Facebook vs. Google – Video

This post was originally written on July 6th of 2014. Given recent developments I thought it bears repeating. The original post is now in italics:  “In a previous post we discussed how Google was trying to use Google Plus to pull businesses away from Facebook.  Google Plus is the forgotten social media network that requires a Gmail account subscription if you want to manage all your  Google assets like YouTube, Hangouts, Analytics, Gmail, and Ad Words in one place. The fundamental advantage for Google was/is YouTube; a giant and growing social media network, video network, search engine, and online community. We suggested that in order for Facebook to get back in the game they were going to need a more aggressive video strategy.  Since the time of that post the man in charge of Google Plus left the company and just a couple days ago Facebook purchased ‘Live Rail’, a leading video ad serving company.  Live Rail’s technology could be a critical piece for Facebook’s struggling revenue model.  Serving ads has always been a challenge for Facebook as the social media network’s initial appeal seemed to be that it was devoid of ads.  Live Rail also has white label applications so it’s possible that you’re watching an ad served by Live Rail without even knowing it.  Regardless, if we are willing to volunteer personal information for a Facebook account will we also sit through an ad or the beginning of a video ad before we watch the family reunion video hosted and served by Facebook.  I say yes. If the value of the content is compelling and there’s no credit card transaction necessary to get to it then I image the Facebook vs. Google – Video chapter will be quite interesting to watch.  The key is how Facebook plans to implement this ad serving platform.  If it’s attached to hosting consumer uploaded content then I think they have a winner and for the first time a stock I would invest in.  Since this posting Facebook videos have quickly become viral and Facebook Live is taking off with politicians, causes, and even broadcast groups.  Beyond that, Facebook stock was $66.34 on the day I wrote this and today is sailing along at around $126.  It is also valued by Fortune.com as the fifth most valuable company at $321 billion dollars behind Exxon/Mobil, Microsoft, Alphabet (Google), and at number one Apple.  



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