Monday, June 10, 2013

Google AdWords vs. Facebook Advertising

In the world of online advertising there are countless players. Banner ads, pop ups, social media, and search engines all feature different types of advertisement opportunities for businesses big and small. When it comes to alternatives that are cost-effective and easy to set up, the field of options gets narrowed down to two giants: Google AdWords and Facebook Advertising. These two companies serve as the main competitors for small and large businesses alike.

With Google Adwords, advertisers can determine when their ads will be displayed by selecting keywords relevant to their product or service. Geographic location targeting can be done as well. It is a pay-per-click service, meaning each time an advertisement is clicked, the advertiser is charged anywhere from a few cents to a couple dollars. Advertisements are displayed alongside search queries in text form only. This means the copy a company uses to populate their advertisement is extremely important.



Facebook is another pay-per-click service that is run through the social networking giant. Rather than text-only ads populated by use of a keyword, Facebook allows advertisers to target groups of people based off of demographic data that users provide in their individual profiles. This can include sex, relationship status, age, location, interests, professions, and more. Advertisements can either send users to a company’s Facebook page or an external website. Additionally, advertisements can be in the form of text or images.

The functionality of both advertising options centers around consumer use of the parent services. Google AdWords operates through the popular search engine. Consumers using Google for any type of search are in research mode, meaning something specific is in their minds as they use the service. This means they are probably farther along in the buying process, increasing the conversion rate for advertisers, especially if they are in the business of e-commerce.

Facebook Advertisements run off of what makes word of mouth marketing so successful: it is social. The ads know what individual consumers like and attempt to cater to that information. Additionally, advertisers have the option to attract more clicks by creating ads that show a consumer that his or her friends like the advertised company. This makes word of mouth marketing digital. It is important to keep in mind, however, that Google+ is still fighting hard to become a viable contender in the battle of social networks. If it is successful in growing its popularity and usage, then Facebook could have a run for its money.

In choosing an advertising service, the question should surround the goals of the advertiser. Is it attempting to build the brand, increase awareness, and expand consumer goodwill? Is the goal to drive sales as much as possible? Are there multiple goals that lie within a spectrum of these options? A combination of both services is likely the best solution to the dilemma of making a choice. Because both operate on a pay-per-click basis, companies both big and small have the opportunity to give each service a shot and see how effective they can be.

For those of you interested in the 30,000 foot view of both services' usage, check this infographic out:
http://socialmediachimps.com/infographics/adwords-vs-facebook-ads/

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