My wife is the owner of eBracelets.com, an ecommerce site based in Sedona, Arizona that sells reasonably priced charm and leather bracelets. I volunteered to be her social media manager.
Since our site’s launch six months ago, we have tested ads on both Google and Facebook, and I can say unequivocally that, for us, Facebook Ads beat Google Adwords hands down.
The cost for us to advertise on Facebook is far lower than on Google when compared to the number of sales we make as a result of that advertising.
We direct all our Facebook ad clicks to our fan page, and we get sales everyday from those fans who have “liked” us.
We like Facebook.
Not everyone is so bullish, especially in the wake of Facebook’s recent IPO.
Henry Blodget of Business Insider recently compared advertising on Facebook to selling a product at a party where the party-goers just want to socialize.
For Google Adwords he suggested that potential customers have the intent to purchase, so advertisers can capture them right when they are ready to convert.
At eBracelets.com, we view advertising on Facebook more like a party where all the party-goers are talking about our product, and where there’s a party every day.
When you advertise on Facebook, you select the type of person you want to reach. For instance, we advertise to users who’ve indicated they are interested in bracelets, and then ask them to “like” our fan page.
Once someone becomes our fan, we then have the opportunity to convert them to a sale by posting new items on our Facebook page each day.
On Google, an advertiser has one shot to capture someone who types in a particular keyword. Even if that person clicks on your ad, unless they buy from you or remember the name of your website, you will likely never see them again.
It’s much easier and less costly for someone who has clicked on our Facebook page to “like” our page, than for someone who clicks on our Google ad to make a purchase. “Liking” us is a lower bar to jump over; and gives us time to convert them to a sale.
The cost to advertise on Google, just to break even, requires about 10 out of the 100 people who might click on our ad to then make a purchase. In the ecommerce world, a 10% conversion is almost unheard of.
Although Google Adwords may appear to have a better conversion rate because of a person’s intent to purchase, we have found it to be a poor return on our investment.
On Facebook, we post items every day for our fans to see. This allows us to achieve a multi-fold increase in conversion rates when compared to Google for the one-time cost of converting a Facebook user to a fan.
Recently we’ve been getting emails from Google Adwords asking us where we’ve been, and offering us a $100 coupon to begin advertising again.
I hope they’re getting the message that they need to reduce their costs to be competitive with Facebook, because we would love to begin advertising again on Google.
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