Why Google and Facebook cannot be compared on CPC (Cost per click)

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The full article

I’ve learned the basics on valuing oil companies, the banks, and utilities, but technology companies leave me still scratching my head. It’s easy to categorize these two companies in the same bin because they get most of their revenue from advertising, but I found this article the other day on a site called CapitalCube.com that begs to differ. It’s  pretty long article, but the executive summary is to-the-point and short. I liked this table:

Google Facebook
  • Tries to match advertisers with what people are doing online
  • Tries to match advertisers to a person’s likes and dislikes
  • Dominant in the online space. Google’s reported numbers in 2Q 2014 indicate that the number of paid clicks jumped up 33% on its own sites (google.com, YouTube.com)
  • Dominant in the mobile app space. Facebook’s mobile ads represented 59% of its total ad revenue in Q1 2014, up from 30% YoY.
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