Why Google is Succeeding over Facebook

I came across this article when I was researching on Facebook’s value proposition for my previous post, and it showed me an interesting perspective of why Facebook’s revenue growth is declining. In the article, Scott Karp compares and contrasts Google’s and Facebook’s value propositions, and shows the reason Google succeeds in generating revenue: their value to users matches the value to advertisers. Advertisers may have difficulty finding value in advertising over Facebook when it depends on forcing their way into user feeds, while Google advertisements are catered to what users are searching for. It seems less like an advertisement, so users are more inclined to click them and not feel annoyed.

It seems that Facebook will need to develop its value proposition further in regards to attracting advertisers, one of their main customer segments, without losing their other customer segment, its users. Facebook is finding that they are losing their teen users, and it is a difficult problem but is necessary to tackle as Facebook’s revenue growth is declining even as they push their mobile platform and try to acquire popular apps to reach teens.