Bidness ETC - Is Google Being Crushed By Facebook?

The search engine giant has a staggering ads department which is helping Facebook to step up the game.

The most recent news about the Google Inc is that the firm is being threatened the biggest social media network company Facebook Inc. This was made more evident after the second quarter earnings of 2015 where it was seen that the media company has earned more than 99 percent from the clicks on the adverts on the website whereas the search engine giant has only earned 24 percent of its revenue from the same source.

According to a research that was made by ADI, it became clear the users on the internet found the ads shown on the networking site to be more useful than the ones shown on the search engine site. Google business usually shows most of its ads on its video streaming website YouTube and the research that was made showed that out of all the people that were taken as a sample, only 17 percent showed more inclination towards the tech company’s website.

Even though the Android owners have been reportedly earning more revenue from displaying ads on their website as of the reports from the last year, the ADI researchers have anticipated that the coming times might not be too bright for the firm. The expectations include Facebook beating the software company’s previous records by a mile which shows that the threat is quite evident.

As per the previous records, Google has been earning around five times the revenue being enjoyed by Facebook, but this time around the expectations are bound to get reversed, all in the media company’s favor. The reason that the search engine has been facing such a difficult time with businesses that previously used the tech company’s website to display their ads is that a recent change was brought about by the firm in which it made changes in the search algorithm it previously followed which ended up making panels on some websites which were restricted to a desktop version only. This made the companies associated with the giant to cut down on around a massive 10 percent of the user base it was provided the tech company.

This step taken by the company was named as Mobilegeddon and ended up putting quite an adverse effect on the ad industry of Google. This not only helped Facebook to come forward with its ads improvement plans but also helped it to implement more and more of revenue-boosting ideas to make its income flow in more easily. The firm has also been working on showing ads only that are more relevant to the particular user which has raised the value of the adverts by a mile.