Facebook is gathering its resources and preparing to wage an all-out war of sorts against Google. A clash of the two internet giants of the 21st century is in store. This is something that might have caught Larry Page, co-founder and current CEO of Google unaware, given the reactions coming from Google regarding this report. Facebook has recently launched a brand new advertising network as well as its platform for embeddable videos. Both of these platforms are expected to give tough competition to Google’s DoubleClick business for display ads and Youtube.
Facebook has grown into a massive and immensely powerful entity in video business over time. The launch of this platform will definitely cement its position further. The social media giant has an incredible amount of user-generated data which will be great for online video and other digital display advertisement. This is bound to hit Google’s business from display ads.
According to experts, Google technically looks powerless against FB as of now. It does not know how to react and respond to Facebook’s assault on Google’s earnings. The company is still reeling from the effects of its failed product Google+. Another important factor that is expected to hurt Google in the long run is that it does not own a ‘stream’.
In simple terms, it is a digital platform by which high-quality marketing and brand advertising initiatives can be plugged-in to what people are watching or clicking. This is exactly like the NewsFeed feature on Facebook. The two internet giants of 21st century are pitted against one another as Facebook prepares for an all-out war against Google. As Facebook grows, it seems like Google might be caught looking for answers. Unconfirmed reports suggest that CEO Larry Page has given up the authority of running the company at this important moment. However, given Google’s performance and strategies in the past, that could turn out to be untrue.
Media reports suggest that Mark Zuckerberg has been going big on present day opportunities like building platforms for Whatsapp, creating a revenue model for Instagram, and inserting ads in Facebook app including videos. At the same time, Page is looking towards the future and focusing more on robotics technology and self-driving cars. These concepts might have a huge potential for the future. However, there is a limited amount of clarity regarding if and when these concepts would take off.
The good news coming out of this for the investors of the two internet giants is that they are both growing at a very healthy pace though FB looks to be having more momentum right now. It is said that the tech industry moves in very quick circles. Google reported some of its biggest revenue earnings ever just two years ago. It was also expected to emerge with a trillion-dollar company valuation. At that time, Facebook’s future was regarded as uncertain. Apple stocks were also taking a massive beating close to three years ago. But that has all changed within a short period of time. As of now, Facebook is preparing to wage an all-out war against Google with its video platform and new ad network.
By Ankur Sinha