The improvement of advertising tools the likes of the creation of better algorithms by Facebook Inc (NASDAQ:FB) And Alphabet Inc (NASDAQ:GOOGL) Google has been the source of their improved adtech offerings. This has put Venture capital, which have been advertising technology startups at a tight corner. In 2017, global Venture capitalists funded a total of 343 adtech deals. Given that this was a 17% drop from a year ago, which made $3.2 billion in 2015, only $2.2 billion was made as investment from the said deals.
While Adtech startups can only be referred to as middlemen, their role is to solve pain points created by a lack of tools. However, both Google and Facebook seem to have been on top of the game in squeezing the growth of independent adtech startups. They have to some extent taken dominance of the advertising market. A report by published in June by Kleiner Perkins Caufield & Byers indicated that the two have an estimation of 75% of all new online ad spending.
But the duo has vast war chests to create or acquire adtech tools
Being able to acquire the right adtech tools is not a big neither for Google nor for Facebook. The two are able to invest as much as the market dictates in order to capture big algorithmic advancements. This is the biggest challenge according to U.S.-based venture capitalists that were able to invest just $860 million in advertising technology deals. On the other hand, the two internet giants have their strategies in place. For example, Google has the search engine while Facebook has the social network.
Sundar Pichai Google’s chief executive officer proclaims “Google’s mission is to organize the world’s information and make it universally accessible and useful.“ His counterpart, Facebook’s CEO and co-founder Mark Zuckerberg says that his company has a stronghold that gives everyone the power of sharing out. However, advertisers have the option of choosing which strategy they want to explore.
Google and Facebook have the latest artificial machines
Innovation is the foundation of every success. That said, the two companies have invested in some of the smarter machines in the market in an effort to increase their revenues. However, they still have their competitive platforms that give their particular uniqueness. For example, Google is far ahead of a Facebook in video thanks to the explosive growth of YouTube. Clearly, there is intense speed in internet development, which is an advantage to the two companies. Meanwhile, Facebook’s stock closed at $116.82 an increase of %1.77 or 1.54% while that of Alphabet closed at $808.01 an increase of $15.56 or 1.96%.