Why Facebook and Google Are Making All the Right Moves in 2013
We're not very far into 2013, but Fool senior technology analyst Eric Bleeker says in the following video that two tech companies are making all the right moves so far this year: Facebook and Google .
Let's first look at Google. The company is the unquestioned leader in monetizing mobile, reporting in October that mobile was at an $8 billion run rate. That run rate would be equal to about 16% of Google's trailing revenue. Just as a comparative illustration, Google's Chinese equivalent, Baidu , is estimated to be generating just a few percent of its revenue from mobile.
However, Google's most brilliant mobile move came just last month, as Google announced its new "Enhanced Campaigns" program. Ostensibly, the goal of Enhanced Campaigns is to "simplify" search by making singular campaigns for all devices. That is, rather than having advertisers target different ads for different devices -- a PC, smartphone, and tablet campaign -- now advertisers will create one campaign for all devices. The reality is the program was created to pull advertisers into the mobile world -- you can't opt out of specific devices anymore. Google has used its advertising clout to essentially force mobile-advertising holdouts into buying mobile ads. That should provide new growth opportunities in the coming years, something that not enough attention is being paid to.
Next, Eric discusses Facebook and its redesigned news feed. Overall, what Eric likes best about Facebook is that the company never stops tinkering. While this ADD-like behavior might drive some advertisers mad, it's great for the company. As Eric notes, Facebook is tying its future to advertising that moves away from being banner ads on the side of content, and instead moving those ads into the content itself.
That means two things.
1. Facebook needs to continue making feeds an experience with new features that encourage more user engagement.
2. Users will quickly begin filtering out ads, much as they did with Web banners in the late '90s. If Facebook wants to continue showing mobile growth, it'll need to continue evolving the news feed and how it advertises.
With its news feed update, Facebook appears to be addressing these two areas. To see Eric's full thoughts on why Facebook and Google are making all the right moves, watch the video.
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The article Why Facebook and Google Are Making All the Right Moves in 2013 originally appeared on Fool.com.Eric Bleeker, CFA, owns shares of Baidu. The Motley Fool recommends and owns shares of Baidu, Facebook, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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