In a program on CNBC, Hany Nada, GGV Capital co-founder, said that Facebook Inc (NASDAQ:FB) has a clear-cut advantage over other companies as far as ads business is concerned. Facebook Inc (NASDAQ:FB) has devised a complete strategy around its ads business in order to monetize on it. He said that Facebook’s ads are 10 times more effective than any other company ads. The reason is massive social media exposure of the millennials and company’s smart strategies. Nada said that the other primary reason behind Facebook Inc (NASDAQ:FB)’s effective ads strategy is the fact that the company is collecting user data at a large scale. Whether it be mobile; acquired websites; browsing habits; messaging services, Facebook Inc (NASDAQ:FB) seems to have a complete big picture of a user on what he likes and what he doesn’t like, said Nada.
Nada said that Twitter cannot convert the user data into actionable ads and this is the reason why it cannot even come close to Facebook ads. Facebook Inc (NASDAQ:FB) ads are massively popular among advertisers because of the conversion, profitability. Nada thinks that cost is another important factor in this scene. Facebook Inc (NASDAQ:FB) ads are massively popular among advertisers because of the conversion, profitability. Nada thinks that cost is another important factor in this ads model.
In the program, Jon Fortt said that the real battle between Facebook Inc (NASDAQ:FB) and Apple is about trust. Mark Zuckerberg is of the view that users can give their data to companies they trust; in return the company can give them useful ads which can give them usage. Nada said that trust is a hard thing to gain for companies. Facebook, Inc (NASDAQ:FB) is not an evil company but the majority of users will feel problems while sensing that the social media giant is looking at their data just to give them related ads. Nada said that trust depends upon generations, user demographics and a variety of factors.
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