PPC Trends: The Changing PPC Advertising Landscape & Beyond
October 11, 2024
Pay-per-click (PPC) advertising has become essential for businesses looking to boost traffic, enhance visibility, and convert prospects into customers. In fact, PPC campaigns can generate twice the number of website visitors compared to organic SEO efforts with 52% of PPC clicks coming from mobile devices.
Google Ads and Bing Ads (now Microsoft Advertising) are the key players in the PPC landscape, dominating the search engine advertising market. While Google is well-known for its market dominance, Bing offers a growing user base with unique advantages.
If you’re struggling to decide between Google and Microsoft ads, our experts at Evolving Digital have compiled the most effective paid search strategy based on our experience. We’ll compare ad platforms focusing on key factors like search networks, costs, and audience reach to determine the best fit for your strategy.
The first thing you have to consider when comparing Bing Ads vs Google Ads is the audience reach. Google holds a significant advantage with its dominance in the search engine market. However, Bing Network has a distinct demographic advantage that makes it attractive for specific advertising campaigns.
Google ads campaign (former Google Adwords) provides exceptional reach to over 92% of global internet users. This extensive network covers Google Search, Google Display Network, YouTube, and Google Shopping Ads. Google’s dominance ensures that your ads are visible across multiple touchpoints.
Google search results cater to users of all ages and income levels. For example, over 50% of its users are between the ages 18-34. In the U.S. alone, 63% of searches are conducted on mobile devices, underscoring its dominance in mobile advertising.
Additionally, YouTube has over 2 billion monthly users. Google Maps has more than 1 billion active users. These add extra layers of visibility for advertisers seeking to capture attention at various stages of the customer journey.
The popularity of a product may mean significant competition and higher advertising costs. Therefore, it’s essential for businesses to optimise their strategies.
While Bing captures a smaller global search market share (around 10%), it offers access to a highly valuable and distinct audience. This search engine provides a unique opportunity for businesses to reach more affluent and niche demographics.
Bing users is notably different from Google’s, with 38% of users earning over $100,000 per year. They also hold a strong presence in the United States, accounting for nearly 33% of desktop searches, and has a significant share of console users thanks to its integration with Xbox.
Additionally, Bing’s search results excel in shopping-related queries. This search partner boasts a 43% higher click-through rate on shopping ads than Google, making it an appealing advertising platform for e-commerce businesses.
For businesses looking to reach a targeted, high-income audience—especially in industries like finance, real estate, or luxury goods—Bing Ads provides a more cost-effective option and a stronger return on investment.
When deciding between Bing Ads and Google Ads, consider the following factors:
Ultimately, the best advertising strategy depends on your specific goals, audience, and budget. Be sure to compare both search engines and find the best fit for your ad campaigns.
CPC plays a crucial role in budget management as it directly impacts your ad campaigns’ cost efficiency. A lower CPC means advertisers can attract more clicks within their budget and vice-versa. Therefore, it’s crucial to choose a platform with favourable CPC rates.
There is no simple answer. However, understanding the factors that influence Google Ads pricing can help businesses set realistic budgets and maximise their ROI. Let’s break down the key factors that impact the cost of your campaigns.
1. Industry and Competition
The industry you work in can significantly impact your cost per click (CPC). Some sectors are more competitive, leading to higher bidding costs for keywords. For example, legal services, accounting, and insurance face intense competition, resulting in higher lead values. Keywords like "lawyer near me" or "insurance quotes" can cost over $50 per click.
Industries such as arts, entertainment, and hospitality often have lower CPC rates due to less competition. For instance, a business that sells concert tickets may pay between $1 and $2 per click, making advertising more affordable.
2. Keywords
The cost of keywords is a critical factor. Keywords that indicate high intent, where a user is ready to take action, are generally more expensive than general or research-focused keywords. However, long-tail keywords, which are more specific and have lower search volume, may have lower costs per click (CPCs) but can still result in high conversions.
3. Quality Score
Google doesn't only consider the amount you're willing to pay per click when placing ads. The Quality Score is a metric used by Google to evaluate how relevant your ad is to the keyword, its expected click-through rate, and the quality of your landing page. A higher score can lower your cost per click and improve your ad placement. This means that even smaller businesses can compete with larger advertisers by creating highly relevant ads and landing pages.
