In India, Google races to parry the rise of Facebook
Google retains only a slight lead over Facebook in the competition for digital ad dollars in the crucial India market, people familiar with the figures say, even though the search giant has been in the country far longer and has avoided the controversies that have dogged its rival.
Facebook’s success has shaken Alphabet Inc.’s Google, led by an Indian-born chief executive officer Sundar Pichai, who has made developing markets a priority.
Google officials in India earlier this year were alarmed to learn that Facebook Inc. was likely to generate about $980 million in revenue in the country in 2018, according to one of the people. Google’s India revenues reached $1 billion only last year. Facebook and Google declined to comment on Indian revenue figures or the competition between the two companies.
Google is now pushing back, attempting to lure customers with better ad-buying tools and more localized services. The revamped strategy mirrors initiatives that have succeeded in boosting the time Indian consumers spend with Google services.
The battle in India reflects an epic challenge for Google in developing markets around the world that are crucial to the company’s long-term growth—many consumers in those country’s are gravitating to Facebook and it’s siblings, Instagram and WhatsApp, at the expense of Google search and YouTube, and advertising dollars are quick to follow.
“Facebook is a far more user-friendly platform even though they haven’t created features specifically for Indian advertisers,” said Vikas Chawla, who runs a ad-buying agency in India.
Facebook ads, compared with those on Google search or YouTube, tend to transcend language barriers more easily because they rely more on visual elements, said Narayan Murthy Ivaturi, vice president at FreakOut Pte Ltd, a Singapore-headquartered digital marketing firm.
Facebook and Google between them took 68% of India’s digital ad market last year, according to advertising buyer Magna. Media agency GroupM estimates digital advertising spending will grow 30% in India this year.
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