Facebook Ads Show Great Growth in 2010, But Don't Leave Your AdWords Behind

January 20, 2011 by Traci McMurray

The latest estimate from eMarketer shows that Facebook's advertising revenue increased 151% in 2010, bringing in a whopping $1.86 billion to the social media behemoth.

The most interesting part of this study? Small companies made up for a majority of that revenue, accounting for 60% of the business or $1.12 billion -- a much larger amount than the $740 million coming from big brands like Coke, P&G and Match.com

So why are small businesses flocking to advertise on Facebook? Many of these small businesses also use Google AdWords to advertise, but Facebook certainly dominates Google in the ability to target its users.

While Google can only tell location and search words for most of its advertising (the exception being the Google Display Network, which only has demographic information volunteered by its network members), Facebook knows nearly everything one might want to know about its users. Age, location and music preference all available. Does this user enjoy running? Car enthusiast? The specificity of Facebook targeting allows for a much more cost-effective campaign, allowing smaller business campaigns to flourish.

Granted, this targeting does not mean that a company should abandon paid search initiatives. Google AdWords is still the big player in PPC advertising, and by not advertising there companies would be missing many great opportunities.

Want to find the right balance in your company's PPC advertising efforts? POM8 offers comprehensive solutions in PPC advertising, as well as a broad range social media solutions for businesses of every size. If you'd like to learn more please contact us for more information.

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