Final Paper Draft

Argument 1:

Google and Facebook have taken so many market shares that there’s almost nothing left for small companies. According to a report from the Fortune, the duopoly of Google and Facebook take more than half of the digital media market worldwide and about  63% market share of the U.S. market, whereas “In the U.S. market, no other digital ad platform has market share above 5%.”

Although Facebook has experienced the crisis of information leakage, its market share topped 39% in 2017, and this data has beaten Google, Twitter, Instagram or any other digital media platforms. Facebook has established a very solid foundation in the digital marketing world. Its stock price has been moving overall upward since Facebook was listed on NASDAQ. Its competitiveness is unquestionable. 屏幕快照 2018-04-01 下午8.07.44

Also, as I have written in my last week’s news response, there is still no substitutive apps that can replace Facebook’s position in people’s lives so far. Therefore, this crisis is not the end of Facebook, or the end of Facebook being one of the duopolies in the digital advertising market. But I am interested to see what Facebook will experience in the coming year. Will people completely lose faith in Facebook and lead to a huge shrink in its market share? Will small companies then have a chance to compete for more investments? Or will people quickly forget about what has happened and start to use Facebook again in the near future, and Facebook continues to increase in investments, stock price, and market share?

 

Argument 2:

Buzzfeed will keep having decreasing returns to its revenue scale regarding its totally digital based nature and low quality of news.

Long developed news resources like CNN, New York Times, etc. all have increased viewers and revenue because a digital version of these news resources has made people more convenient to acquire news. Therefore other than the original audiences who used to watch TV and buy paper version newspapers, a digital version of news could attract more viewers. However Buzzfeed does not have the audience base. In addition, news and articles on Buzzfeed are considered less trustworthy.

An evidence of Buzzfeed striving for more revenue. Buzzfeed used to promise that they will never put banner as on its website. However they started to place banner ads on its website not long time ago.  Before that, Buzzfeed has done an excellent job in making creative ads like videos featuring a specific brand. The videos were made in a way that would not annoy audiences but imperceptibly plant the brands’ creed into customers’ heads at the same time. But this kind of creative advertising takes a long time to create. While Buzzfeed marketing team is working on this creative ad, the investor might already found other platforms to invest in an ordinary but faster way. Allowing banner ads could, therefore, be seen as an evidence of Buzzfeed surrendering to a decreasing revenue.

 

Argument 3

Sometimes banner ads we see on websites are not powered by this website but other online service providers.

For example, when you are browsing a website like the Washington Post, a banner ad, to say, from Mango appears on the right side.屏幕快照 2018-04-01 下午8.47.19 This ad is not powered by the Washington Post or Google (because I use Chrome browser) but powered by internet retailers like AOL and Criteo. These companies create banner ads and push them to you on a lot of websites. They also target different people with different ads based on their browsing history. I shopped from Mango a few weeks ago so I am getting tons of Mango ads on basically all the websites I go to. The Huffington Post was also one of the companies that experience decreasing views and annual revenue. But the Huffington Post was bought by AOL and both the Huffington Post and AOL is a subsidiary corporation of Verizon. So situations of the Huffington Post is more tricky and complicated than that of Buzzfeed.

 

Argument 4

Google has made online ads easier and more accessible to investors through Google AdWords.屏幕快照 2018-04-01 下午8.57.54

One of Google’s main place to put ads is on the top of its search results, the websites that are advertised have a small green rectangle saying “Ads”.

On Google AdWords, you can start your advertising very easily. Here are some benefits Google AdWords claim to have: 屏幕快照 2018-04-01 下午9.02.01Also, only if your ads are working and your website has been visited does Google AdWords charge you. This is a convenient way to attract fragmentary ads from smaller investors, which also in some ways add revenue of online marketing to Google.