Google vs Facebook Ads

If there is one area of expertise that Google has over Facebook, it’s advertising.

Wordstream, an online ad consulting firm, recently shared some interesting data statistics regarding both companies. The stats indicated that Facebook’s click-through rate was 0.051% two years ago whereas the average banner ad rates at 0.1% and Google’s rate is at 0.4%.

Since social media giant Facebook has been gearing up for the announcement of their initial public offering at the end of the week,  they’ve been working hard to spread the word to impress potential investors.

According to the statistics featured in the large colorful chart, Facebook’s advertising reaches 51% of of all users with 1 trillion page views per month and Google Inc (NASDAQ:GOOG)’s Display Advertising Network reaches 90% internet users with 180 billion ad impressions. Facebook’s Q1 for 2012 revenues fell $1.06 billion whereas Google’s Q1 2012 rose at $2.9 billion.

Even more interesting: Google Inc (NASDAQ:GOOG) has a wider range of targets including topics, interests, and remarketing. Facebook targets education, workplace, and likes. They don’t use mobile advertising, retargeting, partner-sites, or keyword-based contextual options. They both target location and demographics.

When it comes to offering a choice of ad formats, Google wins again. They offer text ads, image ads, video ads, and mobile ads. Facebook just offers small sponsored ads.

Advertising is one of the keys to a successful business especially if that’s the main or total source of the company’s income. I’m sure that Facebook’s chief executive, Mark Zuckerbeg, knows that but he may need to pay a little more attention to this, but it remains to be seen whether it will be successful.

This move is crucial for the future of this company, especially right now as they’re promoting their initial public offering. Investors will want to put their money towards a company they have faith in. Better advertising strategies and lucrative tactics are just two ways the company can achieve it.