Facebook Inc (FB)’s Social Graph Is a Google Inc (GOOG) Plus Killer

Page 1 of 2

When it comes to shelf life, social networks tend to mirror hit sitcoms. AOL, Inc. (NYSE:AOL), Geocities and MySpace all experienced parabolic growth and suffered equally swift declines, as users abandoned ship for the next killer app. In Facebook Inc (NASDAQ:FB)‘s case, what was once exciting and engaging — catching up with old friends — has devolved into a kind of school/family reunion that never ends. There’s the constant risk of boredom, which could make users feel logging in isn’t worth the hassle.

In real life, social motivation is limited to a) increasing your visibility so you can increase your number of trusted friends, and b) communicating more with the people you know and trust already. But communication and trust take time, of which users only have a limited amount. The more new contacts you have, the less time you have to interact with both them and your old contacts at the same time. And when’s the last time you went on Facebook Inc (NASDAQ:FB) to meet someone new?

Facebook Inc (NASDAQ:FB)Without constant user engagement, the implicit value of a social network shrinks over time, unless the network can find a way to grow the network and/or continually reinvent the user experience.

John Batelle, co-founder of Wired magazine, summed the situation up thus:

First and foremost, Facebook Inc (NASDAQ:FB) has an engagement problem, particularly in markets (like the US) where its use has become ubiquitous and many of its original users are two, three or more years into the “Facebook habit.” While the company doesn’t talk about this issue, I am confident it’s real (in private conversations with people at Facebook Inc (NASDAQ:FB), it’s called the “set it up and forget it” problem).

Enter Graph Search. Graph Search functions as a reason to participate, a motivator. When you run a Graph Search for friends of yours that like a new movie in order to generate a short list for Friday night festivities, it reminds you to remember to “Like” that movie’s Facebook page, too. Graph Search is Facebook Inc (NASDAQ:FB)’s attempt to regenerate the network effect: the more you participate, the more useful it is, and leading you to participate more.

It’s not the documents; it’s what they’re about
Graph Search allows you to combine natural-language phrases like “People who like bowling and live nearby,” “Italian restaurants in Queens my friends like,” “Photos of all my friends from Atlanta,” and “My friends in Los Angeles who like punk rock.”

Graph Search then returns the relevant results based upon the collective preferences and real-world experiences that your friends have shared on Facebook Inc (NASDAQ:FB). According to Mark Zuckerberg, “People use search engines to answer questions, but we can answer a set of questions that no one else can really answer. All those other services are indexing primarily public information, and stuff in Facebook isn’t out there in the world — it’s stuff that people share.”

Google Inc (NASDAQ:GOOG) killer?
This search strategy naturally plays to the strengths inherent in a social network. Facebook Inc (NASDAQ:FB) processes 2.7 billion “Likes” every day, along 300 million photos. That in and of itself is an explicit threat to Google , the world’s most renowned “Big Data” centric company. Google’s self-proclaimed mission is to “organize the world’s information,” but you can’t index what you can’t access.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

10 Most Influential Papers In Economics

Top 8 Biggest Charities in the US

10 Worst Celebrity Career Moves Ever

Top 10 Best Paid Tennis Stars in the World

10 Cities with High Demand for Nurses

6 of the Worst Greeting Card Messages Ever Crafted

6 Ways to Make Money in ArcheAge and Build Your Empire

10 Foods To Eat To Lower Cholesterol Levels

The 10 Most Hated Television Characters of All Time

The 30 Worst Halloween Costume Ideas Ever Brought to Horrible Life

10 Vocational Skills in Demand Today with Jobs Waiting to be Filled

10 Best Places to Visit in Central and South America

The 10 Greatest Empires in History Which Nearly Conquered the World

The 6 Cheapest Boarding Schools In America 2015

5 Clear Reasons LoL is Better than DotA, Continues to Rule MOBAs

The Only 9 Teams with a Chance to Win the Super Bowl

The 15 Most Common Phobias in America that Induce Fits of Panic

Top 6 Least Expensive Tourist Destinations in 2014

Jim Goetz, Peter Fenton, Jim Breyer: Top 6 Venture Investors for 2014

Top 15 Billionaires in 2014

5 Pitfalls To Avoid When Buying a Franchise

Top 20 Medical Schools in the US – 2014 Rankings

4 Business Strategies that Turned Jamie Oliver into the World’s Richest Chef

6 Qualities That Make You A Good Team Player

10 High Paying Seasonal Jobs in America this Holiday Season

The 10 Busiest Shipping Lanes in the World

5 Most Valuable Brands in China

The 10 States with Highest Substance Abuse Rates Crippling Their Populace

The Top 10 Things to Do Before You Die That Will Echo for Eternity

The 10 Best Selling Items on Etsy

Top 10 Things to Do in Tokyo, the Greatest City in the World

10 Mistakes on Social Media that Can Harm You and Will Probably Get You Canned

The 10 Best Cities to Find Jobs in 2014

The 10 Most Controversial Songs Of All Time to Hit (and get Banned from) the Airwaves

The 20 Biggest IPOs in US History

The 10 Best Places to Visit in Mexico that Are Beautiful and Safe

7 Bad Habits that Age You Beyond Your Years

The 40 Best Fortune Cookie Sayings That Will Leave You Bemused, Befuddled, or Beguiled

10 Foods to Eat Before a Workout to Make Every Drop of Sweat Count

The 5 Best Documentaries On Netflix You Must See

The Most Heartwarming and Inspirational Story Of This Halloween Season, It Will Make You Cry and Jump For Joy

10 Best Party Songs of All Time to Bring the House Down With

5 New World Order Conspiracy Theories that Will Strangle the World

The 10 Highest Rated Movies of 2014

The 10 Largest Container Shipping Companies in the World

The 10 Largest Armies in the World: Who Should We Be Afraid Of?

Best Warren Buffett Quotes on Money You Need to Hear

The 10 Highest Suicide Rates by Profession

The 20 Most Underrated Movies of All Time

The 10 Fastest Growing Companies in America

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!