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Which is Better for Your Business: Paid Search or Paid Social?

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Pay-per-click (PPC) advertising is hands down one of the best ways to reach potential customers, build brand awareness and get them to buy your products or services. Over the years, platforms like Google Ads and Facebook Ads just keep improving their targeting, algorithms and everything else you need to succeed at PPC.

That being said, even mastering one PPC platform can be a challenge, and with the wide variety of options and opportunities available to you, it’s often hard to figure out where to focus your time, energy and budget.

This is especially true when you don’t have a dedicated marketing team to manage everything for you. Running a business is hard enough on it’s own without trying to juggle the demands of multiple PPC campaigns on multiple platforms.

So, if you can only pick one PPC advertising channel to focus on, which one should it be? Paid search? Or paid social?

While these aren’t your only options, they’re the two biggest ones in front of most businesses and understanding the differences between the two will help you identify the right marketing channel for your business. Once you know which channel you should be using, all you have to do is figure out which specific platform will be best for getting in front of your target audience.

With all of that in mind, let’s take a look at paid search, paid social and what makes them better suited to different business goals and needs.

Paid Search vs Paid Social

Before we can really talk about whether paid search or paid social is a better PPC channel for your business, we need to take a step back and talk about how each of these channels work. Both of these marketing channels target people in fundamentally different ways and understanding those difference is the key to figuring out which channel is right for you.

Paid Search

Paid search is a responsive type of advertising. A user types in a search query, the platform decides that your ad is relevant to that query and your ad shows up. Google Ads, Bing Ads, Yahoo and even Pinterest’s search ads all use this approach to deliver targeted, highly relevant ad content to users who are actively searching for that sort of content.

As a quick example, let’s imagine that you run a flower shop and you want to attract more wedding bouquet customers. If your campaigns are set up correctly, your ads should show up when someone searches on Google for “flowers for wedding”. Since your ad should be a good match for their needs, there’s a good chance that they’ll click your ad and hopefully make a purchase.

The key to paid search is the fact that it’s intent-based marketing. It’s great when you’re trying to market a product or service that people are actively searching for online. By the time they type in that search query, they’re already fairly low in the sales funnel, so all you have to do is convince them to buy from you…instead of the competition.

Paid Social

Paid social, on the other hand, is an intrusive type of advertising. Someone is checking out their social media feed, the platform determines that they meet your targeting criteria and shows your ad. Maybe they’re in the market for what you’re selling, maybe they’re not, but either way, they see your ad.

When it comes to paid social, most people immediately think of Facebook Ads, but there are a lot of paid social platforms out there (Instagram Ads, YouTube Ads, Twitter Ads, Reddit Ads, etc), and they all work in the same basic way.

Now, the fact that paid social advertising is intrusive doesn’t mean that it doesn’t work. Marketers have successfully used intrusive advertising for decades with things like billboards, radio ads or television commercials. Paid social is a lot like these tried-and-true marketing channels—with two caveats: targeting and tracking.

With a television commercial, you have only the loosest guesses as to who is seeing your ads or whether they are working. With paid social, however, you can get incredibly specific with who you target and then track how different audiences respond to your ads.

As a marketing channel, paid social ads are great for getting in front of audiences that might not otherwise find you online. Not everyone searches on Google for the solution to their problem—heck, your potential customers may not even be aware that they want or need your product!

For example, a friend of mine recently bought eucalyptus for her house because of an ad like this:

Prior to seeing these ads, she didn’t even know that she could buy fresh eucalyptus. It wasn’t on her radar until she saw the Facebook ad. But, once she discovered that this was something she could buy, she realized that it was something that she wanted to buy.

Whether you’re trying to build awareness for a product, a service or just your business in general, paid social is a great way to get onto your target audience’s radar—especially when you’re trying to sell something that most people might not actively seek out otherwise.

Which Channel is Right for You?

So, which is better for your business? Paid search? Or paid social? To be honest, they can both provide a lot of value to most businesses, but if funds and/or time are tight and you have to pick one, which channel should you prioritize?

