PPC Statistics
Customers are 50% more likely to purchase an item after clicking on a paid ad.
Small and medium-sized businesses spend between $108,000 and $120,000 per year on PPC advertising.
57.5% of users don’t notice paid ads when they see them.
Clickbots and fake traffic cost online advertisers $35 billion
Legal
In 2012, the Australian Competition and Consumer Commission (ACCC) ruled that Google had engaged in misleading and deceptive conduct, in what was taiwan lead probably the first case of its kind. The ACCC ruled that Google was responsible for the content of its sponsored AdWords ads that showed links to the car sales website Carsales. The ads were displayed by Google after a search for "Honda Australia". The ACCC said the ads were deceptive because they implied that Carsales was linked to Honda. The ruling was overturned after Google appealed to the High Court of Australia. Google was found not responsible for misleading ads served through AdWords, even though the ads were provided by Google and created using the company's tools.
Click fraud
A common concern among advertisers is something called “click fraud.” This can take two forms:
Publishers illegally click on ads or fraudulently arrange clicks on ads to increase their own publisher revenue. In 2018, the FBI worked with Google and other major industry advertising platforms to crack down on an illegal ad fraud scheme called "3ve" that was estimated to have defrauded advertisers of millions of dollars in advertising fees. The case highlighted the extent of ad fraud; as of 2018, annual revenue from ad fraud is expected to exceed that of the illegal drug trade, with click fraudsters estimated to have stolen more than $19 billion.
Advertisers attempt to gain an unfair advantage in the advertising space by blocking clicks on competitors’ ads in order to drive up their competitors’ costs. The Google Ads platform claims to be able to identify such clicks and mark such traffic as “invalid clicks.”
As part of SEM (Search engine marketing), PPC (pay-per-click) provides lesser-known companies with the opportunity to rank higher on search results pages. A typical example of PPC is the ad recommendation at the top or on the right side of the search engine results page, such as Bing, Baidu, and Google.