Facebook on a Chocolate High
June 27, 2010
Today (Saturday, June 26, 2010) I had a short conversation with a person who argued that the Internet was Google. I would have agreed in 2006, but since that fateful year when Google when ga-ga, the company has lost its magic touch. I know the company is a money machine and ranks among the world’s superpowers in power and influence, but the excitement has shifted. Google is more of a Wal-Mart and is starting to look to me more like a Microsoft-inspired operation. The person with whom I spoke was not happy when I suggested that Facebook was the big gun in the Internet.
I think the reason I was playing like an avid Facebook friend was my recollection of “One Billion Facebook Users: The Road Ahead”, an article that appeared in Online Social Media. The argument in the short item was:
Mark Zuckerberg has been quoted as saying “that Facebook estimates of ($1.14 billion) just in revenue this year 2010 could be achieved”. One of the reasons contributing to this, could be that Facebook have become the top US publisher of display ads on the web. It appears that display ads in the first 3 months of the year captured users, and produced a 16.2% of the market share, double that of the previous year of 7.5%.
If we assume that Mr. Zuckerberg is on the beam, Facebook could mean big trouble for the Google and maybe Apple. The reason is that Microsoft seems to be comfortable with the Zuck’s creation. If Microsoft can find a way to cheerlead Facebook into bleeding ad revenue from the Google, that’s a plus. In fact, a slower Google could find itself pressure by the Cartier advertising approach of Apple on the high end and by the Zuck’s “better Google” approach.
If Facebook’s traffic keeps on growing * and if * the Facebook search system works reasonably well, Facebook may have done something not even the Googlers thought possible.
Stephen E Arnold, June 26, 2010
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