Facebook Inc (NASDAQ:FB) Video Ambitions a Big Threat to Google Inc’s YouTube Dominance


Google Inc (NASDAQ:GOOG)(NASDAQ:GOOGL)’s YouTube has remained the undisputed king of online videos for more than ten years, but it is becoming clear how difficult it will be to replicate the same fate in the years to come. The growth of social networks, more so Facebook Inc (NASDAQ:FB), has brought about interesting and easy ways of sharing videos online, something that YouTube may struggle against, going forward.

Facebook Inc (NASDAQ:FB) is already making its intention known of not only being a leader in the social media space but an important platform for sharing videos in the years to come. A surge in the number of people watching videos on the platform, from 1 billion in September to current highs of 4 billion, is just an indication of the kind of disruption the company is having in the space.

Facebook Inc (NASDAQ:FB) is aggressively pursuing the video space as it is expected to provide clear avenues for the expansion of its advertising business in terms of reach and returns. Backed by over 1.4 billion users, there is no doubt that marketers will always seek the services of the giant social network for airing their marketing campaigns and what a better way to do it than through video.

Facebook Inc (NASDAQ:FB)’s share price target has been raised by nine brokerage firms as all affirm that video advertising could be the key to unlocking value in the stock in the years to come. Demand for video online has been rising with the social network well positioned to be the biggest beneficiary in terms of mobile advertising.

Google does not disclose YouTube numbers, but there is no doubt it is feeling the effects of the imminent competition. Facebook Inc (NASDAQ:FB) saw its advertising operations account for 73% of the total revenue in the first quarter, up from 59%, just an indication of the gains the company is making on its mobile transition, as it moves to rival YouTube.

Video should play a significant role in attracting more marketers, according to analysts, as the social network continues to make its mobile platform more interesting and engaging. Brokerage firm Cowen has already raised Facebook Inc (NASDAQ:FB)’s price target from $91 to $94, while affirming that video advertising could top $1 billion in revenue this year.

Neha Gupta

Neha Gupta has been in the financial space for over six years now. Gupta earned her MBA degree from Symbiosis Centre of Distance Learning in 2009 and her passion for finance led her to pursue Chartered Financial Analyst (CFA) course. She has successfully completed Level II of her CFA. She is a veteran in article writing, which is depicted in her numerous pieces published on SeekingAlpha, Nextiphonenews, InsiderMonkey, MarketWatch, and Techinsider. Her crisp and eloquent writing finds its best place in Researchcows, where emphasis is given on developing rich content for various websites, products, business plans, trainings, and book writing.

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