4. Customer Lifecycle
The customer's purchasing journey impacts costs as well. Companies that sell high-value products or services often experience a longer sales cycle, which means that customers may click on ads multiple times before making a purchase. For instance, a company that sells luxury cars or provides financial consulting may need to invest in retargeting campaigns to ensure that their brand stays top-of-mind as potential customers progress through the decision-making process. This leads to higher ad spending, but the return on investment is often significant due to the high lifetime value of customers.
5. Geographical Targeting
Location also impacts how much you pay for search ads. If you are targeting a densely populated or competitive area, such as capital cities like Sydney or Melbourne, your CPC will likely be higher compared to rural areas. Advisers can use geo-targeting to focus their budget on key locations and ensure that their ads appear in areas where they are most likely to generate leads.
6. Ad Scheduling and Device Targeting
Google also allows you to schedule your ads to run during certain times of the day and target specific devices. Those who strategically schedule their campaigns during peak business hours or when their target audience is most active can optimise their ad spend. Advertisers must also consider mobile-specific campaigns due to the increasing use of mobile searches.
On average, Bing PPC is around 33% cheaper—approximately around $1.54 per industry—since this search engine has a less competitive advertising environment.
For example, in highly competitive industries such as legal services, the average cost per click (CPC) on Bing is just $1.42. In comparison, in the automotive sector, the average CPC is higher at $2.52. On Google, legal keywords can cost upwards of $50 per click.
However, much like Google, certain factors may affect your costs. Let’s take a closer look at the costs associated with Bing Ads.
1. Industry and Competition
Highly competitive sectors like real estate or education generally have higher CPCs, with real estate averaging $2.88 per click and less competitive industries like careers & employment at $0.75. In competitive industries, businesses need to strategically bid and place ads to get value for their spend.
2. Keyword Selection
High-intent keywords indicate that a user is ready to make a purchase and are usually more costly—similar to Google's approach. Moreover, long-tail keywords, which are more specific search queries, generally have lower costs, but they can still result in high conversions, especially in niche markets.
3. Geographical Targeting
Regions with high economic capacity and search volume tend to have higher CPCs. Conversely, targeting countries with lower competition may lead to lower costs.
4. Ad Position and Quality Score
Your ad’s position on Bing search results is influenced by both your bid and your ad’s Quality Score. Same with Google, higher quality scores often pay less for better ad placements.
5. Time of Year and Trends
Bing Ads costs are influenced by seasonality and consumer trends. CPCs may rise during peak times like holidays due to increased competition for valuable search terms. For example, retailers experience higher CPCs during the holiday season, while home improvement businesses may face increased costs in spring and summer.
To determine which platform offers better conversion rates and ROI for your business, consider the following:
Both ad platforms offer a range of features to manage campaigns. However, their tools differ in usability, reporting, and targeting options.
Google Ads provides a more comprehensive toolset with advanced features like automated bidding and audience segmentation. However, Bing Ads is known for its user-friendly interface and cost-efficiency. This makes it an appealing option for businesses prioritising simplicity and budget.
Google provides powerful tools to help businesses optimise campaigns and maximise ROI. Here’s a breakdown of some of the essential tools available:
These tools, along with other advanced features like automated bidding and ad preview, provide everything you need to optimise your Google Ads campaigns.
While Bing offers a more streamlined and user-friendly interface, this advertising platform has fewer advanced features and may not offer the same depth of data and optimization tools as Google Ads. This can limit the ability to perform highly granular targeting or to leverage some of the more sophisticated advertising strategies.
Here are some of the most valuable tools available in Bing PPC:
These tools, combined with other features like mobile ad targeting and conversion tracking, make your Microsoft Bing Ads account a powerful platform.
Running both Bing Ads and Google search ads campaigns can be a highly effective strategy for those who want to maximise their reach and optimise their budgets. Testing PPC ads in both search engines is useful when you want to target distinct audiences, compare performance or take advantage of lower competition in certain industries.
Competitive industries like e-commerce and technology can leverage Google’s vast reach and advanced tools like Performance Max and Display Network for driving high visibility. However, Google also has higher CPC and intense competition. This is where Bing comes in.
With its lower CPC and niche audience (including higher-income users and LinkedIn profile targeting), Bing Ads can offer a cost-effective alternative in B2B sectors. Combining both allows businesses to tap into Google’s extensive search network while capturing more affordable traffic on Bing.
Tips for Executing a Combined Campaign
Looking to improve your digital advertising? Call us at Evolving Digital for a PPC strategy consultation. Our team is here to help you find the right balance for your business. Let us guide you through a tailored approach that leverages both Google and Bing for maximum impact.
Dive into our comprehensive comparison guide to find the perfect platform for your advertising needs!
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