LearnBonds.com

Alphabet Inc Bets On Facebook Inc Ape For Future Growth

Rate this post

Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) has been the largest web company for over a decade, but the firm is still worried that its rivals could catch up to it. As with so much in the tech world recently, the optimal strategy appears to be defensive. Instead of always trying to get ahead of other concerns, it’s important to copy what they do to limit their growth. Facebook was the latest victim of that on Wednesday morning.

Feed is the new Google mobile app that the firm hopes can compete with the Facebook Inc (NASDAQ: FB) News Feed. It’s a personalized list of posts that you might be interested in from around the web.

Alphabet gets in on Facebook business

Google is looking to win back some of the mobile minutes it has lost to the Facebook News Feed. The Google Feed isn’t really a big new tech breakthrough. It’s a relaunch of the Google Now app. That software will be updated with the new features in the coming days in the US. The international rollout will happen in the coming weeks.

Facebook instant articles new york times
Facebook instant articles are another battle ground

The Feed part of Google Now was added to the firm’s mobile experience last December. The firm has developed it into the front-facing part of the experience, though the rest of the functionality will remain.

The Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) Feed will choose content based on your searches and social connections. It will also serve up location based news that may be of interest to you.

Intensity of interest will be a central part of this. Users will get more content about things that they’re really interested in, and less from passing search queries. For advertisers, there’s likely to be a Facebook style promoted post segment, though Alphabet hasn’t made that clear just yet.

Facebook Inc copied Alphabet first

The real reason that Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL) feels forced to copy Facebook is because of the headway Mark Zuckerberg’s firm is making on Google core business. Over the years the Menlo Park firm has added features to its News Feed in order to convince mobile users to stay away from Google search.

Alphabet Inc faces off with Facebook Inc
A look at the new Google Feed.

With direct link sharing, topic search abilities, and a curated feed, Facebook has been trying its best to keep its on its platform. Google wants to take back some of that power, and Feed appears to be the answer.

There’s a lot of platforms for Web advertising, but they’ve stopped being quite as heterogeneous as they used to be. Now you’ve got social, search, feed, video and publisher. Those five web channels carry the majority of ad dollars.

Feed, the place where people pick out the content they visit, has become a growing part of the equation. It’s a major boon to the Facebook Inc (NASDAQ: FB) bottom line, and in fact is the firm’s golden business.

That’s why it’s a big opportunity for Alphabet. The firm wants to defend its platforms, and ad dollars, from the Facebook invasion. Because of the power of the Facebook News feed, there’s no better place to start fighting back.

All trading carries risk. Views expressed are those of the writers only. Past performance is no guarantee of future results. The opinions expressed in this Site do not constitute investment advice and independent financial advice should be sought where appropriate. This website is free for you to use but we may receive commission from the companies we feature on this site.
Avatar

Mary MacGowan

Write first comment

Reply

Your email address is not published.