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| Google verses Facebook |
Google is mainly a search engine, video/blog/photo host, browser, mapping service and a few other things which generates revenue from ads in websites. Through Adsense Google shares ad revenue with the content provider, website owner if they request it. This incentive causes content providers to create even more content on more websites to increase revenue. It also encourages people to place these same ads in their personal or business websites. Google also has Google+ which was supposed to be a rival to Facebook's social website which hasn't really taken off that well.
Facebook is a social and now business website which generates revenue from ads. The biggest difference is Facebook does not share ad revenue with the content provider. In fact Facebook asks the content provider to pay for ads to get more traffic to their content. This is a very different platform than Google. I don't believe it's sustainable because there is no incentive to Facebook content providers to provide content to Facebook. Content is king. Another issue is FB states they can make revenue off the users' content, i.e. photos, videos. Most commercial photo and video sites would never want to allow FB to use their content for free. Someone with content who can make money off Google ads is not going to place that content directly on Facebook for free. That's why I load my videos to YouTube then post the link to Facebook. I don't post my videos directly on Facebook except private videos. I do the same with Google blog posts verses Facebook notes. Another thing is people go to Facebook to socialize with privacy controls. They don't necessarily go there to look for products and services to buy like they do with Google. People go to Google to look for a product or service, not to say "hello" to grandma.
I have a few Google blogs, a YouTube channel and some websites where I have allowed Google to place ads. I receive some of the revenue though only approximately $750/year lately. That money goes directly to Animal Advocates because it's all animal related. I have no ads on my real estate sites because they would show my competition which makes no sense. I get most of my real estate appraisal business from Google search engine results. In the past I placed a cheap $40/month ad on Google and received even more business.
I have a personal Facebook page, a page for my appraisal business and one for my non-profit. I have never gotten any real estate business from my Facebook page. I was able to get over 50,000 fans on my non-profit page. We receive some donations from people who found us on Facebook but the total dollar amount is very low. Most of our big donations and grants come from media articles and people who have seen our videos and know me personally. Facebook has asked me to advertise in their site which I did twice. I placed two $50 ads which each ran for a week. I did not receive any business, traffic, fans, "likes" or donations from the ads. I get a much better return from Google ads.
Mark Zuckerberg wanted Facebook to be a social website first then an advertising site. He was reluctant to add too many ads early on because he didn't want to turn off users. He started adding sidebar ads. Then he placed ads in the news feeds. Revenue has increased though Facebook does not have the revenue that Google has. Soon Facebook will be adding video ads.
Let's take a look at the numbers. In 2012 Google stock symbol GOOG formed in 1998 had revenue of $1,150/share, price to earnings ratio 31, earning per share 36 with a market cap 384B. Google grosses 50M annually with 30M in gross profit and 10.7M in net income. More here http://finance.yahoo.com/q/pr?s=GOOG+Profile
In 2012 Facebook stock symbol FB formed in 2004 has revenue of $56/share, price to earnings ratio of 143, earning per share of .39 with a market cap of 138B. FB grosses 5M annually with 3.7M in gross profit and only 32K in net income. More here http://finance.yahoo.com/q/pr?s=FB+Profile
If you would like to see these stocks compared side by side, click this link then click the various top tabs.
http://finance.yahoo.com/quotes/GOOG,FB;_ylc=X3oDMTIzZjI5MWYxBGtleXcDR09PRyxGQgRtaWQDbWVkaWFxdW90ZXNzZWFyY2gEc2VjA2dldHF1b3Rlc2J0bgRzbGsDbXVsdGlfcXVvdGU-
GOOG has a market cap of 384B vs FB's 138B. GOOG is triple the size of FB. GOOG has revenue of $56/share vs FB's .39, clearly a huge difference though FB is a newer company which just went public. I believe Zuckerberg is feeling the pain of being a public company which must produce increasing earnings to keep the shareholders happy.
GOOG makes a lot of its advertising money promoting scam companies that rip off and steal from the consumer. They know the companies are scams but don't care that they are allowing their viewers, users to be fleeced. Oddly enough GOOG has a web page talking about how not to be fleeced by the scams in ads placed on Google.
FB is now displaying those same ads for scam companies. The scam companies I'm talking about for example are "lose 30 lbs in a week!!!""erase 30 years of wrinkles with a free trial,""buy a product for only the cost of shipping, no repeat billing!""clean your colon!""whiten your teeth!" Here is an article about these scams. http://www.today.com/money/con-artist-took-359-million-bogus-free-trial-offers-174099
One of the main perpetrators was Jesse Willms from Canada. Even though he was stopped many, many others are still doing the main thing. These scam ads are the number one revenue producing ads in the US. This is how GOOG and now FB are creating revenue, by fleecing their users and viewers. You would think the viewer would get wise to the scams but most don't. This is also why people are still getting ripped off by Nigerian Princes who want to give you $20,000,000.
Currently Google has a few different products, services and partners. Facebook only has the social and business website though they offer some search capabilities and mapping through their partner Bing which is no competition to Google. Unless FB makes some changes such as revenue sharing of ads on Facebook content I don't see them winning the Google vs Facebook war. They also must stop saying they automatically can use all content to make money. Professional photographers, videographers, musicians will not post their content on FB for this reason. Most companies have given up on placing FB ads unless they are scam companies. Instead of one company winning this war it's possible Google and Facebook may just stay in their own niches and merely survive.
Mary Cummins of Animal Advocates is a wildlife rehabilitator licensed by the California Department of Fish and Game and the USDA. Mary Cummins is also a licensed real estate appraiser in Los Angeles, California.
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