Facebook Ads vs. Google Ads: what works best for your business?

Two of the most popular platforms for advertising are Facebook Ads and Google Ads. But which platform gives the best results, and in what situations should you choose one over the other?

Facebook Ads or Google Ads — What's the Difference?

Facebook Ads is about reaching out to users based on their interests and behavior. You can show ads to people who may not have thought about your product yet but might be interested.

Google Ads, on the other hand, is catching up with people who are already looking for something specific. They type keywords into Google, and if your product or service matches their need, you're visible right at that moment.

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Demand creation vs. demand capture

The difference between Facebook Ads and Google Ads can also be explained through the terms demand creation and demand capture.

• Facebook Ads = Demand creation: here you create demand by exposing your product or service to your target audience, even if they are not actively looking for it.
• Google Ads = Demand Capture: here you capture existing demand by showing ads to people who are already searching for a solution.

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Comparisons

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When do Facebook Ads work best?

Facebook Ads are useful if you want to build a brand, create engagement, or spark interest in a new product. The platform is well suited for businesses that use visual tools, such as photos and videos, to reach their audiences.

For e-commerce, Facebook's dynamic ads can be very effective, since they show products automatically to people who have already shown interest. If you use e-commerce platforms like Shopify, your product catalog can be directly connected to Facebook to create ads.

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Industry-specific data

The data is taken from the source Wordstream, last updated 10/09/24.

For the record - link clicks in the data are categorized as clicks (all), and conversions are based on the goals of the various marketers.

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Highlights we can extract from the data

📌 Lower CPC, but also lower CTR

• Facebook has generally lower cost per click (CPC), especially in industries such as clothing ($0.45) and travel and hospitality ($0.63).
• At the same time, click-through rate (CTR) lower than Google Ads, often under 2%.

📌 Strong conversion rates in visual and personal industries

• Fitness (14.29%), education (13.58%) and employment (11.73%) have very good conversion rates.
• Industrial services (0.80%) on the other hand, has a low conversion rate, probably because the decision-making process is longer.

📌 Good for branding and social engagement campaigns

• Facebook Ads work well for B2C Industries, especially those who are Visually strong (e.g. clothing, beauty, fitness).
• Best for targeting based on interests and demographics, rather than search intention

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Did you show that you can look at your competitors' ads on their Meta ad biblotek?

This applies to all companies that advertise in the European market, or have advertised in the EU in the last year.

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When does Google Ads work best?

Google Ads is useful when you want to reach people with high purchase intent. When someone searches for “best mobile subscription 2024", they are already ready to make a decision, and a well-placed ad can influence their choice.

Google Ads is also a good fit for local businesses that will be found nearby, such as:

• “Dentist Alta” “An ad for a local clinic can capture users in the area.
• “Plumber round-the-clock” “Services with urgent needs can benefit from Google Ads.
• “Best hotels in Bergen” “The tourism industry can increase visibility in searches.

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Industry-specific data

The data is taken from the source Wordstream, last updated 13.05.24.

“Advocacy” refers to interest organisations, charities and advocacy.

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Highlights we can extract from the data

📌 Higher CTR, especially for search-intensive industries

• Industries with active search intent, such as dating (6.05%), travel (4.68%) and cars (4.00%), has a high click-through rate.
• CTR is generally higher than Facebook, because the ads appear when people searching specifically for products or services.

📌 More expensive CPC, but better conversions in some industries

• Legal Services ($5.88) and consumer services ($6.40) has some of the highest CPCs.
• At the same time, Google users often convert better, because they are closer to a purchase decision.

📌 Best for direct response and search-based campaigns

• Google Ads is most effective when people actively looking for a solution.
• Best suited for B2B, Legal Services, Finance and Other High Purchasing Intensity Industries.

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You can also examine your competitors' Google ads through Transparency Center

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When are Facebook Ads not as good?

Facebook is essentially a social and entertainment platform, so Facebook Ads is not as effective for all business segments. If your product doesn't have a clear visual appeal, it can also be difficult to create engaging ads.

It also performs worse for narrow B2B segments. For example, if you sell high-end industrial machinery, it can become very difficult to get through sales through Facebook Ads.

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When is Google Ads less effective?

Google Ads is not always the best solution. If people aren't actively searching for your product or service, your ads will get little traffic. This is especially true for new products or niches with low search volume, so Google Ads is better suited to hijack interest that has already been established.

Cost can also be a challenge. In competitive industries, such as insurance or loans, click rates can be high. If you're on a tight budget, it can be hard to compete effectively - especially since campaigns often need conversions to optimize.

Finally, if you're looking to build a brand, Facebook Ads provides more flexibility than text-based search ads.

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So, what should you choose?

• Do you want to reach people who are ready to buy? Go for Google Ads.
• Want to build your brand and engage people early in the customer journey? Facebook Ads are a better choice.
• Do you want to maximize the effect? A combination often works -- where you build interest with Facebook and capture interest with Google.

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Not always easy to know ahead of time

What works best for your business isn't always easy to know until you've tried. Therefore, you may want to experiment with both platforms to see what works and in what contexts.

To get a picture of whether the ads are doing well or not, it is very convenient to compare with average figures from the same industry. The numbers closest to your niche are usually the most relevant.

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