Pay-per-click (PPC) Software Market Size, Share & COVID-19 Impact Analysis, By Type (Search Advertising, Social Media Advertising, Remarketing, Online Shopping, Display Advertising, And Others), By Deployment (Cloud, On-premises), By Enterprise Size (Small & Medium Enterprise (SMEs), Large Enterprises), By End-user (BFSI, Retail & Ecommerce, Automotive, Healthcare, Media and Entertainment, IT & Telecom, And Others), and Regional Forecast, 2020-2027

The global pay-per-click (PPC) software market size was USD 12.58 billion in 2019 and is projected to reach USD 28.62 billion by 2027, exhibiting a CAGR of 11.2% during the forecast period.

PPC management software is a tool used to manage and analyze cost-effective online advertising campaigns for Google, Bing, and Yahoo within a single interface. It performs various tasks including cross-publisher tracking, bid and budget management, reports, and campaign automation. The increasing number of social networking sites and advertisers are the major growth determining factors. In the current era, the market size of PPC advertising tools is growing owing to the rapid digitalization and rising adoption of the web & social media platforms among enterprises. The rising spending on digital advertising and increasing internet penetration has also broadened the prospects for online advertising.

COVID-19 Impact

Occurrence of COVID-19 Assist Enterprises to Shift to Online Channel and Adopt PPC Software

COVID-19 has highly impacted the work culture across various industry verticals. The pandemic has caused a substantial drop in advertising spending worldwide. According to the World Economic Forum, in June 2020, the ad spending was down by 9% on an average across Europe, with France and Germany falling by 12% and 7%, respectively. The BFSI sector is taking the advantage of lowered pay per click costs to connect with their consumers about the current COVID-19 crisis and offer new business opportunities. Businesses in every sector are using PPC and social media management platforms to aware their customers of various safety norms amidst the pandemic.

In addition, the PPC management tool performs several tasks such as tracking the campaign spending across ad platforms and multiple campaigns, enabling or pausing campaign elements, adjusting daily budget limits, proposing a budget, and adjusting bids to the stakeholders. Thus, it is set to create lucrative opportunities for service providers amidst the COVID-19 pandemic. Certain sectors such as hospitality, retail, and travel are highly impacted by the pandemic. These sectors are seeking new technologies to understand customer behavior and are also looking for new models for engaging them. PPC software benefits are expected to improve business situations and help companies to overcome this economic recession.

LATEST TRENDS

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Integration of AI and ML Technologies with Pay-per-click Tools is a Current Trend

The growing trend of integrating artificial intelligence (AI) and machine learning (ML) technologies with PPC software is expected to accelerate the growth of the market. AI-powered PPC software solutions are gaining traction as they facilitate efficient analysis and collection of large volumes of data that various enterprises have to deal with on a daily basis. For instance, Acquisio offers ML and PPC automation tools that are designed to streamline the new account and campaign creation.

Machine learning (ML)-enhanced paid search tools are used by end-users to automate bid & budget management decisions. They also empower campaign managers to streamline their marketing management. These solutions offer numerous advantages such as process optimization, improved effectiveness, reduced costs, and others, which are likely to drive the adoption rate of AI and ML-powered PPC solutions.

DRIVING FACTORS

Rising Adoption of Cloud-based Solutions among Enterprises to Aid Growth

One of the significant market drivers is the increasing adoption of cloud-based PCC ads management tools such as Acquisio, ClickSweeper, Google Adwords Keyword Planner, SearchForce, and others. These platforms allow enterprises to track, monitor, and visualize the performance of their cloud-based applications or services. Thus, the demand for enhancement and productivity in organizations will promote the growth of the market. Key players are also focusing on launching cloud-based PCC to gain a competitive edge in the market.

• For instance, in March 2020, SEMrush launched its new cloud-based tool – “Traffic Jet.” This tool is designed to automate the traffic acquisition and get immediate access to premium advertising platforms such as Microsoft Advertising, Google Search & Display, Amazon, Facebook, Instagram, Reddit, Quora, and others.

Therefore, the rising adoption of cloud-based paid search platforms among enterprises is likely to drive the growth of the market in the forthcoming years.

RESTRAINING FACTORS

Security and Privacy Concerns Associated with Paid Search Advertising to Hinder Growth

PPC advertising and promotional campaigns are gaining popularity among small and medium scale enterprises (SMEs) and large scale businesses. However, with the gaining popularity, multiple security concerns about information loss, security breaches, click frauds, application vulnerabilities, and unforeseen emergencies are also increasing. Data security and privacy protection issues can reduce the revenues in some industries such as retail & e-commerce, financial services, and federal government departments. Therefore, to overcome such concerns, market players are focusing on initiating security measures to protect the end-users’ information from cyber-attacks.

• For instance, in July 2020, CHEQ AI Technologies Ltd., an ad fraud prevention firm expanded its cyber security-based ad verification platform – “CHEQ PPC” for paid search and paid social ad fraud prevention.

Such activities are likely to reduce the impact of information security and privacy concerns related to the market during the forecast period.

SEGMENTATION

By Type Analysis

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Search Advertising Segment to Hold Significant Share Backed by Surging Usage of Internet

Based on the type, the market is further segregated into search advertising, social media advertising, remarketing, online shopping, display advertising, and others.

The search advertising segment is anticipated to exhibit the largest market share in the coming years. The growth is attributed to the rising adoption of connected devices and the increasing penetration of the internet to optimize and monitor online advertisements.