The answer to that question is highly business-dependent. For certain goals and priorities, paid search is ideal. For others, paid social is the obvious choice. To help you figure out which channel is best for your business, let’s take a look at how paid social and paid search shake out in the following key areas: speed of results, cost and brand building.

Best for Speedy Results: Search

If you need sales now and sell something that meets a need are aware of and actively seek solutions for, paid search should be your go-to marketing channel.

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Because paid search targets the bottom-of-the-funnel, most people who click on your paid search ads are well on their way to making a purchase. If they don’t buy from you, there’s a good chance that they’ll buy from the competition.

So, when you invest into paid search, the results are usually fairly quick. For example, when someone searches for an emergency plumber, it’s not a decision they’re going to sit and stew over. They need help now!

To make things even better, you can make your paid search ads very direct. Your audience is looking to buy, and they want you to help them choose the right solution to their problem by making as compelling of a case for your business as possible.

With paid social, however, things are a bit more tricky. You’re interrupting your audience and hoping that they’ll be interested enough to buy, but to be honest, most of the people who see your ads will need some time to warm up to your product, service or company before they make a purchase. My friend who bought the eucalyptus saw those ads quite a few times before she finally decided to buy.

Of course, if you’re selling an impulse buy or have a particularly affordable offer, paid social can produce speedy results, but that’s generally the exception, not the rule.

Best for Cost: Varies…

“Which is cheaper, Facebook Ads or Google Ads?” is a question I get quite a lot. And it makes sense. You want to get the best bang for your buck, so it’s natural to want to know which ad platform will produce the cheapest results.

The only problem is, there’s no easy answer to this question.

If all you care about is your cost-per-click, paid social is definitely “cheaper” than paid search. After all, paid search clicks are more targeted, lower in the funnel and more likely to “buy now”, so it makes sense that they would be more competitive and cost more.

However, even with paid search, cost-per-click has a huge range of variability. On Google Ads, you might pay $3.00 per click for a keyword like “ice cream shop”. For a keyword like “personal injury attorney”, however, you could be paying $80 per click.

In contrast, the average CPC for Facebook Ads is about $1.00. For a particularly competitive audience, you might pay as much as $3.00 a click. On the surface, that seems like a much cheaper way to go, but looks can be deceiving.

Remember, you don’t make money off of clicks. You make it off of sales.

Sure, you might only pay $1 a click on Facebook Ads, but if only 1-in-300 clicks produces a paying customer, you’re paying $300 per sale. A click on Google Ads might cost you $30, but because those clicks are higher-intent, it might only take 10 clicks to make a sale, so you’re still paying $300 per sale.

This is why it’s so hard to predict whether paid social or paid search will generate a better return-on-ad-spend. Both can be extremely profitable or prohibitively expense—or anything in between—so the differences in CPC shouldn’t be your primary criterion for choosing one channel over the other.

Best for Building Your Brand: Social

Getting quick results is great. Making a great return-on-investment is vital. But if you really want to grow your business, you need to do more than just optimize for the fastest, most profitable results.

If you want your business to grow, you need to build your brand.

When it comes to building a brand, paid search really isn’t all that useful. Most people don’t type in a search query online because they’re looking for a brand to fall in love with. Their goal is to solve a problem, not to build a relationship.

Paid social, on the other hand, really shines in this area. I mean, the whole point of social media is to build relationships. When people hop onto Facebook or Instagram, they’re not thinking about buying a new blender, they’re looking for connection: connection with people, connection with influencers…and even connection with brands.

So, if you want to build awareness and get people to buy into your company’s vision and brand story, there’s no better place to do it than social media.

Need to generate a buzz about your new product? Paid social is the way to go. Want to be the first company a potential client thinks of when they need help? Get in front of them with paid social. Looking for ways to work people through your marketing funnel? Paid social just might be your best bet.

With paid social, you can get people ready to buy, and more specifically…ready to buy from you. If people know your business and believe in what you do and sell, they won’t need to hop on Google and search around for a solution—they’ve already got you.

