logo  
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

Facebook Graph: The Inevitable Marriage of Social Media and Search Engines

  +Follow July 10, 2013 8:42AM
Share:
Tickers Mentioned:

FacebookFor years Facebook (FB) dominated social media, and Google (GOOG) dominated search engines, and neiter internet giant got on one another's turf. In 2011 that changed. Google unveiled their social media platform Google Plus. Initially a bit of a flop, Google Plus has recovered, but is still dwarfed by Facebook. In January 2013 Google Plus reported 343 active users behind Facebook’s 1.1 billion. Google Plus simply doesn't offer much not already offered by Facebook. Aside from the video group chat function Hangout, it's basically an ape of Facebook.

As Google once moved into social media, now Facebook is moving into search. But unllike Google, it's not a slightly differentiated copy. It uses the loads of personal data Facebook already has, and makes it navigable. And it could signal an entirely new era for Facebook.  

How Graph Search Works

Graph Search is like a Google for interests. Type “friends who like Nickelback” into Graph Search, and you’ll find which of your friends are into the maligned Canadian rockers. Search “people in Los Angeles who like dogs” and you’ll get a list of people who live in LA and have publicly “liked” Pages associated with pooches. No more going onto indivdual people’s Facebooks to see their interests. It’s always been catalogued, but now it can be easily searched.

It’s an exciting and terrifying prospect, and could change the entire nature of social media. And by combining their massive stores of user’s personal information with a search engine, Facebook is moving towards becoming all types of social media in one.

Facebook Adapting to Changes in Social Media

Facebook has always been social media for people who already know one another. But Graph Search could change that. Graph Search’s ability to not just facilitate existing connections, but create new ones, moves Facebook into several arenas currently dominated by other social media platforms.

Grouping people based on shared interests makes them more akin to Meetup.com or dating websites like Match and OkCupid. Combining the Location Services feature (which pinpoints a user’s physical location) with local businesses with many “likes” could help Facebook edge in on the territory of Yelp. And every move away from private status updates and towards searchable public information gets Facebook’s functionality closer still to that most public of social media, Twitter.

Graph Search, it seems, is Facebook’s bet that they can untangle and “roadmap” their vast stores of content. It’s content that is closed off to Google, and it’s content that until Graph Search wasn’t categorized for public consumption. Now it is.

Turning "Likes" Into Revenue

In June 2013 Facebook CEO Mark Zuckerberg tried to assuage investor fears by pointing out that while new users weren’t joining as fast as they’d like, and that they wre “disappointed” in Facebook’s Wall Street performance, there were promising trends. Likes and comments on the site, indicating user interaction, were up 50 percent.

At the time, investors scoffed. What do likes and comments have to do with revenue? Now it seems there might have been a solid reasoning behind that cryptic explanation.

Likes and comments generate content. Now, with a search engine, those “likes” acquire function. They categorize people. They expand the functionality of Facebook. With 1.1 billion users, Facebook is nearing saturation. They can’t get new users, so give them more reasons to use Facebook more.

Monetization via Advertising

Like any other content-driven website, the monetization is going to come from ad revenue. Wedbush analyst Michael Pachter opined that by 2015 the added value of Graph Search could be between $3 billion and $4 billion by 2015. Zuckerberg is being much more cautious, saying back in January 2013 during the feature’s demo that “Graph Search is really neat stuff, but will take years” to perfect.
Graph Search, at its present state, certainly isn’t accomplished enough to demolish Google and all other social media. It still lacks the intuitiveness of Google. As a social connector, it suffers from a lack of compartmentalization, wherein people aren’t always comfortable sharing what they really like with absolutely everyone. And in perhaps its biggest barrier to monetization, Graph Search isn’t yet available on mobile devices, which is how Facebook is accessed by over half its users.

But assuming issues with intuitiveness and integration, the possibilities of Graph Search are enticing. It could expand the utility of Facebook, and if Facebook becomes more useful, it can increase the amount of time people are on it, and thus the amount of ad revenue they can generate. Ads are currently not integrated into the feature, but if (and when) Graph Search becomes an indispensible part of the Facebook experience they certainly will be.

If Facebook can work out the bugs, and monetize correctly, Graph Search could be a real improvement to improving the utility of Facebook. And simultaneously a major blow to its biggest rivals.

Facebook’s stock was up 3.12 percent on the news to hit $25.78 a share. It’s still down 4.28 percent on the year, and way down from its May 2012 IPO at $38 dollars a share.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.


