Can Facebook End Google's Dominance In Online Advertising?

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Facebook Inc FB recently announced that it has now got 2 million companies advertising on its platform. Although Google Inc GOOGL continues to be the king when it comes to receiving online advertising dollars, Facebook is showing tremendous growth and some believe can challenge Google’s dominant position in this space.

 

Morningstar Tech Strategist Rick Summer was on CNBC Wednesday to talk about whether Facebook can topple Google by generating more online advertising revenues.

 

Do You Think Facebook Poses A Challenge To Google?

 

 “Yeah I think they pose a challenge absolutely,” Summer said. “I think the broader question is what is Google’s reaction. From our perspective it really lets them flex their muscle, they can up the game, if you will, and start to be a little bit more both advertiser friendly and developer friendly. Regardless though Facebook has a seat at the table, they are not going to be put back at the kid’s table anytime soon.”

 

Do You See A Shift In Ad Revenue?

 

“Yeah, I think when we talk about a shift we really are cautioning clients not to be too dramatic about this,” Summers replied. “We look at the search right now, search is roughly half percent of this $160 billion digital advertising market. That shouldn’t change over the next four or five years, I think that’s the most interesting thing.”

 

He continued, “Absolutely social, video, they are going to outpace the growth of search in general, but in terms of the overall digital advertising pie, search will absolutely be the dominant form of digital advertising.”

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Posted In: CNBCMedia
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