Pay-Per-Click (PPC) ads are an important part of a comprehensive marketing strategy and budget because of their effectiveness. The question our clients often ask is: which is better? Because they are different in their approach to getting leads, both are important. We think of them as complementary, not necessarily as competitors. Here’s a look at how we explain to our clients about their different uses and advantages.
Facebook ads are great for brand building
Facebook ads use a data based method for targeting your audience. Some of the factors you can select to define your audience are data points such as age, sex, interests, pages they like or follow and more. The result is that your ads will show up for a very specific target audience based on your buyer’s profile and their interests. This audience is not actively searching for your product or service but is still exposed to your brand.The advantage is that you will build brand awareness with an audience who may not otherwise know that you exist. It’s a powerful and specific way to control who sees your ads and build your brand.
AdWords and search are great for lead generation
Google and Bing AdWords come from search terms that users enter. Your target audience is searching for something very specific. Bidding on words that indicate their place in the buying process gives you have a highly effective lead generator. For example, a search for ‘tips on how to manage your time’ may indicate that your target is researching the topic. A search for ‘best time management software’ indicates that they are closer to buying. Leveraging these subtle differences means you can get the right offer in front of that target that matches their place in the buying process. AdWords and search intent are also a powerful and specific way to target your audience with the intent to generate warm leads for your brand.
The issue of Cost Per Click (CPC)
The next logical question our clients ask is: which one is more cost effective? To understand cost effectiveness, you must look beyond cost per click to the more comprehensive cost per acquisition. Generally speaking, the CPC on Facebook tends to be lower. You will most likely pay as little as $1.00 per click on Facebook while AdWords will rarely be that low. Here’s an example of a cost per acquisition calculation from a PPC Hero article on the topic:
If the CPC is five times less on Facebook than it is with AdWords (let’s say $.50 compared to $2.50), but AdWords converts at a 10 times higher rate (let’s say 10% compared to 1%), then in this scenario, the cost per acquisition on AdWords is $25 and the CPA on Facebook is $50. Thus, even though you pay less per click on Facebook, AdWords is a better advertising platform due to the cost per acquisition.
As always, a solid marketing strategy will help balance the costs of running ad campaigns against the value of building your brand and bringing in new customers.
Still not sure which PPC ads are best for your business? Not to worry, we can help.