Facebook - a threat to google

[Sir Tokyo Sexwale]

why?

 

More people are coming to US news sites via Facebook and other social networking sites such as Twitter – supplanting Google News, which had been one of the primary sources of readers, according to research by the metrics company Hitwise.

 

During the past year, the proportion of traffic that Facebook sends to US media sites has tripled from around 1.2% to 3.52%, while that sent by Google News has remained roughly static, at around 1.4%, says Heather Hopkins, North America analyst for Hitwise.

 

The growing power of Facebook also means that publishers which want to demand money from – or alternatively to lock out – Google News because of claims that it "leeches" on their content could do so without fearing a dramatic impact on their reader figures.

 

With more than 400m users, Facebook forms the newest – and most unexpected – threat to Google, say some analysts. Last weekend the search engine spent $5m on a TV advert during the Superbowl, puzzling many who do not see a threat from rival search engines such as Microsoft's Bing, which has less than half of its proportion of search queries.

 

But Hopkins notes in a blogpost for Hitwise that: "Facebook could be a major disruptor to the News and Media category. And with the Wall Street Journal already publishing content to Facebook, perhaps the social network can avoid the run-ins that Google has suffered recently with Rupert Murdoch. We will continue to watch this space."

 

Murdoch's editors and executives have repeatedly criticised aggregators such Google News, claiming it is leeching off their content by displaying snippets of their work. In the UK, the Murdoch-owned titles have gone as far as blocking access to their sites by Newsnow, a smaller news aggregator.

 

Eric Schmidt, chief executive of Google, has argued that publishers should take advantage of the traffic that it sends them – pointing out that it sends about 4bn such links per year.

 

But Facebook provides the perfect counterweight, where publishers can choose how much of their content they display and view how well it is followed. Sites such as Facebook and increasingly Twitter contribute hundreds of thousands of visits every month to UK sites, according to analysis by the Guardian.

 

John Minnihan, the founder of the software code respository Freepository, warns that Facebook poses one of the biggest threats to Google on the web. "With recent data showing a large uptick in 'Facebook as home page', [Google] may well indeed need to remind emerging generation who/what it is. In that case, the [superbowl] ad makes some business sense. Whatever the real reason, it has nothing to do with 'sharing video more widely'. If FB dev'ed an integrated web-wide search engine, think about how much traffic would evaporate [from Google] overnite. That's nightmare stuff."

 

Tellingly, Minnihan's comments were made on Twitter — which Google is rumoured to be trying to compete with in a "social version" of its Gmail webmail product to be launched today. Google has already tried – and failed – to create a world-scale social network with its Orkut product, but been obliged instead to purchase access to Twitter's search results to provide real-time insight into what people are talking about. Facebook's content however lies beyond its reach – and that could be crucial in the forthcoming months as news publishers in the US and UK consider putting up higher paywalls or demanding money from aggregators.

 

 

feck knows why - Facebook is pointless

[ManxRed]

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[Gerry]

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[johngibo YPC]

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[Sir Tokyo Sexwale]

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[Jonesy]

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