Will Facebook compete with Google AdSense?

Will Facebook compete with Google AdSense?

By Ralf Skirr.

Excellent analysis from +Dan Frommer why and how Facebook could seriously hurt Googe's ad business.
http://www.readwriteweb.com/archives/why_facebook_terrifies_google.php
#ibmm

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Why Facebook Terrifies Google
Google is still the biggest, baddest online advertising company on the planet. Its $2.9 billion profit last quarter, announced yesterday, was almost as much as Facebook's revenue for all of 2011. But…

Category: Ralf Skirr's Google Plus Posts | Tags: ,



14 Comments

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  1. Dan Thies April 14, 2012 at 6:51 pm #

    Yep – this is the one and only competitive threat Google has ever faced. Doesn't mean that Facebook will be successful, but they could – and if they offer a better deal for both advertisers and publishers, Google could lose a lot in a hurry.

  2. Ralf Skirr April 14, 2012 at 6:59 pm #

    +Dan Thies The 'better deal' according to the article would be the better targeting of the ads. Whether that will deliver the better ROI in comparison with the established AdSense needs to be tested.

    I never thought much about Facebook Ads delivered outside of Facebook, and I'm just trying to wrap my head around the concept. It has a ton of implications technically and regarding privacy, if the targeting should work outside of Facebook.

  3. Rob Gordon April 14, 2012 at 7:05 pm #

    Good article. Another topic that should be broached as some point is the revenue share that Google gives to its Adsense partners. They only disclose the overall number, not the cut you actually get. Since we already know that Google gives a higher percentage to its corporate customers, it essentially means that they are subsidizing these corporations from the millions of small businesses that use Google Adsense.

  4. Ralf Skirr April 14, 2012 at 7:13 pm #

    +Rob Gordon Google generally favors the big guys (not nice, but understandable from a business point of view), and I don't expect that to change anytime soon.
    This could be an area, though, where Facebook could gain advantage. By offering more transparency – oh, who am I kidding – that's not Facebook's strong side. :-)

  5. Jorgen Poulsen April 14, 2012 at 7:31 pm #

    Here's some more info for the US http://pinterest.com/pin/217720963205793242/

  6. Ralf Skirr April 14, 2012 at 8:12 pm #

    +Jorgen Poulsen Thanks for the infographic. Interesting numbers. I had no idea Facebook ads already have this market share.

  7. Jorgen Poulsen April 14, 2012 at 8:17 pm #

    You're welcome +Ralf Skirr.

    I just read an article about the level of granularity you can get when you target Facebook users.

    It's obviously miles ahead of anything Google can do with adwords. No wonder FB ads are getting more and more popular.

    I guess it won't be long before we see G+ ads :(

  8. Dan Thies April 14, 2012 at 10:08 pm #

    You already see "G+ ads" Jorgen – it's called Adsense and Doubleclick. G+ makes it easier to profile and target the ads you see.

  9. Jorgen Poulsen April 14, 2012 at 10:32 pm #

    +Dan Thies you see Google ads on G+?

  10. Aleta Curry April 14, 2012 at 11:49 pm #

    This article is interesting, and I'm sure it's accurate, but as you say, +Ralf Skirr – does this (specific targeting) translate into a Return on Investment? For me, that means 'does it translate into a profitable to high ROI for small businesses like mine that sell what I sell?

    I know one antique dealer who claims to have had success with FB advertising. One. And he's an IT person who hopes to make it in the antiques business. He's not a 'friend, friend', so I don't feel comfortable pressing him for specifics (okay, Mac, how much did you spend, whom specifically did you target, and how many sales did you make over the period? Details, man, I want details!)

    As to the rest of them 'social media gurus' with the big laminated bleached-tooth smiles and the 'let me show you how to increase your customers/get more 'likes'/make a bizillion dollars on Facebook – maybe I'm way off base, here, but I think it's hogwash; the Internet version of travelling peddlars with bottles of snake oil….

  11. Ralf Skirr April 15, 2012 at 4:40 am #

    +Aleta Curry Regarding ROI: if Facebook would indeed integrate their ads into other websites, The results between display ads on Facebook itself and display ads on the 'content network' (other websites) will be very different. People are in different mode when on social media sites like Facebook, compared to, for example, browsing for a specific topic on a news site, or a shopping site.

    I believe on external sites targeting (using Facebook's data) might be even more successful then inside Facebook. But that's science fiction, for now. Highly speculative. Live long and prosper!

  12. Aleta Curry April 15, 2012 at 5:00 am #

    Ah, yes, I see the difference. Food for thought. Thanks, +Ralf Skirr

  13. Dan Thies April 16, 2012 at 7:47 pm #

    +Jorgen Poulsen I doubt you'll see ads on G+ any time soon, G+ isn't about showing you ads on the site, it's about better targeting the ads they show you everywhere else.

  14. Jorgen Poulsen April 16, 2012 at 9:06 pm #

    +Dan Thies interesting perspective. How can Google target me better now that I'm on G+?

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