Facebook Ads vs Google Adwords – the Facebook Targeting Advantage

by 18 05/15/2014

Facebook and Google are the two biggest internet giants, and each has its own advertising model. Which is best? The answer may surprise you.

Many companies wonder whether they should use Google Adwords or Facebook Ads. As you will read in this article, we believe Facebook targeting holds certain advantages.

At first glance, they look pretty similar:

PPC advertising can be cheap if you know the tips and techniques for using it. With Google Adwords you can have highly-targeted, low cost, high conversion campaigns.

You have the same opportunity with Facebook ads. For example, you can get 1,000 Facebook fans for your page only for $20 , or you can build your list driving traffic from Facebook ads and increase revenue.

But there are key differences you need to know about. Let’s take a closer look at the two systems.

facebook ads - placeit
Source: Placeit.net

1) Two different targeting systems

On Facebook, you can choose the audience for your ads by using filters, which allow you to target your audience in three ways: by interests, demography and geography. So your ads reach the right audience and will be seen only by users you have profiled.

facebook ads

Google Adwords, on the other hand, may trigger ads based on user preferences, but Google doesn’t know people like Facebook does. It can’t see what users “Like” or follow, nor can it see data from their personal profile. Relevant ads are triggered primarily by search terms. So when a term like “business courses” is typed into Google, you see ads ads related to… business courses.

Business-Courses-Google-ads1

On the Display Network, ads are shown on pages with related content. Google understands what the page is about and matches ads accordingly. As with Adwords, you have to bid on keywords, and you have no control over who is going to see your ad. Furthermore, as you can see in this example, the ad might not be an exact match to the website.

Google display network ad

2) Facebook Ads vs. AdWords Ads

The Facebook ads creation process is different from AdWords. You target people’s interests rather than their search phrases. You’re targeting people based more on who they are than the information they’re looking for right now.

fbvsadwords

As you can see from this graph, Facebook tends to show ads based on a user’s likes, while Adwords focuses on keywords. The demographic data on users may also be more complete, so targetting can be easier on Facebook.

But the thing that stands out most is the average cost: Facebook ads, on average, are a third of the cost of Google Adwords.

3) Brand Building

While both advertising platforms offer the ability for companies to build brand equity, they do it in completely different ways.

With AdWords, a click takes you to a company’s landing page, where branding, design and sales copy send a strong signal to the user. If there are tons of ads and hyped headlines, they may question the trustworthiness of the company and immediately click off the site. Google takes note of this, and may lower the rank of the website if too many people bounce quickly.

google-adwords-example

Facebook advertising allows for leveraging of word-of-mouth and social proof, which are powerful tools in advertising. When people see that a friend already likes a product, trust barriers can be broken down much more quickly than with advertising alone.

image_thumb5

With Facebook ads, users see the ads on a regular basis. So, over the course of several interactions, they get to see what that brand is about before deciding to click through to their website or Facebook page. This builds a level of comfort and relieves some of the pressure for landing pages and websites to immediately perform.

NewFacebookAds

4) Demographic and Keyword Targeting

Google AdWords and other services allow for demographic and keyword targeting. But with Facebook, you can target keywords and demographic locations with far more precision.

How? User profiles include their location. When you use geo-targeting, your ads only appear to people whose profiles contain your targeted location and/or location.

FBvGoogleP3-1024x362

Google AdWords doesn’t know as much about your users’ locations or what keywords they are most interested in. They only know what the user is searching for right now. As a result, the probability of your ads reaching the right audience is much lower.

That said, Facebook advertising often has higher clickthrough rates and conversions than Google Adwords.

5) Which one works best?

usads1

That’s a personal decision. But here’s what one PPC user experienced when he used both Google Adwords and Facebook ads to promote his own product:

When we launched our product globally we decided to run campaigns on both Google and Facebook. I put equal amount of money on Google Adwords and Facebook for CPC campaigns.

Our product, Shufflr, requires users to download the app and then register.

