PPC statistics for 2026 show advertisers paying more for a click pool that has stopped growing. In the second quarter, paid search spend rose 17% year over year while clicks rose only 2% (Skai, Q2 2026 Quarterly Digital Trends Report, Jul 2026). At the same time, ads are moving into AI answers: Google's AI Mode, ChatGPT and Microsoft Copilot all sell placements inside the response now.
The numbers below cover the size of the search ad market, what clicks and leads cost by industry, ads in AI search, automated campaigns, invalid traffic, regulation and what PPC management costs. Each one links to the company, regulator or research team that produced it, carries the date of its data, and is checked again every month. Vendor benchmarks are labelled as vendor data.
Key Takeaways
- Google earned $224.5 billion from Search and other properties in 2025 (Alphabet, Form 10-K 2025, Feb 2026).
- The top 10 companies took 84.1% of US internet advertising revenue in 2025 (IAB and PwC, Internet Advertising Revenue Report: Full Year 2025, Apr 2026).
- Amazon's advertising revenue grew 26% to $19.8 billion in Q2 2026 (Amazon, Q2 2026 results, Jul 2026).
- Attorneys and legal services pay $9.87 per Google Ads click, the most of 23 industries (LocaliQ and WordStream, 2026 Search Advertising Benchmarks, Jun 2026).
- Ads now appear on 29.45% of commercial queries in Google's AI Mode (SE Ranking, Jul 2026).
- ChatGPT Ads reached a $1 billion annualized revenue run rate in under 200 days (OpenAI, Aug 2026).
- Ads in Microsoft Copilot get 73% higher click-through rates than traditional search ads, by Microsoft's own measure (Microsoft Advertising, Aug 2025).
- 8.51% of paid ad traffic is invalid, which cost advertisers an estimated $63 billion in 2025 (Lunio, Jun 2026).
- Google blocked or removed more than 8.3 billion ads and suspended 24.9 million advertiser accounts in 2025 (Google, 2025 Ads Safety Report, Apr 2026).
- The EU fined Google €460 million under the Digital Markets Act for favouring its own services in Search (European Commission, Jul 2026).
- 53% of PPC professionals say managing paid search has become harder than two years ago (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 73% of in-house teams plan to keep PPC fully internal, up from 44% two years earlier (PPCsurvey.com, The State of PPC 2026, Mar 2026).
How big is the paid search market, and who controls it?
Search advertising is still the largest single bucket of digital ad money, and it is concentrating. A handful of companies sell almost all of it, and the newest growth is coming from retailers and AI products rather than from new search engines.

How much do advertisers spend on search ads?
Search takes about a fifth of all advertising money worldwide, and US digital ad revenue hit a record in 2025. Growth in search is slower than in video, but the dollar gain is still large.
- US internet advertising revenue reached a record $294.6 billion in 2025, up 13.9% (IAB and PwC, Apr 2026).
- US search ad revenue grew by $11.4 billion in 2025 (IAB and PwC, Apr 2026).
- Companies ranked 11 to 25 held 8.3% of US internet ad revenue in 2025, and all remaining companies 7.5% (IAB and PwC, Apr 2026).
- Traditional and generative search together will take 21.8% of global advertising revenue in 2026 (WPP Media, This Year Next Year 2026 Midyear Forecast, Jun 2026).
- WPP Media forecasts global ad revenue to grow 8.9% in 2026, to $1.3 trillion (WPP Media, Jun 2026).
- US ad revenue is forecast to grow 11.9% in 2026, in the market where AI spending is most concentrated (WPP Media, Jun 2026).
- Alphabet, Meta and Amazon control 57.6% of global ad revenue outside China (WPP Media, Jun 2026).
How much does Google make from search ads?
More every year, and growth picked up in early 2026. Advertisers are not leaving Google search because of AI answers.
- Google Search and other revenue grew by $26.4 billion from 2024 to 2025 (Alphabet, Form 10-K 2025, Feb 2026).
- Google Search and other revenue was $60.4 billion in Q1 2026, up 19% year over year (Alphabet, Q1 2026 earnings release, Apr 2026).
