Performance Marketing 101: An Introduction to Google and Facebook Ads
Traditional advertising strategies, such as physical billboards and print ads, allowed many a business to become well-known brands over the course of decades. But something was lacking, and we didn’t even know it – until the invention of the internet: DATA. Analytics. Tracking. Attribution.
…All the things that go into understanding what we call ROI, or return-on-investment.
Digital ads offer a wide range of advantages over physical ads, including the ability to track metrics such as click-through rates, impressions, and conversions, all in real-time. This allows for better targeting and optimization of campaigns, ultimately leading to more effective and efficient advertising.
Leveling the Playing Field: Small Business Success with Google and Facebook Ads
As we mentioned earlier, the greatest benefit of performance marketing is the ability to understand its performance – imagine a world where you are so familiar with the marketing efforts that you are able to know, with accuracy, that it takes $523 in ad spend to obtain a sale that results in $2,500 revenue. So, how do we make $10,000 in revenue? Well, we spend $2,092 on advertising.
That’s hard to do with a newspaper ad or a billboard, as you are forced to rely on the common intake form tactic, which asks the question of a new customer, “How did you hear about us?”
With digital advertising, you don’t have to play a guessing game, nor put the power of attribution tracking (the science of attributing revenue to marketing efforts) into the hands of the customer, who likely has no clue how they first heard about your business.
In 2021, $455.3 billion was spent on digital advertising, with Google and Facebook Ads forming a large portion of that expenditure. Large companies have combined traditional advertising tactics with these new digital techniques to capture eyeballs from every angle. But what about you, the small business owner? How do you compete with those whose ad budgets are 10x your revenue? Ah, great question… we’re glad you asked. We’ll teach you a thing or two about the power of the king and queen of digital advertising… Google and Facebook.
What is Performance Marketing?
Performance marketing, in terms of digital marketing strategy, is all about results. It’s the science of measuring and optimizing your advertising efforts to ensure you’re getting the most bang for your buck. The iterative loop is constantly working to save the day (or your budget) by ensuring each ad campaign performs at its peak.
With performance marketing, you get to see the impact of your advertising efforts in real-time and make data-driven decisions to improve and drive success. No more generic ads to the masses and hoping for the best. Say goodbye to ineffective campaigns and hello to data-driven, targeted advertising that delivers accurate results.
Why Should You Pay For Advertising?
Well, the answer is simple – it’s an investment in the growth and success of your business. Investing in advertising allows you to reach a wider audience and build brand awareness, driving traffic and conversions. Performance marketing strategies also provide valuable data and insights, allowing you to make informed decisions and optimize your advertising efforts. Paid advertising offers a 200% ROI – so if you want to see actual results and take your marketing efforts to the next level, it’s time to embrace the power of performance marketing.
Google Ads versus Facebook Ads: What is the Difference?
Google Ads and Facebook Ads may seem similar, but they have key differences that set them apart.
In its simplest sense, Google Ads is a Pay-per-Click search-based advertising platform where you can place ads at the top of search results. There’s more to it than that, but let’s keep things simple.
Google ads would be like placing an ad in the local Yellow Pages, where potential customers are looking for something in particular, such as a plumber or a lawyer. your business through their search for a specific topic or location. Your ad would appear on top of the search results page, making it easier for customers to find you when they’re searching for your product or service.
On the other hand, Facebook Ads is a social-based advertising platform where you can place ads on Facebook to reach your desired audience through targeting options like demographics, interests, and behaviors.
In this way, Facebook ads would be like placing an ad in a magazine, where readers might not be actively looking for your product or service but rather stumble across it. Your ad would appear alongside other related content, helping you reach an audience that is already interested in your niche – as long as you know what you’re doing with your targeting (which can sometimes be complex for certain businesses!).
Google Ads are ideal if you are looking to drive traffic and conversions through search, while Facebook Ads are ideal if you are looking to build brand awareness and reach a large audience through social media. But then again, that’s really an oversimplified reality, and it’s true that the
Both platforms have unique benefits and strengths, and the right choice depends on your specific business goals and advertising objectives.
How Much Do Facebook Ads Cost?
The cost of Facebook Ads can vary greatly depending on several factors, including target audience, competition, and ad format. On average, businesses can expect to pay anywhere from $0.94 per click. This can be higher or lower based on a number of factors. The cost to get in front of your audience 1,000 times can range from $5 to $50.
It’s essential to keep in mind that the cost can also vary based on the level of competition for ad space in your industry. To ensure the best results, it’s crucial to set a budget and continuously monitor and optimize your campaigns. Since most business owners don’t know how to do this properly, it’s wise to hire an agency for help.
The cost of Facebook Ads varies, depending on several factors. These include your target audience, the level of competition in your industry, and the format of your ad.
So, it’s important to set a budget and regularly monitor and optimize your campaigns to get the best results for your investment. By targeting your ads carefully and optimizing the performance of the creative (the word we use to describe everything that goes into making an ad an ad), Facebook Ads can be a cost-effective and efficient way to reach potential customers and grow your business.
