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I sometime want to compare between facebook and google, to what extend did this two service differ. well let me elaborate you on that matter
first we have google, Google has all of the gmail users’s email, CC numbers from Google Checkout, Voicemail from Google Voice, location information from android, and who knows what else. I think overall google wins the private information stored in their servers award.
but FaceBook has information on people’s lifestyle, likes and dislikes, what they would most likely do on a daily/hourly basis, friends/bestfriends, family, enemies, what apps they use, how they feel, basically most things that come from the mind of each individual. These are not basic information you can easily collect or the government is capable of getting. so which information do you reckon has more revenue generating potential?
Google is essentially an ad company, they’re going to have higher ad revenues. YouTube loses half a billion a year. Then there’s all their overhead: huge data centers, fibre, employees, offices. One millions servers as opposed to Facebook’s 60K boxes. Add to that the fact that Facebook holds the personal information of 500 million users (including photos, addresses, likes, dislikes, favorites, birthdays, phone numbers, social networks) and I’d say Facebook is fairly evaluated at 33 billion
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in Customer Relationship Management (“CRM” – basically a jargon-word for data-driven marketing analytics that use electronic information that help advertises target their ads better). This is dead-on accurate. Here is the way it works. Say you have a business and you want to advertise your product/service. Obviously just spamming ads randomly into just whatever market will waste a lot of your advertising budget. This is what everyone did before people figured out how to target online ads (remember banner ads).
If there are going to be ads for something, targeted ads are better for everyone. It costs less for the business, and has vastly less chance of annoying the customers if the ad is actually relevant to their interests. That is why data about who blocs of consumers are, what they like, and what they buy is really interesting and useful to CRM folks. It is a huge pool of useful information that helps people target ads better so that there is less overall annoyance at ads. That bit of background in place, FB has the biggest, deepest, and probably most valuable infrastructure for gathering, maintaining, and analyzing all this stuff.
Even if FB’s ad revenue might not seem to indicate it, the sheer scale of their infrastructure and data set is absolutely staggering and justifies what might seem like a ludicrous market valuation. The analogy would be comparing the monthly cash flow of an oil refinery operation to the overall value of the assets associated with it. The cashflow is just the cashflow; the operation itself is hugely valuable.
Over time these things emerging technologies/platforms/services become less volatile. I don’t think Facebook has an invincibility star but if the turn-around on Friendster was 2 years, MySpace was about 6 years, FaceBook probably has at least another decade or more. It works backwards from the user perspective like this — if it took our Moms 8 years to sign-up for a social network it’s going to take them at least another 8 years to sign-up for a different one. Even when FB starts to lose the bleeding edge users they will have many good years ahead of them
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They know who your friends are, where you live, what you are interested in(Pages, Likes), where you hang out at (places), what kind of games you like to play, what your friends are interested in, etc… They have tons of info about you and the money to analyze that data and make it extremely valuable to advertisers. Now that the web is spreading beyond your desktop there is going to be a time when ads can target you like in the Minority Report and Facebook is going to have the personal info to help make that happen. Facebook is anything but undervalued
I think Google does not even have half of the information Facebook has right now, even if they crawl all the publicly available info. You could profile each and every person’s life on FB given all the public and private information, posts, apps they use, and ads they click just out of curiosity.
Even if others attain 80% as much information as FB, FB has the leverage today. It still has the potential to extract more information from everyone. But we’ll never know, their value could as easily plunge to zero when something else takes over, a few months or years from now.
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although I seldom use facebook other than to know some cute girls or finding my long lost friend, I think the sheer idea of being able to connect with people helps make facebook grow into what it is now and google should be wary and they should come up with an idea to get into rivalry with facebook, or else google will realize that it’s just too late to act.