Covario, a search marketing agency, ran a campaign for Intel on paid search and on Facebook in seven countries, including the United States.
They found that on a dollar-for-dollar basis Facebook and Google performed the same. However, when the budget was ramped up by 10 times, the statistics didn’t degrade for Facebook in any way. For 10 times the spend, they delivered 10 times the results.
In fact they saw 100 times the impressions delivered on Facebook as delivered through paid search on Google, Yahoo, and Bing during the campaign run. The key point is that the inventory available on Facebook is huge, its global, and its growing.
So where should the budget for Facebook campaigns come from?
In 2011 Covario’s clients are planning on major budget increases for Facebook advertising. They estimate that advertisers are planning to spend between 10% and 20% of their pay-per-click (PPC) budgets on Facebook.
This budget is not coming out of PPC. It’s coming from display or offline budgets, or as an incremental override to the overall digital budget, specifically increasing the shift toward digital more aggressively.
Facebook has passed the tipping point. Search is still performing. Facebook is performing too — better than display and comparable to search. Facebook is delivering truly big time inventory, at comparable pricing to PPC, and with display-like CTRs.
Is your company still wondering whether it’s worthwhile advertising on Facebook?