Facebook Inc (FB) Assumes Stance to Beat Its Rivals at Advertising

During a recent interview, Facebook Inc (NASDAQ:FB)’s CEO Mark Zuckerberg defended his company’s advertising advantage in an outspoken comment which is as follows –

“A frustration that I have is a lot of people increasingly seem to equate an advertising business model with somehow being out of alignment with your customers. I think it’s the most ridiculous concept. What you think because you’re paying Apple that you’re somehow in alignment with them? If you were in alignment with them, then they’d make their products a lot more cheaper.”

Needless to say, it augured a lot of attention and CNBC invited on its show Hany Nada, co-founder of GGV Capital to discuss what it implied. Hany was quick to point out Facebook Inc (NASDAQ:FB)’s amazing advertising potential, saying that the platform was both effective and actionable. This means that any ad which is put on Facebook is sure to enjoy maximum possible exposure as compared to that provided by any other platform.

Facebook (FB)

Adding to this advantage is the fact that this social networking site is able to accrue sizeable revenue from its millions of users worldwide as compared to others in the arena, for example Twitter. When asked if he were faced with Apple Inc versus Facebook Inc (NASDAQ:FB)  tussle, whom would he go with, Hany Nada answered that while both may be characterized by their own pros and cons, none amongst the two was actually bad. Much would depend on the way in which they handle their data and how willing they are to share it.

Target is one of the companies which decided to opt for advertising on Facebook Inc (NASDAQ:FB) and spent a lot of money in the process. It did work well for the company to the point that now Target is reliant on Facebook for fetching customers but when questioned about renewal of the contract, the company said it would have to re-think the decision.

This article has been written by Vinita Basu.

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