Advertising campaigns on Facebook Ads are generally cheaper, but they give advertisers a higher return, compared to Google Ads prices, according to a report.
More work for the commercial departments of the press, which have been severely affected in the first two quarters of the year.
The daily struggle to convince advertisers to also invest in the news ecosystem, outside of their budgets on Google and FACEBOOK, has a new discouraging report.
Advertising on FACEBOOK is cheaper for companies, but it increases their return on investment (ROI).
Thus, FACEBOOK Ads would now be more profitable for advertisers with tight budgets than Google Ads, according to a LocaliQ report published in WordStream, which analyzes 2,946 campaigns between February and April 2024 in 20 industries.
Why is Facebook Ads more profitable than Google Ads?
The top ten insights from this research are as follows:
- High ROI: Facebook Ads remains a key strategy for small businesses, due to its high return on investment (ROI) compared to other social ad platforms.
- Stable costs: Facebook ad costs have remained relatively stable since 2021, while Google Ads costs have grown.
- Increased CTR: The average click-through rate (CTR) on traffic campaigns has increased to 1.57%, with industries such as Real Estate and Arts & Entertainment achieving CTRs of 2.60% and 2.59%, respectively.
- CPC reduction: The average cost per click (CPC) has decreased to $0.77, which is lower than the average Google Ads CPC of $4.66.
- Traffic Objective: Facebook traffic campaigns are popular with small businesses as they maximize clicks to websites or landing pages.
- Lead Campaigns: Lead generation campaigns have an average CTR of 2.53% and an average CPC of $1.88, with an average conversion rate (CVR) of 8.78%.
- Commercial Services Industry: This industry has one of the highest CVRs for lead generation campaigns, at 8.34%.
- Balance Cost and Quality: It is important to balance the cost per click with the quality of the lead to maximize the return on investment.
- Conversion Strategy: Facebook lead campaigns are conversion-oriented, requiring an effective combination of ad copy, creative, and landing pages.
- User Growth: Facebook’s continued growth of its user base (3.3 billion) contributes to stable ad costs.
Users spend more time on FACEBOOK than on Google
The LocaliQ report published on WordStream shows three possible factors:
- Costs and Stability: Facebook Ads offers lower and more stable costs compared to Google Ads, which constantly increases their costs.
- User Behavior: People spend more time on Facebook (35 minutes), which can contribute to the effectiveness of ads on this platform compared to Google (a couple of minutes for three or four searches).
- Marketing Strategies: Facebook Ads are increasingly being used at all stages of the marketing funnel, while Google Ads tends to be more effective at the final or BOFU (Bottom of the Funnel) stages.
What should we expect for 2024? The trend suggests that advertising prices on both platforms could continue to rise, due to competition and inflation.
However, Facebook Ads will continue to be a cheaper option for advertisers with tighter budgets, while Google Ads will offer them higher conversion rates in specific sectors (the report compares an average benchmark for both platforms).
“Over the past two years, on the search ads side, most industries have seen a decline in performance and an increase in costs. However, Facebook Ads is seeing relatively stable and, in many cases, better results. While Google Ads execution remains critical to growing digital businesses, this also speaks to the importance of leaning on Facebook Ads,” the report details.