- Google Services revenue, which includes search, YouTube and the ad network, rose 16% to $89.6 billion in the same quarter (Alphabet, Q1 2026 earnings release, Apr 2026).
Microsoft is the only other search engine that reports its ad business, and it is growing at about half Google's rate.
- Microsoft's search advertising revenue, excluding traffic acquisition costs, grew 10% in its April to June 2026 quarter, or 9% in constant currency (Microsoft, FY26 Q4 results, Jul 2026).
For the organic side of the same search results, see SEO statistics.
How fast are Amazon and retail media search ads growing?
Faster than Google. Retailers sell sponsored listings inside their own product search, and that format is now one of the fastest-growing parts of paid search.
- Amazon's advertising revenue was $21.3 billion in Q4 2025, its largest quarter on record (Amazon, Q4 2025 results, Feb 2026).
- Walmart's global advertising business grew 38% in its quarter to July 2026 (Walmart, Q2 FY27 earnings, Aug 2026).
- Walmart Connect, its US ad business, grew 43% excluding VIZIO (Walmart, Q2 FY27 earnings, Aug 2026).
- Uber's advertising business passed a $2.5 billion annualized revenue run rate in Q2 2026, still growing about 50% a year (Uber, Q2 2026 prepared remarks, Aug 2026).
- US commerce media ad revenue grew 18.0% to $63.4 billion in 2025 (IAB and PwC, Apr 2026).
Prices in retail search have stayed flat while volume grows, according to vendor data from Skai's advertiser base.
- Retail media spend rose 26% year over year in Q2 2026, and clicks rose 27% (Skai, Jul 2026).
- Retail media cost per click has stayed within a few cents of $1 for seven straight years (Skai, Jul 2026).
- Blended cost per click hit a record low of $1.63 during Prime Day 2026 (Skai, Jul 2026).
Which industries pay the most for Google Ads clicks and leads?
Service businesses with high customer value pay the most, and the spread is wide: the priciest industry pays six times what the cheapest does per click. Averages hide this, so compare against your own industry, not the overall number.

Which industries have the highest cost per click?
Legal, home improvement and dental. All three sell high-value services to local buyers, so many businesses bid on the same few searches. The figures below are LocaliQ vendor benchmarks across thousands of customer campaigns.
- Home and home improvement pays $8.33 per click on average, the second-highest of 23 industries (LocaliQ and WordStream, Jun 2026).
- Dentists and dental services pay $8.00 per click (LocaliQ and WordStream, Jun 2026).
- Personal services pay $7.17 per click and health and fitness $6.17 (LocaliQ and WordStream, Jun 2026).
- Arts and entertainment has the cheapest clicks, at $1.63 (LocaliQ and WordStream, Jun 2026).
- Restaurants and food pay $2.05 per click and travel $2.14 (LocaliQ and WordStream, Jun 2026).
What does a lead from paid search cost?
From under $30 to more than $130, depending on the industry. A high cost per lead is not always bad: a legal client is worth far more than a restaurant booking, so law firms can afford it.
- Attorneys and legal services pay the most per lead, at $131.63 (LocaliQ and WordStream, Jun 2026).
- Furniture pays $106.70 per lead and real estate $102.51 (LocaliQ and WordStream, Jun 2026).
- Business services pay $93.69 per lead (LocaliQ and WordStream, Jun 2026).
- Arts and entertainment has the cheapest leads, at $26.84 (LocaliQ and WordStream, Jun 2026).
Conversion rates explain part of the gap. Some industries turn one in six clicks into a lead, others fewer than one in thirty.
- Animals and pets convert 16.22% of search ad clicks into leads, the highest of any industry (LocaliQ and WordStream, Jun 2026).
- Finance and insurance convert 2.64%, the lowest (LocaliQ and WordStream, Jun 2026).
What happens after the click is covered in conversion rate optimization statistics.
How fast are search click prices rising?
Faster than clicks are growing. Advertisers are paying more each year to keep the same traffic, because fewer searches end in a click on anything.