Best for You?

So, is paid search or paid social better for your business? Hopefully, at this point, you should have a good sense for the differences between the two channels and where their strengths and weaknesses lie.

To be honest, the right primary PPC channel for your business will depend on what you’re selling, how your business works, who you’re targeting and what you’re trying to accomplish. As a general rule, though, paid search is better for quick sales and paid social is better for long-term branding—although you can do both with either channel.

The best play, of course, is to integrate the two. For example, if you need sales now, you can set up a solid paid search strategy to get people onto your website. Then, for the people who don’t buy right away, you can use social media advertising to retarget them and bring them back. Simultaneously, you can start to build out brand awareness campaigns on social media that fill your marketing funnel for the future, ensuring that your business will grow and thrive over time.

In the end, the best PPC approach is the one that delivers the results your business needs…now, tomorrow, and for years to come.


Author: Jake Baadsgaard

Follow @disruptiveads

Jacob Baadsgaard is the CEO of Disruptive Advertising. He is a passionate digital marketer and entrepreneur with 7 years of enterprise digital marketing experience. He personally managed over 40 million dollars in annual marketing budget and consulted many of the Inc. 100 companies while at Adobe, including groups like: GE,… View full profile ›


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MARKETING

The Biggest Ad Fraud Cases and What We Can Learn From Them

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The Biggest Ad Fraud Cases and What We Can Learn From Them

Ad fraud is showing no signs of slowing down. In fact, the latest data indicates that it will cost businesses a colossal €120 billion by 2023. But even more worrying is that fraudsters’ tactics are becoming so sophisticated that even big-name companies such as Uber, Procter & Gamble, and Verizon have been victims of ad fraud in recent years. 

So what does this mean for the rest of the industry? The answer is simple: every ad company, no matter their size or budget is just as at risk as the big guns – if not more. 

In this article, I summarize some of the biggest and most shocking cases of ad fraud we’ve witnessed over recent years and notably, what vital lessons marketers and advertisers can learn from them to avoid wasting their own budgets. 

The biggest ad fraud cases in recent years 

From fake clicks and click flooding to bad bots and fake ad impressions, fraudsters have and will go to any lengths to siphon critical dollars from your ad budgets.

Let’s take a look at some of the most high-profile and harmful ad fraud cases of recent years that have impacted some of the most well-known brands around the world. 

Methbot: $5 million a day lost through fake video views 

In 2016, Aleksandr Zhukov, the self-proclaimed “King of Fraud”, and his group of fraudsters were discovered to have been making between $3 and $5 million a day by executing fake clicks on video advertisements. 

Oft-cited as the biggest digital ad fraud operation ever uncovered, “Methbot” was a sophisticated botnet scheme that involved defrauding brands by enabling countless bots to watch 300 million video ads per day on over 6000 spoofed websites. 

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Due to the relatively high cost-per-mille (CPM) for video ads, Aleksandr and his group were able to steal millions of dollars a day by targeting high-value marketplaces. Some of the victims of the Methbot fraud ring include The New York Times, The New York Post, Comcast, and Nestle.

In late 2021, Aleksandr Zhukov was sentenced to 10 years in prison and ordered to pay over $3.8 million in restitution. 

Uber: $100 million wasted in ad spend 

In another high-profile case, transportation giant Uber filed a lawsuit against five ad networks in 2019 – Fetch, BidMotion, Taptica, YouAppi, and AdAction Interactive – and won. 

Uber claimed that its ads were not converting, and ultimately discovered that roughly two-thirds of its ad budget ($100 million) wasn’t needed. This was on account of ad retargeting companies that were abusing the system by creating fraudulent traffic. 

The extent of the ad fraud was discovered when the company cut $100 million in ad spend and saw no change in the number of rider app installs. 

In 2020, Uber also won another lawsuit against Phunware Inc. when they discovered that the majority of Uber app installations that the company claimed to have delivered were produced by the act of click flooding. 

