Facebook Vs Youtube Ads: Which is Best For Your Business?

Video Transcript:

If you’re not sure if you should be using Facebook video ads or YouTube ads for your business, I’m going to give you all the pros and cons of each and we’re starting right now.

Hi guys, Wes McDowell here for The Deep End, and if you’re not subscribed already, you’re definitely gonna want to click that little subscribe button and the bell icon next to it so you never miss another video. you need to succeed online.

Facebook vs Youtube Ads

Okay, so today we’re gonna be talking about the differences and the similarities between Facebook video ads and YouTube ads and specifically which is going to work best for your particular business. Since we already know that video outperforms just about every other advertising medium out there, we’re going to be concentrating only on video ads today, which is why we’re pitting Facebook video ads directly against YouTube ads.

So you don’t know how much you already know about Facebook ads, but basically the inventory is extremely limited at this point. They’ve actually come out and said they are pretty much at capacity, which means you’re competing with a lot of other advertisers, which means the prices go dramatically up.

YouTube ads on the other hand have stayed pretty much about the same. Now we have to ask yourselves, is that because it’s not as good of a platform or it’s just more of a closely kept secret?

In other words, are YouTube videos just a secret weapon that most businesses have not taken advantage of yet?

Now when we’re trying to decide what’s going to work best for your business, there’s a few factors we have to keep in mind. The first being who are your customers specifically? What did they all have in common? Next, what are you trying to accomplish with your ad? Is it a brand awareness play? You’re just trying to get your name out there, or is it more of a direct response offer style ad? Also, how much explanation does your product or service need in order for a sale to happen? How long is the typical sales cycle?

Was it kind of a quick, easy process or is it a longer one with more salesmanship needed? Okay, so in this video we’re gonna talk about four factors that’ll help you decide targeting options, your objective for the ad cost, and finally conversion rates. So starting right at the top, we’re going to talk about targeting options. So for any of this really to work, you have to have a very good idea about who your ideal customer is because that’s what makes social media marketing so effective is that you can put your ads only in front of the right people which makes it run more efficiently and it brings your ad costs way down, but it’s really important to know that Facebook and YouTube both offer different options of when it comes to targeting your customers. Some are similar, but there are quite a few differences as well.

Now on the similar side, both allow you to retarget visitors from your website, which can be very powerful, but YouTube has a specific advantage because of course it’s owned by Google, so you can target people to see your who have a very specific search history, so if you offer accounting services, you can target people who have been typing in accounting phrases into Google and even cooler. They’ve identified people that are specifically in market for what you have to offer. So if you were to offer dog training services, Google actually knows who is actively looking for dog trainers and you can serve your ads in front of only those people, which is really cool. Another way YouTube has an advantage is you can target very specific videos on YouTube to put your ad in front of. So let’s say you’re a plumber and you found a video that teaches people how to fix their kitchen sink.

It would make a whole lot of sense to put your ad advertising, your plumbing services in front of people who are watching that video, who are in your specific location. And last but not least, since Google owns it, they know what websites people have been to. So you can target people who have been to specific websites. This is really powerful when you think about targeting your competition’s websites with your own ads, so that’s on the YouTube side. But with Facebook they have some specific advantages as well with targeting, uh, they had generally have better geographic based targeting, meaning you can really pinpoint very specific areas. A YouTube is a much more limited on that and also when it comes to age groups. So YouTube basically has buckets of ages that you can target 18 to 24 and so on. But with Facebook you can really target exact ages.

And Facebook also generally has better interest based targeting. So if you know your audience follows a certain celebrity or reads a certain magazine or follow something or is just generally has a hobby, um, are all around one interest, Facebook is definitely a better way to target those specific interests. Although I do need to point out with that recent Cambridge Analytica a scenario that happened a few months back, some of these have been reduced somewhat. So Facebook’s targeting isn’t quite as powerful as it used to be, but it’s still pretty powerful. Okay. So the next, uh, overall topic we want to talk about is your objective. So are you trying to just put your brand in front of the right people so that they’re aware of your business? Or are you really trying for more of a direct response ad? So basically how this breaks down is YouTube is much better for having people stick around to watch your videos.

