Facebook Inc (FB) Could Finally Beat Google Inc (GOOG): Here’s How

Page 2 of 2

Yahoo! is in trouble

Yahoo! Inc. (NASDAQ:YHOO) could be falling behind in the eye-ball wars. Because attracting eye balls and identifying the amount of money advertisers are generating from them are two different things. These days marketers want to know with absolute certainty, the effectiveness of their advertising strategy. No longer is general statistical data brought on by sample groups is enough. The data has to be immediately accessible, transparent, and accurate. Something Google analytics provides to advertisers which is something Facebook is chasing after.

Yahoo! Inc. (NASDAQ:YHOO) reported a 7% decline in display-based ads, whereas Facebook Inc (NASDAQ:FB) reported a 37% growth rate in advertising. Facebook only sells display-based advertisements. The only difference with Facebook’s display-based advertisement platform with Yahoo’s is that Facebook provides customized advertising solutions. Advertisers can choose which state to advertise in, the type of interests, gender, and age. The beauty behind all of it is that Facebook gets all of its information through the users. The information is likely to be accurate giving advertisers an added justification to advertise on Facebook rather than on other advertising network.

Conclusion

Perhaps, in the future every website will require you to log into it using a Facebook account. This way, advertisers can find out the interests of a person, and direct the banner advertisement at the appropriate target market.

Going a level deeper, I imagine a future whereby people will be required to log in with Facebook on CNN.com so in partnership CNN can use the demographic data provided by Facebook, and provide advertisements based on that demographic using Google’s ad-sense program. Take it another step further, in the future Facebook Inc (NASDAQ:FB) will know you bought that $10 sandwich from Safeway. Google Inc (NASDAQ:GOOG) got to analyze it, and someone else displayed it.

Web-based advertising has become 3.0. Welcome to web 3.0.

Alexander Cho has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google

The article Facebook Could Defeat Google By Buying Waze! originally appeared on Fool.com.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Page 2 of 2