- Google's paid clicks grew 6% in 2025, and its average cost per click rose 7% (Alphabet, Form 10-K 2025, Feb 2026).
- Paid search cost per click rose 14% year over year in Q2 2026 across Skai's advertisers (Skai, Jul 2026).
- Paid search impressions fell 6% over the same period (Skai, Jul 2026).
Skai's own reading is that AI answers now resolve more queries before anyone clicks, so the same budget chases a smaller pool. Google's filing does not give a reason for its price rise beyond advertiser demand, ad formats and query growth.
How are AI answers changing where search ads appear?
Ads have followed users into AI answers, and the early data says they work differently from blue-link ads. Placement depends on what the keyword is worth, and paying for an ad does not get a brand cited in the answer itself.

How often do ads show in Google's AI Mode and AI Overviews?
On close to a third of commercial AI Mode queries, usually in pairs. The figures below come from SE Ranking's vendor study of 50,032 US commercial keywords.
- When AI Mode shows an ad, 71.1% of the time it shows two ads together (SE Ranking, Jul 2026).
- Keywords that cost $10 or more per click carry ads in AI Mode 53.56% of the time, against 24.33% for keywords under $2 (SE Ranking, Jul 2026).
- Pets keywords trigger AI Mode ads 72.38% of the time, healthcare keywords 2.64% (SE Ranking, Jul 2026).
- Only 11.53% of advertisers' domains were also cited as a source in the AI Mode answer (SE Ranking, Jul 2026).
- Just 2.32% of advertised URLs also ranked organically for the same keyword (SE Ranking, Jul 2026).
Google's own documents set out where ads can run around AI Overviews.
- Ads inside AI Overviews are available in English on mobile and desktop in 12 countries, including the US, Canada, India and Australia (Google Ads Help, Oct 2026).
- Ads can show above or below AI Overviews in all 200+ markets where AI Overviews are available (Google Ads Help, Oct 2026).
- 75% of people say they make faster, more confident decisions using AI Mode, in an Ipsos survey of online shoppers commissioned by Google (Google, May 2026).
Whether your brand is cited in those answers is a separate question, covered in AI search statistics.
Do ads inside AI assistants work?
They are selling fast, but most performance data so far comes from the platforms themselves. OpenAI and Microsoft report strong early results, and we found no independent study of ad performance inside chatbots yet.
- ChatGPT Ads is used by tens of thousands of advertisers (OpenAI, Aug 2026).
- ChatGPT Ads is available in more than 40 countries (OpenAI, Aug 2026).
- OpenAI expanded ChatGPT Ads to 31 European markets six months after its US test began (OpenAI, Aug 2026).
- OpenAI announced it would test ads at the bottom of ChatGPT answers for logged-in US adults on its free and Go tiers (OpenAI, Jan 2026).
- One technology partner reported that more than 80% of ad-driven ChatGPT traffic came from new customers (OpenAI, Aug 2026).
Microsoft's figures for Copilot ads compare them with its own search ads.
- Copilot ads have 16% stronger conversion rates than traditional search ads (Microsoft Advertising, Aug 2025).
- Customer journeys that involve Copilot are 33% shorter (Microsoft Advertising, Aug 2025).
- Responsive search ads in Copilot get 52% fewer quick back clicks, a sign of unhappy visitors, than in search (Microsoft Advertising, Aug 2025).
How much will AI search ads be worth?
A small line today and, on one forecast, one of the fastest-growing ad channels ever. Practitioners are worried about what it means for their accounts.
- Generative search ad revenue will be about $5.1 billion worldwide in 2026 (WPP Media, Jun 2026).
- WPP Media projects generative search ads to pass $100 billion by 2030 (WPP Media, Jun 2026).
- 8 in 10 PPC professionals say they worry about paid media as people turn to AI tools like ChatGPT and Perplexity to find products (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Treat the forecast with care: it comes from a media agency group's model, not from reported ad sales.
How much of a Google Ads account do automated campaigns run now?
