Can Facebook ever match up to Google as a platform for effective digital advertising?
Google’s Adwords platform is the stand-alone champion of PPC advertising, it’s powerhouse status is unrivaled. Facebook have made inroads into PPC advertising over the last few years, but with limited success. They quickly rose to the number 2 spot in terms of advertising revenue, but they have failed to come anywhere near to challenging Google for the top spot.
PPC (pay-per-click) advertising works for Google because people browsing the search engine are quite often already looking for products or services that are being advertised. On Facebook things are a little different, the majority of people are predominantly communicating with friends and sharing information. Although they may be interacting with brands as well, they are not generally looking to make purchases.
Can Facebook overcome this dilemma, or should they be looking to monetize another area of their service in order to build a successful revenue model?