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.


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for goog
Willem Boijens
22 Aug 14 21:35:58
Google strengthens hardware expertise by acquiring Gecko Design http://t.co/A6cN5658PN $GOOG $GOOGL
Hadel S. Ma'ayeh
22 Aug 14 21:32:49
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Lon Jefferies, CFP®
22 Aug 14 21:12:39
RT @behaviorgap: MT @abnormalreturns: RT @ivanhoff: Google - When Expensive Is Cheap And Cheap Is Expensive http://t.co/dI2PYuxECt $GOOG
Andrea Paine
22 Aug 14 20:43:49
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
CB4
22 Aug 14 20:11:26
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
aka The Dook
22 Aug 14 20:04:00
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Swapnil Puranik
22 Aug 14 19:54:26
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Hunter Thomas
22 Aug 14 19:50:43
Microsoft reportedly working on a Chromecast-like streaming device $MSFT $GOOG http://t.co/Nb7YDBv74r
JP @WallStPlaybook
22 Aug 14 19:50:37
If you had invested $10,000 in #Google when it went public 10 years ago, it would be worth $139,458.82 today $GOOG
Ginger Cat Games
22 Aug 14 19:49:23
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Martin Lepage
22 Aug 14 19:38:19
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
dilraj nalukandathil
22 Aug 14 19:36:45
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Motivasi Leader
22 Aug 14 19:34:54
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Freddy Meyer
22 Aug 14 19:28:51
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
D
22 Aug 14 19:27:18
Amazon Prepares Online Advertising Program | $AMZN $GOOG http://t.co/ucicRJjrki
Guyanne Lillie
22 Aug 14 19:25:19
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Acquanetta Moore
22 Aug 14 19:24:10
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
She Rocks The Planet
22 Aug 14 19:23:00
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
content_empress
22 Aug 14 19:22:43
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Studio 72dpi
22 Aug 14 19:22:20
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Anita McMillan
22 Aug 14 19:21:13
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Brill  (N.W)
22 Aug 14 19:20:09
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Pierre Demers
22 Aug 14 19:20:07
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Navin Jay
22 Aug 14 19:19:11
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Mohenesh Buthgumwa
22 Aug 14 19:18:32
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Adele Lorraine
22 Aug 14 19:18:04
RT @2morrowknight: According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Sean Gardner
22 Aug 14 19:17:27
According to @comScore, these are the top 10 #apps in the U.S. http://t.co/rtSjSVSnXf $GOOG $FB http://t.co/zLHFzDmZ3I
Stock Market Monitor
22 Aug 14 19:15:38
$GOOG: Google Inc (GOOG), Microsoft Corporation (MSFT) Good Notebook News http://t.co/tIuqQJkuv2 http://t.co/S50mFjx4Y2
Stock Wire
22 Aug 14 19:14:48
Google Inc (GOOG), Microsoft Corporation (MSFT) Good Notebook News $GOOG http://t.co/bUo2Gl21jS
Rosner Stocks
22 Aug 14 19:04:17
$SKYF E.P.S. http://t.co/Aih1LQQYc4 Also See: $GOOG $GDX $YUM $MTD ~
NC StockGuy
22 Aug 14 18:45:36
RT @glennapetersen: Amazon to challenge Google and Microsoft with a new online advertising program http://t.co/Fw5PXz13gS via @WSJ $GOOG $A…
シグレ@ドラマ〜
22 Aug 14 18:32:04
日本では普及しないかも $goog
Rosner Stocks
22 Aug 14 18:30:32
$RSX Last Trade http://t.co/UhV2hE8WnH Also See: $GOOG $XME $BBRY $INCC ~
Frozen Canuck
22 Aug 14 18:17:06
RT @ValaAfshar: U.S. #tech companies founded by 1st/2nd generation immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Ryan Eccles
22 Aug 14 18:14:29
RT @ValaAfshar: U.S. #tech companies founded by 1st/2nd generation immigrants: 1 $AAPL 2 $GOOG 3 $IBM 4 $ORCL 5 $FB 6 $AMZN 7 $QCOM 8 $EMC…
Chasing Stars
22 Aug 14 18:13:32
$QLD E.P.S. http://t.co/ILr1N5tazu Also See: $CRM $PCLN $DIA $GOOG ~
serko
22 Aug 14 18:06:47
RT @kraneland: This. 10 years ago, today. A day I'll never forget... $GOOG http://t.co/9nIOUe6C5N
Glenn Petersen
22 Aug 14 17:54:27
Amazon to challenge Google and Microsoft with a new online advertising program http://t.co/Fw5PXz13gS via @WSJ $GOOG $AMZN $MSFT
$Stocknewsalerts
22 Aug 14 17:46:24
$GOOG New SEC Document(s) for Google Inc. From our Stock News Alerts App
Aaron Anderson
22 Aug 14 17:16:07
What w/ the collapse of $VRNG shares, anyone thinking $GOOG should gobble it up in an all cash deal? It would solve a lot of legal problems
Bruce Meyer
22 Aug 14 16:47:28
RT @bradfranklin: Google Buys Product-Design Company Gecko for X Projects - Bloomberg $GOOG #wearables ? http://t.co/sosGTze26k
Market Headlines
22 Aug 14 16:40:47
$GOOG: Google: Payments About To Go Into Overdrive http://t.co/fSYdr9GjHv http://t.co/JYaXifNkGs
Stock Wire
22 Aug 14 16:37:12
Google: Payments About To Go Into Overdrive $GOOG http://t.co/m6dnbIvqjU
FinancePress
22 Aug 14 16:34:30
$GOOG Google: Payments About To Go Into Overdrive: Google: Payments About To Go Into Overdrive Seeking Alpha ... http://t.co/kqGRQqSTgy
Vala Afshar
22 Aug 14 16:29:18
@djgeoffe $61,200,000,000 cash — $GOOG http://t.co/dd020dmqXY
Business News Watch
22 Aug 14 16:25:39
$GOOG: Jetpac Acquired By Google http://t.co/vs9MkXRdd9 http://t.co/gdKfMxNm89
Kevin Taylor
22 Aug 14 16:24:35
RT @bradfranklin: Google Buys Product-Design Company Gecko for X Projects - Bloomberg $GOOG #wearables ? http://t.co/sosGTze26k
ian mausner sec
22 Aug 14 16:22:00
Google Buys Product-Design Company Gecko for X Projects - Bloomberg $GOOG #wearables ? http://t.co/qe1Qk2URw5
Stock Wire
22 Aug 14 16:21:04
Jetpac Acquired By Google $GOOG http://t.co/lAcQWcARKJ
brad franklin
22 Aug 14 16:20:12
Google Buys Product-Design Company Gecko for X Projects - Bloomberg $GOOG #wearables ? http://t.co/sosGTze26k
				
				
  +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.