The Future of Facebook Graph Search (and Google)

AugieRay1
Augie Ray Director - Global Voice of Customer Strategy, American Express

Posted on January 20th 2013

The Future of Facebook Graph Search (and Google)

If you do not think Facebook Graph Search is a big deal, you have not been paying attention to the way data, particularly social data, is changing the world. And if you believe Facebook's move is a threat to Google, you may have no idea how true that is, not in terms of today's search advertising market but Google's strategy for the future.

Facebook's big play here is not merely that it may have a search engine that competes with Google's. Yes, this innovation could shake up the search market and allow Facebook to make a bigger dent in Google's revenue in the online and mobile ad space. That may be good news for Facebook investors who, even if Facebook announces great Q4 results in two weeks, will still be holding Facebook stock at a price-earnings ratio that is somewhere between five and fifteen times higher than mature companies such as Google, Apple and eBay.

Instead of thinking about search in the way we do it today--reactive, slow, relatively difficult and often frustrating--flip search on its head. Think of your device knowing you well enough to furnish you with the information you would want when you want it without asking. This is a vision of "serendipitous search" that Google has been hinting at for years.

Now add the Facebook social layer--all the data it knows about you, your friends and strangers. Today, you may pull out your phone and spend five minutes with a Yelp app to find a clothes store; tomorrow your device could proactively let you know you are walking past one of your friends' favorite boutiques. And who do you trust more--strangers who may be compensated for posting trash reviews or your close friends?

Facebook Graph Search as a reactive feature is interesting but turned into a proactive feature, it can change our world. Imagine walking into a bar and knowing a friend is next door. Or entering a salon and finding out your friend loves a particular stylist. Or visiting a Greek restaurant and discovering your Greek friends love a different place around the corner. Or going to a car dealership and being told your friends were left feeling ripped off at this establishment but loved their experience at the dealership up the street. Want to extend your circle of friends? Change a setting and your device can alert you that a friend of a friend is nearby. Playing a tough golf course? One of your friends shared a tip for beating the ninth hole and posted his video birdying the hole! Listening to a song? A bunch of your friends who loved this tune also recommend a band that is new to you! Having a problem with PowerPoint? Searching for the answer is so last year when your device can recognize you are having a problem and inform you not only that your coworker is a PowerPoint guru but that she is online and available now through Facebook chat!

That is the promise of the "social layer," not simply that it populates our news feeds with inspirational Tumblr images but that it becomes data that makes our lives richer, easier and more social. If the term "social layer" rings a bell, it is because that is the phrase Google and others have been using to describe the search giant's own social strategy. And here we see how Facebook's hegemony in social data really brings it into competition with Google--not because a Facebook search engine may be competitive with Google's search engine, but because the company that has access to and uses our and our friends' data and turns it into something that enriches our lives wins and wins big.

And if that is not a sufficient picture of how Facebook and Google are on a collision course, let's take this one step further. In all of those examples I provided of how proactive or serendipitous data might change our lives, think of how this data arrives to you. Today, your phone buzzes or chirps and you need to stop what you are doing, yank out your device, unlock it and look at the screen. If you're driving, this risks lives. If you're walking--look out for that tree! On a first date? Well, that device better stay in your pocket if you want a second date.

Annoying, right? Okay, then put on a pair of Google Glasses--a new way to present information to you without demanding you drop everything, use your hands and shift your field if vision and entire attention. Suddenly the beauty of proactive, real-time information becomes even more evident. No more "third screens" that demand attention; now your real and virtual worlds can become merged seamlessly. Of course, this depends on how well the software and hardware work together and know what information you find useful and what you do not; still, you can begin to see how today's sleek smartphones could look as outdated as a StarTAC flip phone within five years.

Will Facebook be content to let Google own the wearable tech market and allow its hardware to be the conduit for Facebook's features and value proposition? That seems unlikely, and perhaps this is why those rumors of a Facebook phone have never been realized--the brass ring is not that Facebook becomes yet another player in a field crowded with iOS, Android, Blackberry, Windows and soon Tizen and Firefox OS.  Instead, I wonder if Facebook recognizes that its future in furnishing real-time social data depends on finding a way to make that data seamless to users in a way that even today's best smartphones cannot accommodate.

There has been a lot of press in the last two days about what Facebook Graph Search means to Facebook and Google, but I wonder if we are witnessing not another battle for today's eyeballs and ad dollars but the first strategic moves into who owns the way humans merge their virtual and physical worlds in the future.

