The two companies people talk the most in the online advertising space are Facebook and Google. Many of them perceive each other to be competitors, but in reality they complement each other and cannot be termed as competitors in the online advertising space. Online advertising can be classified as
1. Intent Generation ads(Ex: Banner ads)
2. Intent Harvesting ads (Ex: Search Engine ads)
Most text ads are about intent harvesting and most display ads are about intent generation, but they are not coreferential distinctions. For example, with techniques like “search retargeting” (you do a Google search for Laptop and the later on another site see a display ad for Laptops), sometimes intent harvesting is delivered through display ads or vice versa is also true where you see a display ad on Facebook about laptop and end up searching it on Google and eventually end up buying them on Amazon.
Intent Generation ads: They are used as a brand building exercise, where the goal of an online ad is to generate intent or stimulate interest for the user to do further research. The user is not actively looking to buy something. Facebook with its large user base and data availability is exactly looking to enable companies to create intent towards their product/services.
Intent Harvesting ads: When users are actively looking to purchase something, they typically go to search engines or e-commerce sites. Through advertising or direct sales, these sites harvest intent. Google and Amazon are the biggest financial beneficiaries of intent harvesting where they have used the search to maximize sales.
With the right mix of Intent harvesting ads and intent generating ads, companies can reap the benefits of both the forms which in turn enables the need for both Google and Facebook to exist and complement each other’s strengths.
What are your thoughts on it?
No comments:
Post a Comment