Overall CPC campaigns on Facebook were more effective and gave a better ROI than Google. There are probably a couple of reasons for that:

On Facebook I could target users by their place of work. For Shufflr we targeted users from technology companies like Google, Amazon, Oracle, Cisco, etc. Probably these users understood the value proposition of Shufflr much better, which led to more registrations.

Shufflr requires users to download Adobe Air. With Facebook I could target users who had shown “interest” in Tweetdeck, which meant they probably already had Adobe Air installed.

We have a Shufflr page on Facebook, which had approx 850 fans. With Facebook I could target friends of people who were already fans of Shufflr. When the friends of people who are already fans of Shufflr page see the ad it shows them below the ad “X likes Shufflr”. This probably lead to better click-thru rate.

The combination of Facebook page “Like” button and the Facebook CPC campaigns delivers better targeting and hence improved CTR’s. So using real-time data on consumers clicking on the “Like” button on the CTR’s for campaigns, Facebook does a much superior job of optimization than Google.

It’s important to keep in mind that Facebook is changing. With new algorithm updates, it’s harder to get the same reach that was available in the past. But if you’re willing to invest by buying ads and/or promoting posts, you may still be able to get noticed by your best customers.

6) Don’t overpay for Facebook ads

Designing your Facebook ad isn’t easy if you want it to be effective. Determining your ad budget and CPM or CPC is as important as the design of your ad. But if you do it right, you can achieve good results with a small budget.

When creating Facebook ads, here are your bidding options:

Cost Per Click (CPC): The maximum you’ll pay per click on your ads. Since distribution is based on an auction format, the amount you ultimately pay for each click will depend on the competition.

Cost Per 1,000 Impressions (CPM): The maximum you’ll pay per 1,000 impressions of your ads. Once again, the amount you pay will depend on competition for the same audience and placement.

Optimized Cost Per 1,000 Impressions (OCPM): Facebook optimizes your ad by showing it to the people most likely to perform your desired action (within your target). Additionally, bidding is automated. Your bid will change dynamically based on competition, assuring that you’ll reach your desired audience.

How to set up the cost per click (CPC) in facebook ads

Some people say that CPC is a low risk because marketers only have to pay for performance, so they have some level of confidence in their return on investment.

This is how to choose the advanced options:

1-Click on the star  at the bottom.

2-Click “Advanced Options.”

facebook ad3

Then click on “Bid for clicks” and “Manually set your maximum bid for clicks CPC” to test your ads. You can set a $5 daily budget per campaign.

 facebook ad2

The CPM and OCPM model

A CPM model, used to create multiple impressions, would require very deep pockets to pay for a significant number of impressions or to justify a reasonable ROI. Hundred percent of the risk would be with you.

Jon Loomer in his article, CPM or oCPM When Targeting Facebook Fans With Ads, said that OCPM is better optimized than CPM and he still ended up getting better results. You can read his successful experience with OCPM, with no more than $5 a day.

Conclusion

Google Adwords works best when someone is in research mode. When a person searches for a keyword on Google, the top results will be advertisements related to the person’s search. So you only reach searchers.

However Facebook Ads are about making people talk about your business. It focuses on word-of-mouth marketing. Facebook Ads can not only help you sell, they can also help you build an interactive relationship with your customer.

Which one works best for you: Facebook Ads or Google Adwords? Please let us know in the comments about your experience.

About 

Chawki Trabelsi is an online marketing strategist and guest blogger writes for ipagereviewlists.com which provides updated information about web hosting companies in the USA. My goal is to help businesses understanding how to use social networks to find leads, increase sales, and improve branding via digital marketing. Follow him on Twitter and Google+

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18 COMMENTS

Binh

I think the Google Ads are better if you are really good at keywords.

If people are searching for their desparate problems, they are going to buy the products.

It based on keywords.

Facebook is like the world of distraction.

People may have interest, but it is not really consistent.

If you investigate posts and pictures of person in Facebook, it is easy to see that it is all random stuffs.

It is hard to make a sale when these people are getting distracted by notifications and things.