AugieRay1

Augie Ray

Director - Global Voice of Customer Strategy, American Express

For six years, I have researched, analyzed and blogged about Customer Experience (CX), social media marketing, social business and the collaborative (or sharing) economy. I welcome your feedback on my posts here on Social Media Today or my blog at ExperienceTheBlog.com.

My background includes more than 20 years of experience in digital, brand, customer experience and social business. Currently, I am the Director of Global Voice of Customer at a Fortune 100 Financial Services firm. Prior to this:

  • I led social business at USAA, a firm recognized for its innovative use of communities and social customer care within the financial service industry.
  • Consulted and published analysis as a Forrester analyst covering digital marketing and social media in the Bay Area.
  • Led a diverse $9-million agency team with specialties in digital development, digital experiential marketing and community strategy.

I am passionate about monitoring current trends and understanding what they mean to marketing, product development, customer care and other corners of the enterprise. I continue to evaluate how new mobile and social behaviors and technologies are combining to change fundamental attitudes about the way we select, purchase, consume and share products and services. The future will bring a great deal of innovation that offers opportunities to organizations that are agile and willing to cannibalize their own business models (but it will severely challenge those organizations that cannot.)

See Full Profile >

Comments

Kent Ong
Posted on January 20th 2013 at 6:21PM

Hi Augie, I love this "Facebook Graph Search as a reactive feature is interesting but turned into a proactive feature". You are 100% correct.

AugieRay1
Posted on January 20th 2013 at 9:15PM

Thanks, Kent.  I'm glad you agree! 

EthanWarlick
Posted on January 20th 2013 at 11:54PM

Great insight and perspective of Facebook Graph! I look forward to seeing how it impacts marketing and users overall experiences.

RichardStacy
Posted on January 21st 2013 at 12:04PM

As you say - I think this is an important move in terms of who owns the way humans merge their physical and virtual worlds - but I don't see this as a battle between Facebook and Google - I see it as a battle between humans and Googlebook.  http://socialmediatoday.com/richardstacy/1175396/facebook-graph-search-why-could-be-so-important-future-big-data

There is also another issue here with this whole idea of recommendation by friends (i.e the social layar).  This is that you will never have enough friends to make this layer very useful.  Your friends can't visit all the restaurants you may want to visit - but plenty of other people can, albeit you won't know them.  What social does very well is allow you to trust strangers - it is this sort of social layer that is important. http://richardstacy.com/2012/08/07/people-trust-strangers-more-than-they-trust-friends/.  The social layar only becomes useful when it gets pushed out way beyond your friends.

 

AugieRay1
Posted on January 21st 2013 at 4:24PM

Thanks, Richard. Your first link didn't work, so I can't see what you suggested.

As for your second point, I don't disagree, but I do think that Facebook, Google and others have the opportunity to do far more with social data and recommendations than we are currently getting from them. Friends and friends of friends are more trusted than others, but social networks can also know who among their billions of users are most like us--that would also be more relevant than today's Yelp and Tripadvisor information. 

All that being said, people DO NOT trust strangers more than friends. In research done while I was at Forrester it was very clear--people trust the social media postings and recommendations of people they know FAR more than people they do not know. 

Thanks for the dialog! 

RichardStacy
Posted on January 22nd 2013 at 9:13AM

Augie,


Here is another link to the piece http://richardstacy.com/2013/01/21/facebook-graph-search-why-this-could-be-so-important-to-the-future-of-big-data/

Re trust, I guess the issue is the subject.  If I want an opinion on an area where I don't have a friend with relevant experience, then I need to turn to people I don't know, and want a process that will allow me to trust that person.  For example, I am looking for a new chainsaw.  I don't have any friends who know much about chainsaws - I may trust them as people, but I don't trust their opinions on chainsaws.  Think also Wikipedia.  I trust Wikipedia, in-so-far as I trust Wikipedia's process - but I don't know the people behind the articles.  So yes - we will always trust friends more than strangers, but we don't have enough friends to allow this to be useful - we have to access the knowledge of strangers.  And the great, transformative, thing about social media is that it allows us to do this.

 

Techgain
Posted on January 30th 2013 at 7:27AM

Great job by Facebook, its really great.

Thanks for the article and have an amazing day!!