If you have ever wondered why the same Facebook advertisement keeps appearing in your news feed, the infographic below may give you some clue.
In June 2012, Facebook launched the FBX system (Facebook Exchange), a real-time ad bidding system that utilizes data collected from user behavior outside of Facebook, including browse history and cookies from third party sites. When the same user returns to their Facebook profile, the system shows the relevant ads for re-targeting.
“Database = Business Revenue”, and with more than 1 billion Facebook users, Facebook is amassing a huge database. Every time we ‘like’ something, click on a notification, leave a comment, share a post, or upload a photo, we are helping Facebook collect more data.
Finally we get some real facts about the debate over Facebook versus Google advertising. According to WordStream’s infographic, Google advertising (Google display ads and Google search ads) is far more effective than Facebook advertising.
Google display ads are ads that show at Youtube, Gmail, Blogger, and approximately 2 million other popular sites. Google search ads are the ads that show at Google search results pages. Facebook advertising is compared to Google display advertising in 5 categories:
- Advertising reach (Number of audience that may see the ads) – Both Facebook and Google have great audience. Facebook currently has over 845 million users and 1 trillion pageviews per month; while Google serves up to 180 billion ad impressions monthly.
- Revenue – Google at $2.9 billion, is slightly more profitable than Facebook at $1.06 billion.
- Advertising performance – Facebook’s Click Through Rate (CTR) is 0.051%, whereas the CTR for Google Display Ads is 0.4%, which makes them 10 times more effective than Facebook ads.
- Ad targeting options – Facebook ads are limited to the Facebook community only, whereas Google ads can be served in all places; mobile, video, partner sites etc.
- Ad format – Facebook ads have size limitations. Google ads are much more flexible, with the option of text listings, multiple banner sizes, video ads and apps ads.
Will the factors above cause marketers to lose confidence in Facebook, and cause Facebook’s shares to drop further? To improve its IPO performance, we can expect Facebook to implement an advertising campaign to target mobile users, and serve their ads to partner sites. Overall, Google ads score better than Facebook ads, but this does not mean Facebook may not improve in the near future.
Social Giant (facebook) VS Search Engine Giant (Google) who will be the final winner?
Google+ integrates social services such as Google Profiles and Google Buzz, and introduces new services identified as Circles, Hangouts and Sparks. On 20 September, 2011, Google+ was opened to everyone 18 years of age or older without the need for an invitation. With Google’s Android phone system, Google plus membership was being activated on 850,000 mobile devices everyday.
One of the business advice forum member has post the following discussion:
Ggoogle+ VS Facebook, developers believe Google+ will catch up with Facebook.
“Two-thirds of respondents believe that Google can catch up to Facebook in social with Google+. When asked why, 68 percent of developers say that leveraging Google’s assets (eg: Search, YouTube, Maps, etc) trumps Facebook’s social graph lead. 49 percent say that Google shows more innovation than Facebook with new Google+ features like circles, sparks, hangouts, etc.,” it said.”
Some members replied:
It’s difficult to say, but if you look back at when Myspace was big, you would never have thought Facebook could reach it. But as we now know, it has. That said, Facebook is on a much larger scale and though Google+ will compete, I can only see it matching Facebook and not really dominating.
I don’t think so. Google is good in search engine but google+ seems still need alot of improvement
Well, in my opinion, it’s too early to say that they can overtake Facebook. Facebook has lots of fanbase and users worldwide, and adding games to G+ will not make it any better. I myself is having a hard time coping up with G+’s layout.
I worry it end up like google wave . There are many people interested just due to curious on it.
How about the voice from Google ex-staff?
It wasn’t an easy decision to leave Google. During my time there I became fairly passionate about the company. I keynoted four Google Developer Day events, two Google Test Automation Conferences and was a prolific contributor to the Google testing blog. Recruiters often asked me to help sell high priority candidates on the company. No one had to ask me twice to promote Google and no one was more surprised than me when I could no longer do so. In fact, my last three months working for Google was a whirlwind of desperation, trying in vain to get my passion back.
What do you think?
Infographic source from Single Grain