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Report Puts Facebook, Google Ad Values on Display

Posted on 5.20.2012

SEO software provider WordStream has released new research comparing the value of Facebook advertising to Google’s Display Network – the portion of Google’s advertising business that allows advertisers to place display ads on Google sites such as YouTube, Gmail and Blogger and over 2 million other websites rather than alongside search results.

The results are compiled in an infographic that evaluates the two models on criteria such as advertising reach, ad performance, revenues and growth, ad formats and targeting options, and highlights of the study appear below:

•    Facebook and Google both have huge potential reach, with Facebook boasting 845 million monthly active users and Google owning the world’s largest online display advertising network.

•    The average click-through rate (CTR) of an ad on the Google Display Network is 0.4 percent – almost 10 times as high as the typical Facebook ad. Average CTR on Facebook is under 0.05 percent, about half the industry average for online banner ads. At the same time, costs per thousand impressions on Facebook are climbing.

•    The Google Display Network offers twice as many ad formats as Facebook, including in-video ads, mobile-game ads, support for industry-standard image ads and more.

•    Facebook does not yet support mobile advertising and has more limited targeting options than Google.

The comparison clearly suggests that Google currently offers advertisers more value in terms of both options and results for advertisers, and that Facebook has a lot of catching up to do to provide advertisers with the best possible advertising solutions.

“So far, Facebook’s advertising platform hasn’t kept pace with the explosive growth of its social network, and it remains to be seen if CEO Mark Zuckerberg even wants to focus on advertising as a source of revenue,” says Larry Kim, founder and CTO of WordStream. “In his 2,500+ word letter to shareholders this month, he mentioned advertising just once.”

WordStream provides search marketing software and PPC services aimed at helping marketers get better results from their PPC and SEO efforts.

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