marketer should know.
Painfully, this could affect your lead qualification efforts. There are also instances when people abandon the lead form due to distraction and may not return to complete it.
If you think any of the issues mentioned above may be affecting the effectiveness of your campaign, here are some of the things you can do to improve it;
- Make your lead form more approachable to prospects. Design it in a way that doesn’t require much information. Your visitors’ first names and emails are enough information for you to work with.
- You can use lead form extensions in Facebook or Google ads to reduce the number of fake details on your list. These extensions prefill information for users whenever they visit your landing page.
- Try to be smarter with your targeting. If you target the right audience who are genuinely interested in your products or services, they will be eager to convert. And they won’t hesitate to drop their real details so that they can get more information about your offerings via email.
#5. Over 615 Million Devices have Ad Blockers Globally
Currently, there are over 615 million devices with VPNs or built-in blockers set up worldwide. And this number will increase over time.
Most times, you can’t find your way around ad blockers. So, you have to develop a multiple advertising channel strategy.
Once you notice that adblockers prevent people from seeing your ads, retarget those same people on other platforms.
#7. 40% of Advertisers Say Their PPC budget is Lower than They Want it to Be
One of the scariest PPC statistics every marketer should know is that the PPC budget is lower than what most people envisioned.
Now that there’s more demand for digital ads, advertisers bear the brunt. Surprisingly, 40% of advertisers confirmed that it’s becoming more challenging to maintain a decent advertising budget in a saturated space.
But these are some of the things to help you optimize your PPC ads spending;
- Analyze your marketing channels and give priority to the best-performing ones.
- Narrow down your ad spending to only reach people who are genuinely interested in your products or services.
- Adjust your bid strategy.
#8. Only 10% of Advertisers Optimize Their Google Ads Accounts Every week
This is also one of the PPC statistics every marketer should know. Another report revealed that 20% of account managers don’t do anything on their ads accounts within a month.
If you aren’t updating or optimizing your Google ads account, this statistic may be referring to you. And it can affect your advertising spending and performance.
But here’s what you can do differently;
- Always monitor your ad account and make a few adjustments when necessary.
- Have a routine for your PPC ads account and that should include auditing your account. You can audit your ad account daily or monthly, depending on what works for you. During such routine checks, you can easily figure out if your ads are performing below expectations.
#9. Online Ads are the Least-Diverse Media Types in the United States
According to statistics, only 9% of people claim that digital ads are the most diverse media experience they have had. It’s one of the PPC statistics every marketer should know.
Surprisingly, 54% of people said they don’t feel represented culturally in online ads. And 43% claim that they had better diverse media encounters with network TV ads.
What this means is that PPC advertising lacks diversity. And this can affect its performance if you don’t include diversification elements in your ads.
So, try to make your advertising campaign a perfect representation of your audience. Of course, this goes beyond addressing their pain points and lifestyles. Give laser attention to your audience’s cultural background.
You can make a difference with your campaigns by including inclusivity and accessibility in your advertising.
They will connect with your audience and attract them to take the right action.
Even in your campaign image, try representing different ethnicities and genders. And also consider people with disabilities.
#9. 96% of Consumers Don’t Trust Ads
The fact that 96% of consumers don’t trust ads is one of the scary PPC statistics every marketer should know.
There are more paid ads on the internet these days. As a result, people don’t take them seriously anymore.
Now that it has been established that 96% of consumers don’t trust ads, you have to do things differently and give more credibility to your ads.
So, don’t just launch a generic campaign. Provide social proof for every claim you make in your ads.
Generally, people are more likely to trust their friends or fellow consumer than you, the advertisers. That is why it’s necessary to invest in online review and reputation management.
If possible, include credibility stamps in your ads. You can add NASSIM-certified or family-owned in your ad copy to make it more trustworthy.
#10. 67% of People Say That Once a Brand Loses Its Trust, There’s no Gaining it Back
Trust is very sensitive. It could take you years to build but can be destroyed in the blink of an eye. So, try to be honest with your advertising message.
Recently, 67% of consumers confirmed that once they stop trusting a brand, they don’t return to that brand. This bold statement by consumers is one of the scary PPC statistics every marketer should know.
Don’t just promote your product or services, ensure that every information you give is genuine. And try not to overpromise and under deliver, it could ruin your reputation online.
People may stop trusting your brand when you give false claims, sell damaged goods or services, have poor customer experience, and other unintended mistakes.
Now that you understand how easy it is to lose your brand’s trust online, here are some of the things you can do to build and sustain trust online;
- Establish a strong foundation for your brand. Try to reflect this in your mission statement and core values.
- Ensure that you are consistent with your brand so that your customers can easily recognize and connect with you. And the more connected you are to your customers, the more loyal they will become.
- Respond to negative reviews when necessary. The truth is, that if your customer is unhappy at that particular moment, it doesn’t mean they stop trusting you. And responding to reviews quickly strengthens customers’ trust and loyalty.
#11. “Near Me” Searches Increased 100% Between 2019 and 2020
This is one of the scary PPC statistics every marketer should know. And it should call for concern if you don’t have a local search presence.
From these statistics, advertisers and marketers can deduce that people are more interested in patronizing businesses that are close to them.
And here are a few tips to help you appear on “Near me” search results;
- Regardless of your audience scope, try to have a local PPC strategy to help you relate with your audience. These days, people prefer buying from businesses that are closer and more instantaneous.
