Wednesday, June 29, 2011

Circling the wagons. Can Google+ out-connect Facebook?

The Google vs. Facebook battle just got a little hotter. Google Executive Chairman Eric Schmidt has announced the introduction of Google+, their newest (and hopefully better than Buzz or Orkut) foray into the world of connections among friends. Or in this case, “circles" of user groups.

But according to Mr. Schmidt, this latest introduction is not an attempt to compete directly with Facebook. "Our social strategy is to take our current products, get users to give us social information and make our current products better," said executive chairman Eric Schmidt, talking to journalists at the Cannes ad festival.

It is obvious that the bigger opportunity for Google here is to harness the data about human connections generated by the social web and apply that to search and even display advertising.

Grouping your connections into "circles".
Google+ is different from Facebook in that you organize your friends into groups, such as family, work, friends, etc. This can be an advantage over Facebook if you want to share work-related information that your friends or family would not have an interest in seeing. Or if you want to share photos of a more personal nature that you don’t want your business colleagues to see.
Another difference with Google is that there are no friend requests. People do not need to agree to be friends with one another and can view updates without sharing their own.

Google + breaks down the Facebook data walls.
Even though search engines now crawl Facebook for links, the data about users and friends inside Facebook is not accessible to outside companies. Google+ could be a huge deal for Google if people are willing to participate in their network. Google+ will give Google a place for users to create their own content but will be searchable and information rich for Google. And you can bet they will monetize that data.

No one is talking about the impact of Google+ on advertising. Yet.
Google executives declined to say how Google+ will affect their advertising offerings, but as people spend more time inside controlled environments such as Facebook and mobile apps, Google loses its power to search and monetize that walled-off content. Google did confirm that +1, an icon launched recently as a counterpoint to Facebook Likes is integrated into Google+. Since +1 will be used as a tool to improve ad targeting, it seems safe to assume that Google+ will be used as a major part of their future advertising strategy, if it succeeds.

Google execs say more information will improve usability of all Google products.
Google executives said that getting social information on their users will improve Google products across the board -- by allowing personalization. Most of Google's most popular products such as search, maps and YouTube do not require a login, which limits what Google knows about its users.

Google+ may have more impact on mobile than social networks.
"It would take a seismic shift for people to take their social stuff to Google," said Deep Focus CEO and founder Ian Schafer, who said that the real earth-shattering use for Google+ is in mobile, not social networking. "The biggest implication for Google+ is mobile," Mr. Schafer said. "For example, for people to be creating content wherever people are and using that to deliver messages to them and close the loop on sales. The promise of Google+ is closing the loop on social CRM."
For advertisers and brands, the potential impact of Google+ is huge. "A connection made with a brand in Google+ can eventually be tracked to a purchase," Mr. Schafer said. "If we can create relevant brand engagements with people and give them an ability to purchase the product at a later date -- whether that's three, six or 18 months later -- this brings us back to social ROI."



I like the idea of being able to control my shared content to selected groups, but I’m not sure I want to stop using Facebook. So, to me, the real challenge for Google+ will be whether people will want to devote more time to sharing given the current time-compressed world we live in. It will be interesting to watch.

What do you think? Is this a brilliant strategy for Google, or will it fall flat?