Did Facebook Have to Accept Google Ad Deal?
Of all the elephants in the room, Google (NASDAQ:GOOG) is the most impossible one to ignore — a fact confirmed as the company vaulted past the mark of $1,000 per share on October 18. The surge was a result of the impressive earnings report based on ad revenue volumes. Google has become such a dominant force in online ads that Facebook (NASDAQ:FB) was apparently forced to accept a deal involving cooperation between the two parties on the ad front.
On the topic of online — especially mobile — ads, Google has long been the champion, pulling in more than half of mobile market share and nearly one-third of the entire digital ads market, according to eMarketer. Facebook showed it had the savvy to enter the mobile ad game at a high level, which has been allowing the social media star to triple its mobile ad market between 2012 and 2013. In fact, there was only one major company Facebook Exchange — the social media site’s ad platform — didn’t include.
That company was Google. On Friday, October 18, the two companies announced that Facebook Exchange and DoubleClick, Google’s system of managing ad bidding, would join forces for the first time. At a glance, it appears the move came out of necessity on Facebook’s part.