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Facebook Ads vs SEO: Which Is Better For Small Businesses?

ik@ippei.com (Tori Klein) — Wed, 13 Mar 2019 14:51:40 GMT

The right solution depends on the specific factors of the business doing the marketing. A local business is likely to find SEO highly effective while an E-commerce brand will probably get more value from Facebook Ads. Often, a combination of both online marketing strategies provides the best solution .

I’ve been a digital marketer for over three years now, using tactics like SEO and Facebook Ads to make money online . I use SEO to generate and sell leads to local business owners. I’ve used Facebook Ads to generate $48K for the client in one month from dropshipping. I compare these two popular digital marketing channels in this article so you can decide which is optimal for your situation.

Facebook Ads vs SEO: Cost

Facebook Ads cost hundreds of dollars a month on average while SEO costs thousands of dollars a month on average.

Facebook ads cost approximately $0.70 per click, according to Shopify. Data from leading digital marketing agency WebFX finds that advertisers spend $100 - $500/month on average for Facebook Ads. Facebook Ad costs can vary substantially. The cost depends on factors like competition, geographic location, and the budget and bidding parameters set up.

One entrepreneur on Reddit mentions starting with a Facebook Ads budget of just $13/day. They have since scaled their business to $250 - $380/day during high season. They note that it took them about a year of fine tuning their campaigns to generate consistent profits from Facebook Ads.

SEO costs $2,917 per month on average, according to an Ahrefs poll of 439 SEO service providers. Although SEO costs range from $250 to $10,000 per month, the majority 63% of businesses spend between $500 and $5,000. Local SEO is most affordable, costing $1,557 per month on average.

One local SEO service provider on Reddit notes that their minimum monthly retainer starts at $900/month. They typically charge $1,400, with prices varying depending on the client's niche.

Facebook Ads vs SEO: Urgency

Facebook Ads work immediately while SEO takes 3 months to over a year.

Once a Facebook Ad is set live, it starts getting displayed in front of relevant Facebook users. These users can click on it and take action on the offer. However, it’s important to note that Facebook Ads aren’t likely to generate optimal results right away. That’s because the Meta Pixel (previously Facebook Pixel) needs time to collect data and adjust the campaign targeting . The Meta Pixel is a piece of code that goes onto your website and allows you to collect user data for marketing.

According to Facebook Ads service Save My Leads, a Facebook Ads campaign has 3 distinct phases.

- Learning phase - The initial phase of a Facebook Ad campaign lasts 1 - 3 days. In this first phase, the Facebook algorithm is learning from the data collected with the Meta Pixel and optimizing ad delivery.

- Optimization phase - Lasts 1 - 2 weeks. Here advertisers have access to better data to make adjustments to the Facebook campaign.

- Stabilization phase - At around 3+ weeks, the Facebook Ads are fully optimized and should generate consistent marketing results .

SEO results typically take 3 - 6 months for local campaigns and 6 - 12+ for national and international campaigns. SEO requires more time because of Google’s complicated search algorithm. Google’s search algorithm needs to analyze a website’s performance over a period of time before it feels comfortable giving it visibility in the Google search engine. Google prefers to rank websites that see a consistent increase in backlinks and quality content published.

Facebook Ads vs SEO: Click-Through Rate (CTR)

Facebook Ads have an average CTR of 0.90% while SEO can achieve a CTR of 27.6%.

Facebook Ads have an average CTR of just 0.90%, according to a survey of businesses running FB Ads by Wordstream.

Organic Google results have a much higher click through rate. A study of over 4 million search results by Backlinko found that the first organic result on Google has an average CTR of 27.6%. The 10th and organic result on Google has the lowest CTR on the first page. It still demonstrates a CTR of 2.4%, which is higher than the average Facebook Ad CTR.

Is SEO better than Facebook Ads for small businesses?

SEO is better than Facebook Ads for small businesses. However, this is mostly true for local businesses. That’s because local SEO is much cheaper and faster than national or international SEO campaigns. Local SEO can provide small businesses with a long-term marketing channel that generates a solid ROI.

