Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Google’s stock slid after report on search ad decline

recode.net

Post reply on HN
Print view View original

11–20 of 106 posts

Re: Google’s stock slid after report on search ad decline

#11

Post by sidcool »

defenestration wrote: post #8
msoad wrote: post #2

As much as people like to consider Google revenu sources very diverse or dream about future of other Google bets, Google is mostly an advertisement company heavily relying on their search business. It's obvious that Facebook has a better position for growth and adding new channels for their ads business. I can see Facebook share of online advertising grow in the next couple of years.

Yes, Google is mostly an advertisement company relying on search. In 2015, Google's revenue amounted to 74.54 billion US dollars. It was largely made up (90%) by advertising revenue, which amounted to 67.39 billion US dollars in 2015. [1] A rough estimation is that 80% of Google's advertisement revenue comes from search. [2] 1: http://www.statista.com/statistics/266206/googles-annual-glo... 2: http://www.statista.com…

Android and GCP seem not to contribute enough yet.

Re: Google’s stock slid after report on search ad decline

#12

Post by stingraycharles »

elorant wrote: post #10
yoz-y wrote: post #6

Earlier quoted context omitted.

Facebook has infinitely better targeting and signal about their users.

Google has context. You search for something, chances are you're interested in buying it. Placing an ad in the search page has better ROI for advertisers. At Facebook you can build loyalty which is a different beast altogether.

So is it safe to say that Google is better for acquiring hot leads, while Facebook is better for branding?

Re: Google’s stock slid after report on search ad decline

#13

Post by cm2187 »

msoad wrote: post #2

As much as people like to consider Google revenu sources very diverse or dream about future of other Google bets, Google is mostly an advertisement company heavily relying on their search business. It's obvious that Facebook has a better position for growth and adding new channels for their ads business. I can see Facebook share of online advertising grow in the next couple of years.

...and what happens to advertising budgets in a downturn? People who would buy google stock now would be very brave or not believe we are close if not past peak of the stock market. Though google's ad revenues are probably more resilient than traditional advertising companies. I would assume a lot of their clients rely on google traffic to survive.

Re: Google’s stock slid after report on search ad decline

#14

Post by elorant »

stingraycharles wrote: post #12
elorant wrote: post #10

Earlier quoted context omitted.

Google has context. You search for something, chances are you're interested in buying it. Placing an ad in the search page has better ROI for advertisers. At Facebook you can build loyalty which is a different beast altogether.

So is it safe to say that Google is better for acquiring hot leads, while Facebook is better for branding?

That sounds right.

Re: Google’s stock slid after report on search ad decline

#15

Post by cm2187 »

yoz-y wrote: post #6
elorant wrote: post #4

Earlier quoted context omitted.

How exactly is Facebook better positioned? CTR for Facebook ads is abysmal compared to that on Google search.

Facebook has infinitely better targeting and signal about their users.

Are banners/sponsored posts more efficient than purchased keyword? I would have thought someone searching on google wants to click, that's why he is on google for. Someone checking what their friends are up to on facebook is merely annoyed by unrelated content.

Re: Google’s stock slid after report on search ad decline

#16

Post by gpvos »

elorant wrote: post #4
msoad wrote: post #2

As much as people like to consider Google revenu sources very diverse or dream about future of other Google bets, Google is mostly an advertisement company heavily relying on their search business. It's obvious that Facebook has a better position for growth and adding new channels for their ads business. I can see Facebook share of online advertising grow in the next couple of years.

How exactly is Facebook better positioned? CTR for Facebook ads is abysmal compared to that on Google search.

CTR = click-through rate

Re: Google’s stock slid after report on search ad decline

#17

Post by rtuins »

msoad wrote: post #2

As much as people like to consider Google revenu sources very diverse or dream about future of other Google bets, Google is mostly an advertisement company heavily relying on their search business. It's obvious that Facebook has a better position for growth and adding new channels for their ads business. I can see Facebook share of online advertising grow in the next couple of years.

I'm not so sure about facebook - historically social media companies just "run out of fashion".

Re: Google’s stock slid after report on search ad decline

#19

Post by tszming »

elorant wrote: post #4
msoad wrote: post #2

As much as people like to consider Google revenu sources very diverse or dream about future of other Google bets, Google is mostly an advertisement company heavily relying on their search business. It's obvious that Facebook has a better position for growth and adding new channels for their ads business. I can see Facebook share of online advertising grow in the next couple of years.

How exactly is Facebook better positioned? CTR for Facebook ads is abysmal compared to that on Google search.

People spend most of their time on Facebook products, especially on mobile - for example, in HK's public transits, it is not uncommon if you find over 70% of people near you are actually using Facebook products at the same time (FB/WhatsApp/Instagram)

Re: Google’s stock slid after report on search ad decline

#20

Post by tomglynch »

pixie_ wrote: post #18

Somehow in 18 years and billions of dollars of revenue, Google has not figured out another way to make real money.

It hasn't been an issue until now. Google is an advertising business making real money by advertising.

Is this due to the increasing popularity of ad-blockers?

Post reply on HN