Facebook IPO: Can It Beat Google?

FACEBOOK IPO: CAN IT BEAT GOOGLE? Comparing the Value of the World's Biggest Online Display Advertising Networks facebook. Google Display Network Advertising Reach At At great job! Revenues / Growth A- good effort! Advertising Performance Winner! (for now) B+ Ad Targeting Options Ad Formats D+ facebook. vs GOOGLE DISPLAY NETWORK™ * Excludes the core Google Search part of Google's business. ADVERTISING REACH broader reach more impressions! Which display advertising network is bigger? The world's largest online display advertising network, comprised of Google properties including: YOUTUBE BLOGGER GMAIL The world's largest social network comprising over 845 million monthly active users. Plus 2 million other websites reach of all 51% reach of all 90% internet users. internet users. 1 TRILLION 180 BILLION Pageviews per month Ad impressions served up each month (source: comScore US, Oct 2011) REVENUES / GROWTH G A- Growth Rates & Advertiser Adoption Facebook Q1 2012 Revenues Google Display Network Q1 2012 Revenues* $1.06 BILLION $2.9 BILLION -6.5% -32% +1% +0.7% Facebook Revenues Q1 2012 vs. Q4 2011 Google Display Network Revenues Q1 2012 vs. Q4 2011 Google Display Network Profits Q1 2012 vs. Q4 2011 Facebook Profits Q1 2012 vs. Q4 2011 * Excludes 7B in revenues from Google Search. "Facebook's earnings and revenues fell in the first quarter of 2012. Revenues in the first quarter were 6.5% lower than in the fourth quarter of 2011 and profit down 32% from the end of 2011" http://www.guardian.co.uk/technology/2012/apr/23/facebook-earnings-revenues-slip-ipo ADVERTISING PERFORMANCE B+ who offers the greatest measurable advertising ROI for advertisers? What Facebook isn't telling you about its risky ad business .. ($0.75 1% CPCS Average click through rate for banner ads in CPC's vary largely based on selected ad placement options Facebook does not publish its average CTR, the United States. but independent analysis from Webtrends on more http://www.google.com/advords/watchthisspace/benchmarks-and-insights/insights than 11,000 Facebook campaigns showed that the average CTR for Facebook ads in 2010 was 0.051% THE AVERAGE CTR OF AN AD ON THE The rate, according to the Webtrends report, dropped GOOGLE DISPLAY NETWORK IS 0.4%, from 0.063* in 2009, which points to a downward trend. ALMOST 10 TIMES AS HIGH AS A FACEBOOK AD. http://venturebeat.com/2012/02/02/facebook-ctr/ Depending on the targeting options used, the CTR on Google Display Network can be up to 36 times higher. ACCORDING TO TBG DIGITAL, IN Q1 2012 http://periscopix.co.uk/blog/latest-2011-google-display-network-benchmarks/ 60 Advertising rates rose 40 40% 20 8% -20 Click-through rates fell the feeling that marketers are paying for the concept of the Facebook audience rather than reality is difficult to shake. Google Advertisers drive around 20% of their conversions through the Google Display Network* http://www.fourthsource.com/social-media/does-facebook-really-deliver-for-advertisers-8167 Facebook average click-through average* rates decline by half about two ($0.80 days after they are released.. CPC Day 1 Day 2 Day 3 .04 *CPC vary wildly based on advertiser ad targeting options and competition levels. .03 .02 .01 http://articles.businessinsider.com/2011-01-31/tech/29956156_1_search-ads-display-ads-clickthrough O AD TARGETING OPTIONS O Who provides the most precise ad targeting options? Only Facebook Topic & Interest Targeting Target users from predefined interest categories, inferred from user browsing history. Only Google Both Facebook & Google Keyword Contextual Targeting Use keywords to find web pages for your ads across the Google Display Network. Location Targeting Target ads based on user's geographic location. Remarketing Target ads to people who've previously visited key pages on your website as they browse other web sites in the Google Display Network. Demographic Targeting Target ads based on user's actual age or estimated age range. Education, Workplace & Likes Target ads based on User's memberships and interests from user profile. TARGETING OPTIONS THAT ARE Facebook hasn't NOT SUPPORTED BY FACEBOOK figured out mobile yet ... About 425 million people use No mobile advertising options! Facebook every month on mobile No retargeting options devices-and they don't see ads. No partner sites Facebook earns no significant revenue from its mobile apps No keyword- targeting options on iPhone and Android. http://www.businessinsider.com/facebooks-ad-business-distilled-into-12-crucial-facts-2012-2#facebook-hasnt-figured-out-mobile-yet-6 O AD FORMATS O D+ Good Room for improvement job! Who supports the most engaging ad formats? 1. THE FACEBOOK AD Title, Description + Image 1. TEXT ADS Ad related to wordstream Why this ad? 2. SPONSORED STORIES WordStream Free Trial 1 877) 707 4042 www.wordstream.com/Free-Trial Make Every Dollar Count With A Free WordStream PPC Advisor Trial Today. 137 people +1'd WordStream WordStream Email address Subscribe to newsletter Privacy Struggling with Internet Marketing? Call the Experts at WordStream Today! Some marketers and WordStream analysts say Facebook caps its revenues by limiting ad sizes. Square (250 х 250) 2. IMAGE ADS You like this. including Flash Based Ads Small Square (200 x 200) Facebook ads-and the prices they command-are small compared with other sites because of an early decision by CEO Mark Zuckerberg to keep Facebook uncluttered. Banner (468 x 60) Sponsored Story Are your PPC dollars ending up in the trash? Make every dollar count with a FREE trial of WordStream for PPC Jessica Gronski Second time today - at Starbucks with Philip Zigoris. х W WordStream ABU 3. Skyscraper (120 x 600) Starbucks Ads in Videos Stop Stop Analyzing. Start Saving. Anayzing. Start http://online.wsj.com/article/SB1000142405 2970204294504576613232804554362.html Saving. Get a FREE instant PPC Report AdWords Performance Grader W WordStream Medium Rectangle (300 x 250) Get a FREE instant PPC Report Google Display Network IS OUR WINNER FOR NOW... AdWords Performance Grader 4. Ads in mobile web or games! W WordStream "OPEN QUESTIONS REMAIN: DOES FACEBOOK EVEN Kpo Tablet Textbook WANT TO BE A GREAT ADVERTISING COMPANY? Facebook was not originally created to be a company. It was built to accomplish a social mission - to make the world more open and connected. ...Simply put: we don't build services to make money; we make money to build better services." (From Mark Zuckerberg's Letter to Shareholders - Official Company S1 filing) http://mobile.bloomberg.com/news/2012-05-04/facebook-rated-outperform-at-wedbush DO YOU ADVERTISE ON GOOGLE? Find out how you're doing with the presented by FREE AdWords Performance Grader. WordStream wordstream.com/google-adwords produced by NowSourcing.com Information compiled by Wordstream, not official Google research. / Google Display Network and Facebook are trademarks of their respective owners.