Sunday, March 22, 2009

Facebook a threat to Google

Socialwise is depending a lot on social networking. The good news is that it is a huge market.

Here is a great article about how: Facebook Can drive more traffic than Google

Here is a part of the article:
Facebook gets over a third of the number of unique visitors that Google does according to comScore. And it continues to grow. Compete shows the lines between Google and Facebook getting closer together:
"It seems inevitable that, given Facebook's sheer scale (180 million registered users and counting), it would at some point start referring a lot of users to some sites, but the development is surprising," says AdAge's Michael Learmonth.

If Facebook's growth continues the way it has been, perhaps it should be considered Google's greatest threat (when I say threat, I mean competition) - maybe not in general search, but in terms of where advertisers are spending their money. Certainly in the foreseeable future, people will continue using Google to search, and advertisers will continue to spend money advertising with them (probably even more now that they are doing more targeting), but Facebook also targets, and it's not going to be overlooked. It could put a dent into AdWords revenue.

If Socialwise is the company monetizing Facebook, what do you think that will mean? Simply that Socialwise could be the tip of the advertising spear that starts the revenue motor for social networking. I think this could also paint them as a aquisition target for Google as well. By the way, as of their last filing Google is sitting on $8.5 Billion in cash. Aquiring a company like socialwise would be a cake walk, unless they had to bid against others like Amazon (1.7Billion in cash),
or Yahoo ($1.8 Billion) or maybe even because of Maynard Webb...Ebay ($2.8Billion) . Keep in mind, these companies also have credit lines in the billions, so it wouldnt be risking their cash flow.... this is hopefully what would happen.

Feel free to post any questions.

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