Facebook has a plan for Google

Facebook’s multi-front assault on Google stands a good chance of winning

Facebook has launched a multi-front assault on Google in order to capture a larger part of the world’s advertising market. We believe they stand a good chance of, at the very least, hurting the search giant. Here are the major areas of conflict:

1) Search Engines – Facebook is building one

Facebook is going to launch a search engine. Why wouldn’t it when it has the demographic profiles and personal preferences of 700 million people? The search engine will be based on deep learning of the habits of those people and use AI to answer questions. Their stroke of genius was turning over all of
their artificial intelligence source code to the open source community and thereby boosting their developer resource by large multiples – brilliant.

There’s some strong evidence they are going in the right direction as well – see the Marketing Land graph that shows social is starting to deliver a better referral number set.

Having an alternative to Google will be a major relief to the many advertisers finding that search marketing costs (through Google Adwords) are simply becoming too high.

2) Platform

Facebook is killing it in mobile – a platform growing much faster than any other. Look at the chart from Business Insider below:

3) Video

Google generates a lot of revenue from YouTube (most of it not well targeted, but that could change with some clever image recognition) but Facebook is taking control of that market – the number of video posts to Facebook overtook Google / Youtube for the first time in Q4 2014. The monetisation is there for the taking.

4) Market Cap

As we have recently commented – Google appears not to care too
much about its stock market performance. Facebook does. Here’s why.

Apple will be the first trillion dollar business. Facebook would like to become the second.