A large share, for many advertisers. Google's AI-driven campaign types are now standard, but the people running accounts still trust the controls they can see, like exact match and target-based bidding, more than Google's newest tools.

How many advertisers use Performance Max?
About half use it often or always, and most run it next to their other campaigns rather than instead of them.
- 50% of PPC professionals use Performance Max with a product feed often or always (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Standard Shopping, the older manual alternative, is still used often or always by 38% (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 46% always use exact match keywords, more than any other option (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Optmyzr's study of 9,199 Google Ads accounts and 24,702 Performance Max campaigns, vendor data from its own customers, shows how the budget is split.
- 82% of advertisers run Performance Max alongside other campaign types (Optmyzr, Oct 2024).
- 51% put more than half of their budget into Performance Max (Optmyzr, Oct 2024).
- 55% of advertisers in the study use the Maximize Conversion Value bid strategy for Performance Max (Optmyzr, Oct 2024).
What does Google say AI Max adds?
A lift in conversions, according to Google. Advertisers have been slower to agree: AI Max is the least-used option in the survey above.
- Advertisers who turn on AI Max in Search campaigns typically see 14% more conversions or conversion value at a similar cost per acquisition or return on ad spend, Google says (Google Ads Help, Oct 2026).
- Search campaigns using AI Max's full feature set see 7% more conversions or conversion value on average than those using its search term matching alone (Google, Apr 2026).
- Hundreds of thousands of advertisers worldwide already use AI Max, and Google is moving Dynamic Search Ads into it (Google, Apr 2026).
- 34% of PPC professionals have never used AI Max for Search, and only 10% use it often or always (PPCsurvey.com, The State of PPC 2026, Mar 2026).
The survey's authors note AI Max had only just left beta when they asked, which may explain part of the gap. Bid strategies with explicit targets, target ROAS and target CPA, remain both the most used and the most liked automation (PPCsurvey.com, The State of PPC 2026, Mar 2026).
How are PPC teams using AI tools?
Mostly for writing and research, not for running campaigns end to end. Use has grown quickly in two years, while AI agents are still at the pilot stage.
- 59% of PPC professionals use large language models to write ad copy, up from 42% two years earlier (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 39% use them for keyword research, up from 27% (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 35% use them to summarise meetings, up from 9% (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 22% now use AI to build their own tools and automations without traditional code (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Only 21% are using or testing AI agents for PPC tasks, and 30% have no plans to (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Nearly 60% of in-house teams say they have embraced AI across several workflows or fully (PPCsurvey.com, The State of PPC 2026, Mar 2026).
How much PPC spend is lost to invalid clicks, bad ads and rule-breaking?
A meaningful slice of every budget goes to clicks no customer made, and most PPC teams use no tool to catch them. Platforms remove billions of bad ads a year, and regulators are now ruling on how Google runs the auction itself.

How much paid traffic is invalid?
Between about 7% and 24% depending on the platform, according to Lunio, a click fraud vendor measuring its own customers' campaigns. Bots now make up most web traffic.
- Google has the lowest invalid traffic rate of the major ad platforms, at 7.57%, and Meta is next at 8.20% (Lunio, Jun 2026).
- TikTok has the highest, at 24.20%, followed by LinkedIn at 19.88% (Lunio, Jun 2026).
- Bing's invalid traffic rate is 10.32% (Lunio, Jun 2026).
- 71% of PPC professionals use no click fraud tool at all, up from 68% in 2024 (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Automated traffic is the root cause, and it is growing faster than human traffic.
- Bots made up more than 53% of all web traffic in 2025, up from 51% in 2024 (Imperva, 2026 Bad Bot Report, Apr 2026).
- Automated traffic grew 8 times faster than human traffic year over year (HUMAN Security, 2026 State of AI Traffic and Cyberthreat Benchmark Report, Mar 2026).
- Traffic from AI agents and agentic browsers grew 7,851% year over year (HUMAN Security, Mar 2026).
How many bad ads does Google take down?
Billions a year, and a growing share before they ever run. Scams are the main target.
- 602 million of the ads Google removed in 2025 were linked to scams (Google, 2025 Ads Safety Report, Apr 2026).
