Over 50% Of Facebook Inc (NASDAQ:FB) Ads Are More Pertinent Than Alphabet (GOOG)’s Ads


Facebook Inc (NASDAQ:FB) is giving Alphabet Inc (NASDAQ:GOOG) (NASDAQ:GOOGL) a serious run for its money in the digital advertising space, especially in the targeted ads category. According to Adobe Systems Incorporated (NASDAQ:ADBE)’s Digital Index for 3Q2015, marketers consider Facebook’s display ads to be 51% more effective than what Google offers. With that, Facebook is threatening to strike Google where it hurts the most.

Facebook Inc (NASDAQ:FB) and Alphabet (Google) have built their core businesses on digital advertising. The global penetration of the Internet is seeing more advertisers abandoning traditional advertising channels to embrace online advertising solutions. The trend has continued to expand the addressable market for digital advertising providers. However, being a popular online platform is not the same as being a better advertising platform, at least that is what Alphabet is realizing with Facebook threatening to eat its lunch.

Adobe looked into the digital advertising trends in the last three months and has come out praising Facebook’s personalized ads strategy. It turns out that Facebook is offering marketers better targeted ad solutions than they get from Alphabet.

Facebook ads 51% more effective

Adobe’s Digital Index tracking of 3Q shows that advertisers think of Facebook’s targeted display ads as being 51% more pertinent that Alphabet’s display ads. As such, Facebook’s ads click-through rate rose faster than Alphabet’s in 3Q. Facebook registered a 35% year-over-year jump in click-through rate in 3Q compared to Alphabet at 25% in the same period.

With Facebook Inc (NASDAQ:FB)’s ads appearing use better personalized targeting than Alphabet’s ads, the latter is feeling the hit and recently sought to respond in kind. Alphabet has come up with what it calls Customer Match, which is a tool that allows marketers to better target their ads on Google.

Search ad spending in North America

Adobe’s research findings have also showed that North America leads the rest of the world in search ad spending.

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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