The Truth About Google Advertising – Differences Between Google & Facebook Advertising Strategies

Google wants everyone, to click everything, over-and-over, all the time…… that’s okay if advertising expenses are outperforming the wildest expectations. However, without a deep understanding of who is clicking your ads and why, you’ll fail.

How do Google and Facebook make money? 

Well Senator, advertising, of course. 

Google and Facebook make money by advertising, period. Advertising revenue is by far the single most lucrative income stream for both platforms.

Google puts your business in front of customers, that’s it. Google wants you to sell as many “things” as possible, because that means Google users found what they were looking for after clicking on your ads. If users find what they want, either online or at your business, they’ll come back the next time they’re in the market. 

The downside, is that Google doesn’t care if you spend $10 to make $1. It’s your job to put the right product, in the right place, at the right time. It’s no different from paying the rent at your retail space or corner store. You still have to pay the rent and utilities, regardless of how many people walk into your store, regardless of whether you made any money. 

Google Wants You to Make Money

Google wants you to make money on your advertising campaigns because if you don’t make money, you’re not going to advertise on google anymore.

On the other hand, Google also wants you to make money because that means people are buying things. If people are buying, they are finding what they are wanting. When people find a place that has what they want, they’ll come back for more.

If users arrive on a Google search results page and see ads irrelevant to what they want, ads become a nuisance to finding what they want, instead of an enabler. They’ll not only be annoyed, but they also are not going to click spammy, irrelevant ads. When Google users don’t click ads, Google doesn’t make money.

The Difference Between Google Ads and Facebook Advertising

There are two basic advertising models which run most of the internet’s advertising, “impression-based” (Facebook, Twitter) and pay-per-click (Google, Bing). 

For now we’ll just stick to these basic strategies, as they are the most important when assessing the costs of online advertising. While most platforms continually develop more advanced bidding methods, here are the differences between how you’ll evaluate how you’ll spend money on Facebook and Google advertising platforms.

Facebook Advertising: How Much Will I Pay?

Pay per Impression: On Facebook advertising, you’ll pay for how many people SEE your ad, but will not pay extra money for each click. It’s essentially a flat rate, fixed dollar bidding strategy. 

Facebook charges for advertising based on the number of users who viewed your ad.

Facebook Advertising Cost Structure (Impression Based Advertising)

For example, if 1000 people on Facebook SEE my ad, and 10 people click, my ad cost is not different than if all 1000 people clicked. Instead of paying for each click, you’ll pay the market price for each ad view based upon how competitive your market is. 

Advantages of Advertising on Facebook 

The more competitive your market is, the more you’ll pay for each impression. This strategy has advantages when ad space is undervalued, or when your ads are far more compelling than your competitors. If you’re willing to pay for more impressions, you’re effectively gaining market share over your competitors. 

Facebook Serves Ads to Billions of Users Each Day

There’s only a limited amount of eyeballs on the internet, so if a Facebook user is viewing your ad, it means they’re not viewing your competitors ad.

Facebook Advertising is Easy

Facebook advertising is easy. Put in your credit card and off you go whether you want to promote your local business or boost a post with a service you offer or item you’re selling.

Downsides to Facebook Advertising

When the barrier to entry is low, the competition is steep. On Facebook, you’ll see ad budgets which range between enterprise and fortune level companies, to mom and pop shops, and global brands. That means you’re ads better be well targeted, and they better be relevant, or nobody has time for you in a sea awash with alternatives.

Impression Based Advertising – How to Measure CPM – Cost Per Mile (CPM)

Impression based advertising strategies like those used on Twitter and Facebook ads are measured with a metric called CPM bidding, which means “cost per mile”. Statistically, your CPM is how much you paid for 1000 clicks. 

Frankly, I try to avoid throwing around acronyms; it’s easy to get confused. But when you’re looking for digital marketing and advertising strategies online, it’s important to know that when “CPM” or “impression share” are involved, you’re paying for how many people SEE your ad, not how many people click. 

