Google Ads vs. Facebook Ads: Which Platform Delivers Better ROI for Canadian Businesses?
Canadian businesses spend over $8 billion annually on digital advertising, with Google Ads and Facebook Ads capturing the largest share. But which platform delivers better ROI for your specific business? The answer isn't straightforward – it depends on your goals, audience, and industry.
Understanding the Fundamental Difference
Google Ads: Captures demand that already exists. When someone searches "plumber near me," they have immediate intent to hire a plumber.
Facebook Ads: Creates demand by introducing your product or service to people who might not be actively searching for it.
Think of Google Ads as fishing where you know the fish are hungry, while Facebook Ads is about making fish hungry for what you're offering.
Audience Targeting: Precision vs. Discovery
Google Ads Targeting Strengths:
Keyword Intent: Target people actively searching for your products/services
Geographic Precision: Excellent for local Canadian businesses
Device and Time Targeting: Reach people when they're most likely to convert
Remarketing: Re-engage website visitors with high purchase intent
Facebook Ads Targeting Strengths:
Demographic Depth: Age, income, education, life events
Interest-Based Targeting: Hobbies, pages liked, behaviors
Lookalike Audiences: Find people similar to your best customers
Custom Audiences: Target your email list or website visitors
Winner for Canadian Businesses: Google Ads for immediate needs (emergency services, urgent purchases), Facebook Ads for lifestyle products and longer sales cycles.
Cost Comparison: What Canadian Businesses Actually Pay
Average Cost Per Click (CPC) in Canada:
Google Ads:
Legal services: $6.75 - $12.50
Insurance: $4.25 - $8.75
Real estate: $2.50 - $5.25
Retail/E-commerce: $1.25 - $3.50
Local services: $3.75 - $7.25
Facebook Ads:
All industries average: $0.85 - $2.25
B2B services: $1.50 - $3.75
E-commerce: $0.75 - $1.85
Local businesses: $1.25 - $2.95
Reality Check: While Facebook appears cheaper, Google Ads often delivers higher-intent traffic that converts better, potentially offering superior ROI despite higher costs.
Conversion Rates: Quality vs. Quantity
Typical Conversion Rates by Platform:
Google Ads:
Search campaigns: 3.75% - 7.25%
Display campaigns: 0.85% - 2.15%
Shopping campaigns: 2.25% - 4.75%
Facebook Ads:
All campaign types: 1.25% - 3.85%
Lead generation: 2.75% - 6.25%
E-commerce: 1.85% - 4.25%
Key Insight: Google Ads typically convert better because users have higher intent, but Facebook Ads can generate more awareness and top-of-funnel activity.
Industry-Specific Recommendations for Canadian Businesses
Choose Google Ads When:
Emergency Services: Plumbing, electrical, HVAC, towing
Professional Services: Legal, accounting, consulting
High-Intent Purchases: Insurance, real estate, automotive
Local Services: Restaurants, salons, fitness centers
B2B with Search Volume: Software, equipment, supplies
Choose Facebook Ads When:
E-commerce: Fashion, home goods, electronics
Lifestyle Brands: Fitness, beauty, wellness
Event Promotion: Concerts, workshops, local events
Brand Awareness: New businesses or products
Complex Sales Cycles: High-ticket items requiring education
Use Both Platforms When:
Retail Businesses: Google for product searches, Facebook for brand building
Service Businesses: Google for immediate needs, Facebook for long-term relationships
SaaS Companies: Google for feature searches, Facebook for problem awareness
Platform-Specific Success Strategies
Maximizing Google Ads ROI:
Focus on High-Intent Keywords: Target commercial and transactional keywords
Optimize for Local: Use location extensions and local inventory ads
Leverage Ad Extensions: Sitelinks, callouts, and structured snippets
Mobile Optimization: 60% of Canadian searches happen on mobile
Negative Keywords: Prevent irrelevant clicks that waste budget
Maximizing Facebook Ads ROI:
Visual Storytelling: High-quality images and videos perform best
Test Multiple Audiences: Don't rely on one targeting approach
Retargeting Strategy: Create custom audiences from website visitors
Video Content: Video ads generate 30% more engagement
Mobile-First Creative: 94% of Facebook users access via mobile
The Hybrid Approach: Best of Both Worlds
Many successful Canadian businesses use both platforms strategically:
Phase 1 - Awareness (Facebook):
Introduce your brand to potential customers
Build custom audiences for retargeting
Generate initial interest and engagement
Phase 2 - Consideration (Both Platforms):
Retarget Facebook audiences with Google Display ads
Use Facebook to nurture leads with valuable content
Capture search traffic with Google Ads
Phase 3 - Conversion (Google):
Target high-intent keywords
Retarget website visitors with specific offers
Focus on bottom-funnel search terms
Measuring Success: KPIs That Matter
Google Ads KPIs:
Cost per acquisition (CPA)
Return on ad spend (ROAS)
Quality Score
Search impression share
Conversion rate by keyword
Facebook Ads KPIs:
Cost per lead (CPL)
Click-through rate (CTR)
Engagement rate
Video completion rate
Lookalike audience performance
Making the Right Choice for Your Business
Start with Google Ads if:
You have a limited budget and need immediate results
Your customers actively search for your products/services
You're in a high-intent industry (legal, medical, emergency services)
You want to capture existing demand
Start with Facebook Ads if:
You're launching a new product or service
Your audience doesn't actively search for solutions
You have strong visual content
You want to build brand awareness
Use both platforms if:
You have sufficient budget ($2,000+ monthly)
You want to dominate your market
You have both immediate and long-term goals
You can manage multiple campaigns effectively
The Bottom Line
There's no universal winner between Google Ads and Facebook Ads. The best platform depends on your business goals, target audience, and industry. Many successful Canadian businesses use both platforms strategically, leveraging Google's high-intent traffic and Facebook's powerful audience targeting.
Ready to determine which platform is right for your business? Contact Bright Bridge Agency for a free consultation. We'll analyze your business goals, target audience, and competition to recommend the optimal advertising strategy for your Canadian business.