A new Facebook Amazon partnership looks to take more display advertising market share away from competitor Google by expanding header bidding to all brands…
Facebook announced it will open header bidding to all publishers in an effort to take more display ads from Google. The social network already claims an impressive market share in digital display advertising. The company’s U.S. market share is currently on track to climb to 39.1 percent by the end of the year. Facebook actually sells 3x the display ads over its closest competitor, Google.
Facebook Amazon Partnership Developing to Take On Rival Google
A Facebook Amazon partnership would increase the social entity’s ad revenue. This year, Google will generate about $52 billion in display advertising by year’s end in the United States. However, Facebook is most confined to its own platforms: Google and Instagram. The Facebook Audience Network or FAN, the digital organization’s ad network earn approximately a few hundred million currently.
But, by opening it header bidding to all mobile publishers, that figure could rise quite substantially. Doing so would like take away from Google’s display ad business. This is because header bidding is a fairer system.
“Header bidding is a system that levels the playing field when it comes to selling ads online. Previously, whenever you loaded a web page, that publisher would check ad networks one by one until it found an advertiser willing to pay a reasonable price to populate the ads on the site. Since Google is such a dominant force in advertising, publishers’ searches usually started and ended with Google,” The Motley Fool explains.
Header bidding provides an avenue to give publishers the power to collect bids from several ad networks simultaneously and receive the highest bid for its ad inventory. With this system, publishers earn more from their ad networks. Facebook states a test run experienced an increase of 10 to 30 percent.
Amazon fits into the picture because it developed a head bidding system solution last year. Now, Facebook will form a partnership with Amazon, as well as other header bidding developers, to expand its ad network to more publishers.
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