Google (G) and Facebook (FB) recently released their quarterly results for 31 March 2016.
In summary, even though the big G is still quite a bit larger than FB in market cap ($477Bn to $337Bn) and net income ($4.4Bn to $1.5Bn) FB is growing waaaay faster than Google.
This is reflected in the multiple of their share price. G at 29 and FB at 91.
FB’s recent quarter revenue grew by 50% compared to G’s 17%
Change is underfoot me thinks…
Ok, so why should you care?
Well, if you’re only investing in SEO and Google AdWords, maybe you should start considering some FB action.
(As an agency, we will be ramping up our own resources and focus on FB.)
While Twitter may be stumbling a bit, FB’s numbers are staggering.
They increased their number of active users by 15% in the quarter to 1,590,000,000. Yip, that’s 1.6 BILLION people.
And if FB are getting that much “attention”, you may well want to be there.
Of course, FB’s demographic targeting – eg engaged woman, 25 to 30, who live in Sydney – is also very attractive, provided you have your offer right.
FB’s share price is up 20% over the past 3 months whilst G’s is down 10%!
One further interesting point about FB’s results is the incredible activity mobile is getting as a device. 80% of FB’s revenue comes from Mobile, yep, that’s 80%!
As COO Sheryl Sandberg says, the conversations they are having with advertisers is not ‘should I be doing mobile?’, but ‘how should I be targeting that platform?’
Stay In The Know
Cut the clutter and stay on top of important news like this. We handpick the single most noteworthy news of the week and send it directly to subscribers. Join the club to stay in the know…