Facebook Ads Are Challenging Google: But Is There a New Champ?

Facebook has grown into a multi-billion dollar business because of a lot of smart business moves—many of which continue to fuel potential even after the quick startup. It’s certainly not about connecting college students anymore. It isn’t even about connecting the whole global community. Facebook has seen where the money is and they are targeting the digital advertising dollars that Google once had the majority share of. Clearly, Facebook ads are challenging Google, but can the monster machine of Facebook unseat Google from its throne of advertising dollars?

Facebook has been using ads to earn money for a long time now, but 2014 has seen a shift. The company developed Atlas to help provide targeted ads to users. They also introduced Audience Network, which is their ad network for mobile users. After all, isn’t that what people are doing on their mobile devices—checking their social networking accounts? With this shift, it’s no wonder that the cost of an ad on Facebook has already more than doubled this year.

Facebook wants to make money without having to push out so many ads that users get upset, as an upset user will search out another service to connect with loved ones, business contacts, and acquaintances. Thus, Facebook realized that the only way to increase revenue is to increase the prices of each ad. And why not? More people are using Facebook and their related services than any other networking site. The mobile advertising network, coupled with target advertising, has helped Facebook grab marketing dollars without inconveniencing its users. In fact, the average user probably has no idea what, if anything, has changed.

Google still controls nearly half of the market for mobile ads. This is a big deal considering that nearly 25 percent of digital ad spending is set aside for mobile ads. Don’t get me wrong. Google still has the high ground here, but Facebook ads are challenging Google. If anyone can dethrone the king, it’s Facebook.