Facebook Inc (FB), Google Inc (GOOG): How This Social Networking Site Will Continue to Grow

Unlike Facebook, Google Inc (NASDAQ:GOOG) has had trouble with mobile advertising. While Google ads received more clicks last quarter, the average price per click for Google Inc (NASDAQ:GOOG) decreased 2%, marking that figure’s seventh straight quarter of declines. Analysts and Google Inc (NASDAQ:GOOG) executives blame this decrease on mobile ads, which cost less and drive down internet advertising prices.

Google Inc (NASDAQ:GOOG) is a much larger company than Facebook, and the transition to mobile advertising will be more difficult than Facebook.  Facebook’s news feed ads are more easily converted to the mobile platform than Google’s text ads.  They also blend in better with the content on the social networking site.

Google experienced a bump in the road, and I think the company will focus more  on mobile advertising in the future. But currently, Facebook has proven to be a more profitable mobile advertiser.

Conclusion

Facebook has finally made significant progress with its mobile advertising and the results are better than most people expected. With effective mobile and desktop advertising, the company has proven that it is profitable as well as popular. It still has a long way to go to achieve its three goals, which will keep the company working hard to innovate in  social media. Like I said a few months ago, I think Facebook is a buy.

The article How This Social Networking Site Will Continue to Grow originally appeared on Fool.com and is written by Ben Popkin.

Ben Popkin has no position in any stocks mentioned. The Motley Fool recommends Facebook and Google. The Motley Fool owns shares of Facebook and Google. Ben is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.