In the third quarter of 2020, Facebook reported advertising revenue of 21.2 billion U.S. dollars, while Google’s advertising revenue reached nearly 46 billion U.S. dollars.
Does this mean that Google ads are more popular than Facebook ads? Does this also mean that you should choose Google Ads instead of Facebook ads in your next digital advertising campaign?
The answer depends on several factors.
Solutions for you depends on your industry, business type, target audience and digital marketing strategy.
It also depends on the purpose of your marketing campaign-whether it is to increase brand awareness, the number of potential customers, or sales.
Let’s take a look at the differences and key points of each of these advertising options to help you determine which solution might work best for you.
- The difference between Facebook ads and Google ads
- PPC and social advertising: general insights
- Facebook ads and Google ads: statistics
- Google Ads vs. Facebook Ads: How to Decide
- Google ads and Facebook ads: verdict
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The difference between Facebook ads and Google ads
Both Facebook and Google provide various advertising solutions through their expanding networks.
- Platform: With Google, you can choose to advertise on Google Search, Google Display Network, Google Shopping, etc., as well as responsive ads with multiple options, dynamic ads, etc. With Facebook, you can spread your ads on Facebook news feeds, Instagram news feeds, Facebook stories, Instagram stories, Messenger feeds, etc.
- Budget: Google Ads is a platform for pay-per-click (PPC) advertising solutions, which means you only pay when someone clicks on your ad, and you can determine the maximum cost-per-click (CPC) amount for each ad Your ad. On the other hand, Facebook provides paid social advertising, where you can decide the daily or lifetime budget of each campaign and the time period you want the ad to run.
- Positioning: Google Ads allows you to show your business, products, or services to millions of people when they search for businesses like you on Google. In addition, with Google Display Campaigns, you can customize your offers to target specific audiences based on their interests, location, and other parameters. Facebook provides more powerful options for creating custom target audiences. In addition, for every Facebook ad, you can include so-called lookalike audiences. This means you can extend your reach to people who have similar interests to your ideal customers.
PPC and social advertising: general insights
To put Facebook and Google advertising options in perspective, let’s take a look at some general insights about PPC campaigns and social media marketing.
This may help you learn more about the benchmarks and help you decide on the right solution for your business.
General statistics for PPC and social advertising include:
- The annual growth rate of global advertising expenditure is expected to be 6.4%, and the market size will reach USD 2025 billion by 2025
- 78% of marketers rely on Google and social media ads to spread their information; of these, 29% use Google ads and 22% use Facebook ads
- Google and Facebook account for the largest share of total US digital advertising spending; Google holds 37.2% and Facebook holds 22.1%
- In 2019, 62% of marketers plan to increase their PPC budget in the next 12 months; 18% said the budget will be larger
- 45% of small businesses invest in PPC advertising, and 56% of small businesses invest in social media marketing
- 17% of marketers use PPC advertising to generate leads
- 58% of millennials buy products due to online or social media advertising
- 75% said that paid advertising makes it easier for them to find the information they are searching for
Facebook ads and Google ads: statistics
Now, let us look at the relevant figures and statistics from Facebook and Google.
Relevant Facebook statistics include:
- Facebook has 2.74 billion monthly active users and 1.82 billion daily active users
- Advertising revenue in the third quarter of 2020 was US$21.2 billion, a year-on-year increase of 22%
- The average cost per click is $1.72
- The average cost per operation (CPA) is $18.68
- Typical cost-per-thousand impressions (cost-per-thousand impressions, CPM) is about $10
- The biggest vertical advertising on Facebook is e-commerce
- The average coverage of Facebook ads is 28.1%, while the average organic coverage of Facebook posts is 5.17%
- In 2019, Facebook’s advertising revenue was US$69.66 billion
Relevant Google statistics include:
- 87,059 Google searches performed in one second worldwide
- Approximately 6.4 billion searches per day
- 77% of marketers will increase their spending on Google ads in the next 12 months
- The average click-through rate (CTR) of ads ranked number one in Google search results is 7.94%, while the average click-through rate (CTR) on the search network is 3.17% and 0.46% on the display network
- The average cost-per-click for Google Ads is $2.69 on the Search Network and $0.63 on the Display Network
- 49% said they would click on text ads, 31% would click on shopping ads, and 16% would click on video ads
Please note that due to the increased demand for digital marketing services during the COVID-19 pandemic, some changes in Facebook and Google advertising have occurred.
As Facebook pointed out in its 2020 third quarter report:
On the other hand, during the pandemic, Google search ad impressions in some industries dropped by as much as 7%.
Google Ads vs. Facebook Ads: How to Decide
As we have already mentioned, the decision between search and social marketing will depend on your business, audience, and marketing strategy.
Other factors that can greatly influence your choice include:
- The purpose of your campaign
- What you want to accomplish
- The type of conversion you want to measure
For example, if you own a brick-and-mortar shoe store and your conversion marketing strategy is to attract more local customers to your store, every time people in your town search for shoes on Google, you can use Google Ads to show you advertisment.
Or, if you just opened that store and want more people to learn about your brand, you can create a Facebook ad campaign to increase brand awareness and increase social attention.
In short, to decide between Google and Facebook advertising, remember the following facts:
- Google Ads can help you find new customers more quickly; Facebook ads can help you increase brand awareness and social attention
- Facebook ads are a better solution to drive more traffic to your website, blog posts, and downloadable materials; Google Ads is a better solution to drive more traffic to your physical store or e-commerce website , And let more qualified potential customers contact you directly
- Google search ads may be the best solution to attract people with high purchasing intentions at the exact moment of search; Facebook ads may be the best solution to attract more people who are interested in your offer but are not yet ready to buy
- Facebook ads are more suitable for conversions at the top of the funnel; Google Ads may be more suitable for conversions at the middle and bottom of the funnel
If you have a limited budget and are looking for the most cost-effective solution, keep in mind that Facebook ads may be slightly cheaper because you can run your campaigns for as little as $1 per day and still get coverage Thousands of potential customers.
If you choose Google Ads, keep in mind that the cost-per-click largely depends on the industry, topic, and popularity of the keywords you want to advertise for.
However, the global cost-per-click for search ads seems to be declining recently. According to data from Statista, the cost per click in the second quarter of 2020 was $0.49, compared to $0.69 in the second quarter of 2019.
Google ads and Facebook ads: verdict
If you still want to know if Facebook ads or Google Ads are a better solution for your business and online advertising efforts, please remember that there is no one-size-fits-all solution.
The answer always depends on multiple factors, such as your industry, target audience, and campaign goals.
In some cases, both Google and Facebook can provide you with powerful platforms to promote your brand, products, or services. In other cases, one of these online advertising solutions will outperform the other.