In today's digital landscape, businesses have a wealth of advertising options at their fingertips. Two of the most prominent and powerful platforms are Google Ads and Facebook Ads. Both offer unique advantages and cater to different marketing objectives, leaving many business owners wondering:
Which one is the best fit for my company?
After helping many businesses double or triple their leads by changing their advertising strategy (with the same budget they were using before), in this article we'll dive into the world of Google Ads and Facebook Ads, exploring the key differences, strengths, and use cases of each platform. By the end, you'll have a clear understanding of which advertising solution is poised to deliver the most impactful results for your business.
Table of Content
Short on time? Here are the main points we will cover.
Learn how ads combined with a customer generating website can increase sales 2-5X (video)
Overview of Google Ads and Facebook Ads
Google Ads, formerly known as AdWords, is a pay-per-click (PPC) advertising platform that allows businesses to display ads across Google's search engine, YouTube, and various partner websites. Advertisers can create text, image, video, or shopping ads that appear when users search for relevant keywords or browse content related to their products or services.
The platform's primary strength lies in its ability to reach users who are actively searching for information, products, or services related to your business. By targeting specific keywords, you can ensure that your ads are displayed to individuals who are already interested in what you have to offer, making it an effective solution for driving immediate conversions.
In New Zealand, this is the main advertising strategy that businesses use in sectors such as construction. This is not surprising as, at the time of writing this article, Google has a 92% share of all searches made in NZ, with upcoming search engine BING ranking at just 5%.
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Facebook Ads is a comprehensive advertising platform that enables businesses to reach their target audience on Facebook, Instagram, Messenger, and the Audience Network. Advertisers can create a wide range of ad formats, including image, video, carousel, and collection ads, and leverage Facebook's advanced targeting capabilities to connect with their ideal customers.
Unlike Google Ads, which focuses on intent-based targeting, Facebook Ads excels at reaching users based on their interests, behaviours, and demographics. This allows businesses to connect with their target audience, even if they aren't actively searching for their products or services. This can be particularly useful for building brand awareness, generating leads, and nurturing long-term customer relationships.
With 4 million Facebook user in New Zealand in January 2023 (individual accounts that are active) this is roughly 78% of the total population.
Targeting and Audience Reach
Google Ads' strength lies in its ability to reach users who are actively searching for products or services related to your business. This intent-based targeting can be highly effective for driving immediate conversions, as these users are often further along in the buyer's journey.
The platform's vast network, which includes the Google Search Network, the Google Display Network, YouTube, and various partner websites, allows you to reach a wide audience of potential customers. However, the reach is primarily focused on users who are actively searching for relevant information or making purchasing decisions.
Facebook Ads, on the other hand, offers unparalleled audience targeting capabilities. By leveraging user data, interests, behaviours, and demographics, you can create highly targeted ad campaigns that reach your ideal customers, even if they aren't actively searching for your products or services. This can be particularly useful for building brand awareness, generating leads, and nurturing long-term customer relationships.
Instagram (owned by Facebook) has roughly 2.2 million active users in New Zealand per month (43% of the population), combine that with Facebook and you can see why the platform provides businesses with access to a vast and diverse audience.
Additionally, the ability to create custom and lookalike audiences based on your existing customer data allows you to expand your reach to new potential customers who share similar characteristics.
Ad Formats and Placements
The versatility of Google Ads' ad formats allows businesses to tailor their advertising approach to their specific marketing objectives. For example, text ads can be effective for capturing search intent, while video ads can be used to build brand awareness and engage with the audience.
The platform's ad formats are primarily focused on driving direct response and conversions, such as driving website traffic, generating leads, or promoting product sales.
Facebook Ads has a more diverse array of ad formats, including:
- Image ads
- Video ads
- Carousel ads
These ads can be displayed on Facebook, Instagram, Messenger, and the Audience Network, providing businesses with a wide range of placement options to reach their target audience.
Facebook's ad formats are well-suited for both direct response and brand-building objectives. For instance, image and video ads can be used to capture attention and convey your brand's message, while carousel ads and collection ads can be effective for showcasing multiple products or services.
In our experience a simple image with good written content, that provides value for the target audience, works best. I recommend using this for businesses offering a service, either in person such as a builder, or digital, such as a web agency.
While your ad format is very important, the place that you send your potential customers to, should be optimised for sales as well. If you want to learn more about optimising the landing page to send people to from your ads, watch this video.
The platform's extensive placement options also allow businesses to reach their target audience across various touchpoints, from the Facebook News Feed to Instagram Stories, ensuring a more comprehensive and integrated advertising experience.
