Some Facts About AdWords


Some Facts About AdWords


  • Google was launched in 2000, with pricing based on a flat CPM (cost per impression model). It was relaunched under an auction model in 2002.
  • An 18-year-old college dropout named Scott Banister is credited with the brilliant, multi-billion-dollar idea of pay-for-placement search listings, an idea later brought to fruition by Bill Gross at IdeaLab.
  • About 97% of Google’s total revenues come from advertising. Businesses make an average of $2 in revenue for every $1 they spend on AdWords.
  • As of Spring 2011, Google had over 1.2 million businesses advertising on its search network.
  • The average click-through rate for an ad in the first position is 7.94%. Ads in the top position have been observed to get 10 times as many clicks as side-position ads.
  • In Q2 of 2012, Google’s revenues rose 35% to $12.21 billion. In the same quarter, aggregate paid clicks went up by 42%.
  • Google dominates mobile search advertising, taking 97% of mobile search spend.
  • In 2011, Google search and advertising tools generated $80 billion in economic activity across the U.S.
  • The finance and insurance industry spent $4 billion on AdWords in 2011. Finance and insurance related keywords are among the most expensive in AdWords, with some demanding costs per click (CPCs) over $50.
  • Amazon spent an estimated $55.2 million on AdWords advertising in 2011.
  • 89% of the traffic generated by search ads is not replaced by organic clicks when ads are paused.
  • For high commercial intent search queries, the top three ad spots take about 40% of the clicks on the page.
  • If there is no right-hand column, almost half of people (45.5%) can’t tell the difference between organic and paid search results.
  • AdWords advertisers can now target by Congressional District. Google owns the world’s largest online display advertising network, with properties including YouTube, Gmail, and Blogger.
  • The Google Display Network serves 180 billion impressions each month (about 6 billion a day!).
  • Google display campaigns reach 80% of global internet users. According to Google, “99% of our top 1,000 clients are now running campaigns on the Google Display Network and YouTube.
  • The average click-through rate of an ad on the Google Display Network is 0.4% -- four times as high as the average banner ad in the US and almost ten times as high as a Facebook ad.
  • Consumers exposed to display ads are, on average, 155% more likely to search for brand- and segment-specific terms.

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