Facebook rivalry for digital advertising is heating up.
During Google’s first-quarter earnings call Thursday, Chief Business Officer Omid Kordestani took a couple of digs at Facebook FB -1.07%, without naming the social-media company, of course.
“It’s often more valuable to know someone is shopping for a new SUV, than it is to know basic demographic information about them,” Kordestani said.
Translation: Facebook knows a lot about people, but Google knows what they want to buy, which is more valuable.
“When people come to YouTube, they come with the intent of watching video, so it’s the perfect time to reach them with a video ad, not when they’re distracted by something else,” Kordestani said later on the call.
Translation: When you’re on Facebook you’re interested in what your friends are doing, not watching videos. On Google’s YouTube, you’re there to watch video, so a short video ad may be OK too.
The comments focus on two lucrative and fast-growing areas of online advertising, shopping and video, where Facebook is trying to catch up with Google.
In February, Facebook launched a competitor to Google’s highly successful shopping-ad service.
Facebook started placing videos in users’ newsfeeds in 2013. During its own conference call on Wednesday, Facebook said its users are watching four billion videos a day, up from three billion in January. That’s caught the attention of advertisers, although there are currently fewer ways of buying spots on Facebook than on YouTube.
Google had its own set of impressive stats for YouTube this week. Kordestani said Internet users watch “hundreds of millions of hours” of video on YouTube every day and the number of advertisers using its TrueView skippable video ads grew 45% in 2014.
A Facebook spokeswoman declined to comment.
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