[SMK] Social Media Knowledge


Facebook declares war on Google

Think Facebook couldn’t possibly get bigger? Think again.

The social network’s advertising reach is about to extend to non-users across the web.

Gate keepers

Facebook has long used its extensive demographic information to serve targeted ads to its 1.6 billion users.

Now a new feature called Audience Network will bring that know-how to third party apps and websites.

Nowhere to hide

Until now, only Facebook users visiting third party sites would be shown ads.

Facebook will use a combination of  cookie-tracking, plug-ins, and propriety buttons to learn more about web users who have the temerity not to use Facebook, and serve them up their own targeted ads.

These ads aren’t expected to be as nuanced as those Facebook delivers to its faithful, however they’ll still probably bring in a healthy chunk of revenue.

Google smack down

The move places Facebook squarely against Google for dominance in the online ad space.

Google currently owns 33.3% of online ad sales, compared to Facebook’s 10.7%.

Google’s ad treasure chest us worth a tidy US$53 billion, well ahead of Facebook’s US$17 billion. Also, the majority of Facebook’s reach is contained within its eco-system.

Whoever comes out on top, the online ad market is narrowing. Following the announcement, it’s now predicted that 85% of new marketing spends will go to either Google or Facebook.

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