Monday, November 11, 2013

Google Adwords vs. Facebook Ads

Google Adwords has been at the core of digital advertising for years now.  Look at any digital advertising or marketing position and you will see the qualification clearly listed: experience using Google Adwords.  You can take classes to become an expert and even become certified

Why has there been so much focus on one specific form of digital marketing?  The first reason is that Google has an incredible amount of traffic.  Where do you head first when you need something?  For most of us, it’s Google.  Elisa Gabbert notes 10 Reasons to Use Adwords which include two very appealing reasons: it’s flexible and easier than SEO (Gabbert, 2012).  Google allows you to target your audience and customize your campaign through an array of options.   Geographics, demographics and browsing behavior are just the start.  Google allows you to be very flexible and experiment through different campaigns.  As for SEO, don’t get me wrong, it is extremely important in order to organic traffic.  But with paid search traffic getting more conversions than organic traffic, it is well-worth your time and money to be investing in Adwords as well. 

However, it can be easy to get turned-off or confused by the ever-changing landscape of Google Adwords.  Just recently, the search giant released a statement saying that they will be updating the Adwords Ad Rank algorithm.  You might be thinking: I didn’t really understand the algorithm before, so do I need to try to spend the time learning the new one?  Here’s what you need to know: the cost and placement of your ad is based on expected impact from ad extensions and formats (Kim, 2013).  This means, that if you aren’t using ad extensions, it’s time to start!

Larry Kim says that in lieu of this new algorithm, we should expect a few things to be happening:

●     Expect the mobile transition to pick up the pace.
●     Rising average CPCs.
●     AdWords becomes more competitive.
●     SMBs will fall down or have to outsource help.
●     Goodbye, more organic SERPs space.
So, in addition to Adwords, what are our other options?  Many businesses, both big and small, have been utilizing Facebook as an advertising platform.  Facebook, like Google, is a good place to advertise because of the sheer amount of people who are on the site every day.  You also have the ability to target people by geographic location, age and other simple demographics.  However, the type of hyper-targeting offered by Google is not supported by Facebook yet.  In order to compete, Facebook has recently unveiled a new system of advertising which I briefly outlined in a previous post.  This system will allow marketers to use new “objective-based” buying to purchase ads by determining an ideal click-through rate, amount of likes or app installations.  With this new program, Facebook is hoping to draw in more marketers by providing more options while simplifying the process.
So which platform is for you?  Let’s take a look at this infographic for a few takeaways:

 
       First we see that the country you are in matters.  The Philippines for instance, has a much higher use of Facebook ads than Google ads. 
       Next we notice that online revenue for Google Adwords is about ten times as much as Facebook Ads.
       Market share also demonstrates that Facebook only accounts for 3.10% of global online ads while Google accounts for 44.10%.  However, in the US, Facebook accounts for 16.76% of online display ads which is more than Google’s 16.50%
       Skipping down to Global Online Advertising Reach, we see that Google has twice as much reach, and about the same amount of unique US visitors
       Google’s average CPC for the US was significantly higher than Facebook’s
       However, Google’s CTR is light-years beyond Facebook’s
Each platform has its own forte.  Perhaps the answer is not simply which one is better for your business.  Try experimenting with both, and you may find that certain products or pages are more successful on either Google or Facebook.



References:


Gabbert, E. (2012). Why use adwords? Here are 10 reasons. WordStream.  Retrieved from: http://www.wordstream.com/blog/ws/2012/12/03/why-use-adwords


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