Signup for our daily newsletter and get our best articles emailed right to you!

Results for goog
Trudi Gary
24 Nov 14 14:28:30
$LM #Pennystock Research on $UFS $PSX $GOOG #moneymanagement http://t.co/yxa9naRhaJ
Petrina Bostic
24 Nov 14 14:28:17
Are you looking for winners like $CL $NU $KMI $GOOG Must see http://t.co/6tH7qPYKAb
Jeremy C. Owens
24 Nov 14 14:28:10
Chatted with Tech News Today about the Google breakup proposal in Europe. http://t.co/ONmzu3UfdZ $GOOG $GOOGL
Arlo Barron
24 Nov 14 14:28:07
Some Stocks to Watch $VFC $TWTC $A $GOOG Give it a try http://t.co/ShZNyhOBMd
Thad Bowens
24 Nov 14 14:24:58
Are you considering selling $MSFT $FLO $CBI $GOOG #economy http://t.co/WSHQvBEw9W
Kimberlee Kerns
24 Nov 14 14:22:10
Are you hanging on to $SLH $TFM $Q $GOOG Click http://t.co/eKa52mlxRX
Eve Fenner
24 Nov 14 14:20:19
Best research on #stocks such s $MRVL $SGEN $BF $GOOG #money http://t.co/5rHU8BQnR6
Joe Barbee
24 Nov 14 14:20:17
Would you like great research on stocks $MPC $THO $EL $GOOG #equity http://t.co/2m3vGBuOrZ
GuruFocus
24 Nov 14 14:18:39
Is Google Worried About Yahoo’s Search Engine Business? http://t.co/5bnufNj3O1 $YHOO $GOOG $MSFT http://t.co/o2rkbjqF10
Devon Dube
24 Nov 14 14:15:59
Bearish or Bullish on these #stocks $DOX $SPW $BRCM $GOOG #NSE http://t.co/Bm2DMPwofe
Mauro Atwood
24 Nov 14 14:10:27
Looking for research on $DVA $IEX $OGE $GOOG #NSE http://t.co/nT64z9DLmL
Cody Willard
24 Nov 14 14:08:59
$TWTR Twitter and $GOOG Google are the next best publicly-traded social communications company. The next phase... http://t.co/Y5wzGGPDrQ
Shaquita Foy
24 Nov 14 14:08:10
Whats going on with $DDR $AMAT $WMT $GOOG Click http://t.co/kkkznaB5vV
Necole Diaz
24 Nov 14 14:08:10
Are you hanging on to $CE $CYN $CTXS $GOOG Must have http://t.co/9r0Z5mFMhv
Tradesight
24 Nov 14 14:05:52
Key #trading #stocks like $AAPL and $GOOG with buy and sell signals for Tuesday: http://t.co/nnrs7a41Qn
Randell Wolf
24 Nov 14 14:04:26
Is it breakout time on $MS $CVX $BAX $GOOG View now http://t.co/SNVMxsMbN9
Kohen Birch
24 Nov 14 14:03:34
#Stocks you might want to hold onto $WLL $TFSL $ODFL $GOOG Worth a look http://t.co/qVDGTC7NK7
Evan Gillette
24 Nov 14 14:03:33
#Stock Watchlist. Dont be left behind $AA $COO $IM $GOOG #equity http://t.co/2ldQ3tQEou
Drema Voss
24 Nov 14 14:03:03
Seeking the next hot #pennystock $AAN $NFG $NEU $GOOG #singedinvestor http://t.co/UVgyysMjBz
Audrey Machado
24 Nov 14 14:02:58
Avoid mistakes like $ESRX $AMD $AEE $GOOG Worth a look http://t.co/SQOsEM3GuP
Leonie Machado
24 Nov 14 14:02:21
Are you Bearish on these #stocks $CL $CLF $ETN $GOOG #money http://t.co/UoghE7mLzi
Alesia Quick
24 Nov 14 13:59:57
Could be breaktout time on $CSE $MOLX $MAS $GOOG #moneymanagement http://t.co/ryQnQLH948
Elodia Casteel
24 Nov 14 13:59:05
Wow. Great #Stock #Research on $WSM $HP $RE $GOOG #wallstreet http://t.co/NZJ2e3AmJ0
Eden Carney
24 Nov 14 13:59:02
Insider Trading updates on $GOOG $SBUX $NDSN $RT #singedinvestor http://t.co/Ps39GU3Kb9
Sybil Hackney
24 Nov 14 13:58:06
