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Comment by kposehn | Hacker News Reader

FB and Google CTR is like comparing apples and unicorns :)

Typically with FB, you are doing well if you are finding anything near 0.05% CTR. Remember, these are content ads and not paid search.

Paid search you should be hitting 5%+ CTR on your top search keywords (in position 1-2, around 3% for #3 and 2% or less for anything below). On FB, getting an ad with a consistent 0.077% CTR means they are on to something and should keep going.

Don't knock FB off your list of advertising venues though. Each one is different and has a completely different dynamic, approach to users and value proposition. With paid search you bid on user intent through keywords - what they are looking for right now. On Facebook you are bidding on people and trying to get their attention, a big difference :)

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With paid search you bid on user intent through keywords - what they are looking for right now. On Facebook you are bidding on people and trying to get their attention, a big difference :)

That's a very important distinction I hadn't really considered. Their method for "targeting" is entirely different.

I wonder which is more effective?

Well, each has a particular use and place. Typically, if you're selling widget software, you should start first with paid search by bidding on various widget related exact-match keywords. Go for people that are searching right now for your kind of product or service.

Facebook comes in to play when you know the sort of person you want. Their age, interests, location, education, etc. You can bid on them there and appeal to their situation, needs and interests directly. If you are selling XYZ service for race car drivers, you can appeal to people that love racing cars with an article and lead form telling them how XYZ service is highly essential for their profession.

Different approaches but still profitable. We spend about 40% of our monthly budget on search and 60% on Facebook. FB is very good when trying to generate leads that you eventually turn into sales. Paid search is very good when you want someone to take out their wallet and buy right the hell now, but you also will pay far more for that person.

It isn't clear to me that the users clicking the most popular version of their ad were not more interested in beer than in their product.

You got it exactly right. You can see how my numbers added up between Google and Facebook (http://blog.fairsoftware.net/2011/04/01/sell-your-google-sto...). Facebook allows you to attract people who don't know they could use your product (in my case, an entrepreneur conference - when is the last time you googled for a founder conference?). So yes, conversion rates are lower.

I call it discovery vs. intent. Google allows you to capture people's intent. Facebook allows you to let your target demographic discover new products.

Which is the Apple and which is the Unicorn?

They switch places depending on AdWords QS and FB's approval policies :D

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