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Facebook Inc. (FB) Proves Its Worth to Advertisers in Race With Google Inc. (GOOG)

But the bulk of the battle continues to take place in the mobile market. Google Inc. (NASDAQ:GOOG) continues to fight for the mobile market through its proliferating Android devices. In the third quarter of 2012, Android tablets made up 41% of tablets shipped, up from 22% of tablets shipped in the fourth quarter of 2011. Google’s dominance is inescapable.

Then there’s Facebook Inc. (NASDAQ:FB), which CEO and co-founder Mark Zuckerberg declared a mobile company in its fourth-quarter earnings release. Of the company’s 1.06 billion monthly active users, or MAUs, as of Dec. 31, 2012, 680 million of them where mobile MAUs — that’s a 57% year-over-year increase.

Facebook’s value proposition will grow stronger
Going forward, Facebook Inc. (NASDAQ:FB) has embarked on several strategic plans that should make its value proposition to advertisers even more attractive during 2013.

For instance, the same data by Datalogix that showed a 22% growth in ROI for 22 different Facebook campaigns can also be used as a tool for advertisers, allowing Facebook to access purchasing data without revealing users’ identities. This essentially gives advertisers the ability to tailor their campaigns to different segments, such as hardcore or occasional buyers.

Also, rolling out this this week as an official service after a short period of beta testing is Facebook’s lookalike audiences. This targeting option for advertisers allows them to reach out to a group of customers with similar characteristics to their current customers.


Source: Facebook Studio blog.

“We’ve seen this new type of targeting drive a wide range of success metrics for direct response companies like Fab, including lower cost per checkout, lower cost per acquisition, larger purchase size, and faster and increased return on investment,” said one post on the Facebook Studio blog.

The race continues
2013 will mark another year of fierce competition for digital ad dollars. Facebook Inc. (NASDAQ:FB) is on track to continue its winning streak and likely gain even more market share as the company’s value proposition for advertisers continues to grow stronger.

The article Facebook Proves Its Worth to Advertisers in Race With Google originally appeared on Fool.com.

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google.

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

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