Measurement and Reporting
Google Ads provides comprehensive reporting and analytics tools, allowing advertisers to track key metrics such as impressions, clicks, conversions, and return on ad spend (ROAS). This data-driven approach enables businesses to make informed decisions and optimize their campaigns for better performance.
The platform's reporting capabilities offer granular insights into ad performance, including the ability to analyse individual ad groups, keywords, and placements. This level of detail allows businesses to identify areas for improvement and make data-driven adjustments to their campaigns.
Facebook Ads also offers robust reporting and analytics capabilities, providing insights into ad performance, audience engagement, and conversion metrics. Additionally, the platform's integration with Facebook's suite of business tools, such as Facebook Pixel and Facebook Analytics, can provide a more holistic view of your marketing efforts.
Facebook's reporting features allow businesses to track metrics like reach, impressions, clicks, and conversions, as well as more advanced metrics like cost-per-action and return on ad spend. This data can be used to optimize ad targeting, creative, and budgeting to improve the overall effectiveness of your Facebook Ads campaigns.
There is one caveat though (for both Google and Facebook), what I hear from my clients is that it can be hard to interpret the numbers correctly, or even to find your way around their suite.
Many of my clients thought they were running a successful campaigns because they get leads and enquiries, which is true to some extent… The question we ask to measure success is; How much do you actually pay per lead and per customer (a lead that has converted).
What if you could get leads for half the price, or even 1/3 of the price? That would mean that by spending the same money you could increase your sales 2-3 times! In this video we explain how you can do this.
Which brings us to the next topic.
Cost and Return on Investment (ROI)
Google Ads operates on a PPC model, where advertisers bid on keywords and pay a predetermined amount each time a user clicks on their ad. The cost-per-click (CPC) can vary widely depending on the competitiveness of the industry and the specific keywords being targeted.
While the CPC for Google Ads may be higher compared to Facebook Ads, the platform can often deliver a higher return on investment (ROI) due to its ability to reach users with a clear intent to purchase. By targeting individuals who are actively searching for your products or services, you can potentially see a more immediate and measurable impact on your sales and revenue.
Facebook Ads follows a similar PPC model, but the platform also offers cost-per-impression (CPM) and cost-per-action (CPA) bidding options. Facebook Ads generally have a lower CPC compared to Google Ads, making them more accessible for small and medium-sized businesses.
However, the ROI can vary depending on the campaign objectives and the effectiveness of the targeting and creative. While Facebook Ads may be more cost-effective for building brand awareness and generating leads, the platform's performance can be more difficult to directly attribute to sales or revenue, especially for businesses with longer sales cycles.
I’ve found that by setting up a Facebook pixel on your website you can see which leads come from Google or Facebook and measure the effectiveness of your campaigns. For example, when we run ads on Facebook for our business, we normally generate leads for $10 per lead. Depending on your market a lead could cost anywhere between $5 - $50. If you pay more than that you may need to have a hard look at your marketing campaign.
Watch this video to learn how you can lower your cost per lead.
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Determining the Best Fit for Your Business
When deciding between Google Ads and Facebook Ads, there is no one-size-fits-all solution. The best platform for your business will depend on your specific marketing goals, target audience, and the nature of your products or services.
Consider the following factors when choosing between Google Ads and Facebook Ads:
- Marketing Objectives: If your primary goal is to drive immediate conversions and reach users with a clear intent to purchase, Google Ads may be the better fit. However, if you're focused on building brand awareness, generating leads, or nurturing long-term customer relationships, Facebook Ads could be the more effective choice.
- Target Audience: Evaluate the demographics, interests, and behaviours of your ideal customers. If your target audience is actively searching for your products or services, Google Ads may be the more appropriate platform. Conversely, if your target audience is better reached through social media engagement, Facebook Ads could be the better option.
- Ad Formats and Placements: Consider the types of ad formats and placements that align best with your marketing strategy. Google Ads may be more suitable if you're focused on text-based or shopping ads, while Facebook Ads could be a better fit if you want to leverage the platform's diverse ad formats and placement options.
- Budget and ROI: Assess your advertising budget and the potential return on investment for each platform. Google Ads may be more suitable for businesses with a larger budget and a focus on immediate conversions, while Facebook Ads can be a more cost-effective option for smaller businesses or those with a longer sales cycle.
- Where Are Your Competitors Advertising: In our experience, if your competitors are advertising on Google, using the same keywords as you use, then it will drive up the cost per click quickly. This may still work for you, but you are going to pay a premium.
For Facebook there are tools that show you which ads are running on FB and which business runs them. I’ve found that when you advertise with little competition, your campaigns are going to be more effective and cost less. That said though, you still need to make sure you target the right audience.
