Pay per click or Facebook funnels?

By Sameer Shah

I get asked this question a lot: Should I use pay per click or Facebook advertising to sell my product, generate leads, or meet other business objectives? Many marketers immediately say, “BOTH!” or “ALL OF THE ABOVE!” and while that is often true, it’s also often the case that growing businesses don’t have the budget to do both effectively. So…how to decide?

Every situation is different and the best practice is to have a marketer who is experienced in both help you craft the right strategy. That said, there are some basic guidelines to help you determine the best approach.

Let’s start by level setting on the use case of each. Pay per click (often abbreviated PPC) captures a user when they are actively searching for something versus Facebook ads/funnels reach potentially relevant audiences with content should compel them to take action, without knowing if they’re actually looking for that product or service in that moment. (Also please note that while we say Facebook for short, we also mean Instagram, as it’s owned by Facebook and you can/should use the same targeting features to deliver ads there as well).

The first is more immediate, and the latter is more passive, which is why it often takes multiple drips (via a funnel) to drive action. That makes it sound like PPC is more effective, which isn’t necessarily the case, because for a lot of products (let’s take sunglasses as an example), a user might buy a new pair under the right circumstances, even when he or she wasn’t looking for them. Facebook ads also have far greater media options (video, picture carousels, static images, infographics, etc.) and can help tell a story. You could show someone a series of content that would convince them to buy sunglasses or a shirt, or maybe sign up for a new service, because they were compelled by what you showed them.

Pay per click (often abbreviated PPC) advertising generally means Google Ads, although it’s becoming increasingly important to consider Bing (more on that later) as well. PPC works best when you have a product, service, or solution that is widely known and often searched. It also makes perfect sense when your product or service is something that addresses an immediate need, although that’s not a rule by any means.

My favorite example of a service that lends itself to PPC is substance abuse rehab. It’s something one typically searches when the need is acute and pressing, and it’s a generally well known service. Indeed, keywords related to rehab quite expensive, based on the demand and the average ticket price of the service (generally in the tens of thousands of dollars).

Commodity services for which there may be many providers in a given market also work well with PPC advertising. Think plumbers, electricians, roofing companies, carpet cleaners, landscapers, moving companies…these are all services that people search online for when they need it, and a business that shows up higher in the search results is more likely to get visibility and a click to its site. By contrast, a plumber could run FB ads to build general awareness, knowing that on any given day many people need plumbing services, but that’s probably not going to be cost effective. Another key feature of PPC is that you only pay when the user clicks your link, so you’re getting a bit of free advertising every time the ad shows up.

Facebook advertising, or funnels (which is a better descriptor) involves leading a potential customer through a user journey based on their engagement level. The more the user engages, the further they’re led through and ultimately (after 2-4 steps) they’re asked to take an action. That action could be purchasing a product, signing up for a webinar, giving you their email address…any number of things. In this model you know less about the potential customer’s intent (they haven’t actively searched for anything) but you have far more information about their interests, habits, preferences, demographics, and other information. You’re delivering content to an audience based on an expectation that a certain profile should be interested in what you’re selling.

An example might make this easier to understand. Let’s go back to sunglasses and assume that you have an online store created in Shopify and you want to drive sales. Your sunglasses are imported, handmade, and they cater to an affluent, stylish, generally younger audience. You would create a series of Facebook ads that told the story of these beautiful sunglasses, and you’d use Facebook’s targeting tools to present them to the audience we just described. The first ad might be a video, designed to generate initial interest and introduce your company to new potential customers. Those who engage with the video (watch a certain amount of it, like it, share it, comment on it, etc.) will be served a second ad, which might be a beautiful image that explains some of the features and benefits. People who interact with that ad might be directed to the website to make a purchase. This is just an example, it doesn’t always take 3 steps…it might have made sense to direct people straight from the video to the site. That type of ad optimization takes place through testing, which is a whole process in and of itself.

Circling back to the start of this discussion, many marketers will tell you that it’s not either/or. You should use both PPC and ad funnels. I agree, IF your budget permits. There’s no doubt that these two activities can reinforce each other, and you can learn a lot by testing both. But if it’s my marketing budget, I would run tests and then focus my dollars on the one that shows the lowest cost per desired action (cost per purchase, cost per lead, etc.).

Clear as mud? Reach out, let’s talk about it!