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Can Facebook surpass Google’s revenue? NEVER I SAY! July 21, 2010

Posted by Vasudevan in My thoughts.
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Facebook (FB) is by far the most vibrant web place today and have become a serious threat to the Internet giant Google. Facebook is expected to announce its next milestone of reaching 500 million registered users globally. Reuters reported that Facebook’s ’09 revenue neared around US$800 million and expected to cross a billion mark in the current year. While this is speculative as Facebook declined to comment, Google’s revenue for ’09 was US$ 24 billion. Experts believe that Facebook may surpass Google by 2015 if they continue the current growth in terms of users and interest from advertisers. Facebook Chief Executive Zuckerberg said at the All Things Digital conference this month that the number of advertisers on Facebook had increased by a factor of four during the past year-and-a-half years. He also said that “We can provide really good, relevant advertising to people because they tell us exactly what they are interested in, and who they know, and those people tell us what they’re interested in.”

But none of this is I think going to help Facebook to grow its revenue unless they re-look at their ad platform as the current one cannot give explosive growths, but a marginal increase. Here is why!

According to me, facebook’s Ad serving space is a blind spot.

A typical Facebook user looks at news feed, notifications, and their apps. The objective for each one is to see what their friends are upto, let them know what you are doing, and play games. Nothing less or more with majority. An Ad on the page is highly unlikely to be noticed. However, FB tried inserting Ad slates into games (starting and ending of any game) for a while, but withdrawn soon after. The only one that seems to have some traction among the FB users is the fan pages and there FB is hardly making any money.

I’m not suggesting that FB is not making any money through Ads. They are, but not on par with their user growth and barely they can come closer to Google’s revenue.

Google on the other hand is making its most money from search primarily because users are looking for something and they see a relevant result at both the columns (natural search results & sponsored). Users won’t think twice to click on the sponsored one if it is highly relevant and that’s why they are there. Hence, if FB copy paste the Google model and use it as is at their pages cannot yield results for a simple reason – a FB user is on FB not searching, just connecting/reconnecting their friends.

What can FB do to solve this? I may have a suggestion in the next few days and it will be available on this blog. Subscribe me if you are interested. 🙂

10 practical tips for Facebook fan pages August 21, 2009

Posted by Vasudevan in Technology news.
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Brilliant article on how to make much more engaging Facebook fan pages.

Liquid bookmark August 14, 2009

Posted by Vasudevan in Humor.
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