Comments on: Microsoft buys tiny stake in Facebook: Game on! http://www.embracingchaos.com/2007/10/microsoft-buys.html Analysis of Trends in Technology, Business, Society Wed, 25 Jan 2012 18:52:12 +0000 http://wordpress.org/?v=2.9.2 hourly 1 By: leodirac http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-2009 leodirac Fri, 21 May 2010 15:53:11 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-2009 @Greg - you're right to highlight the inconsistency. Certainly one way Facebook could unseat Google could be to deliver more ads. Although, as my recent thinking on social media points out, the same effect could be achieved through a different channel that we might not call "ad delivery." Also, despite Facebook's lack of obvious monetary success so far, I believe they are well on their way to achieving this vision. They control by far the most detailed database of psychographic data that can be used to target ads in a way that Google can't. The world is becoming increasingly dependent on Facebook as a communications medium. So long as these trends continue, it will be easy for them to monetize these assets in the future. @Greg – you’re right to highlight the inconsistency. Certainly one way Facebook could unseat Google could be to deliver more ads. Although, as my recent thinking on social media points out, the same effect could be achieved through a different channel that we might not call “ad delivery.”

Also, despite Facebook’s lack of obvious monetary success so far, I believe they are well on their way to achieving this vision. They control by far the most detailed database of psychographic data that can be used to target ads in a way that Google can’t. The world is becoming increasingly dependent on Facebook as a communications medium. So long as these trends continue, it will be easy for them to monetize these assets in the future.

]]> By: Greg Linden http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-2008 Greg Linden Fri, 21 May 2010 15:29:34 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-2008 It is hard for me to see how "Facebook has the potential to dislodge Google as king of the hill" if it "isn’t going to become ... the dominant deliverer of internet advertising." Google is an advertising company. That is how they make their money. I would think that dislodging Google as king of the hill means dislodging them as the dominant deliverer of internet advertising, no? And, as impressive as Facebook's usage is, they have had little luck in monetizing their traffic so far. It turns out to be extremely difficult to target ads to Facebook profiles and status updates, mostly due to lack of immediate purchase intent when people use Facebook. It is hard to get people to buy something when they are on a mission to do something else. It is hard for me to see how “Facebook has the potential to dislodge Google as king of the hill” if it “isn’t going to become … the dominant deliverer of internet advertising.” Google is an advertising company. That is how they make their money. I would think that dislodging Google as king of the hill means dislodging them as the dominant deliverer of internet advertising, no?

And, as impressive as Facebook’s usage is, they have had little luck in monetizing their traffic so far. It turns out to be extremely difficult to target ads to Facebook profiles and status updates, mostly due to lack of immediate purchase intent when people use Facebook. It is hard to get people to buy something when they are on a mission to do something else.

]]> By: » Parting thoughts on working at Google - Embracing Chaos http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-1952 » Parting thoughts on working at Google - Embracing Chaos Thu, 13 May 2010 22:55:38 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-1952 [...] faces some serious challenges in the years ahead.  For many of the reasons I pointed out in 2007, Facebook continues to be a serious threat to Google’s primary business.  Android faces an [...] [...] faces some serious challenges in the years ahead.  For many of the reasons I pointed out in 2007, Facebook continues to be a serious threat to Google’s primary business.  Android faces an [...]

]]> By: Embracing Chaos » Blog Archive » Mergers: When they can work and why they usually don’t - Leo Parker Dirac on Business and Technology Trends http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-649 Embracing Chaos » Blog Archive » Mergers: When they can work and why they usually don’t - Leo Parker Dirac on Business and Technology Trends Sat, 10 Apr 2010 19:04:31 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-649 [...] Stay tuned for more specific thoughts on the big players buying bits of each other… [...] [...] Stay tuned for more specific thoughts on the big players buying bits of each other… [...]

]]> By: Anonymous http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-286 Anonymous Thu, 06 Dec 2007 12:10:42 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-286 <p>I bring this up as a reason for Google to feel threatened. Unknown startups can always sneak in and take over, but the unknown startup doesn't pose anything like the clear and present danger of an established company on an exponential growth path.</p> I bring this up as a reason for Google to feel threatened. Unknown startups can always sneak in and take over, but the unknown startup doesn't pose anything like the clear and present danger of an established company on an exponential growth path.

]]> By: Jose http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-285 Jose Tue, 04 Dec 2007 19:04:50 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-285 <p>"But I think Facebook could become the dominant way the humans communicate with each other using computers."</p> <p>I'd broaden to say "Facebook or something like it" could become dominant. I agree with your assesment of it's potential but you can't preclude the prospect of a better offering emerging from left field just a year or two from now. And as good as Facebook is (I use it avidly myself) it's not hard to imagine somebody doing it better. </p> <p> </p> "But I think Facebook could become the dominant way the humans communicate with each other using computers."

I'd broaden to say "Facebook or something like it" could become dominant. I agree with your assesment of it's potential but you can't preclude the prospect of a better offering emerging from left field just a year or two from now. And as good as Facebook is (I use it avidly myself) it's not hard to imagine somebody doing it better.

]]> By: Jose http://www.embracingchaos.com/2007/10/microsoft-buys.html/comment-page-1#comment-284 Jose Tue, 04 Dec 2007 19:04:41 +0000 http://wp.embracingchaos.com/2007/10/microsoft-buys.html#comment-284 <p>"But I think Facebook could become the dominant way the humans communicate with each other using computers."</p> <p>I'd broaden to say "Facebook or something like it" could become dominant. I agree with your assesment of it's potential but you can't preclude the prospect of a better offering emerging from left field just a year or two from now. And as good as Facebook is (I use it avidly myself) it's not hard to imagine somebody doing it better. </p> <p> </p> "But I think Facebook could become the dominant way the humans communicate with each other using computers."

I'd broaden to say "Facebook or something like it" could become dominant. I agree with your assesment of it's potential but you can't preclude the prospect of a better offering emerging from left field just a year or two from now. And as good as Facebook is (I use it avidly myself) it's not hard to imagine somebody doing it better.

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