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Is Bing A Better Buy Than Google AdWords For Small Business?

bing-ads-new-240pxData released yesterday by small business (SMB) marketing platform Pricing Engine argues, as a number of others have in the past, that Bing ads are a “more efficient” buy than Google AdWords. While Google has more search volume and higher CTRs, Bing emerges as a lower cost source of leads for SMBs according to the company’s analysis.

(See also, AdGooroo’s comparison of Google AdWords vs. Yahoo-Bing ad performance in six verticals.)

Pricing Engine looked at its own data from hundreds of small business accounts. It found that CTRs were marginally higher on Google but CPCs were much higher.

Bing vs. Google CTR/CPCBing vs. Google CTR/CPC

Source: Pricing Engine small business accounts analysis

Accordingly, the SMB spend was determined by Pricing Engine to be “more efficient” on Bing. While big brands may favor the higher query volume on Google, SMBs don’t demand or frankly need the same kind of scale. Indeed, in some cases, significant scale can create fulfillment problems for SMBs.

The following chart shows the average monthly AdWords spend by business category among Pricing Engine’s SMB clients:

AdWords monthly spend SMBsAdWords monthly spend SMBs

Source: Pricing Engine small business accounts analysis

This next graphic below reflects a comparison between the average CTR and CPC (for Pricing Engine clients) by business category for Google AdWords.

AdWords CTR vs. CPC for SMBsAdWords CTR vs. CPC for SMBs

Attorney services saw the most expensive clicks and the largest gap between CTR and CPC. Automotive by contrast was almost perfectly balanced.


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