Facebook Ads vs Google Ads

Facebook Ads vs Google Ads

Facebook Ads vs Google Ads: Which Drives Better ROI in 2025?

Google Ads processes over 40,000 search queries every second and Facebook reaches more than 1.55 billion monthly active users. These staggering numbers make both platforms a powerful choice for Australian businesses that want digital advertising success.

Google Ads captures high-intent traffic from active searchers effectively. Facebook Ads provides lower cost-per-click rates that benefit business budgets. The decision between these advertising giants goes beyond their reach. Businesses need to understand which platform delivers better returns that align with their specific goals.

This comparison dives into both platforms’ performance in the Australian market and breaks down everything from cost structures to conversion rates. The insights will help you make an informed decision about your advertising budget in 2025, whether you’re planning your first campaign or optimising existing ones.

Understanding ROI Metrics

ROI measurement needs different metrics for each advertising platform. Facebook Ads tracks engagement rates and social metrics, while Google Ads measures search intent and conversion tracking.

Australian Facebook Ads show a conversion rate of 9-10%, which surpasses Google Ads at 3.75%. Facebook’s cost per click runs 56% lower than Google Ads. This makes Facebook an attractive choice for businesses with tight budgets.

Key Performance Indicators for Each Platform

Quality score and click-through rate are Google Ads’ success indicators. Advertisers can reduce their ad costs with higher quality scores. The platform rewards relevant and optimised content.

Facebook’s key metrics include:

  • Engagement rate
  • Cost per acquisition (CPA) at AUD 28.56
  • Social reach and brand awareness
  • Link click tracking

Australian Industry Benchmarks

Google Ads in the Australian market costs AUD 2.74 per click on average. Businesses spend about AUD 1,616.83 monthly on Google Ads campaigns. Facebook Ads require AUD 1,199.23. Australian businesses invest 35% more in Google Ads than Facebook Ads.

Measuring Success Beyond Direct Conversions

Customer Lifetime Value (CLV) is a vital metric for both platforms. New customer acquisition costs more than retention. Marketing efforts targeted at existing customers optimise long-term ROI. Multi-touch attribution models show how different touchpoints affect conversions. This reveals each platform’s true value clearly.

Cost Analysis & Budget Allocation

Digital advertising costs in Australia show different pricing patterns across platforms. Google Ads in the Australian market has an average cost per click between AUD 4.08 and AUD 6.45. Legal and finance sectors pay much higher rates than other industries.

Google Ads Price Per Click in Australian Market

Australian businesses spend anywhere from AUD 152.900 to AUD 30579.80 each month on Google Ads campaigns. The competition is fierce in some industries. Insurance companies pay up to AUD 20.44 per click because of the intense market rivalry.

Facebook Ads Cost Structure

Facebook Ads gives you more pricing flexibility with costs between AUD 1.07 and AUD 1.48 per click. You can choose between pay-per-click (PPC) and pay-per-impression (CPM) models. The platform also lets you control costs through lifetime or daily budgets.

Budget Planning Strategies for Maximum Returns

Making the most of your budget needs smart analysis of information. Here are the best ways to maximise your returns:

  • Track performance across all channels
  • Work out ROI for each platform regularly
  • Keep some money aside to test new channels
  • Watch seasonal patterns to adjust your spending

Australian businesses should know that Facebook campaigns need at least AUD 61.16 daily to work well. Regular budget checks and adjustments based on performance will help you get the best results from both platforms.

Platform-Specific Performance

User behaviour shapes how well each advertising platform performs. Google Ads captures active searchers who just need to buy something right away, while Facebook Ads excels at creating demand before users know what they want.

Search Intent vs Social Discovery

Google’s search-driven model differs from Facebook’s discovery-based platform that reaches users through demographic and interest-based targeting. Search ads achieve an average click-through rate of 3.17% in any discipline, which is by a lot higher than display ads at 0.46%.

