Currently, Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL) have very disproportionate market shares of digital advertisement industry, 8% versus 32% respectively, according to Fox Business, but all that is about to change.
Brad Adgate, Senior Vice President of Horizon Media, expressed his opinion on Fox Business that the two market shares are most likely heading towards some sort of equality. Expectaions of this unfolding drama in the online digital ad space, which is valued at around $120 billion, are based on Facebook Inc (NASDAQ:FB)’s new ad tool called Atlas. Adgated shed light on Atlas’s edge over Google’s comparable software, DoubleClick.
“[…] The two things that it has over Google Inc (NASDAQ:GOOGL) is one is that it has all of Facebook Inc (NASDAQ:FB) ‘s database, you know it has all that information on likes and dislikes, demographic information, and it also works on the mobile platform, whereas Google’s ad network DoubleClick is really, you know, they just click the browsing history and make some assumptions in the ads […],” explained Adgate.
Google Inc (NASDAQ:GOOGL) is not the sort of company that sits around while its rivals take away business from it. So, what are Google Inc (NASDAQ:GOOGL)’s options in order to stage a comeback? Adgate pointed out that Google Inc (NASDAQ:GOOGL) too has platforms like Facebook Inc (NASDAQ:FB) which it could use. To this end he cited the examples of Gmail and Google Plus.
“[…] They [Facebook Inc (NASDAQ:FB)] are using more data that is not to say that Google Inc (NASDAQ:GOOGL) doesn’t, they can certainly, they have Google plus and Gmail but they are not really using that […],” said Adgate.
Booth Google and Facebook have been in media for privacy infringements, in one form or the other. However, both companies keep on stretching the fabric of privacy to bring in the advertisement revenues. In a way both companies also face the risk of a more serious government crackdown which will bury the ad tools debate in a silent grave.
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