- 4 million of the suspended accounts were linked to scams (Google, 2025 Ads Safety Report, Apr 2026).
- Google's systems caught more than 99% of policy-violating ads before they served (Google, 2025 Ads Safety Report, Apr 2026).
- Google says it cut incorrect advertiser suspensions by 80% in 2025 (Google, 2025 Ads Safety Report, Apr 2026).
These are Google's own counts and are not independently audited. For advertisers, the same systems also suspend legitimate accounts by mistake, so the drop in wrong suspensions matters as much as the takedown totals.
What have regulators ruled on Google's search ads?
That Google holds a monopoly in US search and search advertising, and that it breaks EU rules by favouring its own services. The US case centred on the exclusive deals that make Google the default search engine.
- A US federal court ruled in August 2024 that Google is a monopolist in search and search advertising; for years Google handled about 90% of US search queries (US Department of Justice, Sep 2025).
- The US was joined by 49 states, two territories and the District of Columbia in the remedies case decided in September 2025 (US Department of Justice, Sep 2025).
- The European Commission fined Google €2.95 billion for favouring its own display ad technology, a case about ads not tied to a search query (European Commission, Sep 2025).
- The Commission's two Digital Markets Act decisions against Google in July 2026 totalled €890 million, covering Search and Google Play (European Commission, Jul 2026).
- The UK's Competition and Markets Authority designated Google with strategic market status in general search, including its search advertising, in October 2025 (CMA, Oct 2025).
- The CMA imposed fair ranking and data portability conduct requirements on Google Search in June 2026 (CMA, Jun 2026).
Who manages PPC accounts, and what does the work cost?
Agencies and freelancers do most PPC work, but brands are pulling it in-house and some plan to hand it to AI instead. Agency pricing has barely changed in that time, which leaves agencies exposed.

How do agencies charge for PPC management?
There is no standard: the top three models each cover about a fifth of agencies. Hourly billing is slipping, but it still leads in Europe.
- 20% of agencies charge a flat fee based on the client's monthly spend range, the most common model (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Fully custom pricing rose from 16% to 20% of agencies in two years (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Billable hours fell from 19% to 18% (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Billable hours still lead in continental Europe at 25%, against 12% in North America (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 39% of agencies that bill by the hour think the model is future-proof, down from 46% two years earlier (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 58% of agencies absorb the cost of their PPC software rather than charging clients for it (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Are brands keeping PPC in-house?
Yes, and agency clients are thinking about AI as a replacement. Teams on both sides are small, and agencies need fewer people for the same spend than two years ago.
- 70% of PPC professionals manage campaigns for clients as agencies or freelancers, and 23% work in-house (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 20% of advertisers that hire an agency plan to replace agency work with AI, against 12% who plan to switch to another agency (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Only 12% of in-house PPC teams have more than five people (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 50% of agency PPC teams have six or more people (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- Agency teams managing more than $1 million a month are 20% smaller for the same spend than two years ago (PPCsurvey.com, The State of PPC 2026, Mar 2026).
What do PPC jobs pay, and is the work getting harder?
Senior roles pay well and demand is growing, but most practitioners say the job has become harder as platforms automate and hide data.
- US advertising and promotions managers earned a median $133,660 a year in May 2025 (US Bureau of Labor Statistics, Aug 2026).
- Advertising, promotions and marketing manager jobs are projected to increase by 27,900 from 2025 to 2035 (US Bureau of Labor Statistics, Aug 2026).
- Two years earlier, 49% of PPC professionals said the work had become harder (PPCsurvey.com, The State of PPC 2026, Mar 2026).
- 27% expect AI to hurt PPC hiring in the next 12 months, against 15% who expect it to help (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Most practitioners say AI saves them one to five hours a week, useful but well short of replacing a role (PPCsurvey.com, The State of PPC 2026, Mar 2026).
