Google Ads vs Facebook Ads: Which One Is Better for Small Businesses?

Startups and small business owners often find themselves in a state of confusion

In a competitive market like Toronto, choosing between Google Ads Toronto and Facebook Ads Toronto campaigns can significantly impact your visibility, ROI, and long-term growth. Understanding your audience's behavior in this region is key to running successful ads. and indecision when trying to choose between Google Ads and Facebook Ads. Surprisingly, for both platforms, paid advertising is the primary source of revenue. According to a report, Facebook earns around 97% of its revenue from paid ads. Similarly, Google Ads is a major income driver for Google. 

But for businesses, choosing the right platform can be a make-or-break decision. Imagine a business opts for Google Ads, but Facebook Ads would have been more effective for their audience. If they invest thousands of dollars in the wrong platform, they could end up wasting a significant amount of money.

In short, for some businesses, Google Ads is better than Facebook Ads because their target audience is more present there. And for a few businesses, Facebook Ads is a more valuable option simply because the chances of conversion are much higher. 

In this blog, we’ll help you decide which platform; Google Ads or Facebook Ads is better suited for your business when it comes to paid advertising. The debate between Google Ads vs. Facebook Ads has been ongoing for years, and that’s because there’s no one-size-fits-all answer. As a small business, we understand that your budget is limited and every penny counts. That’s why we’re here to ensure you get the most value out of your advertising investment.

Key Similarities And Differences Between Facebook And Google Ads 

Facebook and Google ads both are the mode of paid advertisement. That said, there are some major Similarities And Differences Between Facebook And Google Ads. As a small business you must be familiar between both of them to pick the right platform for your paid advertisement. 

Similarities Between Google and Facebook Advertising

1. Pay-Per-Click (PPC) Model

Both Facebook ads and Google ads operate on Pay-Per-Click (PPC) Model. Meaning when someone watches the ads, interacts with it or clicks it the platform will charge you accordingly.

2. Domination

Both Facebook and Google are the most used and leading platforms in their respective fields. Google is the most used search engine with 8.5 billion searches daily. Similarly, facebook is used by 2 billion humans making it the most used social media platform in the world.

3. Ad Formats

Both Facebook and Google offer multiple ways and places to show your ads. 

4. Customizable Budgets

Both platforms offer daily and lifetime budget options, allowing you to test your ads more efficiently without the stress of overspending.

5. Remarketing Capabilities

If you want to target users who have previously interacted with your ads, both platforms offer retargeting options.

Google Ads Vs Facebook Ads: Key Differences 

1. User Intent

When you use Google Ads, you're targeting an audience actively searching for the products or services you offer, which means the chances of conversion are significantly higher. On the other hand, Facebook Ads target people based on their interests and behaviors—these users might not be ready to buy at the moment, but they’ve shown some level of interest in what you’re offering.

2. Ad Placement

The biggest difference between Facebook and Google Ads is in their ad formats and placements. With Google Ads, your ads can appear in search results (SERPs), as display ads (banners), video ads on YouTube, and shopping ads.

Facebook Ads, on the other hand, allow you to display ads not just on Facebook, but also across Messenger, Instagram, and the Audience Network—which includes a wide range of mobile apps and partner websites.

3. Targeting Options

When it comes to targeting, both Google Ads and Facebook Ads offer comprehensive and in-depth options. You can target users based on age, gender, location, income level, and many other factors on both platforms.

However, at some level, Facebook outperforms Google when it comes to targeting capabilities. One reason for this is the vast amount of user data Facebook collects. To use Facebook, users are required to create an account and share personal information such as age, interests, location, and more. This allows Facebook to offer more refined and advanced targeting options, helping businesses reach their ideal audience more effectively.

4. Cost & ROI

If you're looking for fast conversions and immediate sales, Google Ads is generally more effective than Facebook Ads. However, there's a downside—Google Ads tends to be more expensive. The average cost-per-click (CPC) for Google Ads is around $2.69. On the other hand, Facebook Ads are more affordable and can reach a larger audience, but the average click-through rate and conversion rate may be lower compared to Google Ads.