Binh
http://5135webmarketing.blogspot.com/

May 16, 2014 Reply

    neil

    Binh, great point! I think Google ads get down to the nitty gritty of search. While, as you mentioned, Facebook can be quite distracting.

    May 16, 2014 Reply

chawki trabelsi

Thank you Binh for your comment. Yes facebook is the world of distraction. But you can’t sell your products directly with facebook ads. First of all you have to keep building your fan base with free giveaway and contests and once you hit a few thousand you can promote your products on a weekly base. You can also build an email list driving your fans to your website with optins or a squeeze page, then you send them newsletters writing good content about your product, and after several emails you can send them a link to purchase your product. The advantage of facebook fan page that you have a targeted audience.

May 16, 2014 Reply

Christopher Cuna

Hello Chawki,

Awesome post! While I’m not really into FaceBook because of the negative rumors it has. But I love how it should more of a word-of-mouth marketing. What are your thoughts on link farms?

May 18, 2014 Reply

chawki trabelsi

Hello Christopher, link farms are websites with the sole purpose of amassing links regardless of quality. They try to game search engines by generating inbound links. It’s a kind of like going to fiverr.com and for 5 bucks asking for 100 facebook “likes” for your company page. It’s artificial… and therefore Google and Bing penalized sites for having these types of links. But those links need to be completely relevant to each other such as in a specialized directories. A Well placed link on a web directory, a source where users actually look for businesses is very different and more valuable.

May 18, 2014 Reply

Nikunj

Both ads platforms are essential which depends on nature of yoru business. Although Google is most preferable platform for ads. Facebook is good for products/services for youth.Suppose We are a PPC ads agency (Galore Technology). I never get any single query from facebook PPC. IT products can be sale on Facebook.

May 19, 2014 Reply

    Kathryn Aragon

    Great insights, Nikunj. Thanks for sharing your experience.

    May 19, 2014 Reply

    neil

    Nikunj, thanks for the additional points. They were very helpful :)

    May 19, 2014 Reply

Vault NW

I watched a YouTube video all about Facebook Ads and how you get scammed from using it. On the video it was showing how most of the traffic Google Ads was bringing a specific country was mainly from one county like India with bad un used profiles. I do not know how true this is though.

I prefer Google just because I like to keep all my accounts in one place.

Good post and thanks for sharing it.

May 19, 2014 Reply

    neil

    You really have to watch out for those scams, with that being said I think you’re on the right path now :)

    May 19, 2014 Reply

Akshay Hallur

Hey Chawki,
I will agree with you Google AdWords is undoubtedly the best ad network. Google targets audience cleverly. For example I browsed for some products in Amazon, that day, all the ads that I came across was that particular product. Even it is said that the Google monitors our phone calls and customise ads according to our interests.

May 20, 2014 Reply

    neil

    Akshay, great points! Thanks for reading. We look forward to hearing more from you :)

    May 20, 2014 Reply

    chawki trabelsi

    Thank you Akshay for sharing your experience with us.

    May 20, 2014 Reply

Carolyn Wilman

here is the video Vault NW referred to: Facebook Fraud http://www.youtube.com/watch?v=oVfHeWTKjag and it’s true! I will never pay FB for Likes, maybe for ads.

May 29, 2014 Reply

    neil

    Carolyn, thanks for the share. Real engagement is always best. You are on the right track :)

    May 30, 2014 Reply

farhan javeed

i believe that google adwords work better than Facebook ads. Facebook is good for increasing your brandawarness and getting your business’s word out . I highly doubt about the seriousness of “Facebook customers” , becuase primarily people dont come on facebook to look for ads or search for things.

On the contrary , i think Google adwords work better becuase if i want to buy something or i want to search for some information or anything i will go to google. I guess a company that invests on google adwords has more chances of getting a potential customers becuase people searching for things or products on Google have a “need” to satisfy. Hence, they can be your potential customers.

August 16, 2014 Reply

    Neil Patel

    Farhan, thanks for sharing your feedback. I think everyone has a personal preference for what works best based on their industry.

    August 17, 2014 Reply


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