eCommerce Advertising Facebook Google

A recent study casts doubt on the value of Facebook advertising for retailers.

The Ireland-based agency Wolfgang Digital recently completed a study in which they analyzed over 55 million eCommerce website visits and the resulting $270 million of revenue, and they came away with what we think are some shocking insights.

Google > Facebook

Before you get all hot and bothered by that rather inflammatory header, just know that we’re not taking sides in the epic (read: nonexistent) Facebook versus Google Plus debate, but we are saying that Google trumps Facebook in one specific way. One very specific way that should be of great interest to eCommerce retailers — display advertising. If you’re an eCommerce manager and you’re wondering whether to put more money into Facebook advertising or Google AdWords, all you need to know are the following four figures from the study:

70% of traffic and 70% of revenue came from Google (organic + paid search)
1.4% of traffic and 1% of revenue came from Facebook referrals

Don’t get us wrong here, either — we’re not saying Facebook, or social in general, is unimportant; quite the opposite, actually. Social media channels present some great opportunities for eCommerce retailers to reinforce their brands, interact with customers, promote products, and more. But apparently, Facebook just isn’t the greatest for display advertising.

So should eCommerce retailers advertise on Facebook? Our short answer: no, probably not.

Agree? Disagree? Decline to comment? Feel free to share your thoughts below, unless you belong to the lattermost group.
Echidna Team
Echidna Team
Echidna is an eCommerce agency based in Minneapolis. We drive eCommerce transformation, create inspired customer experiences, enable eCommerce technologies, and help retailers attract and convert customers. Feel free to email us with any questions related to eCommerce design, technology, or marketing.