Alphabet (GOOG, Financial)(GOOGL, Financial), along with Facebook (FB, Financial), is one of the primary benefactors of the extensive shift to digital marketing. In 2015, market research company eMarketer projected that digital marketing would exceed TV marketing in total United States ad spending in the upcoming year, as many companies are expending heavily on mobile advertising.
As a matter of fact, the foremost successor of this restructuring of digital marketing dollars, comprising into the massive growth mobile arena, is Alphabet. On the other hand, as per eMarketer, Alphabet and social media giant Facebook together accounted for almost 50% of all digital marketing dollars in 2015.
Apart from this, in the near term, Alphabet could gain an advantage from a spontaneous blunder on the part of the Facebook, as recently the Wall Street Journal stated that Facebook had delivered bloated viewing times for its video advertisements.
Moreover, ad agency Publicis Media anticipates it inflated viewing times by 60% to 80%. As an outcome, this could create problems for Facebook, keeping in mind that average viewing time is a significant part of the engagement metric.
Google’s new Pixel smartphone
Recently, Google detailed that it has stopped working on imminent Nexus phones, a program in which Google worked with smartphone makers. However, Google has launched its new smartphone named Pixel.
This clearly means that Pixel will be the company’s new way of representing to the Android camp what the platform is capable of, a chore formerly entitled for Nexus devices.
The tactical differences amid Nexus and Pixel are elusive. Both of the smartphones are built with stock versions of Android, but without additional software from the smartphone’s maker. Moreover, both the devices are designed to receive software updates earlier than other devices.
However, the primary difference is that the company is taking entire ownership of software as well as hardware so as to accomplish deeper integration, though it is probably still outsourcing manufacturing.
Apart from this, the device also supports the company’s new virtual reality platform, Daydream. Moreover, Google is also working with several VR content producers to expand its VR platform, which could also act as another long-term growth driver.
Conclusion
While Alphabet may or may not gain from Facebook’s error, the company is still well positioned to benefit from the digital marketing space. In addition, the company is also spreading its wings across the virtual reality segment, which can be another positive for investors over the coming years.
Disclosure: No position.
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