In my previous blog I wrote about the battle between Facebook and Google, which mainly revolves around the possession of customer profiles. With Google+, Google is making a serious attempt to break Facebook's monopoly position in the field of social networks. The question arises why companies like Facebook and Google, but also Apple and Microsoft, consider the customer profile as the (new) goose that lays the golden eggs. Why are they so fond of customer profiles?
The business model of these multinationals is to bring together supply and demand. They have become the intermediaries israel phone number list for online transactions, or rather: they all want to become the most important intermediary. And that battle is far from over. One of the ways to bring customers and producers into contact with each other is through advertising. The main source of income for Google and Facebook (and to a lesser extent Microsoft) is selling advertising.
The added value is not that they can offer online advertisements for just a few cents per click. The real value lies in the fact that they bring these advertisements to the attention of a specific target group. They can do this because they have collected large amounts of customer data over the years. The more detailed Google, Facebook and Microsoft can determine the target groups, the more relevant the advertising opportunities are and the more advertisements they (therefore) sell. Moreover, more relevant advertisements are less likely to irritate the average internet user, which more or less gives Facebook and Google permission to show this type of advertisement.