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Industry Trends

Facebook Ads Out Perform Google

By September 23, 2009July 30th, 20235 Comments

While it is true that in general that the effect of online ads on social networks is not quite as strong as the effect of online ads on search sites, it has been found that ads on Facebook have definitely begun to show very good results, even surpassing the performance of ads on search giant, Google.

Several advertisers have admitted that of late, the results they get from advertising on Facebook are better than those achieved from advertising on Google, and that is in spite of spending less on Facebook than on Google.

According to several advertisers and marketers, the response they have been getting from Facebook has improved substantially in the last 6 months, and due to this, more and more businesses are buying ad space on Facebook.

Tim Kendall, director of monetization at Facebook, however, maintains that the advertising growth curve at Facebook has maintained a steady pace and there has been no sudden jump in the demand for ad space on their site. It is true, though, that the number of advertisers on Facebook has tripled over the last three years.

One important factor for this growth surge at Facebook is the ability of advertisers to find their target audiences accurately from the profile data available about Facebook users. Facebook has always been very strict about users using real names and information on the site, and has often deleted profiles that posted false information. As a result, demographic data on Facebook is more reliable than on other networks.

When a Facebook user likes a product they are likely to recommend it to most of their friends, who are already on Facebook. This feature has certainly attracted a lot of marketers to Facebook.

While Google has not commented on this topic, Facebook has announced that they have logged annual sales to the tune of $500 million. Coupled with Facebook’s fast growing user base, it may only be just a matter of time before the social networking leader out performs Google on the advertising front.