Leveraging a Combination of Both Platforms
While determining the "best" platform between Google Ads and Facebook Ads is important, many successful businesses leverage a combination of both to achieve a well-rounded and effective digital advertising strategy.
By utilizing the unique strengths of each platform, you can reach a wider audience and achieve a variety of marketing objectives. For example, you could use Google Ads to capture search intent and drive immediate conversions, while complementing it with Facebook Ads to build brand awareness, generate leads, and nurture long-term customer relationships.
The integration of these two powerful advertising platforms can create a synergistic effect, where the data and insights from one platform can inform and optimize the performance of the other. This holistic approach can lead to a more comprehensive and effective digital marketing strategy.
Continuous Optimisation and Adaptation
Regardless of whether you choose to focus on Google Ads, Facebook Ads, or a combination of both, it's crucial to approach your advertising efforts with a mindset of continuous optimisation and adaptation.
The digital advertising landscape is constantly evolving, with new platform features, targeting options, and industry trends emerging on a regular basis. By continuously monitoring your campaign performance, testing new strategies, and making data-driven adjustments, you can ensure that your advertising efforts remain effective and aligned with your business goals.
Stay up-to-date with the latest platform updates, industry best practices, and your competitors' strategies. Collaborate with your marketing team to share learnings, identify areas for improvement, and refine your approach over time. This agile and data-driven mindset will help you navigate the ever-changing world of digital advertising and maximize the impact of your advertising investments.
To learn how we optimise our campaign and website to get leads, watch this video.
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Conclusion
In the ever-evolving world of digital advertising, both Google Ads and Facebook Ads offer unique advantages and cater to different marketing objectives. By understanding the key differences between these two powerful platforms, you can make an informed decision on which one is the best fit for your business.
Remember, the most effective advertising strategy often involves a combination of both Google Ads and Facebook Ads, leveraging the strengths of each platform to reach your target audience and achieve your desired marketing goals. Continuously analyse your performance, test new approaches, and be willing to adapt your strategy as your business and the digital landscape evolve.
With the right advertising solution in place, you can unlock the full potential of your digital marketing efforts and drive sustainable growth for your business.
FAQs
What is the daily budget for Facebook Ads?
- For an advertising campaign, we recommend to spend $20 per day per ad set. An ad set contains usually 2-5 ads.
- Efficiently boosting a post cost about $25 - $40 to test. The main thing here is to target the right audience and ensuring that the content of the post is optimised for your audience.
- Find more pricing on our pricing page
What are the key differences between Google Ads and Facebook Ads?
- Targeting and Audience Reach: Google Ads focuses on intent-based targeting, while Facebook Ads offers advanced audience targeting capabilities.
- Ad Formats and Placements: Google Ads has a more limited range of ad formats, primarily focused on direct response, while Facebook Ads provides a diverse array of ad formats and placement options.
- Measurement and Reporting: Both platforms offer comprehensive reporting and analytics tools, but with different areas of emphasis.
- Cost and ROI: Google Ads generally has a higher cost-per-click but can deliver a higher return on investment, while Facebook Ads often have a lower cost-per-click but a more variable ROI.
How do I determine which platform is the best fit for my business?
- Evaluate your marketing objectives: Are you focused on driving immediate conversions or building long-term brand awareness and customer relationships?
- Analyse your target audience: Where are your ideal customers most active and engaged?
- Consider your ad format and placement preferences: What types of ads and placements align best with your marketing strategy?
- Assess your budget and expected ROI: Which platform can deliver the most efficient and effective results within your advertising budget?
Can I use both Google Ads and Facebook Ads for my business?
- Yes, many successful businesses leverage a combination of both Google Ads and Facebook Ads to achieve a well-rounded and effective digital advertising strategy. By utilizing the unique strengths of each platform, you can reach a wider audience and achieve a variety of marketing objectives.
How do I get started with Google Ads or Facebook Ads?
- For Google Ads, you can create an account and start building your first campaign through the Google Ads platform.
- For Facebook Ads, you can create a Business Manager account and begin creating your ad campaigns through the Facebook Ads Manager.
- It's recommended to start with a clear understanding of your marketing goals, target audience, and advertising budget to ensure the most effective setup and optimisation of your campaigns.
What are some best practices for managing Google Ads and Facebook Ads campaigns?
- Continuously monitor and analyse your campaign performance data to identify areas for optimisation.
- Test different targeting, ad creative, and bidding strategies to find the most effective approach.
- Leverage the reporting and analytics tools provided by each platform to gain valuable insights and make data-driven decisions.
- Collaborate with your marketing team to ensure a cohesive and integrated digital advertising strategy.
- Stay up-to-date with the latest platform updates and industry trends to adapt your approach accordingly.
