Can Facebook beat Google in the digital advertising business?
Every business, corporation, educational institution, government, and even individual persons need to deliver messages to targeted audiences in specific situations for any given communication need.
Traditionally we used TV, radio, newspapers, and other printed media. Now we use Internet, the new media.
Internet has many communication possibilities, but there is one that seems to be the most effective, efficient and satisfactory, and that one is the Google AdWords Display Network.
Many technology or Internet companies want to participate in the digital advertising business, and as a matter of fact, many Internet companies do participate in the digital advertising business. Companies such as Microsoft, Amazon, Ebay, Skype, Facebook, Instagram, LinkedIn, Twitter, Yahoo, and many others that have big audiences, are participating in the very large and growing digital advertising business. However, there is one internet company that is winning the battle, and that one is Google.
There are many reasons behind the fact that Google is the gorilla game over dominator in the digital advertising business, however there is one main reason which is a simple one: Google advertises in Internet which is an open environment and the competitors advertise in closed login required environments which are the apps they own. Google is the king of the Internet advertising business, the competitors like Facebook and others are chimps in their own closed environments media, their apps. Google owns the Internet. You can see a Google advertisement either search or display just searching or browsing the Internet, whereas you have to login and browse to see an advertisement in Facebook, Instagram, Skype, Amazon, Ebay or any other app.
Game is not over yet. However, we could forecast that Google will be the gorilla game over dominator in the digital advertising business.
Google and Internet users are near 4.000 million, and other competitors are lower users since they are closed environments. Facebook is the second largest with 1.800 million users. Even, these users are not comparative, because it is not the same an Internet user that a closed environment user. Data for Internet users is more accurate and deeper that for closed applications. Internet content is so much larger than any app content.
We believe that Google big data is not only more accurate than Facebook big data, but also wider, deeper, and complete. Facebook big data is collected inside the application, whereas Google big data is collected in Internet. Facebook content is so much smaller than Internet content, therefore big data cannot be as competitive as Google big data which comes from Internet content and the user interaction with that content.
An open system should beat a closed system. Google should beat Facebook as it is currently beating. Google 2015 revenue was USD $ 75 billion, and Facebook 2015 revenue was 17 billion. Google is 4 times larger than Facebook. Both companies get almost 100% of their revenue from the digital advertising business. Both are digital advertisement companies.
Google not only manage to control the whole Internet content and the Internet user interests and intents, but also Google manage to control several applications and marketing products such as Gmail, Google My Business, Google Maps, Google Communities, Google Analytics, Google Translate, YouTube, Google Chrome, and several other apps where users can supply data to the Google advertising big database.
The Google 4.000 million user database is larger, more accurate, and more complete than the Facebook 1.800 million user database. They do not compete each other. Google gets the data from the whole (Internet) and Facebook gets the data from the part (app). The whole is greater than the sum of the parts, even though they might have the same pattern.
Google advertising is more effective, efficient and satisfactory than the Facebook advertising. ROI, and other advertising metrics are higher in Google AdWords than in Facebook Ads. Overall for B2B businesses.
Data shows that the Google AdWords Display Network is currently the most effective, efficient and satisfactory advertising network in Internet. Google owns a 4.000 million Internet user database with not yet 100% accurate information about each user, such as geographic location, age, gender, interests, buying intent. Additionally, Google owns a big database with all the Internet content with accurate data about the Internet content, phrases, keywords, and websites addresses or URL. With these 2 big databases Google offers advertisers the possibility to deliver a message to the 4.000 million Internet user in several segmented manners, to reach the old marketing goal: right message to the right person at the right time.
In future articles we will right about the search advertising in Google and its competitors. Search algorithms are complex matters also as display advertising algorithm is.
See you in the next article.
You can read our previous article in the following link: