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Wall Street and Delegator Agree: Facebook and Google are Good Bets

September 20, 2016

Wondering where to spend your advertising dollars online? Among the clamor of countless blogs – including ours – now Wall Street is weighing in on this question. 24/7 Wall St reports that Alphabet and Facebook now control over 50% of the digital advertising market and predicts their dominance in this space will continue to grow.

Many companies still believe that Google, Alphabet’s flagship business unit, and Facebook provide only two forms of digital advertising: Search Engine Marketing and social media advertising, namely boosted posts. While both of these methods are crucial to any digital marketing campaign, Google and Facebook’s offerings have expanded to the point where these platforms have become an arguably better alternative to full-scale programmatic campaigns. Both platforms offer finely tuned targeting based on the first-party data they gather about their users, whether search history, demographic information, or online activity. They can then serve and remarket various forms of advertising across their networks to identified segments of users.

 

Two subsectors have emerged to help lead the growth in the sector and that is search and, of course, social media. Two companies [Alphabet and Facebook] that dominate those arenas have also spread their capital around to acquire new technologies, in everything from virtual reality to autonomous driving to streaming programming and content.

 

Although Facebook and Google can only advertising on the networks that they own, combined, these networks are so large that they enable brands to reach almost anyone on the internet. Additionally, since the platforms have better visibility and tighter controls on their data, there is less room for fraud or wasteful spend within their advertising campaigns than on programmatic networks.

Just as 24/7 Wall St recommends that traders invest in Google and Facebook stock, Delegator recommends that advertisers invest in these platforms.