A search engine down the road
While Facebook’s new product is not a full-fledged search engine, it differentiates itself with two key aspects, the use of filters and social context. The part of the graph search that doesn’t contain results from friends will be directed to Microsoft’s Bing. The Technological Duo of Facebook Inc (NASDAQ:FB) and Microsoft can likely gain a decent portion of the search market. Even though, Google is substantially ahead of all its rivals. And Google is trying to gain more ground in the local search and advertising market with its offerings in Google+ Local, and now Facebook gets a strong shot at the local ad dollars. And more importantly, Facebook now enters the search market, which is a very big one, and can take the company’s revenues to a whole new level. With so much data, users, and a strong partnership with Microsoft, a Facebook based search engine is already being built up.
The impact on top line revenues
Facebook’s new social search tool, adds new twists to the traditional search marketplace. The Company will now take on Yelp for consumer reviews on a social context, and add more local advertising dollars to its revenue base, and even more lucrative is the search engine marketplace, so heavily dominated by Google. Facebook Inc (NASDAQ:FB) intends to add Graph search on mobile, and Zuckerberg even mentioned that he would want to work with Google!! Facebook’s revenue dependency on display ads will go down substantially as Facebook brings in a lot of search advertising revenue. Search ads are highly favored amongst all advertisers due to their high accuracy, and have the potential to multiply Facebook’s top line revenues.
The article Facebook Takes On Yelp, Google & Others originally appeared on Fool.com.
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