Google ads or Facebook ads: Which one is a better option for SMBs

Advantages and Disadvantages of using Google and Facebook ads for small business

Before deciding which paid advertsing platform can give you better results, go through the advantages and disadvantages of both platforms. 

Advantages of using Google ads  

1. The biggest reason small businesses should use Google Ads is that it targets people actively searching for the products or services you offer. As a result, the likelihood of conversions is much higher.

2. The conversion rate is typically higher than Facebook Ads, if the campaign is set up correctly.

3. You don’t need a large investment to start with Google Ads. You can begin with a small budget and gradually increase it as you start seeing results.

4. Google Ads offers four main ad formats: Search Ads, Display Ads, Video Ads, and Shopping Ads. You can choose the most suitable format and placement based on the nature of your business and marketing goals.

5. Targeting based on keywords such as “buy custom logo,” “buy shoes online,” or “mobile app development company” typically results in a higher conversion rate.

6. Google Ads delivers immediate visibility and detailed performance data, so you can track ROI and make smart decisions quickly.

Disadvantages of using Google ads  

1. The biggest downside of using Google Ads is that it can be quite expensive for small businesses due to the high cost-per-click (CPC).

2. For a small business owner, hiring a company to manage Google Ads can be out of budget. Running Google Ads on your own requires familiarity with the Google Ads Manager tool.

3. Running Google Ads on your own can be a big challenge for small business owners, as setting up a campaign can be a complicated process for some.

4. For brand awareness and engagement campaigns, Google Ads might not be the best platform.

5. To run Google Ads effectively, you need to have a basic understanding of SEO concepts like keywords, search intent, and meta titles and descriptions.

Advantages of using Facebook ads 

1. The in-depth and comprehensive audience targeting offered by Meta Ads Manager is second to none. With the right strategy and placement, you can effectively reach the right audience.

2. Compared to Google Ads, Facebook Ads are much more affordable due to their lower cost-per-click (CPC), making them a great option for small businesses.

3. With Facebook Ads Manager, you can show your ads on Instagram, the second-largest social media platform with over 2 billion users. For high-end brands and products, Instagram can be a valuable advertising option.

4. With the Share option, your target audience can share your ads on their profiles, helping you reach a larger audience for free.

5. For brand awareness and engagement campaigns, Facebook Ads have the upper hand.

6. Based on your product and business type, you can choose from photo ads, video ads, or carousel ads. Video ads are excellent for brand awareness and engagement, while carousel ads work especially well for e-commerce products.

   
   

Disadvantages of using Facebook ads  

1. Compared to Google Ads, Facebook Ads are less conversion-driven because they target customers based on interests and behavior. Therefore, the chances of conversion are generally lower.

2. Facebook Ads are all about the creatives. The more engaging, high-quality, and visually appealing your images or videos are, the better the results. That’s why it's often necessary to invest in strong creative assets by hiring graphic designers or video animators.

3. Often, the people who like your page or visit your website after engaging with your Facebook ads may turn out to be fake accounts or casual browsers commonly known as window shoppers rather than genuine buyers.

4. An alternative to Google Ads or PPC is SEO, which takes time to show results but offers long-term and consistent gains. However, organic posts on social media tend to have little to no impact.

   
   

Google Ads Vs Facebook Ads: What Should You Choose As A Small Business For Success?

As a small business owner, the best platform for paid advertising depends on your product, business type, and target audience. For instance, if you're selling high-intent products like hot water heat pumps or air conditioners, Google Ads should be your primary focus. That’s where customers are actively searching for solutions — so allocating around 80% of your ad budget to Google and 20% to Facebook can deliver the best results.

On the flip side, if you're selling visually appealing products like clothing, shoes, or cosmetics, Facebook Ads (including Instagram) should take the lead. These platforms are great for discovery and engagement, so 80% of your budget here and 20% on Google Ads is a smart move.

In short, your advertising strategy should align with your product type, business model, and customer behavior. The right balance can maximize your return and help you grow smarter.