Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) are increasingly providing more ROI for advertisers, Mark Mahaney said in an interview with Kayla Tausche on CNBC.
The comment comes from the RBC Capital Markets managing director after his firm studied the return social media companies like Facebook Inc (NASDAQ:FB) and Twitter Inc (NYSE:TWTR) give to advertisers. The study, Mahaney said, was done in conjunction with Ad Age and involved about 17,000 marketers. He noted that as far as the company knows, this is one of the broadest surveys that has been done on this topic.
According to Mahaney, they asked those thousands of marketers to rank online advertising platform in terms of ROI. Unsurprisingly, the top platform marketers chose was Google Inc’s (NASDAQ:GOOGL). However, Facebook Inc (NASDAQ:FB) came in at a close second, he added. He continued saying that this is probably one of the best indicators the market has that social media advertising which includes advertising on platforms such as Twitter Inc (NYSE:TWTR) is working for advertisers.
Tausche then asked Mahaney what may be the reason marketers are now saying that it is becoming more effective to advertise on social media. According to the RBC Capital Markets executive, part of the reason may be expanded reach. Another reason may be improvements done by social networks in terms of reporting and analytics, he added.
RBC Capital Markets has an Outperform rating on Facebook Inc (NASDAQ:FB) and a price target of $86. The firm also has an Outperform rating on Twitter Inc (NYSE:TWTR) and a price target of $60. As for Google Inc (NASDAQ:GOOGL), RBC Capital Markets has an Outperform rating and a price target of $670.
Watch the video below where Mahaney was also asked for insights companies like Tumblr can use to improve monetization on their platforms.
Facebook Inc (NASDAQ:FB) shareholders includes Charles Anderson’s Fox Point Capital Management which reported 250,000 shares in the social media giant by the end of March. Another shareholder is Brian Zied’s Charter Bridge Capital Management which said by the end of the first quarter that it had 213,157 shares in the company.
Twitter Inc (NYSE:TWTR) investors includes Paul Tudor Jones’ Tudor Investment Corp which, by the end of the first quarter of this year, said it had 38,942 shares in the company. Another investor is Bill Miller’s Legg Mason Capital Management which reported 28,400 shares in this same period.