Methodology and Sources
Every number on this page links to the organisation that produced it: company filings and earnings releases (Alphabet, Microsoft, Amazon, Walmart, Uber), regulators (US Department of Justice, European Commission, UK CMA), the US Bureau of Labor Statistics, industry research (IAB and PwC, WPP Media) and studies run by vendors on their own data (LocaliQ and WordStream, Skai, SE Ranking, Optmyzr, Lunio, Imperva, HUMAN Security, Microsoft Advertising, OpenAI). Vendor and platform figures are labelled where they appear. The State of PPC 2026 is a survey of 1,306 PPC professionals run by PPCsurvey.com with nine industry partners; 45.8% of respondents are in continental Europe and 29.4% in North America, so it leans European. Google help pages carry no date and are dated to the month they were read. No figure was taken from a statistics roundup. Each URL was opened and the number checked on the page in October 2026, and the page is re-checked every month. Numbers already published on our SEO statistics page, such as the average Google Ads click-through rate and cost per lead, are not repeated here.
Glossary
- PPC: pay per click, advertising where the advertiser pays each time someone clicks an ad.
- CPC: cost per click, the price an advertiser pays for one click.
- CPL: cost per lead, ad spend divided by the number of leads.
- CTR: click-through rate, the share of ad views that end in a click.
- CPA: cost per acquisition, ad spend divided by the number of conversions.
- ROAS: return on ad spend, revenue earned for each unit of ad spend.
- TAC: traffic acquisition costs, what a search engine pays partners such as browsers and websites for traffic.
- IVT: invalid traffic, ad clicks or impressions from bots, fraud or accidental clicks.
- Performance Max: a Google Ads campaign type that runs ads across Search, YouTube, Display, Gmail and Maps from one budget, with Google's AI choosing placements.
- AI Max: a Google Ads setting that lets Google's AI widen keyword matching and write ad text in Search campaigns.
- AI Mode: Google's conversational search mode that answers with an AI-written response.
- Retail media: ads sold by retailers, such as sponsored products in Amazon or Walmart search results.
- DMA: the EU Digital Markets Act, which sets rules for the largest online platforms.
- SMS: strategic market status, the UK CMA's designation for firms with entrenched market power.
Sources
- Alphabet, Form 10-K 2025
- Alphabet, Q1 2026 earnings release
- Microsoft, FY26 Q4 press release
- Amazon, Q2 2026 results
- Amazon, Q4 2025 results
- Walmart, Q2 FY27 earnings
- Uber, Q2 2026 prepared remarks
- IAB and PwC, Internet Advertising Revenue Report: Full Year 2025
- WPP Media, This Year Next Year 2026 Midyear Forecast (news release)
- WPP Media, This Year Next Year 2026 Midyear Forecast (report page)
- Skai, Q2 2026 Quarterly Digital Trends Report
- LocaliQ and WordStream, 2026 Search Advertising Benchmarks
- SE Ranking, AI Mode shows ads on nearly 1 in 3 commercial queries
- Google Ads Help, About ads and AI Overviews
- Google, A new generation of ads for the AI era of Search
- OpenAI, A milestone in expanding access to AI
- OpenAI, ChatGPT Ads expands across Europe
- OpenAI, Our approach to advertising and expanding access to ChatGPT
- Microsoft Advertising, 73% higher CTRs: conversational AI
- PPCsurvey.com, The State of PPC 2026 Global Report
- Optmyzr, Performance Max Study
- Google Ads Help, About AI Max for Search campaigns
- Google, Dynamic Search Ads are upgrading to AI Max
- Lunio, What Is Invalid Traffic (IVT)? 2026 Guide
- Imperva, 2026 Bad Bot Report
- HUMAN Security, 2026 State of AI Traffic and Cyberthreat Benchmark Report
- Google, 2025 Ads Safety Report
- US Department of Justice, Department of Justice wins significant remedies against Google
- European Commission, Commission fines Google €2.95 billion over abusive practices in online advertising technology
- European Commission, Commission fines Google €890 million for breaches of the Digital Markets Act
- UK Competition and Markets Authority, Google's general search and search advertising services
- US Bureau of Labor Statistics, Advertising, Promotions, and Marketing Managers