A multi-billion war is raging as internet businesses battle to gain control over two of the most important commodities in today’s economy – time and data. Google, so long the darling of the internet is being steadily supplanted by Facebook, the new superpower. Google created its business by connecting people to the web’s resources, while Facebook has created one of the most exciting and fastest growing companies by connecting people to each other. However, Facebook, with the announcement at F8, has set a new course from not just connecting people to each other, but also to things, ideas and media. Facebook has introduced a range of features over the past few years in order to give people a reason to log in and stay inside its empire. And with the ability to read the news on The Guardian, listen to music on Spotify, or watch a film on Netflix, all within its walls, Facebook is trying to become a social entertainment hub. In doing so, it is encouraging people to view Facebook as the first destination on the internet and then give them no reason to browse anywhere else.
Facebook’s growing popularity is a big problem for Google. Facebook is a walled garden which effectively means that Google cannot index any of the content on the site. Google makes billions organising the web, but if it cannot index a large and growing section of that audience, its business is going to suffer. Google is obviously very concerned and its chief internet evangelist Vint Cerf made a rather bold statement saying Facebook must open up or it would suffer the same fate as AOL. Google has also responded to the rise of Facebook by trying to create its own social experience. So far, Google has failed: Wave was scrapped; Google+, despite an initial growth spurt, looks like it’s confined to the technology community; while Google’s only real social success is YouTube, which it acquired.
Facebook’s F8 announcements are so significant because they will attract people to the site, keep them there for longer and arm Facebook with greater insight into them. You log into Facebook, tell it who you are, where you’ve been, what you like to watch, listen to and read. While you are doing this, Facebook is getting a 360-degree picture of who you are and the type of things that will catch your attention. This data is the kind of information that advertisers crave, as brands seek a more sophisticated approach to advertising. For decades advertisers adopted a scattergun approach – firing campaigns at a mass audience in hope that their messages would potentially hit the right people. Facebook is now offering access to a mass audience, but it’s also offering advertisers access to the right audience. If Facebook can offer up adverts on your profile which are crafted especially for you, there’s a greater chance you’ll click on it and therefore earn money for the company and its advertising network partners.
Oil is one of the most valuable commodities in the world; companies go to the ends of the earth to get it and countries have gone to war for it. It has been said that data is the new oil, and Google and Facebook have squared up to drill for as much information about people in the world as they can. If these businesses can attract you to their online properties, they get your time and data. Both of these are essential to sell to advertisers. The war these two internet giants are fighting is one of the biggest battles in business today. The company which can mine the most data will ultimately succeed and will win a huge slice of the multi-billion pound internet advertising market.





















Still no word from Rochdale Council about the total cost of delivering their glossy PR magazine Local Matters. But I can now tell you it is likely to cost over £10,000 to deliver every issue.