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:

  1. Focus on High-Intent Keywords: Target commercial and transactional keywords

  2. Optimize for Local: Use location extensions and local inventory ads

  3. Leverage Ad Extensions: Sitelinks, callouts, and structured snippets

  4. Mobile Optimization: 60% of Canadian searches happen on mobile

  5. Negative Keywords: Prevent irrelevant clicks that waste budget

Maximizing Facebook Ads ROI:

  1. Visual Storytelling: High-quality images and videos perform best

  2. Test Multiple Audiences: Don't rely on one targeting approach

  3. Retargeting Strategy: Create custom audiences from website visitors

  4. Video Content: Video ads generate 30% more engagement

  5. 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.

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