NEWS ANALYSIS: Google and Facebook have their gun sights set on each other. As Facebook gains huge new riches with its initial public stock offering, the competition between these two giants is likely to become fierce and even nasty.
When Facebook first
launched, it was looked at as a niche social network. The site catered to
college kids and seemed to be destined to live in that world. But after an
increasing number of people joined the site, and its CEO and co-founder Mark
Zuckerberg decided to open it up to the general public all that changed. Now,
Facebook is a Web juggernaut, and is closing in on a billion active users.
Meanwhile, Google is lurking
in the shadows. The company is undoubtedly the most dominant Internet company
in the world and its continued growth in both search and advertising is enough
to worry any competitor. Even the mighty Microsoft has been forced to wonder if
Google could one day put its business to shame. Microsoft detractors might
argue that it has already done so.
But Facebook is a different
beast altogether. The worlds largest social network is growing like a weed and
its starting to cut into Googles advertising business. Meanwhile, with its
IPO looming, Facebook will soon be flush with the cash it needs to go head-to-head with
Get ready for a big battle
between the companies. And read on to find out why theyre techs next big
1. Both are vying for ads
Both Microsoft and Google
rely heavily upon Web advertising to drive their businesses. Facebook has tried
expanding into a virtual currency, known as Credits, which has helped buoy
revenue, but for now, advertising is its focus. Google has long been the world
leader in Web ads. But that has changed as of late as Facebook has generated
billions of dollars from ads. Look for that to be a key reason for their battle
in the coming years.
2. Both are vying for the same users
Aside from ads, Google and
Facebook are both trying to attract the same Web users. With so many people who
use the Internet heading to Google and Facebook each day, the goal for each
company now is to get them going to their respective sites. In order to achieve
that, their business interests will continue to clash.
3. Google is no longer about getting rid of you
There was a time when
Googles ultimate goal was to attract users to its site, help them find a Web
page they wanted to visit and get rid of them as quickly as possible. Google
was a middleman that facilitated Web traffic. Nowadays, Google
has become far more sticky,
attracting users to its online productivity
suite, photos, email, and more. Facebook is also one of those sticky sites.
That can only mean one thing: a battle.
4. Online video is a sore subject
When Google acquired
YouTube, there was some speculation that the search giant wouldnt be able to
muster a positive return on its investment. Google has only recently started to
prove those naysayers wrong. However, Facebook has also become a huge video
destination, as users post new clips on the social network for friends to see.
Facebook doesnt have the 4 billion daily video views YouTube does, but its closing
in on the search company.