Comparing Google Ads and Facebook Ads Costs for Small Businesses in Australia

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When it comes to online advertising, small businesses in Australia often compare the costs of Google Ads and Facebook Ads to determine which platform offers the best return on investment. Based on various studies and expert opinions, here’s a detailed comparison of the costs associated with each platform, tailored specifically for small Australian businesses.

Cost Per Click (CPC)

Google Ads:

• The average cost-per-click (CPC) for Google Ads ranges from $2.67 to $4.22 across various industries (WebFX).
• Highly competitive industries like legal and finance may see CPCs that are significantly higher.

Facebook Ads:

• The average CPC for Facebook Ads is generally lower, ranging from $0.70 to $0.97 (Shopify, Temok, DashThis).
• Some sources indicate Facebook Ads can cost as low as $0.10 per click, especially in less competitive markets (Instapage).

Cost Comparison Example

For a direct cost comparison:

• Google Ads: For 1,000 clicks at $8 CPC, the total cost would be around $8,000.
• Facebook Ads: For 1,000 clicks at $0.70 CPC, the total cost would be approximately $700.

This stark difference highlights that, in terms of CPC, Facebook Ads are generally more economical than Google Ads.

Conversion Rates

While cost-per-click is an important metric, conversion rates also play a crucial role in determining the overall effectiveness and cost-efficiency of advertising campaigns.

Facebook Ads:

• The average conversion rate for Facebook Ads across all industries is around 9.21% (Trustmary).
• High-converting industries on Facebook include fitness (14.29%) and retail/eCommerce (around 3.26%) (The Social Shepherd).

Google Ads:

• The average conversion rate for Google Ads search campaigns is approximately 4% (WebFX).
• For the Google Display Network, the average conversion rate is lower at around 0.55%.

Cost Per Conversion

Here’s a comparative example:

• Google Ads: At an $8 CPC with an 8% conversion rate, you would get 80 conversions from 1,000 clicks, resulting in a cost per conversion of $100.
• Facebook Ads: At a $0.70 CPC with a 3% conversion rate, you would get 30 conversions from 1,000 clicks, resulting in a cost per conversion of $23.33.

Buyer Intent and Campaign Objectives

• Google Ads: Users on Google typically exhibit higher buyer intent because they are actively searching for products or services. This can lead to higher conversion rates despite the higher CPC.
• Facebook Ads: Facebook users are usually not actively searching for products; they encounter ads passively while browsing. This generally results in lower CPCs but also potentially lower intent to purchase.

Conclusion

While Google Ads often have a higher cost-per-click compared to Facebook Ads, the choice between the two should be based on your specific business goals and target audience. Facebook Ads tend to be cheaper in terms of CPC and can be effective for raising brand awareness and driving traffic. However, Google Ads might deliver higher conversion rates due to the higher intent of users actively searching for specific products or services.

For personalised assistance in setting up and optimising your Google Ads and Facebook Ads campaigns, reach out to Bobo Digital. Our experts are ready to help you maximise your digital marketing efforts and achieve your business goals. Contact us today to get started!

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