One of the biggest challenges that businesses make is deciding where to spend your advertising and marketing budget. That’s why we wanted to draw the distinction between Google Adwords & Facebook Ads to steer you in the right direction for your business.
This week we interview Kim Dawson from Byron Search Marketing who has over 10 years experience in Google Adwords (Search Engine Marketing SEM) & Search Engine Optimisation (SEO). She has worked for some of the top search agencies in Australia and overseas.
Kim will sharing her Google Adwords experience, meanwhile Angela will be responding from her Facebook ads perspective.
On Google, the person is specifically looking for (googling) your service or product. Whereas with Facebook ads, you’re often showing your ad to someone that may or may not even know that your solution is available, or that they had a problem in the first place!
So with that, let’s get stuck in…
[KIM] What type of businesses do Google Adwords work well for?
It might sound simple, but businesses that people search for on Google work best.
Business to consumer services tend to do well, and if you are location specific then that’s even better.
Products can do well if what you’re selling is unique, high value or custom made. If you’re selling the exact same product as other people like a Nike t-shirt then you will find it really difficult to compete and margins will be small. You also need to realise that there are also most likely going to be big companies that are happy to make a loss on some products to get a customer in the door using advertising, and this will push out the smaller businesses.
Adwords doesn’t work well for building awareness. If people don’t know that the thing you’re selling exists then they won’t be searching for it, or the volumes will be tiny.
Don’t expect to get success from keywords like ‘gifts’ or ‘gift ideas’. Every small business selling a product tries to compete on these keywords and you have no idea what the intent of the person selling is so it’s a lovely way to burn through your money. You need to be much more specific.
Business to business products and services don’t normally do well on Adwords. The volumes are usually very low your budget can be chewed up by people looking for information rather than real potential customers.
How much do people need to spend on Google Adwords to make them work?
This depends what market you are in. I’ve worked with big companies that will bid up to $300 a click on keywords that have a huge lifetime value if they bring in a customer. I’ve also seen huge volumes of traffic coming in at an average of 5c. It all comes down to competition.
The very minimum I would recommend is $10 a day, any less and it will take too long to see results and decide whether it’s worth continuing.
Who would you recommend to try Google Adwords?
If you have a service business in a city, or a few cities Adwords will probably work very well. For instance florists, accommodation, storage, movers, plumbers, electricians, childcare, massage therapist etc. It could also work well if you sell a product that is high value and not too many other people are selling, for instance spa pools, solar panels, custom or designer products that are original to you.
If someone wanted to give Google Adwords a go, what are the 3 most important things to be mindful of?
Don’t let Google rip you off! – Google is a business and they want you to spend money on ads. It’s easy to waste money if you don’t know what you’re doing. It’s worth investing money to have an account set up correctly from the get go even if you end up managing it yourself. There are lots of default settings that cost money if you don’t know to turn them off. If you have a really great account structure you can show up above competitors but pay less than them!
Are people searching for what you’re selling? – Think about what words you would type into Google to find what you’re selling, even try typing them into Google and see if your competitors show up. If you don’t see what you expect then perhaps that word also has a different meaning that could cost you money.
Make sure you have a great landing page – You only have a few seconds to make an impression with a new customer before they click the back button and leave, so make sure you get your message across clearly and quickly.
[ANGELA] What type of businesses do Facebook ads work well for?
Facebook ads can work well for a whole range of businesses. If your audience is hanging out on Facebook and you are able to target them then your business can be successful with Facebook ads!
Right now I’m seeing great success with eCommerce clients and people selling online courses and programs.
How much do people need to spend on Facebook ads to make them work?
It really depends on your goal with the ads! If you’re selling a product that costs $1000, then you may need to spend $1000 in order to make them ‘work’.
However if you’re after brand awareness or using Facebook ads to build your email list by offering a free lead magnet, then you may be able to spend $100 and get results.
Before you spend any money on Facebook ads, you should sit down and work out what your goals are and then work backwards to see if that’s a realistic sum.
For example – You want to get 10 people at your workshop which costs $50 per ticket.
If you spend $50 on ads, sell 10 tickets and make $500, that would be a 1000% Return on Ad Spend (ROAS). Which is HIGHLY unrealistic. Not many people are getting that kind of a return with their Facebook Ads.
If you spend $250 on ads and make $500, that’s a 200% return on ad spend. This is a much more realistic ROAS.
And some people may be happy to spend $500 to sell 10 tickets and make $500. They may do this because they know that once someone buys 1 thing from them, they have many more products/services that they can offer to ‘upsell’ that person and increase the value of that customer.
As you can see, at the end of the day, it always comes down to being realistic about what you can achieve from Facebook Ads and knowing your profit, value and revenue numbers.
Who would you recommend to try Facebook ads?
Anyone who wants to target anyone using Facebook! For small based businesses, the opportunity to target people geographically as well as by interests, age, gender etc can really help you spend your advertising budget in the right place. The ability to track your website visitors and retarget them with Facebook ads, means that you’re easily able to remind people about your business.
This works well for every type of business but in particular eCommerce. The ability to retarget people at different stages of the checkout process within Facebook has seen some of our client have over 10 times return on their ad spend!
If someone wanted to give Facebook ads a go, what are the 3 most important things to be mindful of?
Be clear on your objective! What exactly do you want to achieve from each ad campaign?
Know your numbers before you dive in.
Be prepared to test, test, test.
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