Facebook Ads vs Google Content / Placement Targeted Adwords

When comparing pay-per-click programs on Facebook Ads and Google Adwords, you really need to compare apples to apples. Facebook Ads (interest targeted ads) are really most similar to Google's contextual ads placed on their content network of partner sites, vs Google's search engine keyword triggered ads. Both are more passive placement advertising strategies vs search keyword ads that target active users who have more of an intent established. I've in fact tested Facebook ads with a product site for a GPS car navigation system, as well as a large technology client that targets the education market with software and hardware teaching tools (can't disclose details due to privacy agreement). Here are my top 5 observations below;

1. Facebook PPC 5 Times Cheaper

Yup, you heard me right, Facebook cost per click rates are 5 times less than Google's content network cost per click rates in my tests. However, let's put that in perspective. For my technology client targeting educators, we targeted by country as well as "interest" keyword. This means that if the word "teacher" or "teaching" appeared in a Facebook user's profile (description of interests or other areas), then their ad would show. This is quite a passive approach to advertising based on user demographic information vs keyword ads shown to searches with an "intent" to research or purchase a product or service.

2. Facebook Ad Click Rates Lower

When you look at click-through rates (an indicator of response, but less important than cost per lead or sale), Facebooks click-through rates are only moderately lower than Google's. This is true for a number of reasons;

Google allows advertisers to cherry pick content sites where ads display
Facebook Ads show only on facebook, where the focus is interaction with friends, vs reviewing site content
Keywords shown on a Facebook user's profile may not truly represent interests in content, whereas Google content sites are crawled for a required keyword density

3. Facebook Can Pre-qualify Traffic

If you are looking to run a B2C product specific campaign, then Facebook gives you the benefit of low cost pay-per-click advertising, with targeting based on demographics. With Facebook, you can target by age, gender, education, relationship and even social interaction with a specific application. Google's content network can only target traffic by geography and language. So, if your product only relates to young single adults with an interest in music, then Facebook can delivery that target well. You can select Google content placement sites by keyword, or site itself, but still, getting demographically targeted traffic is not a real option.

4. Buying CPM Better on Google

Both Facebook and Google provide a CPM option to buy impressions vs clicks which is great. However, in my experience, when using Google's content network CPM buying, I've found that often I can get a far lower cost per lead rate with B2B offers vs using CPC buys. This is especially the case when you cherry pick sites on Google's content network, vs just take your chances by selecting keywords. Facebook CPM buying really is more risky since you can only control demographics, but not context of the ads very well.

5. Google Ad Format Testing Far Superior

When comparing ad testing functionality, there really is no comparison - Google is by far better. Google allows you to test text, image and video ads against each other. It has an Optimizer tool that suggests ways to improve click-throughs with your ads. You can get reporting that shows which ads are performing better, and weight impressions automatically towards better performing ads. Facebook is awkward when testing new ads, and makes you create a new ad/campaign for each country you are targeting. Editing ads and creatives after posting for approval is also more cumbersome. When you add Google Analytics and conversion tracking into the mix, Google again prevails. Facebook really needs to integrate a system for tracking conversions, since this is standard these days for any online campaign to be effective.