Facebook Building New Product That Could ‘Kill’ Yahoo?

Peter Roesler, President - Web Marketing Pros

By Peter Roesler

President, Web Marketing Pros

According to a Yahoo source, there is a story out there that suggests that Facebook could be in the midst of building a new product that will directly compete with one of Yahoo’s major products that could conceivably ‘kill’ Yahoo.

Yahoo currently is one of the biggest sellers of ads on the Internet, with about $5 billion in revenue each year. If it were possible for a big chunk of that to go to Facebook, that would be killer news, indeed.

The word is that Facebook, which has been fighting a recent battle on fake ‘likes’, has come up with something very simple but powerful. It apparently has devised a way to prove to marketers that there is online advertising other than Google search ads that is worth blowing a great deal of money on.

It is the result of a new partnership with a new Nielsen competitor from Denver known as Datalogix. It could indeed upend the way online brand advertising works.

The Old Way

Here’s how regular advertising online works:

The New Facebook Way

This new process would close the loop on brand advertising in a way that only Facebook can. No Website has more brand advertisers than Facebook. No other site has as many users looking at brand ads, and no other site has all of the email addresses of users who look at Facebook ads.

If Facebook, which has capitalized on its strengths to build strong marketing efforts in the past, can make this work, it could easily do multiples of the $500 million a year Yahoo makes in doing similar things with its brand.

It’s still early, and things could change, but Facebook could really be on something mega here.

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