The display advertising segment is set to exhibit the highest CAGR during the forecast period. The increasing adoption of social media platforms such as Facebook, Twitter, and Instagram, among end-users is boosting the popularity of display advertising. Other types such as social media advertising, remarketing, online shopping, and others are likely to show decent growth owing to the rising demand for PPC management software among end-users.

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By Deployment Analysis

Cloud Segment to Show Highest CAGR Fueled by Rising Adoption of SaaS-based Platforms

The pay-per-click software market is categorized based on its deployment type, including cloud and on-premise.

The cloud segment is anticipated to exhibit the highest CAGR during the estimated period. The increasing adoption of SaaS-based PPC management platforms across various verticals such as BFSI, retail, healthcare, and others is likely to create high demand for the cloud-based deployment method. The on-premise segment is expected to show moderate growth owing to the security regulations, high initial setup effort, and upgradation requirements, among others.

By Enterprise Size Analysis

SMEs Segment to Hold Highest Share Stoked by Increasing Usage of Cost-effective Tools

Under the enterprise size, the market is divided into small and medium enterprises (SMEs) and large enterprises. The small and medium enterprises (SMEs) segment is anticipated to exhibit the highest share, owing to the adoption of cost-effective PPC tools based on technologies such as cloud, AI, ML, and others. The large enterprises segment, on the other hand, is expected to show significant growth during the forecast period. The availability of ICT infrastructure, large workforces, and significant investments in advanced technologies would contribute to the growth of this segment.

By End-user Analysis

BFSI Segment to Dominate Owing to Increasing Need to Track Real-time Online Content

Based on the end-user, the market is segmented into BFSI, retail & ecommerce, automotive, healthcare, media and entertainment, IT & telecom, and others.

The BFSI segment is anticipated to hold the dominant share during the forecast period. The growth is attributable to the increasing adoption of PPC management tools for communicating with their target audiences, promoting & tracking real-time online content, and others.

The healthcare segment is expected to gain traction during the forecast period. PPC tools allow hospitals to gain more site traffic, manage patient inquiries, and brand awareness. In addition to that, the rising adoption of PPC management tools across retail & e-commerce, automotive, media and entertainment, IT & telecom, and other industries are expected to propel the pay-per-click software market growth during the forecast period.

REGIONAL INSIGHTS

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Geographically, the market is segmented across five major regions, namely, North America, Europe, Asia Pacific, the Middle East & Africa, and South America. North America is expected to dominate the market in terms of revenue in the global market during the forthcoming period. The advent of advanced technologies and the presence of major key players such as Google LLC, Microsoft Corporation, Yahoo!, and others are set to boost the demand for PPC tools across the U.S. and Canada. Market players are focusing on launching new paid search tools to improve their product portfolios.

• For instance, in November 2019, Optmyzr, Inc. launched its updated PPC Management Suite – “Shopping Campaign Builder 2.0.” It aims to streamline the management and creation of pay-per-click search shopping ads campaigns.

Asia Pacific is expected to grow exponentially during the forecast period. The growth is attributed to the rising penetration of smartphones and social media platforms for marketing campaigns in this region. Key market players present in this region are focusing on merger and acquisition strategies to enhance their product portfolios.

• For instance, in May 2019, Infidigit Consultants Pvt. Ltd. acquired Google AdWords services provider, PPC Chef. This acquisition will enable Infidigit Consultants to strengthen its digital marketing strategy with Google PPC Ad Campaigns to cater to the rapidly increasing digital marketing needs of their clients.

Europe is expected to exhibit considerable growth owing to the presence of a significant number of paid search software providers. The Middle East & Africa (MEA) and South America are likely to experience radical growth during the forecast period. The increasing investment and funding raised by governments to adopt advanced technologies such as cloud, AI, 5G, and others are the major factors driving the market growth in these regions.

KEY INDUSTRY PLAYERS

Key Players Aim to Develop Advanced Pay-per-click Software to Strengthen Their Positions

Google LLC, WordStream, Optmyzr, and Acquisio, among others, are some of the major players in the market. They are currently deploying PPC management tools with advanced technologies such as AI, ML, and the cloud. Also, the high competition in the market is forcing service providers to focus on the acquisition strategy for strengthening their positions. Various emerging market players are offering innovative tools and services for gaining a competitive edge.

LIST OF KEY COMPANIES PROFILED: 

• Alphabet Inc. (Google LLC) (California, United States)


• Microsoft Corporation (New Mexico, United States)


• Facebook, Inc. (California, United States)


• WordStream (Massachusetts, United States)


• Optmyzr (California, United States)


• SEMrush (Massachusetts, United States)


• Acquisio (Brossard, Canada)


• Kenshoo, Ltd. (Tel Aviv-Yafo, Israel)


• Marin Software (California, United States)


• Spaceboost (Barcelona, Spain)


• Adzooma (Nottingham, England)


• AdStage, Inc. (California, United States)


• SpyFu (Arizona, United States)


• Adalysis Limited (London, England)

KEY INDUSTRY DEVELOPMENTS:

• July 2018: - Google LLC changed its Google AdWords brand name to "Google Ads." The aim is to provide a full range of campaign types such as search, video, and display to the end-user.

REPORT COVERAGE

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The pay per click software market research report provides a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading applications of the product. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the aforementioned factors, the report encompasses several factors that have contributed to the growth of the advanced market over recent years.

Report Scope and Segmentation