We are now living in a digital-first world and tech startups are constantly looking for effective ways to reach target audience. They are usually tight with budgets and expect high. Paid advertising is of course a go-to strategy for many of them and two biggest platforms in the space are Google Ads and Microsoft Advertising. Both come with valuable features and here we will try to briefly break down to understand which one works best for a growing tech startup.
Search Market
Google Ads is undoubtedly the biggest player in the digital advertising space. Data reveals that it dominates the global search market with more than 90% market share. This means that the ads here can appear across billions of daily searches like YouTube videos, Google Maps and partner websites.
Microsoft Advertising is like an underdog. It was formerly named Bing Ads. It powers search ads across Bing, Yahoo and DuckDuckGo. Its global share is much smaller compared to Google Ads. However, it has a strong presence in desktop search and particularly in the United States. It accounts for more than 30% of desktop traffic.
Google Ads is of course the obvious choice for startups seeking large-scale visibility. Meanwhile, search network of Microsoft may offer hidden value and especially when the startups are want to target older professionals and desktop users.
Cost Efficiency
It is very true that startups often operate a tight budget and advertising costs play a major role in their decision-making. Google Ads comparably tends to cost high costs per click (CPC) due to intense competition. Moreover, popular tech keywords are highly expensive. The Google CPC is around $2.69 and its cost per acquisition (CPA) may go up to $49.
Microsoft Advertising offers lower CPCs and it is roughly around $1.54. It has slightly cheaper CPAs and it is around $41.44 due to less competition.
Microsoft can be a smart platform to start for startups testing their first campaigns. The pay is comparatively less per click and gives more data as well as leads for the same spend.
Target Audience
Understanding your audience is highly important while choosing an ad platform. The reach of Google is obviously broad and includes users of all ages as well as backgrounds. Google Ads might connect with more potential customers if the startup targets a general or tech-savvy audience.
Microsoft Advertising attracts a different demographic. Its users are mostly older or those who use desktop devices. Microsoft may offer higher-quality leads for B2B startups or for those who are selling enterprise software.
Microsoft stands apart due to its integration with LinkedIn. Advertisers can easily target people based on their job title, company, industry or seniority. Startups selling business tools or services can gain more on Microsoft Ads.
Performance and Conversion Rates
Google Ads usually delivers higher click-through rates (CTR) and conversions due to its scale and robust targeting features. It benefits from better mobile ad delivery as well as a wider range of ad types such as YouTube video ads and display ads on the Google Display Network.
The CTR in Microsoft Advertising may be slightly low compared to that of Google Ads. The conversion rates are often competitive and especially for startups who are focusing on desktop users or professional services. The leads can be more qualified as the audience is more focused as well as less distracted.
Do take a note that conversion depends on more than just the platform. It depends on the product, the offers and also on the landing pages.
Tools and Features
The Google advertising platform is of course highly feature-rich. It includes advanced bidding strategies, detailed audience targeting, responsive search ads and deep integrations with various tools like Google Analytics and Google Tag Manager. However, the features are complex and not easy to figure out easily. New users often find Google Ads difficult to navigate.
Microsoft Advertising is slightly simple and offers many of the same core tools. It allows easy import of campaigns from Google Ads. It provides enough customization for serious marketers and with a straightforward interface.
The easier startup and better customer support of Microsoft save hours of frustration if the team lacks deep marketing expertise.
Analytics and Insights
Both offer several ways to track performance, measure conversions and optimize campaigns. The strength of Google lies in its seamless integration with the rest of its ecosystem. Startups can easily track user behavior across a website, set goals in Google Analytics and even use Google Tag Manager to manage marketing tags.
Microsoft has come up with its own tool called Universal Event Tracking (UET). It provides good performance data even though it is not as flexible as Google analytics tools. However, it does a great job for basic reporting and tracking.
Startups relying heavily on data-driven decision-making usually appreciates the depth of insights offered by Google. However, the built-in reporting of Microsoft may be easier to manage.
Consumer or Business Focus
Google Ads likely offers the best reach and performance if the tech startup is selling a consumer product or app. It has wide audience, several video advertising options and enjoys dominance on mobile devices. All these are important for B2C campaigns.
The ability of Microsoft to target users based on LinkedIn data makes it extremely powerful for reaching decision-makers, executives and industry professionals. A software startup selling SaaS platform for HR, IT or sales teams may find Microsoft network better.
However, it is here to note that many successful startups use both platforms. They test the performances on both the platforms and adjust campaigns based on what works better. A combined strategy usually offers a broader visibility and without overspending of course.
Verdict
By now you may not be confused between Google Ads and Microsoft Advertising. Both come with their own unique strengths. Your goals, budget and target audience should guide which platform to choose.
Google Ads provides unmatched reach and advanced tools. However, it often comes with higher costs and a steeper learning curve. Microsoft Advertising meanwhile offers a more affordable entry point equipped with less competition and powerful B2B targeting via LinkedIn integration.
Startups may consider testing both the platforms with small budgets and keep a watch which works better. It is suggested to analyze the quality of leads and not just the number of clicks. Tracking the results closely are important to avoid wasting money.