facebook close to be crowned as king of online advertising

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For a decade now Google had been the undisputed king in the online advertising. Google is still collecting 1/3 rd of the $140 billion ad market in 2014. Google’s share has slightly dipped over the past 2 years to 44.6%. 1

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Page 1: Facebook close to be crowned as king of online advertising

• For a decade now Google had been the undisputed

king in the online advertising.

• Google is still collecting 1/3rd of the $140 billion ad

market in 2014.

• Google’s share has slightly dipped over the past 2

years to 44.6%.

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Page 2: Facebook close to be crowned as king of online advertising

• Facebook is gaining very fast in the current market.

• Facebook’s share has doubled in last 2 years to 80%

according to marketers.

• It is able to leverage its huge membership of 1.3

billion people around the world.

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Page 3: Facebook close to be crowned as king of online advertising

• Facebook unveiled its “audience network” earlier this month

that mines what it knows about its users to target ads.

• The world's biggest social network is particularly well-equipped

to deliver "targeted" ads that aim to be relevant, based on the

browsing history of each users, in part by using the "Facebook

login" feature for many websites and services.

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Page 4: Facebook close to be crowned as king of online advertising

• Because of that Facebook login, it is possible to track people across

devices and understand their behavior.

• While privacy activists object to so-called behavioral marketing,

this type of advertising is generally seen as effective because it

makes more efficient use of ads.

• Tech firms are starting to learn this, and find ways to track

behavior as users switch from their PCs to tablets or smartphones.

• One of the biggest challenges for advertisers for the rise of mobile

is not only technical things, it's really understanding how people use

the devices together.

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Page 5: Facebook close to be crowned as king of online advertising

• Facebook and Google have the same competitive advantage in the

landscape, they have the unique login that can be used to identify the user

across different devices .

• They both have the ability to do it, but Facebook acted on it first. Google

is being expected to make some announcement in the near future of some

kind of ad network that is going to do cross-devices targeting.

• Google took the first step in that direction in early October, unveiling a

tool that allows marketers to determine when an ad delivered on one

platform results in a purchase on another.

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Page 6: Facebook close to be crowned as king of online advertising

• Google and Facebook are not the only companies using these techniques.

Wise said rival firms, such as Twitter and online radio Pandora, also can

monitor the activity of its users for marketing. Other such as Apple have the

capacity to do so through its login feature.

• Twitter has seen ad revenues grow at a rapid pace in the past two years,

but it still holds less than one per cent of the market, behind rivals like

Microsoft, Yahoo and AOL.

• According to e-marketers, it's not clear if any rival can challenge Google on

"search advertising," the system which uses keywords for search queries to

deliver ads related to those searches. Because Google is overwhelmingly

dominant as a search engine, it logically controls most of the ad search

market as well.

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