• Josh Mudryk

Beating The Competition On Facebook And Google Adwords

Since Google offered their paid advertising platform in 2000 and Facebook in 2007, both have exponentially grown as initial display network platforms for businesses to grow their brand awareness online, to becoming two of the biggest powerhouses of digital advertisement placements in 2019. How did this happen? What has changed over these years? How can you stay ahead of the marketing curve?

In this week's post at Technik Creative, we will be answering those questions entirely.

How Did Adwords and Facebook Paid Platforms Get So Big?

Facebook's ad revenue alone reported in January of 2019 was a staggering 18.64 Billion dollars for the year of 2018. This exponential growth from its first year of paid advertising stream which began in 2007 only brought in a mere 153 million dollars in total revenue for the company. Just from taking a glance at those two numbers, you can easily see the dramatic growth in advertisers which have adopted Facebook as being a major source of their marketing budget allocations. Since Facebook's launch in 2004, they now amass to over 2.7 monthly visitors.

There is no doubt why companies in the modern-day age are focusing their effort on this social media platform. Having a platform where you can use hyper-targeted filtering to get your message in front of nearly 30% of the world is a capability that any strategic marketer would focus on. For us here at Technik Creative, it is still to this day our cheapest cost per conversion medium, as well as our cheapest cost per impression on new users. What does this mean for our clients? More conversions and people seeing their ads, at a cost cheaper than any other form of advertising.

Facebook Revenue & Net Income From 2007 - 2018 - Statista

For Adwords, a similar growth curve has occurred at a much higher revenue. In 2018 alone, they brought in 116.32 million from their Adwords platform. The power that Google has in scaling their advertising is the fact that they own both YouTube as well as Google. With YouTube reaching 1.8 billion monthly visitors, the amount of attention on this platform allows advertisers to get in front of new look-alike audiences without hitting a cap on audience sizes for the most part. This eliminates competition of advertisers for ad space, and allows strategic multi-layered targeting campaigns to get extremely low cost results being the sole advertiser for that audience target.

What this means for Google is that advertisers who see an ROI from using their platform invest more into their campaigns year over year. In turn, this means a much higher lifetime value for google with their advertisers. From the advertiser's side, having an audience field that feels like near infinity when you look at the grand scheme of monthly users on YouTube and Google, creates endless targeting capabilities without reaching advertising burnout with an audience. Having the ability to track real-time results also enables marketers to track performance and scale according the direct results portrayed in your ads managers.

Google Adwords Revenue From 2001 - 2018 - Statista

What Has Changed For Advertisers Since These Paid Platforms Began?

The biggest change for advertisers since these two powerhouse marketing mediums began is the cost per clicks for targeting features. With the added competition over the past decade, the amount of people bidding for the same entry-level features (broad CPC search queries or interest targeting) has amassed inflation on the cost of having placements for those targeting criteria. Keywords and interest targets that you could achieve click costs for under $0.25 are now reaching levels above $1.00 and even $2.00 in some cases with our campaigns. The scalable successful audiences have come from multi-layer retargeting as well as expansion audiences known as look-alike audiences on Facebook and Google where no other competitors exist in.

The easiest way for marketers to get around this phenomenon is to focus on building 'hot' audiences. At Technik, this is our bread and butter for curating an audience with a potential ROI attached to them. What 'hot' audiences are is groups who have either interacted with your brand, are an advocate, or a customer of your product. These types of users have either experienced your service or product first-hand or have been interacting with your brand in some fashion online.

Taking these targeting points, we can curate custom audiences that have essentially no other competitors market to the same audience group. This allows us to focus solely on the content, landing page, and our copywriting in our optimization process, eliminating one of the 4 major variables we key in on in optimizing our client's campaigns.

How Can You Stay Ahead Of Their Algorithm's, Updates, Advancements As A Marketer?

Our best advice to our new clients and developments with our marketing campaigns is through testing and being advocates of new updates for both Facebook and Google. Whether it is new targeting capabilities or placement advancements, we are always split testing smaller ad budgets to test our click, engagement, conversion, and ROI KPI's in comparison to our already optimized campaigns. Often these new updates that both Facebook and Google come out with allow you to again reach an audience or placement where little to no competition lies.

A perfect example of this is Facebook's placement expansion into Instagram Stories. When they first brought this placement to the advertiser's disposal, we saw a dramatic decrease in our cost per click for our client's ad accounts. With this, we began to transition and scale more of our ad budgets into this placement. Since 2017 when Instagram story ad placements began, the costs for these returns have slowly risen to the point that on average, our story posts are now costing more per conversion in comparison to our feed ads.

The reason for this? Following supply and demand with trends. As mentioned, when we were some of the first advertisers for the story placement, we saw results that we never saw before with Facebook advertising. With added competitors and advocates promoting the placement for Instagram Story placements, over time these costs began to get washed with the added competitors.

This, however, is a prime example of finding new advancements and updates with your chosen advertising network to stay ahead of the curve. Once you here about marketing trends from your typical 'marketing guru' you follow online, those strategies are dried out and over-used. The trick is to stay aware of these updates, subscribe to the platforms newsletter on further changes to the advertising platform, and always be testing your major variables in comparison to the results they are providing you with.

With this, we hope you learned a little bit more about the value of advertising on these two major players in the digital marketing world. The key takeaway we want you to leave with today is that when strategically managed, Facebook and Google can be the cheapest form of getting your brand in front of potential customers and providing an immediate and trackball ROI on your marketing campaigns. The fall-off point that we see most of our clients facing before working with us is them falling behind the strategic curve for achieving low-cost results, through out-dated scaling or optimization techniques.

We hope you got value from this week's post at Technik. If you have any questions about marketing or want to talk more about working with Technik as one of our clients, simply e-mail me at and I will get back to you as soon as possible!