Social Network Review (July 18th, 2011): Why Google already achieved strategic objectives with Google+
Google has already achieved success with Google+. I know what some people are thinking, “it’s so early, how can you tell if google+ will overtake Facebook?" That question assumes that Google+ needs to overtake Facebook in aggregate users or impression time to be successful. That’s a false assumption in my opinion. Google already has achieved major strategic objectives already. The threshold for success is passed as long as users create an account on Google+ (even if they don’t spend as much time on it as Facebook).
Why Google+ is already successful
- User Preferences through the Like and +1 buttons: The primary reason why Google’s management would fear Facebook the past year is because Facebook was begining to gather lots of useful data on user preferences. This was achieved primarily through the dissemination of the Like button across the web. Through this, Facebook could possibly offer better targeted advertising than Google by having data that Google didn’t have. This doesn’t hold true any more. Since google+ is automatically signed in through gmail, data collection through the +1 button is seamless. It doesn’t matter if no content is posted at all on actual google+ profiles. If google gets all of their gmail users to create google+ accounts (and use the +1 button whenever they found things that interested them), they will essentially negate Facebook’s data advantage on users through the like button. In fact, Google can collect more data through the +1 button because Facebook is banned at many work places. Gmail is open, so even if Google+ is banned at work eventually, the +1 button functionality would still be in place automatically through signing into gmail (which is allowed at most work places). The advertising data advantage that Facebook has disappears entirely, this alone can justify the costs associated with developing Google+.
- Protecting Google AdWords / Defensive Maneuvers on the Golden Goose: Google has the largest ad network online. However, Facebook’s user data from sharing, likes and interests in user profiles created a very solid base for an ad network. Facebook could have and still might create a product to compete with Google AdWords. Previously, they could have said to web proprietors that they had exclusive data not available anywhere else (with what is approaching a billion users). Using this as a base, they could sell websites on the idea that using a Facebook Ad Network could be more effective than Google AdWords. With the introduction of Google+, it’s hard for Facebook to make that same argument. Google can tell web proprietors we have data through google searches as well as gmail in addition to everything Facebook has (through Google+).
So what’s a quick explanation on why Google is already successful? First, they maintained user data advantage (for advertising purposes) over Facebook. Second, they effectively defended themselves from a a threat of a competing product to Google AdWords.
If users start spending more time on Google+ (relative to Facebook) because of Hangouts, Huddle, or privacy options offered through Circles - that’s all just gravy on top at this point.
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