I ask that not in functionality alone but also in
influence, scope, size of an internet company that is really changing the way
we do business. Its growth in Market share reminds me of Microsoft’s growth
with Internet Explorer as well as Google’s growth in search.
According to Hitwise in May of 2009 Facebook had 28%
market share of U.S. social networks. In December it had climbed to 47%. What
is interesting from this data is that twitter was only 1.46% in May and dropped
to be in “other” at the end of the year. MySpace went from 31% market share in
May ’09 down to 18% in December ’09.
Mark Zuckerberg, Facebook founder, is on the cover of the
March 2010 issue of Fastcompany magazine. The cover story is “The World’s 50 Most Innovative
Companies”. Guess which one is #1? You guessed it, Facebook. What does that
mean.
It’s a very interesting article talking about growth in number
of users. Facebook doubled its users to 350 million last year. Google has 800
million.
When looking for something to buy now how many times have
you searched in Facebook to see if there was a fan page? Did you see if it was
a two-way communication between company and fans? And did you join the fan
page? Facebook’s advertising
agreement with Microsoft is now incorporating bing search.
One of the reasons why Google has become such a giant is the
fact that there are statistics galore to measure for ROI. If Facebook does a
good job of that it really will be the company to watch. And the team at
Facebook is putting plans in place for that.
In the Fastcompany article a Facebook staffer is quoted as
saying, “We always have a big dragon to slay, and this year it is Google.”
One area I believe Facebook really needs to grow in now
(and slay their dragon) is measurement. Allowing companies to see ROI from it’s
advertising with Facebook and more importantly what’s happening when an admin
of a fanpage posts information. Who’s watching? Reacting? Facebook is working
on tools for measurement. Facebook Insights is being tested in various areas.
What is Facebook Insights? Admins of authentic Pages can now see data on the performance of
each of their posts. Each post now displays (to admins only) how many
impressions the post has received (how many times it has been displayed to all
users) and its feedback percentage, which is based on how many comments and
Likes have been left on the post. This will allow Page admins to see which
content better engages their fans.
This is
a great start for business to do more measurement around their fan pages,
Measurement to me is the final things needed to propel Facebook past Google as
the most influential (and successful) company on the internet.
So the
answer to my original question; is Facebook the new Google? It may be on the
way based on these four things:
- 1.
Functionality;
It has changed the way people socialize, and now do business.
- 2.
Measurement;
It’s working on the tools needed to really propel itself as another new way to
do business.
- 3.
Customers;
Today is has over 350 million users, will it double its customer base again
this year?
- 4.
Revenue
growth. Facebook
became cash flow positive in 2009. Will their revenue growth match the fast
growth of people using Facebook for social media as well as advertising? Will
the advertising/search deal with Microsoft/bing payoff? The tools they have to
localize ads based on activity are phenomenal. Google is still huge when you
look at its $28 billion in ’09 revenue and a stock price of over $500. But with
everything going right for Facebook can it be far behind in this category as
well?
Watch
out Google.
-John