Facebook VS Google Advertising

Finally we get some real facts about the debate over Facebook versus Google advertising. According to WordStream’s infographic, Google advertising (Google display ads and Google search ads) is far more effective than Facebook advertising.

Google display ads are ads that show at Youtube, Gmail, Blogger, and approximately 2 million other popular sites. Google search ads are the ads that show at Google search results pages. Facebook advertising is compared to Google display advertising in 5 categories:

  1. Advertising reach (Number of audience that may see the ads) – Both Facebook and Google have great audience. Facebook currently has over 845 million users and 1 trillion pageviews per month; while Google serves up to 180 billion ad impressions monthly.
  2. Revenue – Google at $2.9 billion, is slightly more profitable than Facebook at $1.06 billion.
  3. Advertising performance – Facebook’s Click Through Rate (CTR) is 0.051%, whereas the CTR for Google Display Ads is 0.4%, which makes them 10 times more effective than Facebook ads.
  4. Ad targeting options – Facebook ads are limited to the Facebook community only, whereas Google ads can be served in all places; mobile, video, partner sites etc.
  5. Ad format – Facebook ads have size limitations. Google ads are much more flexible, with the option of text listings, multiple banner sizes, video ads and apps ads.

http://mcare.org.my/images/banner/2012/may/fb-vs-google-ads.jpg

Infographic Source: © WordStream, provider of a Google Keyword Tool for Search Engine Marketing.

Facebook - Facebook Inc (NASDAQ)‎

Will the factors above cause marketers to lose confidence in Facebook, and cause Facebook’s shares to drop further? To improve its IPO performance, we can expect Facebook to implement an advertising campaign to target mobile users, and serve their ads to partner sites. Overall, Google ads score better than Facebook ads, but this does not mean Facebook may not improve in the near future.