In very interesting post was just published on SeekingAlpha.com, entitled “Facebook May Become Bigger Than Google AdSense”
The author of the post is Alex Cho who is according to his bio a “top contributor on Seeking Alpha in both the long ideas and technology section of the website. Alex Cho’s articles have been featured on The Motley Fool, The Street, and Benzinga. Alex Cho has been featured on ValueWalk’s throwback Thursday for his analysis on Apple. Furthermore, Alex Cho’s financial expertise ranks him in the top 100 on TipRanks, and his recommendations have a 80% success rate according to Tip Ranks.”
“Facebook (NASDAQ:FB) is set to launch a revamped version of Atlas next week, which is a demand-side platform that will allow advertisers to buy from a larger network of websites, and will help advertisers understand what kinds of ads a Facebook user has clicked on outside of Facebook timeline and banner ads. ”
“Furthermore, Facebook can track behavior across mobile devices, where cookies don’t work, and allow advertisers to understand offline behavior.”
Quoted from the Wall Street Journal:It will also provide an automated ad-buying tool known in the industry as a “demand-side platform” or “bidder,” which will offer marketers the ability to buy ads that target Facebook’s members as they move around the Web. “What Facebook is doing is potentially more powerful than what Google can currently do,” said Rishad Tobaccowala, chief strategist of advertising holding company Publicis Groupe SA, in reference to the ad targeting and tracking potential of the companies.
“Facebook’s monetization trends should improve, because instead of selling just Facebook ads, it will also sell ads on other websites. I guess, conceptually you can compare it to Google Adsense.”
“Facebook may be planning to do something similar, but unlike Google, Facebook can offer better data to advertisers on the demand side, and on the sell side it can offer higher rates. The thought of Facebook becoming one of the most dominant buy and sell side platforms in the online ad space is scary, but it’s certainly feasible when considering the higher quality data.”According to AdAge:
Facebook doesn’t want to overwhelm users with ads, but it also doesn’t want to turn away advertisers to the point that they take their budgets elsewhere. So if Facebook the business wants advertisers’ money but Facebook the social network doesn’t want their ads, Facebook the company needs to find somewhere else to stick them.
“But I guess what’s more interesting is that by becoming an ad platform, Facebook is less dependent on the number of users it’s able to attract because it can sell ads wherever the users are, which will be contingent upon Facebook’s ability to add a larger network of websites to its platform.”Facebook the website may be able to increase its pricing, but even more interesting, is that it may soon sell ads on different websites. This puts Facebook in a stronger position to drive its average revenue per user figure, and with an increasing base of users, Facebook is set to become the most relevant way for ad men to gain useful demographic and purchasing behavior data across the entire web.:
