Facebook Ads vs. Google AdWords: A comparison

Facebook founder Mark Zuckerberg has been quoted as saying:

Facebook was not originally created to be a company. It was built to accomplish a social mission – to make the world more open and connected ... Simply put: we don't build services to make money; we make money to build better services.

(Kim, 2012)

Of course, now that Facebook has become a publicly traded company, its fate lies in its ability to make money, regardless of the intent behind it.  Much of this monetization is powered by Facebook’s advertising platform, something that, in many ways, has a long way to go. Google, on the other hand, has not had a problem monetizing its advertising services. This Internet giant certainly has some advantages over Facebook when it comes to its ad options and services. Here’s a quick comparison of the some key features and how they stack up between Google AdWords and Facebook Ads.

Ad format

Facebook ads follow the same structure: A thumbnail image, 3-5 word headline, URL, and two lines of text. While Google’s Text Ad format provides a similar layout (minus the photo), there are other options available that aren’t found on Facebook, including Text Ads in a variety of different sized groups, Display Ads that look much like traditional Internet banner ads, Video Ads that feature interactive components, and even mobile advertising (Mobile Ads – AdSense Help, 2012)

Pay structure

Both platforms center most of their ad payment around a cost-per-click basis, although you can buy ads on Facebook and Google based on cost-per-impression if you prefer. In general, Google’s cost-per-click ads cost more than Facebook’s cost-per-click ads. Some say that this is not necessarily an indicator that Google’s ads are more valuable, however, pointing to analyses of the true value of a Facebook fan. That is, if you use your Facebook ad to drive customers to like your page, they will actually be worth much more to your company in the long run than a Google ad conversion that simply results in a customer visiting your website. (Resnick, 2011)

Total potential reach

Facebook is indisputably the world’s largest social network, with an estimated 845 million monthly active viewers. That’s 51 percent of all Internet users! Impressive until you compare these numbers to Google’s display advertising network, which includes the search engine as well as its other properties like YouTube, Blogger, Gmail, and more than 2 million other websites. In all, Google ads have the potential to create 180 billion ad impressions per month, reaching 90 percent of all Internet users. (Kim, 2012)

Targeting ability

At first glance, it seems that Facebook’s targeting capabilities outweigh Google AdWords’. Facebook can pinpoint specific users based on things like gender, age, and even specific interests outlined in users’ profiles. While Google ads can’t be targeted to specific demographic profiles, marketers still have the ability to target their ads based on broader categories so an ad will appear if a user is browsing content that is related to its subject. Also, at a basic level, Google ads that appear in the main Google search engine window are being shown to the audience at an opportune time when they are actively seeking information on the subject. In contrast, Facebook ads are shown to users when they are most likely engaged in social activities unrelated to that ad’s subject matter.

Although I wouldn’t count out Facebook’s advertising functionality in a broad, integrated campaign, I certainly wouldn’t recommend centering an ad strategy around it. Facebook certainly seems to be a company built around a social mission – its business plan to capitalize on advertising revenue leaves something to be desired. It will be interesting to see what steps Zuckerberg and his team take to make their company’s advertising options stack up more attractively against Google in the future.

References:

Kim, L. (2012, May 15). Google Display Network vs. Facebook Advertising. WordStream. Retrieved from http://www.wordstream.com/blog/ws/2012/05/15/ipo-facebook-vs-google-display-advertising

Mobile Ads – AdSense Help. (2012). Google. Retrieved from http://support.google.com/adsense/bin/answer.py?hl=en&answer=185668&topic=29561&ctx=topic

Resnick, T. (2011, May 30). AdWords vs. Facebook Ads: A head-to-head comparison. AudienceWise. Retrieved from http://audiencewise.com/2011/05/adwords-vs-facebook-ads-a-head-to-head-comparison/