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How Facebook Could Overtake Google

Right now, Google is only giving links to apps on Android-based phones, but it's possible, and highly probable, that Google's initiative will come to the iPhone as well, according to an article in The Wall Street Journal. The iPhone is the most dominant smartphone in the United States, according to recently released data from ComScore (SCOR), accounting for 41.6% of smartphone subscribers.

Facebook appears not only to be doing well with its mobile install ads, but its acquisition strategy seems to be starting to pay off, as brands realize the power of Facebook, Instagram, and potentially WhatsApp down the line.

Sheridan notes that the recent global partnership with Mondelez (MDLZ) allows Mondelez to "opt into Facebook's beta-testing programs, access to research and capability building through immersion days in priority markets."

Outside of that is the recent Omnicom deal with Instagram, which Sheridan noted, per AdAge, was $100 million. TheStreet reported the deal was not valued at $100 million, with a source close to the situation labeling the price tag as inaccurate. Bloomberg later reported the value of the deal being worth $50 million.

Must Read: IBM CEO Rometty: 'We Are Not Exiting Hardware'

When Facebook bought Instagram for nearly $730 million in 2012 (the reported price was $1 billion, but it included stock which subsequently fell), many questioned why Facebook CEO Mark Zuckerberg was spending such a large amount of money, but the purchase seems to have been the right move. When Facebook bought Instagram, it only had around 15 million users, and now has over 150 million, according to the most recent statistics on its blog.

The world is increasingly going mobile, and much of that time is spent inside apps, and not the mobile web. According to research firm Flurry Analytics, "...86% of time spent on mobile devices is spent inside applications, with just 14% left for the mobile web." Flurry notes that in 2014 marketers are expected to spend $2.4 billion in just the U.S. to get their apps noticed.

With mobile devices (tablets, smartphones and eventually wearables) becoming ever more prevalent, search behavior is changing. According to Flurry, "[t]he de-facto behavior in mobile is to launch an app (previously installed on the device) and enjoy the comprehensive experience offered within it. You are rarely, if ever, linked out to a mobile webpage from an app or sent to another app. Each experience is essentially an island unto itself, completely reliant on the consumer to come ashore."

Google is feverishly working to maintain its dominant position in mobile, and keep its position with its lucrative advertising and search business, which allows it to fund other ventures, including Google Glass, Project Loon, driverless cars and other projects. However, it seems like Facebook is fast closing in on Google's dominance, as the world goes mobile.

Also See: Here's What Google Is Working on Next

--Written by Chris Ciaccia in New York

>Contact by Email.

per AdAge

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