According to Facebook’s latest announcement the company will soon launch its latest version of Atlas – an ad platform. The latest version from the social networking giant has been revamped completely and will offer the users a great new interface that will not only be attractive to look at, but will also be extremely easy to use.
It is not uncommon to see giant organizations become each other’s rivals. With Facebook’s Atlas it will be Facebook (NASDAQ:FB) against Google Inc. (NASDAQ:GOOG) in the ultimate battle for digital advertising crown. So far Google is dominating this area almost without any challenge from other companies. Facebook in the recent past has shown some remarkable growth in digital advertising as well and with Atlas it is hoping to get an edge over its biggest competitor.
It is believed that the latest and improved upgrade of Atlas is expected to have an advance feature that will allow Facebook to track its users’ activities through different devices – it is not just mobile device anymore. This will allow marketers direct access to accurate and authentic data, which will let them measure their advertisement’s success or failure. This feature is likely to raise security issues at the user end, but these tools are necessary to for the marketers to create advertisement that will help them get great results.
Facebook is already causing problems for Google as far as mobile marketing is concerned. Google enjoyed a 52.6% of the total share of the mobile advertisement market; however according to analysts by the end of this year this figure is likely to fall down to 46.8%; whereas Facebook’s revenue from mobile advertisement is expected to go from 5.4% to 21.7% this year.
However currently Google is the leader; it has all the right tools that help it capture the major market share for digital advertising; these tools include YouTube, Google Search, Double Click, Adwords – these have assisted Google to hold more than 30% of the digital advertising market share. On the other hand Facebook’s market share back in 2012 was 4.1%, which according to experts is expected to go up to 7.8% this year.
Why Google should feel threatened?
Facebook’s latest version of Atlas will be a marketing strategy that is based on people. It will give advertisers extremely useful information such as which device the user used to open an advertisement; it will also tell them which device was used to make the purchase.
This advertising suit was acquired by Facebook from Microsoft last year – the largest software company in the world. The main objective for this purchase was to give advertisers an idea whether their investments in the website gave them any edge or not. Facebook already has its first clients lined up which include big names such as Intel Corporation and PepsiCo.
Google Inc. (NASDAQ:GOOGL) will be anxious about the results the new Atlas will get for Facebook because 90% of its total revenue for the second quarter in 2014 came from online advertising. Therefore if another strong competitor were to enter this market, Google would want to maintain its main source of revenue generation.
