Monday, September 9, 2013

Facebook vs Google: The Advertising Showdown

Facebook vs Google: The Advertising Showdown
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Sept 9,  ISSUE #1899

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Facebook vs Google:
The Advertising Showdown

A SPN Exclusive Article by Tina Courtney-Brown (c) 2013

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Despite all of the negative press about the myriad mistakes Facebook is conceivably committing daily, they now rank as a $100+ billion company. While stock prices were unstable at best at the start of the year, Facebook's efforts in the advertising arena have especially proven profitable this year, with mobile leading the charge. Should Google be afraid? Oh yes, very.

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The Google versus Facebook advertising war is far from nearing the finish line, but the playing field has been significantly leveled in recent weeks. Facebook has grown mobile advertising over 76% in the last quarter, bringing in over $656 million. Google, on the other hand, had second-quarter results that fell shy of expectations, and they're watching their advertisement prices weaken each quarter.

Why Facebook is Gaining Ground
All the big guns have found adapting to a mobile world more than a little challenging, but Facebook has finally gained some ground, and that has made all the difference. New mobile formats like newsfeed ads, which provide marketing messages smack dab in the middle of a user's feed, have shown massive ROIs and success rates for advertisers.

Google Helps Funnel Advertising Dollars to Facebook
Earlier in the summer, Google launched a revamped version of Gmail, adding a tabbing system that places promotional emails in a separate category. Their intended results, on one level, appear to be working - marketers sending unsolicited messages (read: spam) are watching open and click-through rates plummet.

The result: many are spending more advertising dollars on rivals like Facebook. So while Gmail is providing a great service to users by weeding out the unwanted solicitations, they are encouraging thwarted marketers to fund their biggest competitors. With no end in sight to this trend, this could prove extremely costly long term.

.... Continue Reading at SiteProNews

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