Google vs Facebook + Applemiercuri, septembrie 23rd, 2015
If you see how stock analysts value Google and Apple stocks, around 90% of the value of Apple ($650bn) is due to iOS while around 8% of the value of Google ($450bn) is due to Android. And this is the case even though outside the US Android has 82% market share. But while Android has 81% smartphone market share Apple with less than 14% has over 80% of the global smartphone market profits. This happens because if you are a $650bn company focused on one product you are likely to beat a $450bn multiproduct company.
And then there is the other vulnerability of Google which is ads. Search related ads are around 80% of the value of Google. Ads are to Google what iOS is to Apple. But in ads Google is under attack from another company: Facebook. Facebook is a $260bn ads only company that does not allow Google to crawl it. For Google everything that goes on at Facebook, Instagram, Whatsapp is a black hole. But Facebook has found another way to make ads work that is not search based but instead it is contextual to whatever you are doing on Facebook. And these ads are extremely well targeted. Facebook allows advertisers to use key demographics such as geography, gender, age, income, occupation, something that Google cannot do. Moreover Facebook is way ahead of Google in mobile advertising and the fight against ad blockers.
This entry was posted on miercuri, septembrie 23rd, 2015 at 07:06 and is filed under business, Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.