1 Number That Shows Facebook and Google's Competitive Advantage

1 Number That Shows Facebook and Google's Competitive Advantage

It's no secret that in the world of digital advertising there are Facebook (NASDAQ: FB) and Google, and then there's everyone else. While smaller companies like Twitter (NYSE: TWTR) and Snap (NYSE: SNAP) might take a piece of the pie from the big social network company and the Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL) subsidiary, the two combine to take practically all of the growth in the market these days.

What's impressive is that Facebook and Google aren't using brute strength to grow their businesses. They benefit from most of their customers, i.e. advertisers, coming to them and using their self-serve platforms. Twitter, Snap, and most other digital advertising businesses are still heavily reliant on a sales team reaching out directly to advertisers, despite efforts to copy the extremely effective strategies of Facebook and Google. It's hard to turn a profit without a significant amount of ad sales coming from scalable self-serve platforms.

That fact is exemplified in just one number.

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Source: Fool.com