Criteo: Claims sues competitor for allegedly running a damaging counterfeit click fraud scheme 

In 2016, Criteo, a retargeting and display advertising network, claimed that competitor Steelhouse (now known as MNTM) ran a click fraud scheme against Criteo in a bid to damage the company’s reputation and to fraudulently take credit for user visits to retailers’ web pages. 

Criteo filed a lawsuit claiming that due to Steelhouse’s alleged actions — the use of bots and other automated methods to generate fake clicks on shoe retailer TOMS’ ads — Criteo ultimately lost TOMS as a client. Criteo has accused Steelhouse of carrying out this type of ad fraud in a bid to prove that Steelhouse provided a more effective service than its own. 

Twitter: Elon Musk claims that the platform hosts a high number of inauthentic accounts 

In one of the biggest and most tangled tech deals in recent history, the Elon Musk and Twitter saga doesn’t end with Twitter taking Musk to court for backing out of an agreement to buy the social media giant for $44 billion.

In yet another twist, Musk has also claimed that Twitter hid the real number of bots and fake accounts on its platform. He has also accused the company of fraud by alleging that these accounts make up around 10% of Twitter’s daily active users who see ads, essentially meaning that 65 million of Twitter’s 229 million daily active users are not seeing them at all. 

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6 Lessons marketers can learn from these high-profile ad fraud cases 

All of these cases demonstrate that ad fraud is a pervasive and ubiquitous practice that has incredibly damaging and long-lasting effects on even the most well-known brands around the world. 

The bottom line is this: Marketers and advertisers can no longer afford to ignore ad fraud if they’re serious about reaching their goals and objectives. Here are some of the most important lessons and takeaways from these high-profile cases. 

  1. No one is safe from ad fraud 

Everyone — from small businesses to large corporations like Uber — is affected by ad fraud. Plus, fraudsters have no qualms over location: no matter where in the world you operate, you are susceptible to the consequences of ad fraud. 

  1. Ad fraud is incredibly hard to detect using manual methods

Fraudsters use a huge variety of sneaky techniques and channels to scam and defraud advertisers, which means ad fraud is incredibly difficult to detect manually. This is especially true if organizations don’t have the right suggestions and individuals dedicated to tracking and monitoring the presence of ad fraud. 

Even worse, when organizations do have teams in place monitoring ad fraud, they are rarely experts, and cannot properly pore through the sheer amount of data that each campaign produces to accurately pinpoint it.

  1. Ad fraud wastes your budget, distorts your data, and prevents you from reaching your goals

Ad fraud drains your budget significantly, which is a huge burden for any company. However, there are also other ways it impacts your ability to deliver results. 

For example, fake clicks and click bots lead to skewed analytics, which means that when you assess advertising channels and campaigns based on the traffic and engagement they receive, you’re actually relying on flawed data to make future strategic decisions. 

Finally – and as a result of stolen budgets and a reliance on flawed data – your ability to reach your goals is highly compromised. 

  1. You’re likely being affected by ad fraud already, even if you don’t know it yet

As seen in many of these cases, massive amounts of damage were caused because the brands weren’t aware that they were being targeted by fraudsters. Plus, due to the lack of awareness surrounding ad fraud in general, it’s highly likely that you’re being affected by ad fraud already. 

  1. You have options to fight the effects of ad fraud  

Luckily, as demonstrated by these cases, there are some options available to counteract the impact and losses caused by ad fraud, such as requesting a refund or even making a case to sue. In such cases, ad fraud detection solutions are extremely useful to uncover ad fraud and gather evidence. 

  1. But the best option is to prevent ad fraud from the get-go

The best ad fraud protection is ad fraud prevention. The only surefire way to stop fraudsters from employing sophisticated fraud schemes and attacking your campaigns is by implementing equally sophisticated solutions. Anti-ad fraud software solutions that use machine learning and artificial intelligence help you keep fraud at bay, enabling you to focus on what matters: optimizing your campaigns and hitting your goals. 


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