How Does Google Advertising Work? PPC Advertising Strategy

Every major search engine offers a pay-per-click advertising plan. It’s quite simple, you only get charged when your ad gets clicked. Even if millions of people see your ad, you won’t be charged other than when people click. Google and Bing, which make up the overwhelming number of online searches each day both serve ads under this ad cost model.

How Much Does Google Advertising Cost?

The most reliable advertising strategy on Google is called pay-per-click (PPC). Yes, it’s that simple; if people click on your ad you’ll be charged for each one of the clicks. Unlike Facebook, you won’t be charged for people that view your ads and do not click on them. 

How Much Does Each Click Cost?

The cost of each Google click is based on a “silent bidding” auction. You’ll decide how much money you’re willing to pay for each click (Max Bid), and if your bid is higher than your competitors, your ad will be shown on top theirs. If your ad shows first on the page, we call this the first position bid. 

Because each search results page only has a max of 3 – 4 ads at most, the lowest bids will not be shown on the page. 

The trick: is finding the least competitive ad clicks for the most valuable customers. 

Google Ad Budgets

Pay-per-click models don’t mean that you pay an unlimited amount of money if more people happen to click your ad. Every advertising campaign is capped by daily or monthly budget cap. So that means you’ll control how much much money is spent per month without worrying about blowing your budget out of your wallet

Highest and Lowest Possible Ad Click Price on Google

The lowest possible ad click on Google Ads is $0.05 cents. The most expensive and competitive markets may cost upwards of $100 per click. For example, if you’re selling $60 million dollar mega yachts, $100 clicks for a relatively small number of possible customers is just a drop in the bucket. 

What is the advantage of Google advertising over Facebook? 

The advantage of Google that you’re only paying for people who walk into your digital store, meaning they click on your ad and come to your website. If nobody clicks your ads, you wont pay a dime, not even a penny. It’s that simple.

How Humans Search for Things Online: If That, Then This

How Humans Search for Things Online: If That, Then This

Search engines help us get closer to things we desire by decoding the intent behind our verbal cues and filling in the blanks between what we want, and the where, when why and how of getting it.

Humans are an “if that, then this” creatures. If I want that, then I do this to get it. Sometimes, we don’t know what it’s called, nor do we know how to get it, but sure as shit, if it exists, Google can find it. 

How Does Google Know What You Want? Even When We Don’t?

Google answers questions the only way it knows how “if not that, then this”. Humans, however, are “if that, then this, this and this might happen.” 

Humans don’t always know what they want, but they always know what they don’t want. 

Humans get the benefit of conversation, context, and follow up questions. type creature. Humans get to ask follow up questions. Robots get to observe follow up searches.

Before the Search

Google bots don’t understand what you’re asking them. Bots don’t know how to answer a question, they just know how to find the answer to a question someone else has already answered. Google doesn’t know what users are thinking, it just connects users who “they think” are “thinking the same thing” 

After the Search

After any search, Google determines whether or not the user found what they were looking for. If 99/100 users click the back button after clicking the first search result, Google bots know what you asked for, but they don’t know what you’re looking for. Google makes its money in gold by understanding what happened after the click.

A robot may infer what people want to find, because after they click on a search result, clicking another link on the page indicates that the content display is at least somewhat related to what they were looking for. 

Google not only knows what you click on after you search, but it also knows what you click next, but it also knows what you click after that.

Even if you clicked the first search result, and thought “get me the hell out of here”, you’ll probably keep Googling until you find what you’re looking for.

Google evaluates all of these interactions, creates metrics based on how related the search results were (did they click, download, or keep searching), looks at the previous searches, and then infers the most likely meaning based upon those who were analyzed in the same way.

Now imagine this happening on a scale of billions of search queries a day. Every variation of two or more words allows Google an anonymous-looking glass of what users wanted to find…and what they actually find.

Yeah, robots are still a bit awkward and clumsy — they were trained by the best..