Adwords taking more than $100million a day

Posted on November 9, 2012


A new report has claimed that Google is taking home more than $100million (£62.5million) a day from its AdWords operation. This figure is likely only to rise as companies increase their spending on online ad campaigns.

The report, which has been compiled by internet marketing software company WordStream, has closely analysed the search engine giant’s tool, revealing just how successful it is.

As well as showing how profitable it is, the report has also shown that Google search has 5.6 billion ad impressions per day. These in turn attract 193 million clicks, which equates to a click-through rate (CTR) of 3.5 per cent.

Of these, 5.6 per cent, or 11 million are converted to sales.

The highest-spending industries on AdWords were also revealed.

Firms operating in the retail and travel sectors were well represented. However, the biggest spender was the finance industry. With nearly 1.4 million transactions completed .

The least successful conversions were perhaps unsurprisingly seen in the travel industry.

For many marketers and SEO targeted advert creators, the number of ad impressions is an incredibly important figure. Whilst not a true reflection of how successful the ad is, it is a reflection of how many people are potentially viewing it.

Armed with this information, it can be determined just how effective ads are. By comparing results against previous ads and the results of competitors results, far better decisions can be made.

However, whilst strong and moving forward, the report also revealed how people are less likely to respond to ads, than they are organic results from their search terms.

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