Google vs Facebook and CPM Advertising Battle

Google wants to dominate the whole internet advertising market. Their online advertising business model based on search, contextual, retargeting, keywords, cpc and cpm is a cash cow like none before it. They have built a spectacular online advertising platform integrating the best of Doubleclick's technology at the heart of their systems. Now you can use Adwords, Adsense, Analytics, Doubleclick Ad Planner, Doubleclick Ad Server and Doubleclick Ad Exchange all together. Google is doing an incredible job in this field.

Facebook needs to increase their revenue through online advertising. They have the loyalty from the people and thus, the online traffic. You can see the spectacular numbers at Doubleclick Ad Planner 1000 most-visited sites on the web in September 2010: Facebook.com, the Social Network, is the number one on the list by far: 600,000,000 unique visitors, 39.2% reach and 680,000,000,000 page views. A quick calculation tells you that Facebook can make 6.8 billion dollars a year selling this online inventory at a 10 dollar eCPM. Facebook has attracted and captured people on the internet like no one before.

I believe that the battle between Google and Facebook for the dominance of the internet advertising market has just began. Over the next several years we will see how they invest to create online content and services that attract people to their online properties long enough to monetize them. Google has the advantage to run the best online advertising platform, but they need to retain internet users much longer on Google and the rest of their websites. Facebook has the power to live with their users everyday on their walls but they are still learning and improving their online advertising platform. Common sense tells us that the best solution would be to agree to monetize the Facebook audience with Google advertising technology. That would be the best equation. But companies are made by humans and their egos, and this is not an exception. And, speaking of egos, don't forget that there is a third player on the market: Apple, who is trying to make their own online advertising ploy in the digital era. Another question of ego?

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