The social media giant Facebook was recently ranked as the most preferred channel for paid online advertising, according to a survey conducted by Cowen.
For the survey, Cowen researchers asked 50 professional ad buyers in the United States which paid advertising platform they prefer using. Forty-one percent of respondents said Facebook was their preferred platform while 25 percent chose television commercials and 10 percent chose YouTube. Based on these findings, Cowen researchers believe Facebook may one day surpass Google in the online advertising industry.
Google has long been the dominant provider of online advertising services. The Mountain View company launched its AdWords pay-per-click (PPC) platform in October 2000. Supporting local, national and global reach, AdWords is a popular digital marketing channel for business owners. In fact, reports indicate that up to 96 percent of Google’s revenue comes from the AdWords program.
As revealed by the Cowen survey, however, many business owners and marketers are now spending money on Facebook’s advertising service. Facebook ads can appear in a variety of locations, including users’ Newsfeeds and the right-hand column. Like AdWords, advertisers can choose for a PPC format where they are only charged for ad clicks. Additionally, advertisers can choose a cost-per-impression (CPM) format where they are charged for every 1,000 impressions their ad receives regardless of clicks.
So, what makes Facebook Ads a better marketing channel than AdWords? According to CrazyEgg, one advantage Facebook Ads has over its AdWords counterpart is targeting. With AdWords, advertisers target users based on search terms. When a user searches for one of these keywords, he or she will see the advertiser’s ad. Facebook takes a completely different approach to targeting. Rather than using keyword-based targeting, it allows advertisers to target users by interests, behaviors and demographics. When used correctly, Facebook’s targeting is a powerful tool that can help advertisers reach their desired audience.
Most marketers will also find that Facebook’s traffic costs less than AdWords’. Clicks on Google’s platform typically cost $1 to $3 whereas clicks on Facebook’s platform are usually less than a $1.
There’s no way of telling what’s in store for the future of digital marketing. Given the strong demand for Facebook’s advertising service, however, it’s safe to assume it will remain a top channel for advertisers