SEO vs PPC Statistics: Statistical Insights and Comparison

SEO and PPC are the most effective tactics to increase website visibility through SERPS. Both methods are highly effective in driving traffic to websites and generating leads.

SEO is a long-term strategy that involves optimizing a website's content, structure, and code to rank higher in organic search results.

PPC is a short-term strategy that involves bidding on keywords to have ads appear at the top of search results pages.

Let's look at the statistical findings that might benefit you!

SEO Statistics

When you optimize your website for relevant keywords and search terms, you increase your chances of appearing at the top of search engine results pages (SERPs). This can lead to increased organic traffic and exposure for your website.

Organic clicks are free and occur when users click on a website link that appears in the unpaid portion of the SERPs.

Paid clicks occur when users click on a website link that appears in the paid portion of the SERPs.

Paid clicks are typically more expensive than organic clicks but can lead to more immediate results.

Here is a table that summarizes the key differences between organic clicks and paid clicks:

FeatureOrganic ClicksPaid ClicksCostFreePaidLocationUnpaid portion of the SERPsPaid portion of the SERPsRelevanceMore relevant to the user's search queryLess relevant to the user's search queryClick-through rate (CTR)Typically lower than paid clicksTypically higher than organic clicksConversion rateTypically lower than paid clicksTypically higher than organic clicks

Which type of click is better?

The best click type for your website will depend on your specific goals and budget.

• If you are looking for long-term results and are willing to put in the time and effort to optimize your website for organic search, then organic clicks may be the best option for you.
• If you are looking for more immediate results and are willing to pay for them, then paid clicks may be the best option for you.

Ultimately, the best way to determine which type of click is best for your website is to experiment and see what works best for you.

Organic Clicks vs Paid Clicks

According to a study by WordStream, 75% of clicks on search results pages are for organic results, while only 25% are for paid results. This means that organic results are much more likely to be clicked on than paid results.

• Approximately 64.6% of people click on Google Ads when they are looking to buy an item online.

(Source: Akhira)

• Organic search traffic surpasses organic social traffic by a factor of 10.
• 93% of businesses that invest in SEO see an increase in website traffic. (Source: Search Engine Journal)
• A significant majority of marketers (70%) perceive SEO to be more effective than PPC (pay-per-click) advertising. (Source: Impact)

Organic search drives a substantial portion of overall website traffic, accounting for approximately 53% of the total traffic received.

This indicates the significant role organic traffic plays in driving website visitors without relying on paid advertising or promotions.

According to Search Engine Journal, nearly half of all marketers (49%) consider organic search to deliver the highest return on investment (ROI) among all marketing channels.    

💭 This means that businesses can make a significant profit by investing in SEO.

A study by Terakeet found that businesses can acquire customers for 87.41% less on average using organic channels than paid media.

Additionally, businesses can achieve a 12.2x ROI on their investment in organic channels.

Many business owners invest heavily in Google Ads, as they should, but they often question the need to invest in SEO.

• Average cost-per-click (CPC): The average CPC for paid search ads is $2.00.
• Return on investment (ROI): The ROI for SEO can be very high. A study by Search Engine Journal found that the average ROI for SEO is $250 for every $1 spent.

Businesses need to spend an average of $2.00 for every click they receive on their paid ads.

Investing in SEO can yield substantial returns in comparison to the cost of paid ads, making it a highly worthwhile investment for businesses.

📗 While Google Ads can be effective, it's important to consider the long-term costs and benefits of both strategies.

Here's a comparison of customer acquisition through Google Ads versus SEO:

Google Ads

• Cost per click (CPC): $6.00
• Average click-through rate (CTR): 1.91%
• Website visitors per month: 19
• Conversion rate: 1%
• Customer Acquisition Cost (CAC): $600

As you can see, Google Ads can be a very expensive way to acquire customers. In the example above, it would cost $600 to acquire a single customer.

SEO

• Cost: Initial investment, then no ongoing costs
• Time to results: 3-6 months
• Website visitors per month: 100+
• Conversion rate: 2%
• CAC: $300

SEO, as shown, would cost $300 to acquire a single customer. This is a significant savings compared to Google Ads.

PPC Statistics

Pay-per-click (PPC) advertising is a type of online advertising where businesses pay a fee each time someone clicks on their ad.

PPC ads are displayed at the top of search engine results pages (SERPs) when someone searches for a keyword or phrase that the business has targeted.

This subheadline will provide you with some key statistics about PPC advertising. These statistics will help you understand the power of PPC and how it can help your business grow.

📙 A study by WordStream found that the average ROI for PPC campaigns is 200%.

This means that for every $1 a business spends on PPC advertising, they generate $2 in revenue.

HubSpot cites a study by WordStream that found that the average click-through rate (CTR) for PPC ads is just 2.3%. This means that for every 100 people who see a PPC ad, only 2.3 will click on it.

The study also found that the CTR for PPC ads can vary depending on a number of factors, including the industry, the keywords, and the time of year.

For example, the CTR for ads for travel and tourism businesses is typically higher than the CTR for ads for B2B businesses.

PPC Usage Across Industries: Statistics and Insights

In a recent search advertising benchmarks report by WordStream, several industries were identified to have the highest average costs per click in Google Ads.

These industries include;

• Attorneys and legal services with an average cost per click of $8.67,
• Dentists and dental services at $6.49,
• Home and home improvement at $5.75,
• Finance and insurance at $5.16,
• and Business services at $4.90.

