Facebook vs. Google – Different interesting viewpoints


I pretty much got convinced when I read this that Facebook is in no way having a better business proposition than google when it comes to ads.

These made perfect sense:

Search is taking over the world. Click for more >The reason the search business has swallowed such a huge percentage of global ad spending in only a decade is that it is advertising space that can capture the consumer’s attention at the exact moment that the consumer is looking for something to buy.

When you search for a product, you are telling the world you are interested in that product. And there is no better and more efficient time for those who make and sell that product to try to get your attention than at the moment you announce that you are interested in it.

That is why search spending has gone through the roof.

And what about social networking?

In contrast to search, social networking advertising is like hanging signs on the walls of a house during a party and sending sales reps to mingle with the crowd.

Yes, you can target which parties you pay to hang your signs on the walls of.

Yes, you can make those signs appealing to those at the party.

But the fact remains that the people at the party, who are sharing stories and photos and news and gossip, are not at the party because they want to buy something.

They’re at the party because they want to socialize.

And any time you do more than passively hang in the background at the party, they will likely be annoyed by your intrusion. And, annoyed or not, when they do notice your ads, their reaction will most likely be, “Cool–if I ever decide to buy a car/boat/stereo/meal/flowers/bull-whip, maybe I’ll look at that kind.” Then they’ll go right back to their party.

But then I read this argument and this also makes good perfect sense, especially since he is the actual end consumer.
Interesting to read two different arguments and both making sense. Good example on why we should not be having Anchoring Bias while investing.



One Response to “Facebook vs. Google – Different interesting viewpoints”

  1. 1 rajapanda


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