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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 However, FB tried inserting Ad slates into games (starting and ending of any game) for a while, but withdrawn soon after.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. 🙂

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Comments»

1. Deep C - July 21, 2010

revenues are incomparable for Facebook and Google … at the end Facebook is just a social networking platform while Google is more than that … Facebook can never surpass it.

2. ballardpeters10282 - April 8, 2016

I HATE america and americans ,they believe they are the World Police which in no way it is and they only interfere where there is profit in it for them IE. Oil and we Australians crawl up the arses of them as we believe that if we get into trouble the yanks will help us and believe me , they WON’T as we have enough oil and Gas to supply ourselves and we export our Gas .nI HATE america because of what it is doing to my Country with their stupid way of talking and pronouncing a lot of words and thereby loosing our own way of talking and believing in a lot of what is going on in the rest of the World , and my greatest wish is that ALL americans living here as we have MUCH more freedom and a much higher standard of living get out of here ie. ” YANKEE’S GO HOME ” we don’t want you and I believe that the yanks in some way are worse than all of the radical Muslims and that the NON radical Muslims are a lot better than any Yank , so again I say “YANKEES GET OUT “https://ameo.link/ballardpeters1028208180


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