Analysts said the new Facebook advertising direct threat to Google’s core business

[news] according to iResearch GraphEffect CEO and co-founder James Borow said, one of the most innovative forms of advertising Facebook: News (Sponsored Stories) sponsors is very investment returns a response value of advertising.

this form of advertising has strategic significance, potentially very important for Facebook and its competition with Google, because it means that Facebook can be in direct response advertising with Google direct competition, rather than brand advertising / media budget.

however, in promoting the click and transformation, the industry believes that Facebook is not always bad? In fact, this is the traditional view of the advertising industry, and according to Borow, the reason for this argument, because the click rate is not properly tracking.

below is the working principle of this form of advertising:

1, sponsored news is Facebook users to take the natural behavior, such as the brand page, to further view the page, etc.. In these acts, the brand becomes the advertising, but also to the user’s friends show.

2, click on the performance of the ad itself is usually not high, but the key point is that this ad can produce other behavior. "Sponsorship news may allow users to share this information, which will be converted into a share of sales, this contribution can be attributed to the original advertising." Because this two effect is usually not tracked, so Facebook advertising investment returns seem to be lower. But Borow guarantee, this figure is still very impressive, and sometimes even more than Google’s return on investment. So it’s very meaningful.

Borow said, now is not related to the click, but the connection or sharing, which is why Facebook will become a direct response to advertisers in the next few years, the reasons for the powerful weapon."

if this principle can be effectively run, the effect can be measured well, then this will completely change the Facebook. Because once the Facebook ads can be applied in a scalable way to direct response advertising, then Facebook will have more weight against Google, and its size will also be doubled.

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