Optimizing marketing budgets is a common challenge across the B2B and B2C industries. And with the rise of new digital channels every other day, it is getting harder for marketers to achieve an ROI that justifies their spend.
With Google practically processing over 40,000 searches every second and Facebook having 1.13 billion daily active users, the two channels form an integral part of every business’s marketing and growth strategy.
But how does one decide what’s going to work better for their business?
Understanding the difference between Facebook ads and Google AdWords
Both the digital and social platforms are extremely powerful when it comes to their functionality as well as their ever growing user base. This only goes to say that no matter what your business’s industry is, you’re going to find 90% of your target market on these channels definitely.
But before you decide which one is it that your business could leverage from the most, here’s understanding the core difference between the two:
Google AdWords targets users who are actively looking for some information on the search engine. On the other hand, Facebook targets people based on their interests and how they have interacted with brands in a similar industry before.
Yes, it is actually as simple as that. Both the channels have a different way of using the internet user’s behavioural data and demographics to promote your business.
Quick overview of Google AdWords
Google, with it’s ‘unlimited search queries’ every day, offers advertisers an unmatched opportunity to reach out to their target audience. These are people who are actively looking for specific products and services that add value to them in some way.
It offers advertising across two networks – search and display, enabling marketers to target a larger audience as per their goals.
Quick overview of Facebook ads
Everyone knows how just about everybody is on Facebook. No matter what the demographics you’re targeting are, there is a 99% chance they are active on the social channel – for personal or professional usage.
Apart from the great user base that the channel has to offer, it enables marketers to target their audience on an extremely granular level. Right from their general demographics, interests, purchases, interactions to job titles, companies and a lot more.
It also lets you use your existing customer database to create a lookalike audience for your ad campaigns. And of course, the various formats of advertising on Facebook make it all the more appealing to businesses.
Optimizing marketing and advertising budgets
Since both the channels come with their own set of pros and cons, each have different results for different type of campaigns. Wishpond conducted a survey amongst marketers and created an infographic around each platform’s effectiveness.
In simpler words, it all depends on your business goals and what you want to achieve out of your advertising campaigns. Google AdWords are a clear cut winner if your business is aiming at immediate sales. But if you’re looking at brand awareness and lead generation, then Facebook is your bet!
But to optimize your overall marketing budgets keeping the importance of both the channels in mind, needs you to follow through these tips:
1. Identifying where the marketing budget is spent
The very first step to measuring your ROI is calculating how much you have invested and where. Knowing where your marketing budgets are being spent is the only way to truly understand the effectiveness of your campaigns.
Marketers should analyse their current and past campaign performance to draw out a customer journey in the direction of conversion. It is important to understand that every prospect you draw in is at a different stage in the buying cycle and will need nurturing to convert. This in turn makes it essential to have the marketing budget split smartly across the sales cycle to suffice the pipeline.
2. Calculate the demand generation
Setting aside a marketing budget to grow your business is of no use if you’re not aware of how ready the market is for your products and services. Will they accept and convert easily? Will you need to introduce them to newer concepts and gain their trust? There are a number of factors that associate with the demand generation.
Once you have identified where your marketing budgets are allocated, the next step is to discover the demand generation trends that you need to invest in. Identify your major source of leads and sales, cost per acquisition and retention to create campaigns that deliver higher ROIs on the invested marketing budgets.
It is also important to note here that the technologies and tactics you invest in to carry out your campaigns- like marketing automation, analytics and inbound, should be added to the overall costs for marketing.
3. Avoid scaling until you see profits
With the rise in the number of digital channels, it is a given that most businesses would look at increasing their marketing budgets in the hope of reaching out to more of their target audience. But this is the approach that leads to higher spends and lesser ROIs.
Any marketing campaign – be if online or offline, should be started at a small scale with narrowed down targeting. Once you see the campaign yielding results and higher profits, that’s when you should look into scaling the budgets for that particular channel.
Scaling includes trying different types of campaign on a channel that has proven to work the best for you so far. Using tools like Adalyz, you can simultaneously track the performance of all your paid campaigns on social media – this helps you identify effective channels quickly and also optimize your efforts there further.
In simpler words, knowing what works the best before putting in too many resources to it, is the wisest approach to business growth.
4. Strategize cross channel marketing
If you want to acquire your target market in the competitive digital landscape, it is important to stay at the top of their mind at all times. Cross channel marketing includes using the retargeting tactic across the various digital channels a prospect is present on. It also ensures that the prospect is targeted with personalized messages to maintain consistency in approach.
For instance, if a prospect has visited your website but not converted – you could run campaigns across Facebook, Twitter, Instagram, digital forums, other websites and more to remind him of what you offer, and what benefit he can get from it.
Cross channel marketing is known to boost the effectiveness of advertising campaigns for businesses from various industries.
Optimizing your marketing budgets – especially when you’re running on a shoestring budget – can be a challenging. It is important to understand here that both Google and Facebook play an important role in business growth. Hence, every move or decision taken should be backed by concrete data about your target market as well as the performance of existing campaigns.
What are your tips to those who are looking at optimizing their Google and Facebook ad spends?