- Pay attention to your geo-targeting strategy and ad customizers. Your ads tend to match with local queries if you use dynamic keyword research.
- There you have it. These are the scary PPC statistics every marketer should know. Study them and use them to your advantage.
Don’t Allow These Statistics to Affect Your Ads Performance
From what you have read so far, you will agree with me that these statistics are indeed very scary.
As scary as they seem, try not to allow any of these findings to affect the performance of your PPC ads.
Since you already know about this data, it’ll be much easier for you to prevent poor performance. So, here are a few tips to help improve your PPC advertising performance.
- Take your time to tweak and test your ad copy before launching it.
- Use the Facebook conversions API so that you can track users with iOS 14.
- Use lead magnets to collect first-party data.
- Keep your lead generation form concise and easy to fill.
- Use a multi-channel strategy to find your way around ad blockers.
- Bid and target smartly so that you can use your budget more effectively.
- Have a PPC routine to keep your account optimized.
- Ensure that your ad is relatable to everyone in your target audience, so it makes them feel represented.
- Improve your ads’ credibility with partnerships, unique identifiers, and social proof.
- Try to maintain brand consistency; it will help you build trust with your audience
If you want to keep up with consumer trends, it’s important to approach PPC from a small-scale and local perspective.
Now that we have shared some of the PPC statistics that every marketer should know, what’s next?
From experience, I realized that marketers and business owners often make avoidable mistakes in their PPC campaigns. And if you don’t detect these mistakes on time, they could cost you a fortune.
So, here are some of the PPC mistakes to avoid at all costs;
5 PPC Mistakes Marketers and Business Owners Should Avoid
Using the Wrong Account Settings
Even if you read the “PPC statistics every marketer should know” I shared earlier; your campaign won’t yield the expected results if you are using the wrong PPC account settings.
Yes, it seems simple to set up a PPC account on Google or any other advertising platform. It’s as easy as choosing a set of keywords or demographics you want to target, typing in your ad, setting a budget limit, and you are done.
However, it’s more complicated than that. There are a few optimizations that could have multiplier effects on the cost and performance of the ads.
And if you neglect these little configurations, it may cost you more than you think.
For instance, you need to adjust the language and location setting of your campaign.
Depending on what you are promoting, you can make only English speakers see your ads or you can include foreign languages. These little settings can affect who sees your ads, where they are displayed, etc.
As a marketer, if you aren’t paying attention to these little tweaks in language and geography, you may either be wasting clicks or spending more money than necessary.
Paying More Attention to Traffic Instead of Conversion
Every business owner wants to attract more traffic to their websites. And that is because every new visitor to your website is a potential opportunity to make more sales.
But remember that in a PPC advertising campaign, every customer that visits your website costs you money.
It doesn’t make any business sense to rank top position for a high-traffic keyword, yet you aren’t converting visitors. It’s as good as wasting your money.
So, try and come up with strategies that don’t only focus on website traffic, but also conversion. You should be laser-focused on converting every visitor to your website.
Ignoring Low-Quality Scores
Before you bid for any keyword, try to understand the quality score. It can influence both the cost and effectiveness of your PPC ads campaign.
Quality score is how Google rates the quality and relevance of your keywords and PPC ads. Google uses it to determine how much you will pay per click and multiply it by your maximum bid to determine the ranking of your ad in the ad auction process.
Factors like your Click Through Rate (CTR), the relevance of your keywords, the quality and relevance of your landing page, the relevance of your ad text, and the performance of your Google ads account over time affect your quality score.
The higher your ad quality scores, the higher your ad will rank, and you will pay less. So, try to consider the quality score of your PPC ads.
And once you realize that it is low, tweak the ads and make them more relevant to your audience.
In a nutshell, a low-quality score is Google’s way of telling you that your PPC ad is not meeting your potential customers’ needs.
And the more you meet your potential audience’s needs, the less Google will charge you per click.
Failure to Align Your Ads and Landing Pages
Oh no, I didn’t mention this as one of the scary PPC statistics every marketer should know. Perhaps, I will include it when I update this article in the future.
It’s pretty funny how marketers and advertisers overlook the importance of landing pages in their campaigns. The truth is, your landing page is as crucial as your PPC campaign itself.
Let me remind you again that your landing page helps you convert every paid click into a sales opportunity.
So, if your landing page message is not casting spells on paid visitors to take the expected action, you may not get enough conversion.
I know that sounds scary, but I just have to be honest with you. It’s as good as wasting a big part of your PPC budget if your ads are not converting.
However, here’s what you can do differently – try aligning your ads and landing pages. Always give people the idea of what they will expect next whenever they click on your offer.
But, when there’s a disconnect between your ad and landing page, your paid visitors may be confused. And that can make you miss out on sales.
#5. Focusing Only on Google Ads
Focusing only on the Google search platform as your only source of sales and leads is a dangerous decision. It could cost you more than you think.
Regardless of how you view it, Google wants to make more money. So, the search engine giant can always tweak its advertising formulas to make you spend more.
While you use Google, try other platforms like Bing, Facebook, and YouTube. Who knows, you may even get more clicks, better audience targeting, or lower your advertising costs.
But if you are not a PPC expert, it’s always advisable to outsource your campaign. It’s better for you in the long run.
If you finally decide to outsource your PPC campaigns, contact the Tycoono Pay Per Click Advertising Team. We will help you attract more leads and gain maximum brand exposure with a limited budget.