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Facebook’s Atlas Ad Server Will Compete with Google

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Facebook’s Atlas competes with Google

In the last part of this series, we discussed the enhancements that Google (GOOG) (GOOGL) made to its measurement tools. Some of these enhancements were to help brands know how their ads performed. Facebook (FB) has also been focusing on enhancing its advertisement products—especially for mobile.

In October 2014, Facebook relaunched Atlas—the ad server that it bought from Microsoft (MSFT) in 2013. Facebook claims that Atlas can help advertisers improve online campaign measurement and achieve a better return on investments by providing relevant ads to users. Facebook also claims that since it knows peoples’ real identities, it can track users on different devices—tablets, smartphones, and PCs. Facebook’s Atlas competes directly with Google’s DoubleClick Ad Exchange program.

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Online display ad market has good growth potential

In the advertising market, the competition for ad dollars is certainly heating up. According to a report from the Wall Street Journal, Amazon (AMZN) is planning to develop its own software to place ads online. It will be similar to Google’s AdWords program. AdWords is an auction-based advertising program from Google. It delivers relevant ads to its own websites and its partners’ websites.

These companies continue to innovate in this market. They understand the market’s growth potential. According to a recent report from eMarketer, and as the above chart shows, the net US digital display market could grow from $22 billion in 2014 to $37 billion in 2017 at a CAGR (compound annual growth rate) of 19%.

To gain diversified exposure to Facebook, you could invest in the iShares Dow Jones US Technology (IYW). IYW invests about 4.9% of its holdings in Facebook.

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