Google Inc (NASDAQ:GOOGL)’s current share of 33% of digital advertising is at a diminishing risk as Facebook Inc (NASDAQ:FB) launches its new advertisement tool called Atlas, which could make the owner of the famous social media platform a one stop shop for the advertisers. Gene Munster, who is a Piper Jaffray analyst revealed on an interview with CNBC that Facebook Inc (NASDAQ:FB)’s current 6% share of the digital advertisement is on the verge of going on a one way roller coaster ride.
Munster explained that the ability of Facebook Inc (NASDAQ:FB)’s new advertisement tool to not just reach different online platforms, but also different devices, including mobile, is what sets it apart from Google Inc (NASDAQ:GOOGL)’s advertisement tool.
“[…] The ability for an advertiser to go to one place and to be able to target all of these different silos and devices under a consistent campaign is powerful because what it does is, it allows the advertisers to feel more confident about their span that they are going to get the ROI that they want. this is the same thing that Google Inc (NASDAQ:GOOGL) did a year and a half ago when they came out with enhanced campaigns […],” said Munster.
Facebook Inc (NASDAQ:FB) is expected to considerably cash in on Atlas. Munster, expected that Atlas will remain the catalyst for Facebook for the next one to two years. According to a reporter on CNBC, the analyst community has set their price target for Facebook Inc (NASDAQ:FB) between $90 and $95. The stock is currently trading at $79.39. Hence, the stock value is expected to grow by about 14% considering the lower end of the target price range.
Although Google Inc (NASDAQ:GOOGL) does not have a social media platform like Facebook Inc (NASDAQ:FB) that it could use to offer its advertising customers an overarching advertisement span like Atlas, but the tech giant is expected to reload its innovation guns before Facebook’s robbery of its advertisement clients reaches epic proportions
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