Additionally, the report also highlighted industries with the highest average cost per lead, which is the cost incurred for each potential customer acquired.

Attorneys and legal services topped the list with an average cost per lead of $73.70, followed by furniture at $64.72, finance and insurance at $62.80, business services at $62.18, and career and employment at $53.52.

📘 These findings are significant as they shed light on the industries that invest the most in Google Ads. While big brands in the insurance and legal sectors can spend millions of dollars per year on Google Ads, it's important to note that success with Google Ads doesn't necessarily require such massive budgets.

For businesses considering Google Ads, this information is valuable as it highlights the competitive landscape and provides insights into the potential costs associated with advertising in specific industries.

With effective campaign management and optimization, businesses can achieve positive results and drive meaningful outcomes without the need for exorbitant advertising budgets.

Social Media PPC Statistics

The click-through rates (CTR) on different social media platforms vary significantly.

• On Facebook, the average CTR in the newsfeed is 1.11%, which has decreased by 0.37% compared to the previous year.

However, Facebook offers various ad formats, and the CTRs can differ based on the specific goals of the ads.

• On Instagram, the ad CTR in the feed is 0.22%, which is considerably lower than Facebook's CTR.

This can be attributed to the visual nature of Instagram, where organic newsfeeds have limited opportunities for click-throughs, except for Stories. In comparison, Instagram Stories have a slightly higher CTR of 0.33%.

• LinkedIn, being a platform that primarily targets B2B audiences, also shows a similar CTR of 0.22%. While the audience on LinkedIn is different from Facebook and Instagram, the CTR remains relatively consistent.

Targeted ads have higher CTRs.

Understanding these CTR trends can help businesses tailor their advertising strategies to effectively engage their target audiences on each platform.

PPC Statistics: Businesses

📙 Instagram is a great platform for reaching a younger audience.

Instagram has over 928.5 million active users, and nearly two-thirds of them are between the ages of 13 and 34.

📗 Sociable media advertising is a growing market.

US brands are expected to spend over $56 billion on social media advertising. The majority of this spending will go to Facebook, which accounts for 80% of the social media advertising market.

📘 Most brands are satisfied with the PPC market.

84% of brands being satisfied with the PPC market shows us that pay-per-click has been an effective way for businesses to look for targeted audiences and generate leads or sales.

PPC Tips for Businesses

• Choose the right keywords. The keywords you choose will determine who sees your ads. Make sure to choose keywords that are relevant to your business and that people are actually searching for.

The WordStream study unveils a 65%, click-through rate for purchase-intent searches. (Source: 99 Firms)

• Create compelling ad copy. Your ad copy should be clear, concise, and persuasive. It should also be relevant to the keywords you're targeting.

Ad copy on landing pages that incorporates social proof elements, such as testimonials, tends to experience a 1% increase in conversion rates compared to those without such proof. (Source: 99 Firms)

• Set a budget and track your results. It's important to set a budget for your PPC campaigns and track your results. This will help you determine which campaigns are working and which ones need to be adjusted.

Do not fall into despair, because just a mere 5% of newly created pages manage to secure a spot within the top 10 positions in search engine rankings within the first year.

Conclusion

When deciding between SEO and PPC, it is important to consider the goals of the business. If the goal is to build a strong online presence and generate long-term ROI, then SEO may be the better choice.

The strategic objective of SEO is to optimize a website to attract the right kind of organic traffic and sustainably improve its SERP ranking. PP, on the other hand, is better suited for short-term campaigns focused on specific products or services, where a more immediate ROI is needed.

Choose wisely according to what your business needs! If you are a newly formed startup, we recommend you start with PPC while slowly building your SEO presence.

However, if you are not new to the game then it may be better for your business to invest in SEO, such as blogging. Check out Blogging Statistics in 2023 by us to understand the importance much better!

FAQ Related to SEO vs PPC Statistics

What is the difference between SEO and PPC?

SEO (Search Engine Optimization) is the practice of optimizing a website to improve its visibility and organic rankings in search engine results. PPC (Pay-Per-Click) is a paid advertising model where advertisers pay for each click on their ads displayed on search engine results pages.

Which one is more effective, SEO or PPC?

According to statistics, 70% of marketers consider SEO to be more effective than PPC in driving long-term results and generating organic traffic. However, the effectiveness may vary depending on the specific goals and circumstances of each business.

What is the average cost-per-click (CPC) for paid search ads?

The average CPC for paid search ads is around $2.00. This cost can vary based on factors such as industry, the competitiveness of keywords, and ad quality.

How does SEO compare to PPC in terms of ROI?

Research shows that SEO can deliver a high return on investment (ROI), with an average ROI of $250 for every $1 spent. On the other hand, the ROI for PPC can vary depending on factors such as ad performance, conversion rates, and cost-per-click.

Are there any differences in conversion rates between organic and paid traffic?

Conversion rates can vary, but organic traffic tends to have a higher conversion rate compared to paid traffic. This is because organic traffic represents users who have actively searched for relevant information, while paid traffic includes a mix of users with different intents.

Which channel is more cost-effective for customer acquisition?

SEO is often considered more cost-effective for customer acquisition in the long term, as it focuses on generating organic traffic without ongoing costs per click. PPC, on the other hand, requires advertisers to pay for each click they receive on their ads.

‍