Facebook Ads are typically more effective for Ecommerce businesses than SEO. That’s because Ecommerce businesses don’t have a local identifier that lessens the competition in search engine rankings. As such, paying for effective SEO has a high cost for most Ecommerce businesses. Small Ecommerce businesses on a tight budget are usually better off paying for PPC ads like Facebook Ads rather than investing into SEO.

Overall, PPC (Facebook or Google ads) and SEO working together is a good solution because it allows a business to experience immediate results with PPC ads. At the same time, it creates a more efficient marketing channel long-term with SEO. When doing this for local businesses, I prefer to use Google Ads over Facebook Ads because the purchase intent is higher for Google searches as users are looking to buy when they search with Google.

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Money: Not The Only Thing To Think About In Your Digital Marketing Campaign

ik@ippei.com (Tori Klein) — Wed, 13 Mar 2019 14:50:46 GMT

When it comes to digital marketing, it’s easy to assume that more money equals better results. After all, increasing your budget can boost ad spend, increase visibility, and bring in more leads. While money certainly plays an important role, it is not the only thing that determines the success of your campaign. In fact, focusing solely on your budget might even limit your potential. There are several other factors that contribute to the effectiveness of your digital marketing efforts, and understanding these elements can help you craft a campaign that delivers long-term success.

1. Target Audience Insight

Understanding your target audience is the foundation of any successful marketing campaign . No matter how much money you pump into ads, if you're not reaching the right people, the return on investment will be minimal. You need to invest time and resources in developing a deep understanding of who your audience is, what they want, and where they spend their time online.

This means using tools like surveys, social media insights, and Google Analytics to gather data on their behavior, preferences, and pain points. With this knowledge, you can create content and offers that resonate with them, ensuring that your message reaches the right people at the right time.

4. Data-Driven Decisions

One of the biggest advantages of digital marketing is the wealth of data at your fingertips. Rather than blindly increasing your budget in hopes of success, make informed decisions based on the data. Tracking metrics such as click-through rates (CTR), conversion rates, bounce rates, and customer lifetime value (CLV) will give you the insights needed to optimize your campaign.

By analyzing this data, you can pinpoint what’s working and what’s not, allowing you to adjust your approach in real time. This kind of agility is often more valuable than simply pouring money into your campaign without knowing where the funds are going.

5. Optimization for SEO

While paid ads are great for driving traffic in the short term, organic traffic through search engines offers long-term value without the ongoing cost. Search engine optimization (SEO) is a crucial factor in the success of any digital marketing campaign. SEO ensures that your website ranks well in search results, making it easier for potential customers to find you.

Investing in SEO may not always require a hefty budget, but it does require time, expertise, and effort. Focus on keyword research, creating high-quality content , optimizing your website’s structure, and building quality backlinks. Over time, these efforts will pay off by boosting your organic traffic and reducing reliance on paid ads.

6. Social Proof and Reputation Management

Consumers today rely heavily on reviews, testimonials, and recommendations from others when making purchasing decisions. Social proof is a powerful tool in digital marketing, and building a strong reputation can make a significant difference in the success of your campaign.

Rather than just focusing on paid ads, invest in strategies to encourage customer reviews, testimonials, and user-generated content. Respond to feedback, engage with your audience on social media, and showcase your satisfied customers. Building a strong online reputation can help you attract and convert more customers, regardless of your budget.

7. Innovation and Creativity

Finally, don't forget that digital marketing is an ever-evolving field. While money can help you execute a campaign, creativity and innovation often set the successful campaigns apart from the mediocre ones. Don't be afraid to experiment with new formats, platforms, and strategies. Whether it's creating a viral social media post , running a fun influencer campaign, or utilizing emerging technologies like AI, finding unique and creative ways to engage your audience can often yield a higher ROI than simply increasing your ad spend.

All in All...

While money is undoubtedly an important factor in digital marketing , it's by no means the only thing that matters. To truly succeed in today’s competitive online landscape, you must focus on understanding your audience, creating quality content, staying consistent, leveraging data, optimizing for SEO, managing your reputation, and being creative.

By combining these elements with your budget, you'll be able to craft a well-rounded digital marketing campaign that delivers sustainable, long-term results. So, next time you’re planning a campaign, remember: a balanced approach is far more effective than simply throwing money at the problem.

Ready to get started with your digital advertising journey? Contact us today for a free website audit and we'll assess your unique business for the right service.