Because think about it. People don’t go to Facebook to watch videos, especially if their ads, but the average person going to YouTube is there to watch video content. So if it’s a branding player after YouTube is definitely going to get the win for this because people are much more likely to stick around and watch more of your video. But if you’re trying to actually drive action and get people to click through to your website to take a specific action. Facebook has generally been better about this, uh, the click through rates are generally quite higher on Facebook, but YouTube has upped the ante to some degree lately with their new ad platform called TrueView for action in which they have a brand new overlay, a similar to this one right here. Don’t click on it, it doesn’t actually work just to show you what it looks like, but basically it adds much more of a call to action that existed previously.

So it has gone up. Just to give you an idea, the click through rate for a just standard TrueView ads is point one four percent, but it’s point four, one percent for TrueView for action ads. Okay. So next step, I want to talk about costs because I know that’s probably on your mind specifically. Let’s talk about how you’re charged on each platform. So with YouTube they only charge you when someone watches 30 seconds or more of your video, which is actually a pretty generous watch time. Compare that with Facebook who defines a view as three seconds. But before you think that YouTube is the clear winner here, um, I shouldn’t say that Facebook doesn’t actually charge you based on video views. They charge you based on thousand impressions or even better per click to your website. So just to sum it up, YouTube will definitely usually be a cheaper video view with longer video views at the same time, making it a better brand awareness play than Facebook.

But because you generally will get more click throughs to your website on Facebook, you might end up paying a lesser price per click through. Okay. Now, next we’re going to be talking about conversion rates, so it’s very important to distinguish here between a conversion and a click through. So a click through is just that it clicked through to your website, but it conversion is when someone actually takes the desire to action on your site. So we’ve already covered the fact that Facebook generally gets better click through rates to a website, but with YouTube there’s better brand awareness and people can spend a little bit more time with your videos, which might mean a higher conversion rate over time. Not right in the short run, but in the long run you might actually see a higher conversion rate with YouTube, and this is especially true if what you offer as a higher ticket product or service that needs a little bit more warming uptime.

So basically YouTube allows you to build more of a relationship with your potential clients, a really establishing you as an expert, which can result in more informed clients who respect your input more, resulting in a better quality client over time. And this is really great for anyone who consults as a service. Now we know it always helps to see some examples. So let’s take a look at one specific case where a Facebook ad probably is the clear winner. So right up front, let’s talk about the idea of a pizza restaurant. Um, you’ve got one clear offer which is an $8 pizza. And since it’s such a low price point, it’s going to be a very short sales cycle, which means you can go right for that direct response ad. So Facebook is great for this because you can just geo target people in the neighborhood and you can put that offer in front of them with the video and the accompanying headline, which you don’t get in YouTube.

Okay, so now let’s talk about a use case where a YouTube video might be more beneficial. Let’s say you’re an interior designer since interior design is a very visual medium, you’re definitely gonna want more watch time and you’re definitely gonna want to sell the benefits of going with an interior designer and in most cases, what I would recommend here is warming up a cold audience first with content like advice based content, and then following that helpful content up with retargeting ads that go for that more direct response to a free consultation with yourself. And that direct response ad would just go to anybody who viewed the first helpful content APP. Okay, so verdict time. Uh, so basically what I would say is if you offer a less expensive product or service with a shorter sales cycle without a need to overly explain what you offer, I would go ahead and say Facebook ads are probably going to work best for you.

On the other hand, if you offer something more expensive that needs a bit more of a decision over time and a little more salesmen ship with it, I would definitely recommend YouTube content style ads followed by retargeting all those views of that ad with a more direct response ad to a consultation of some type. Not only is this better for warming up the prospects, but using YouTube, you can actually target people who are in market for your product or service because remember, the targeting options allow for that only in YouTube, not Facebook. Okay. So now I want to hear from you. I want to know specifically which of these two platforms do you think is going to be a better fit for your business? Based on what we talked about, or if you need help deciding, you can leave any information that’s relevant to your business. In the comments below, and I will do my best to help you decide which option is going to be best for you.

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