Facebook Inc (NASDAQ:FB) started focusing heavily on mobile ads and video business to crush Google Inc (NASDAQ:GOOGL)’s Youtube and the results are already depicting that Facebook Inc (NASDAQ:FB) is now leading Google in the video ads business. According to a new report by TubeMogul, the price per video ads in Facebook Inc (NASDAQ:FB) is far more than of Google Inc (NASDAQ:GOOGL)’s Youtube. The price of an ad always shows the popularity of a platform and which platform advertisers are ready to choose even if they have to pay more.
Facebook Inc (NASDAQ:FB)’s video ad costs 18 cents per minute whereas Google Inc (NASDAQ:GOOGL)’s Youtube video ads costs just 3 cents or 12 cents a minute (in case of skippable ad). This is a red flag for Google. The company was hailed to have the most popular video platform in the world. This may be right even now, but the speed with which Facebook Inc (NASDAQ:FB) is moving forward show that it’s just about time when Google Inc (NASDAQ:GOOGL) will cease to be the ads and video juggernaut in the world.
The source quoted an expert who thinks that the only factor behind this massive pricing difference between Facebook Inc (NASDAQ:FB) and Google Inc (NASDAQ:GOOGL)’s Youtube video ads is the targeting. Advertisers can select, customize and manually target the users they want on the news feeds. They can select the metrics for the targeted profiles using Facebook Inc (NASDAQ:FB) video ads. This is not the case for Google Inc (NASDAQ:GOOGL)’s Youtube.
Facebook Inc (NASDAQ:FB) recorded 13.5 billion video views in January, whereas Google Inc (NASDAQ:GOOGL) Youtube generated 12.5 billion views. This show how Facebook Inc (NASDAQ:FB) is disrupting the conventional video watching platform dynamics.
Ken Griffin holds 4.58 million shares worth $307.87 million of Facebook Inc. (NASDAQ:FB).
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