In brief
Facebook could catch up with Google in mobile advertising, but the best choice depends on business goals. Facebook helps build awareness, while Google Search connects businesses with consumers who already intend to buy. The article cites a 2017 forecast of 20% market share for Facebook and 31.7% for Google.
The leader in the mobile advertising market, Google(GOOG-US) is facing a serious challenge from social network Facebook(FB-US) . Data show that Google's share of the global mobile advertising market has fallen from 52.3% in 2012 to 33.7%, while fb's share has climbed from 5.3% in 2012 to 17.4%. Meanwhile, fb's price per ad has continued to rise, while Google's has continued to fall. Although some analysts say the two can complement each other, advertising has always been a zero-sum game. Assuming budgets remain fixed, one platform's gain is the other's loss. Could Google eventually have to surrender its leading position?
According to data from research firm eMarketer, Facebook's share of the mobile advertising market will reach 20% in 2017, while Google's could shrink further to 31.7%. Looking first at their selling points, what attracts clients most to both platforms is their collection of big data for precision marketing. Google targets users based on their search histories, map routes and even the people they exchange emails with through gmail. fb, meanwhile, recommends advertising content to users based on their personal information, the content they like and their interactions with friends.
The difference is this: “Google Search lets consumers with purchase intent find you; Facebook lets you find the consumers you want to reach.”
In the marketing battle between fb and Google, experts believe the two are currently evenly matched. The choice depends on what a business wants to achieve, and fb could catch up with Google over the longer term.
In recent years, many brands have invested in fb marketing as smartphone use has become widespread. They are drawn by its broad audience reach and sharing features, which help attract considerable attention. However, for many small and medium-sized enterprises, Google remains an important marketing channel because its search engine can still generate business directly. Its importance is currently thought to be on a par with fb's. As fb introduces more marketing features, it could catch up with Google's market share in the future.
In fact, fb and Google can serve different purposes. fb can attract a great deal of attention and is highly effective at raising product or brand awareness. For demand-driven businesses such as travel websites, however, Google's search engine plays a greater role. Google is currently an important means of finding information, whereas fb is a social media platform with much weaker search capabilities. Google's ability to collect big data is stronger than fb's, and too many ads on fb can also annoy users.
The industry is also currently willing to devote more resources to creating advertising content, including using social media and producing short videos, attractive posts and appealing images. People are now bombarded daily with information from different media, making marketing increasingly difficult. Research suggests that each audience member needs exposure to advertising across around 6 to 8 different media before making a purchase decision.
Google also introduced a “buy with one click” feature last year. Because Google accounts are already linked to credit cards, user addresses and delivery methods, transactions can be completed without entering additional information. Google has also developed a “trial ad” feature for app companies, allowing consumers to try an app directly for 60 seconds before deciding whether to download it.
http://times.hinet.net/news/19818767