$DFS #Pennystock Research on $GEF $SCCO $GOOG #overvalued http://t.co/25Rw6UUiWs
IMG FUNDING
24 Nov 14 13:57:15
Robinhood's Promise: Stop Paying Stock Market Commissions http://t.co/8FddkBq5nl via @daily_finance $AAPL $GOOG $AMZN
Flavia Waldrop
24 Nov 14 13:55:12
$HTZ #Best #Pennystock research $ROK $BDN $GOOG #money http://t.co/oqBbbpAshJ
BlueHeini
24 Nov 14 13:51:46
RT @KeeneOnMarket: I look great in $GOOG Glasses http://t.co/iySLcePX2n
Nicky Stokes
24 Nov 14 13:49:47
$Y Considering investing in $LEN $TFSL $GOOG Give it a try http://t.co/8lxV3mqHyr
Kael Turney
24 Nov 14 13:49:23
$RMD Are you Bullish on these #stocks $HIG $SLXP $GOOG Visit http://t.co/ligJ7e9Wfc
Kimberlee Kerns
24 Nov 14 13:45:29
Top #Stocks today. Find out why. $RES $MAT $CNK $GOOG Goto http://t.co/01JfDFKsYi
Lanelle Fultz
24 Nov 14 13:45:13
Todays movers to research $WDR $GLW $XL $GOOG I suggest http://t.co/4fgOqa4tJR
PredictWallStreet
24 Nov 14 13:44:25
The PWS Poll Results for $GOOG, 11/25/2014, are: 79% up. See more at: http://t.co/NiB3PByUVS, @predict
Rita Simpkins
24 Nov 14 13:42:45
Buy or sell? $PKG $RTN $GLNG $GOOG Must have http://t.co/8OFpSbqpJx
Louella Ivy
24 Nov 14 13:41:36
#Stock Market Reports you need on $OAS $RK $GHC $GOOG #personalfinance http://t.co/EkS44qvbtn
Leighton Darby
24 Nov 14 13:41:01
Regretting your investment in $LVS $IP $OII $GOOG #moneymanagement http://t.co/HnM1BnwLwP
Todd Sullivan
24 Nov 14 13:40:14
How kids write papers today, on $GOOG docs on iPhone $AAPL http://t.co/lPSXjqSk0b
Penny Stock Secret
24 Nov 14 13:39:16
Premium Alerts Ranked #1 For Gains 2534% Last Week http://t.co/SVqoMlijqL .. $IBM $GOOG $AAPL
Madonna Jennings
24 Nov 14 13:38:21
Seeking the next hot #pennystock $GOOG $CSX $TMUS $GLD #financial http://t.co/t7od8AmByi
Jonell Seibert
24 Nov 14 13:36:08
$CVX Get the latest on $BK $PRA $GOOG #liquidity http://t.co/GrZTxBFdSh
Lu Askew
24 Nov 14 13:32:12
Great #Pennystock #research $MMC $EXPE $KSU $GOOG View now http://t.co/RJS0r2yrzq
シグレ@ドラマ〜
24 Nov 14 13:32:04
日本では普及しないかも $goog
Nerd Criollo
24 Nov 14 13:31:36
Hoy #Google Inc. $GOOG cerró a $539.27.
PredictWallStreet
24 Nov 14 13:30:19
Your UP prediction for $GOOG on 11/24/2014 was INCORRECT. The price change was: 0%, @predict
Tim Madsen
24 Nov 14 13:28:26
Google Inc. (GOOG) price at close, November 24, 2014, is 539.27. $GOOG
Dannette Sizemore
24 Nov 14 13:27:49
Are you looking for more winners like $PETM $UTX $HST $GOOG #moneymanagement http://t.co/STf0xaAKEy
Tiffiny Barela
24 Nov 14 13:24:14
$NSM Get the latest on $AEP $UNT $GOOG #NASDAQ http://t.co/E0Ba3zvOjC
Kimberlee Kerns
24 Nov 14 13:23:35
Looking for research on $OII $NFG $BWA $GOOG #NASDAQ http://t.co/hgU5sKqU9N
CalConfidence
24 Nov 14 13:23:00
Why Hasn't A Stock Split Helped Google? $GOOG $GOOGL http://t.co/tmhHPEqh1V via @benzinga
Gibson Larkin
24 Nov 14 13:22:04
Earnings news on $DNKN $SRCL $ARCC $GOOG #economy http://t.co/ZMDWBD8rfe
				
				
  +Follow July 10, 2013 8:42AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.