I just finished reading TechCrunch article, How Facebook Can Put Google Out of Business. This also reminded me of Paul Adam’s articles, The Real Life Social Network and How Your Customers’ Social Circles Influence What They Buy, What They Do and Where They Go. And also this good analogy of Facebook, Google and other hot startups.
I was also asked a lot of questions about problem of current social media and how I could make it better as part of interview questions. One common answer I provide is the relevance. How important are these news, status updates, tweets, etc. to me? I agree that the biggest difference between Facebook and Google is the core of each company – people (social) or links (web pages).
Many companies are trying to figure out who you are as a person. For example, another favorite startup of mine, Hunch, is trying to figure out who you are and what you would like based on what you already like. Netflix tries to figure out what movies you might like based on your ratings of movies. Amazon has been doing it for a while with features like “you might also like…” Facebook is obviously in good position because of the social interaction data they have – what you shared, who you have interacted with, what you liked, etc. in addition to social graph. Twitter can also certainly figure out by analyzing followers, tweets and especially retweets, but right now I feel that noise-to-signal ratio on Twitter is too high. You control tweet relevance by carefully choosing who you follow.
We are bound to create more data. The amount of data we generate will never decrease. In the sea of data, it would be harder and harder to find information that is relevant to you, but to others. In this sense, Facebook is definitely sitting on a gold mine. It’s kind of creepy, but the more interactions you have on Facebook, the more Facebook knows you, and it provides good targeting data to advertisers. Can Google build significant social product? Nothing is impossible, but I think it would be very hard. Facebook is just too big, and I just don’t see why I would use similar feature on another platform. Once you have your social network established on one platform, it is extremely hard to create the similar network on a different platform. In social network, the winner takes all, unless the winner screws up big time. It could happen (as has happened a couple of times already with Friendster and MySpace).
We are living in an interesting time, indeed.
Mr. Chung I must say, I admire your insights and perception very much. Now that you mentioned it, I just realized why twitter kept suggesting the same kind of people for me to follow. As for Facebook and Google, It’s now the other way around. Subscribers have been very unhappy with the abrupt and drastic changes that Facebook has taken over the past few weeks, most especially the privacy settings. This by far is the worst “change” that they have ever done since 2004. On the other hand, a few months back when Google announced that they were going to have their own social networking, I never thought it would work out. But it did. And very well too.