So what is the reason behind Facebookâs success? App installs are sent out to users and they often engage in these adverts. People are introduced to new application in this way and the engagement level is pretty high. Google also has a service identical to this, but it is not that popular. This is why Facebook is leading the race and claiming most of the market share. They are all set to launch a new ad network for the mobile platform, in which marketers will be granted access to personal data of the users. This will result in much more targeted ads.
Facebook has acquired some big companies in the last 5 years and the acquisitions were very expensive. WhatsApp was acquired for $19 billion, whereas Instagram and Oculus VR were bought for $1billion and $2billion respectively. Facebook has undertaken a very simple strategy; they want the users to spend most time on the services offered by them. Their total user base has increased drastically since these acquisitions. As all of these popular services are owned by Facebook, advertisers have to pay a hefty fee to promote their products. In the near future more users will join the network and as they spent a large portion of their time on these platforms, the advertising fees will go up.