Google+ is a month old and is playing catch-up with Facebook, which is set to go on a public offering next year. Google needs to gain a lot of ground if it wants to be number one social network. At present, Facebook has 750 million users.
Google executive chairman Eric Schmidt acknowledged that his company was late in coming to the social network market. It is important for consumers to have an online identity and personalization that could provide lucrative commercial success for the company.
Google has invested in a lot in different things, such as video communities and mobile operating systems but the core of its business is still its search engine. It was because of search that fueled the boom of online content and the company doesn’t see social data as a replacement for search. Instead, the search giant views it as another layer that accesses data in a different manner.
Google+ is seen as an intelligently designed social network but analysts say it lacked the human focus required for a social network. It was this factor that boosted Facebook’s popularity. This is the reason why it has 750 million registered users.
But the bottom line is the profits. Estimates show that Facebook ad revenues will grow from $0.74 billion in 2009 to $5.7 billion in 2012. 97 percent of Google’s revenue comes from advertising.
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