For a SMEs, Google Adwords is a very economical way of advertising. Today 70% of the search industry is controlled by Google. People comes to Google to search for specific things that they need. For a new business which is in a competitive market, its very difficult to get top rank in Google organically. This is where Google Adwords come to the picture. One can run a PPC campaign on targetted keywords and get the desired traffic. Since people are searching for a specific product or a service the click through ratio will be good. Secondly Google also carries your ad in their network of products like, Gmail, Blogger etc. So by running a PPC campaign in Google, one can drive in a lot of quality traffic to their website. This is where I feel, Facebook Ads lose out to Google. When a person goes to facebook, its generally to socialize. I as a person go to Facebook to meet my old friends to virtually connect with them and chat with them. Generally people do not go to facebook to search for a specific product or service. Hence, the click through ratio in facebook is less. Facebook ofcourse has one great advantage. Using Facebook Ads you can target your visitors to ensure that your Ad is displayed only to the demographic that you choose. Also, since Facebook ads are new the CPC is relatively less than Google. So at a very small budget you can run your campaign. Another advantage that Facebook has is that you can make the visitors come to your facebook page make them your fan and start interacting with them. So, an inquisitive visitor can become your customer in the long run which is never possible with Google adwords. Its still early days to make a judgement on who is better and only time will tell if Facebook will be able to eat into Google's Ad revenues but at the moment Google is better for conversion whereas Facebook is better for branding. Next couple of years will be interesting to see how these 2 giants fight each other.
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