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Facebook v/s Google: Locking Horns Over Mobile Advertisements

Updated on May 12, 2016
Facebook Advertisements Vs Google Advertisements
Facebook Advertisements Vs Google Advertisements

In an era where online consumers are switching over from laptops and desktops to smartphones, mobile advertisements are flying the coop to be the preferred medium of communication between organisations and their potential consumers. The numbers are staggering; so much so that the mobile adverts are accounting for more than half of all the digital ad sales in 2016. Least to say, the numbers will easily cross the US$ 100 billion mark this year. Keeping in mind the upsurge, the mobile platform would further account for 55 % of the total ad sales in 2017. A kingpin of the industry, Google currently dominates the section of digital advertising with a 33.5% market share. However, there’s more to it than meets the eye. Google has a new competitor in the form of Facebook and it is giving the search engine giant a serious run for its money.

Facebook vs Google

These bigwigs of the online industry are spearheading an era of revolutions for ad sales via smartphones. Currently, Facebook and Google together contribute more than 55% of the total sales that happen via smartphones. Although Facebook is playing a second fiddle to Google in this case, we can be rest assured that the former will be snapping at its heels. In addition, the online industry will never see one clear winner for mobile advertisement which is a completely different ball game compared to online advertising. However, before we analyse the rivalry between these industry giants, let’s know all about the intricacies of mobile advertisement.

Here’s how the mobile advertisement works

For all the starters out there, mobile advertisement works on the constraints of ad space. Since the ad space on mobile phones is limited, it is advisable that business organisations optimise the same, in the best manner feasible. A seasoned digital marketing agency renders useful services in such cases. To begin with, the user-experience on mobile platforms (smartphones) is splintered across websites and multiple web applications. While search engines serve you ads based on phrase/search term/ interest, the mobile applications tend to deploy a concentrated approach through an ecosystem of information and services. Since there is no central gateway, features like ‘Google Maps’ tend to become apps with independent access. Even the metrics used to gauge the potency of an advert is different. While online advertisements use CPM (cost per thousand metrics) to measure the effectiveness, the mobile advertisements tend to measure the success of an ad through the time spent within an application.

Mobile Advertisements competition on Facebook

Facebook’s natural approach towards adverts (spending time within an app), has propelled its sales over the last few years. With zilch earnings in 2012 to 69% of its total revenue in 2016, Facebook has come a long way, per se advertisements on smartphones.

On the flipside, Google’s approach of navigating users to destination sites, has led to a decline in its sales. From 81% in 2012, it slipped down to 68% in 2014.

To monetise its approach and a ‘mobile-friendly’ approach to its existing plethora of features, Google announced that it would be partnering with a lot of delivery applications to display their services for mobile searches. However, it remains to be seen if Google’s paid marketing strategy yields rich dividends in the long run.

On the contrary, Facebook’s strategy capsulises a swathe of services including geographies, devices, apps and ad formats. Least to say, the social networking sight has already scaled stellar heights of success in this segment of paid media activities.

The crux of the matter

Facebook has also managed to heighten its video advertising property through its ‘Instant Article’ feature. The feature is directly aimed at Google’s YouTube section.The social networking site has also tied-up with a few organisations to increase the user-time inside its eco-system. Given its current strategy, it is highly likely that Facebook might just surge pass Google for paid advertisements, in the near future.

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