Conversion Rates by Industry

Both platforms show different success rates depending on the industry. Facebook’s highest conversion rates come from:

  • Fitness sector at 14.29%
  • Education at 13.58%
  • Employment and job training at 11.73%

Google Ads also shows strong results in service-based industries, with an overall conversion rate of 4.40%.

Australian Success Stories and Case Studies

Australian e-commerce retailer Princess Polly achieved amazing results with Google Ads. Their search and smart shopping campaigns generated a 30:1 return on investment. Little Sprout’s story is equally impressive – they reached a 5.56 ROAS on Google Ads and 4.54 ROAS on Facebook Ads in just three months. These examples show how businesses can get substantial returns by optimising both platforms for their specific goals.

ROI Optimisation Strategies

Good advertising campaigns need constant tweaking and smart optimisation. The original platform-specific methods help make campaigns work better on both channels.

Google Ads Optimisation Techniques

Keywords are the life-blood of Google Ads success. Long-tail keywords bring better conversion rates at a lower cost per click. Adding negative keywords stops ads from showing up in unrelated searches and saves ad money.

Facebook Ads Performance Tuning

Dynamic creative optimisation lets you create customised ad content live. Testing different ad formats and places shows what grabs your audience’s attention best. Advantage campaign budget lets Facebook’s system put money into the ad sets that work best.

Cross-Platform Attribution Models

Multi-touch attribution tracks user-level data for media events and shows how each touchpoint affects conversion. But there are some challenges:

  • Facebook and other walled gardens don’t allow outside tracking
  • Cross-device tracking rarely matches up well
  • Matching users across platforms is tough

Incrementality testing gives a better way to measure results and learn about each channel’s value. You can use this method right in the publisher platforms to measure true value without the hassles of old attribution models.

Comparison Table

MetricGoogle AdsFacebook Ads
Average Cost Per Click (AUD)2.74 – 6.451.07 – 1.48
Average Monthly Spend (AUD)1,616.831,199.23
Average Conversion Rate3.75%9-10%
Primary Targeting MethodSearch intent and active usersDemographic and interest-based
Key Performance Indicators– Quality score
– Click-through rate
– Conversion tracking
– Participation rate
– Cost per acquisition (AUD 28.56)
– Social reach
– Link click tracking
Minimum Daily Budget (AUD)Not mentioned61.16
Best Performing IndustriesService-based industries
(4.40% conversion rate)
– Fitness (14.29%)
– Education (13.58%)
– Employment/Job Training (11.73%)
Platform StrengthHigh-intent traffic from active usersLower cost-per-click rates and broader audience reach
Example ROI Case StudyPrincess Polly: 30:1 return on investmentLittle Sprout: 4.54 ROAS

Conclusion

Australian businesses must choose between two powerful advertising platforms that offer unique advantages for different marketing goals. The Australian market data reveals Facebook Ads achieves higher conversion rates of 9-10% while Google Ads converts at 3.75%. Google Ads shows its strength by attracting high-intent traffic.

The success of Australian companies proves the value of both platforms. Princess Polly generated a 30:1 return through Google Ads, which shows search advertising’s potential. Little Sprout took a balanced approach and saw strong returns from both platforms.

Facebook Ads costs 56% less per click than Google Ads in the Australian market. Google Ads commands higher prices because it performs better for service-based industries and targets immediate purchase intent effectively.

Smart Australian businesses should think over their industry measures, budget limits, and marketing goals rather than picking just one platform. Legal and finance companies might get better results from Google Ads despite the cost. Businesses in fitness and education could do well with Facebook’s higher conversion rates and lower entry costs.

These platforms will stay crucial tools for Australian digital marketers through 2025 and beyond. The key to success lies in smart budget allocation, ongoing optimisation, and careful tracking of platform-specific metrics.

Author

  • Benjamin Paine Headshot

    Managing Director of one of Australia's leading Digital Marketing Agencies... With over 5+ years of hands on experience in SEO, managing both national & international organisations SEO strategy and campaign distribution. Having won several international awards (Search Awards, Clutch, TechBehemoth etc.) for both paid media and search campaign success... He is a front runner in leading search and defining the playbook for the Australian market.

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