Wondering about the importance of running ads? As of the second quarter of 2018, Facebook had 2.23 billion monthly active users. Google recently announced that it is active on 2 billion devices. This means that both platforms have the potential to reach billions of people.
Although Facebook and Google both have a very large number of users, both platforms allow you to narrow down your reach to your specific target.
Facebook basically knows everything about its users’ lives and uses this to allow you to target the desired group of users. Facebook allows you to target a very specific sector of the population by allowing you to select an age range, occupation, number of children, and even interests.
Google ad words in turn use search terms provided by the user to target ads. For example, if a user types in “photography services in London” and you are a photographer in London, you would want to purchase those ad words in order to have your ad shown to users looking for users specifically looking for your services.
Facebook Ads allow you as an advertiser to set a daily budget for your campaign and an optional duration period for your campaign. The daily budget can be set to literally any amount so you could spend $10 a day or $10,000 a day depending on your budget. Of course, your budget will impact your reach but the flexibility to invest small amounts of money and still have a return on investment is amazing for small businesses.
Google Ad words offer the same type of flexibility. Both businesses work on a bidding system where the price of the ad varies depending on the demand for the words on Google Ad words or the demographic profile on Facebook Ads.
Since Google-ad words and Facebook ads are highly targeted, they both offer a high ROI even in the case of low-investment. According to Google Economic Impact Report, advertisers make on average $2 for every $1 spent. Facebook’s per-click cost is lower than any other advertising platform with an average cost $1.10 in the United States according to Adspresso and a successful campaign can make up to $4 for every $1 spent.
As our devices become cluttered with advertising, many apps and websites now offer a premium ad-free option of their platform. This option to opt-out of advertising can come in the form of a subscription with a monthly or yearly fee such as Spotify or a one-time fee like Facetune. The existence of these features on apps is a good thing as it unclutters devices and allows the remaining advertising to break through. However, it also blocks access to premium users with higher levels of disposable income through the apps that have this feature. Google and Facebook are both free for users and currently do not offer an option to opt out of advertising. This means that you will be able to target all users including the ones who are willing to pay a premium to opt out of ads.