Social Media Ads vs Google Ads: Which One is a Win for Small Businesses?

Are you feeling overwhelmed by the number of advertising channels to promote your products or services? Not sure how to budget for online ads? For small businesses, marketing budgets are often limited, which makes it crucial to choose the right advertising platform to maximise return on investment (ROI). Among the most popular options, social media ads and Google ads dominate the conversation. To help you out, our small business marketing agency in Melbourne is exploring the strengths and weaknesses of each platform, helping you understand which is better suited to your business objectives, and providing tips on how to leverage both for optimal results and lead generation.

Understanding the Basics: Social Media Ads vs Google Ads

What Are Social Media Ads?

Social media advertising involves placing paid ads on platforms like Facebook, Instagram, LinkedIn, Twitter, TikTok, and others. These platforms allow businesses to target specific audience segments based on user demographics, interests, behaviours, and other factors.

One of the key advantages of social media ads is their ability to engage users in a social context. Ads appear within the user’s feed, stories, or in-between content, which creates a seamless experience for users and increases the likelihood of engagement. They are an effective way to generate more leads and sales for both B2C and B2B companies.

What Are Google Ads?

Google Ads, formerly known as Google AdWords, is Google’s paid advertising platform that allows businesses to display ads on Google’s search engine results pages (SERPs), YouTube, and other Google-owned properties. Google Ads operates on a pay-per-click (PPC) model, where businesses bid on specific keywords that users are likely to search for, and only pay when a user clicks on their ad.

SEO optimised Google Ads are highly targeted based on users’ search intent, which is a significant differentiator from social media ads. By capturing users when they are actively searching for products, services, or information, Google Ads can drive highly qualified traffic to your business.

Key Differences Between Social Media Ads and Google Ads

1.User Intent: Passive vs Active

The most fundamental difference between social media ads and Google ads is user intent. Social media ads are generally shown to users who are passively browsing, meaning they aren’t necessarily looking for products or services right then. Your ad needs to capture their attention, create interest, and drive action, all while they are engaging with content from friends, influencers, or businesses they follow.

On the other hand, Google Ads target users with active intent—they are specifically searching for something related to your business. This makes Google Ads highly effective for driving conversions because you’re reaching people at the exact moment they express interest in a product or service.

Example:

• Social Media Ad: A Facebook ad for a local coffee shop promoting a new seasonal drink to users who enjoy coffee-related content.
• Google Ad: A Google search ad targeting users who type “best coffee shops near me” into the search engine.

2. Audience Targeting: Demographics vs Keywords

Social media platforms provide sophisticated audience targeting options, allowing businesses to segment audiences by age, gender, location, interests, online behaviour, and even job titles. This detailed targeting makes social media ads ideal for brand awareness, building engagement, and driving conversions among very specific groups.

Google Ads primarily rely on keyword targeting, although demographic targeting is available as well. The strength of Google Ads lies in the ability to match ads with users’ search queries, making it a perfect platform for businesses looking to target high-intent users searching for specific products or services.

Example:

• Social Media Ad Targeting: A cosmetics brand might target women aged 25-45 who are interested in skincare products, beauty influencers, and fashion brands.
• Google Ad Targeting: A skincare brand might bid on keywords like “best anti-aging cream” or “skincare for dry skin,” targeting users actively searching for solutions to their skincare concerns.

3. Ad Formats

Social media ads offer a diverse range of ad formats, including image ads, video ads, carousel ads, stories, and interactive polls. This variety allows businesses to be more creative in how they present their products and engage with users. Each format offers a unique way to capture attention and tell a brand’s story.

Google Ads, while less varied in terms of format, provide highly effective options such as search ads, display ads, shopping ads, and YouTube ads. Search ads appear directly in response to a user’s search query, while display ads appear across Google’s network of partner sites.

Example:

• Social Media Ad Format: An Instagram story showcasing a step-by-step tutorial on how to use a new beauty product, complete with swipe-up links to purchase.
• Google Ad Format: A search ad appearing at the top of Google search results when a user types “affordable beauty products.”

4. Cost Structure: Bidding and Pricing

Both social media ads and Google Ads operate on auction-based systems, meaning the cost per click (CPC) or cost per thousand impressions (CPM) is determined by a bidding process. However, there are differences in how the two platforms manage costs.

Social media ads tend to have lower CPCs, making them more affordable for businesses with smaller budgets. However, because social media users are not always actively searching for a product, conversion rates may be lower compared to Google Ads.

Google Ads, particularly for high-competition keywords, can be more expensive. However, the benefit of capturing high-intent users often justifies the higher costs due to better conversion rates.

Example:

• Social Media Ads: A local restaurant might spend $50 on a Facebook ad to promote a new brunch menu, targeting users within a 10-mile radius.
• Google Ads: A legal firm bidding on competitive keywords like “divorce attorney” might spend $200 per day, but the leads generated are likely to convert into higher-value clients.

Which One Is Right for Your Business?

When to Use Social Media Ads

Social media ads are ideal if your business goal is to build brand awareness, reach a broad audience, or engage users with highly visual content like graphics and video. They are particularly effective for products or services that rely on emotional connections, aesthetics, or storytelling, such as fashion, beauty, or lifestyle brands.

Social media ads are also great for:

• Retargeting: You can re-engage users who have visited your website but haven’t yet converted.
• Promoting Events or Sales: You can quickly create buzz around limited-time offers or local events.
• Audience Building: Social media ads help you grow your following and keep your audience engaged with regular content.

Example:

• A fashion brand running Instagram ads with striking imagery of a new clothing line can drive traffic to their eCommerce store while building brand affinity.

When to Use Google Ads

Google Ads are best suited for businesses looking to drive direct conversions, particularly those offering products or services that users actively search for. They are highly effective for lead generation, eCommerce, and service-based businesses.

Google Ads are ideal if:

• You want immediate results: Google search ads can start generating traffic as soon as your campaign is live.
• You have a high-conversion product or service: If people are searching for what you offer, Google Ads can provide a quick and effective path to sales.
• You’re targeting high-intent customers: Google Ads are perfect for businesses that rely on users’ search intent, such as law firms, real estate agents, or home service providers.

Example:

• A plumbing company using Google search ads to target users searching for “emergency plumbing services” can expect higher conversion rates due to the immediate nature of the customer’s need.

Combining Social Media and Google Ads for Maximum Impact

For many small businesses, the best approach is a combination of both social media ads and Google Ads. By using both platforms, you can capitalise on their unique strengths and create a well-rounded marketing strategy.

Tips for Combining Both:

1. Start with Google Ads for High-Intent Searches: Use Google Ads to capture users who are actively looking for your products or services.
2. Retarget on Social Media: Once users have visited your site from Google Ads, you can use social media ads to retarget them and remind them of your offerings.
3. Build Brand Awareness on Social Media: Run social media campaigns to engage new users and then guide them to your website, where you can use Google Ads to convert them.
4. Test and Adjust: Continuously monitor the performance of both platforms to optimise spending and improve your ad strategy over time.

Both social media ads and Google Ads have their own unique strengths, and the best platform for your business depends on your goals, budget, and target audience. For small businesses looking to maximise their digital marketing efforts, leveraging both platforms in a complementary manner can provide the best of both worlds—brand awareness through social media and high-intent conversions through Google Ads. By strategically using both, small businesses can reach a wider audience, improve brand engagement, and drive valuable leads that turn into loyal customers.

If you need help navigating social media and Google Ads for your business, Digital Freak can guide you through the process! We’re lead generation pros for small businesses, helping you create targeted campaigns that align with your business goals – and grow your business. Reach out to us for a free strategy session today!

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