Facebook challenges Google in search
The new Graph Search could be a big money maker for the pioneering social network.
The feature, which starts beta testing this week, enables users to do extremely targeted searches such as "restaurants my friends like" or "people who like the movies I like," "people who worked at Google and Facebook "or "books read by CEOs."
If Facebook can pull this off, the implications are huge for a host of companies ranging from Google (GOOG) to Yelp (YELP) and LinkedIn (LNKD) who rely on search. That's still an "if." Facebook didn't provide any information when the service will make money, which concerned investors who pushed down the shares Wednesday. A company spokesperson couldn't immediately be reached.
Facebook's offering underscores the growth in the volume of data about consumer behavior that is stored on the social network and other sites, which worries privacy advocates and some government officials.
"Not just bigger data, but better data," says Kip Cassino, a vice president with Borrell Associates, in an interview, who predicted that this trend will "revolutionize how folks market on the Web."
For advertisers, targeting isn't everything, it's the only thing. Marketers like to direct the marketing messages to as specific of a group as possible because it's a more cost effective way to generate sales than traditional advertisements that are seen by loads of people who have no interest in the product. People are also more apt to follow the recommendations of friends.
Experts who have seen Graph Search say they are impressed.
"It remains very early days, but I already find it fascinating the types of searches this is allowing me to do, searches I hadn't contemplated before," writes Danny Sullivan, the founding editor of the respected Search Engine Land site, in a post. "Facebook is a great repository of data, and it finally has a search catching up to all it knows."
Whether it will live up to its potential remains to be seen.
--Jonathan Berr does not own shares of the listed stocks. Follow him on Twitter @jdberr.
More on Money Now
- Love energy drinks? See you in the ER
- 9 ways feds bungled foreclosure crisis
- Forget the flu: Sydney vomiting bug is here
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The stock market ended the Thursday session on an upbeat note with blue chips showing relative strength for the second consecutive day. The Dow Jones Industrial Average (+0.4%) and S&P 500 (+0.3%) settled ahead of the Russell 2000 (+0.2%) and the Nasdaq Composite (+0.1%). It is worth mentioning the benchmark index posted its fourth consecutive gain, registering a new record closing high at 1992.38.
Equity indices climbed out of the gate thanks to early strength among ... More
More Market News
New legislation is allowing foreign companies to finally invest in the country's vast oil reserves.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'