AdWords vs Facebook vs LinkedIn Advertising
Monday, September 13th, 2010 [ Posted by Chris R ]webqem has been managing AdWords campaigns for a number of clients over the past four years, in financial, retail, health, and software markets.
For the last few months we have been running paid advertising campaigns at Google AdWords, Facebook and LinkedIn, observing striking differences between the three platforms. A major factor would be due to the different levels of targetting possible.
Each platform does allow a measure of targetting, as follows:
AdWords campaigns can be targeted:
- geographically (eg 20km radius around Sydney),
- by language
- by network (eg Google search, search partners, or display network partners)
- by device (eg desktops, phones with browsers, mobile carrier or operating system)
- by keyword
- by placement (for the display network)
- by demographic/gender (if available for display network)
Facebook campaigns can be targeted:
- geographically (eg 10 miles around specific cities)
- by age, gender, relationship status, language, education level, workplace, birthday
- by interest.
LinkedIn campaigns can be targeted by three of geography,company size, job function, industry, seniority, gender and age. Note that interests cannot be specified with LinkedIn.
Each platform allows bidding by CPC or CPM, and we tested both for each platform.
We compared the results of advertising a new online retail site providing hire services across the three platforms.
LinkedIn’s lack of targetting by interest or keyword left it lagging in third place, with the lowest click through rate, and by far the highest cost per click. LinkedIn’s suggested price for the demographic we targeted was over $4/click. LinkedIn visitors typically stayed on site for less than 30 seconds, and converted poorly.
Facebook provided the lowest cost-per-click – around 2/3 the cost of AdWords visitors. Facebook visitors tended to stay on site for around a minute, but only 10% came back for a return visit. They also converted very poorly. CPC advertising was clearly better than CPM advertising on Facebook for our client, with a much higher effective click through rate.
AdWords was a clear winner, with excellent click-through-rates, high pages per visit, low bounce rate, and solid conversion rate. The cost-per-click was acceptable, with the highly targeted campaign having excellent quality scores and numerous keywords with double-figure click through rates.
It does have to be said that organic traffic also performed outstandingly, with a high time on site, and double the conversion rate of the paid traffic. This was true for both Google and Yahoo, although Google provided 30 times the amount of traffic as Yahoo.
Google Adword’s ability to target an audience by keyword at a time when they are actively searching for infomation made it the best performer by a long way, for return on investment.
However as a branding platform for a new site, Facebook did provide a cost-effective method for a large number of impressions.
Here are illustrative figures from Google Analytics:
