AOL, Microsoft, Yahoo! are all one another's competitors and they are constantly trying to out-do each other in areas such as sales or advertising. Recently, all three companies have been seeing a decline in revenue due to poor or lack of advertising. Google's has become even more powerful ever since it bought DoubleClick's ad service. Amongst its competitors, Facebook has been the most successful due to its high level of popularity that has been generated all throughout the world. The reason why Facebook is one of the leading sites in the world, along with 16% share of the online ad market, is because of is display of advertising. Millions of people visit the site daily so advertising here wouldn't be a bad idea and it was definitely spread the word about anything your trying to promote. Microsoft has already bought a share of Facebook, which is worth three times more than when it was bought. To increase profit, AOL, Microsoft, Yahoo! are trying to team up and use each other's technologies in order to increase advertising while saving money. Microsoft, Yahoo and AOL believe that space for advertising will be in higher demand if there's a market that allows advertisers to connect with the Web audiences that are the best match for their marketing campaigns.
My View:
Since Facebook is the world leader in social networking right now, it would also become one of the world's leaders in online advertising. Since so many people visit the site each day, advertisers pay Facebook to display their ads because they know there's a greater chance more people will see their ad here rather than on Yahoo! or AOL. Perhaps Microsoft, Yahoo and AOL should take notes on what Facebook is doing to attract more people and try to incorporate what they've learned into their own websites. They could also pay Facebook to advertise their company on it's website so more people are being directed towards their site as well.
http://www.usatoday.com/tech/news/story/2011-11-08/microsoft-yahoo-aol-ad-sales/51126422/1
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