Google Inc (NASDAQ:GOOGL)’s Youtube is the top video platform in the world. In 2006. Youtube claimed that the company has 65% of the overall internet video market and he was right about that. But today, Google Inc (NASDAQ:GOOGL)’s Youtube share has plummeted to 56%, raising big red flags for the company. The problem may not be the decreasing share, as there are a plethora of competitors now and it is but natural that the share will be divided. The problem is the depleting difference in market share. Back in 2006, the company second to Youtube was having 17% of share. But today, Facebook Inc (NASDAQ:FB) is the second company in the overall online video business and it has 33% of the share and counting. This shows that Google will face a tough time in the coming months.
An article on Mashable said that Facebook videos are useful because they are fruitful for the advertisers. Google Inc (NASDAQ:GOOGL)’s Youtube is teeming with video content that has no value for advertisers. On the other hand, Facebook Inc (NASDAQ:FB)’s video ads, interesting social media integration and massive viral sharing gives a huge number of benefits to the marketers.
A study from e-marketer has claimed that the digital video ads market has jumped to $6 billion in revenue in 2014, a 56% increase as compared to 2013. The source quoted an expert who said that Google Inc (NASDAQ:GOOGL)’s Youtube has made many improvements in terms of ads business but still, the perception is that it is no less than a junk. Facebook Inc (NASDAQ:FB) on the other hand is thriving each day.
David Tepper’s Appaloosa Management Lp owns around 600,000 Google Inc (NASDAQ:GOOGL) shares.
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