Facebook Could Become the Next Google: 10 Reasons Why

 
 
By Don Reisinger  |  Posted 2012-05-15 Email Print this article Print
 
 
 
 
 
 
 

NEWS ANALYSIS: Facebook is set to go public at the end of this week. When it does, it might start down the road toward becoming the next Google in terms of wealth as well as the power and market influence that comes with a high market valuation and consistent business success.

Facebook is the world€™s largest social network, boasting more than 900 million users and dominating the online world in several countries around the world. On May 18, the company is expected to go public and raise several billion dollars that it can use to fund acquisitions and promote future growth. It€™s a lofty goal, for sure, but it€™s one that, given the history of major Web IPOs, doesn€™t seem out of the question.

Yet another thing that€™s not out of the question as it relates to Facebook is its ability to become the next Google. Since its IPO, Google has become a Web and technology industry juggernaut, establishing itself as a leader in search, advertising and even mobile phones. In addition, the company€™s innovative exploits are second to none.

But for the first time in Google's relatively brief and storied history, a new company has come along with a record of rapid growth and global presence that could challenge even Google€™s unparalleled record.

If Facebook makes the right management decisions and continues to innovate in the social networking space, it might use its IPO riches to become an even greater technology industry powerhouse.

Read on to find out how Facebook could become the next Google.

1. Consider the IPOs

The similarities between Google and Facebook perhaps become most striking when one considers their initial public offerings. As of this writing, Google€™s IPO is the largest of any Web firm. But Facebook is on its way to shattering that record. First things first: In order for Facebook to become the next Google, it needs to follow in its footsteps. It appears to be doing that with its IPO.

2. Advertising

Although Facebook started without a clear path to monetization, the company is now doing a fine job of generating cash from its user base. In fact, last quarter, it made about $1 billion in revenue by advertising alone. And over time, the company is expected to continue to increase its ad revenue as more marketers warm to the idea of promoting content to people based on many more factors€”like when they were born and where they work€”than Google€™s offering.

3. The user base is expanding

According to the latest S-1 Registration Statement Facebook filed with the SEC, the company has 901 million monthly active users. That€™s a monstrous figure that is anticipated to hit 1 billion sooner rather than later. The most important reason Google became so rich and powerful is its ever-increasing worldwide user base. So far, Facebook has the same thing going for itself.

4. Facebook has eyes on other markets

Although Google started in search and monetized its service with advertising, the company quickly expanded into other markets, including mobile, maps, applications many others. Facebook, meanwhile, is following that same path with talk of establishing a greater presence in mobile and even offering an email service through its platform. Facebook is no longer just a social network.



 
 
 
 
Don Reisinger is a freelance technology columnist. He started writing about technology for Ziff-Davis' Gearlog.com. Since then, he has written extremely popular columns for CNET.com, Computerworld, InformationWeek, and others. He has appeared numerous times on national television to share his expertise with viewers. You can follow his every move at http://twitter.com/donreisinger.
 
 
 
 
 
 
 

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