How Much Do Google Ads Cost?
The cost of Google Ads can also vary depending on several factors, including competition, target audience, and ad format. On average, businesses can expect to pay anywhere from $1 to $10 per click for a highly competitive keyword.
The cost of Google Ads can vary based on competition and can change quickly.
How do I run Google Ads? Great question. To do so on your own can be costly. And, most business owners discover this the hard way: their money runs out, and they chalk it up to PPC Ads not being a good fit for their business.
That’s like letting your 4-year-old cook you eggs and bacon one morning, and never eating breakfast again because it turned out horrible (shocker!).
Google and Facebook Ads Best Practices
There’s no such thing as a one-size-fits-all approach when it comes to Google and Facebook Ads, let alone any kind of advertising or marketing for small businesses and entrepreneurs, to large and enterprise businesses. However, some best practices can help make your advertising efforts a success.
Firstly, clearly define your target audience and use data to inform your targeting decisions.
Don’t just throw a dart at a map and hope for the best!
Additionally, ensure your ad creatives are compelling and eye-catching – after all, you want people to click on your ads!
And last but not least, continuously monitor and optimize your campaigns.
Data is your best friend, and you’ll be well on your way to advertising success by using it to make informed decisions.
What About Paid Ads on Instagram and LinkedIn?
Instagram Ads are a visually-driven form of advertising, making them an excellent option for businesses looking to showcase their products or services creatively and engagingly.
With more than 500 million users worldwide, Instagram provides a vast audience reach, and the platform’s targeting options allow businesses to reach their desired audience effectively, and efficiently, through the same dashboard as Facebook Ads
With features like shoppable posts and in-app purchasing, Instagram has become a valuable tool for businesses looking to drive sales and conversions, especially for fashion companies and visual brands.
Whether you’re looking to build brand awareness or drive sales, Instagram Ads can be a powerful component of your marketing mix.
LinkedIn Ads also have a time and place. Certainly, it’s safe to say that the typical demographic and behavior on LinkedIn will differ from Instagram.
On LinkedIn, you can count on white-collar business owners being present. Where there is a desk, there is a LinkedIn tab opened in Chrome. This might be over-embellishing LinkedIn’s user base, but the reality is that there are over 900 million professionals on the platform, making LinkedIn provides a potential place for a captive audience of professionals.
The platform’s targeting options allow you to reach your desired audience based on job title, industry, or experience level, to name a few targeting options. This hyper-focused targeting comes in handy for a business that sells to businesses (B2B).
This kind of depth in targeting can catapult conversions.
And by the way, you can expect to really pay for it.
An inexperienced marketer wielding the power of LinkedIn Ads could end up paying $50 – not for a lead, but for a click.
How much for a lead on LinkedIn, you ask?
It depends on who is running your advertising and how they are doing it. You can get leads at $50 or leads for $500. And, generally speaking, LinkedIn Advertising is NOT for the inexperienced marketer.
And yet, with all of that said, it makes sense for some businesses to drill in at $500 a lead to get incredibly qualified leads that could net you $5,000 in revenue.
We assure you, those software companies that make a million dollars on one sale are more than willing to spend even $100,000 per lead.
But, for the Average Joe, LinkedIn should be considered slippery when wet – and let’s just say the advertising floor is always wet.
Pros and Cons of Paid Ads On Social Media
When it comes to social media advertising, there are pros and cons to both organic and paid ads. Organic marketing, which is free, can help businesses build a loyal following and establish themselves as an authority in their industry.
However, the reach of organic ads is often limited, and businesses may struggle to reach new customers, let alone even their following with posts. Therefore, growth can be a massively long journey and requires frequent, consistent content creation, which is another story entirely.
Growing on social media is hard with ads – let alone without them.
Paid ads, however, offer a way to reach a much larger audience, and with targeted ads, businesses can reach people who are likely to be interested in their products or services.
Truthfully, if a business doesn’t have money for paid ads, that’s another challenge in itself. We cannot recommend highly enough for every new business to plan on running ads, even if it’s just $5 a day.
Every business, everywhere, should be running ads. An agency would be ideal – but run ads at all costs, even if it means you run them yourself as the business owner…
…even if it costs you blood, sweat, and tears.
It’s crucial to understand your strategy, which is why consulting with a professional agency that understands the world of digital advertising is a wise step. Doing this will help you to understand the tactics to be deployed, and you’ll be able to make informed decisions and find the right approach for your business.
Get The Most Out Of Your Google and Facebook Ads!
Don’t miss your target when it comes to digital marketing! Hit Your Mark will ensure you score a bullseye with your campaigns. With our research-driven approach and targeted campaigns, we make sure every dollar spent hits its mark – using an iterative process to refine and improve constantly! So why settle for a mediocre marketing strategy when you can have a top-notch one? Let’s hit your mark together!