Facebook a worldwide rage
Sergey Brin, a Google founder, takes issue with people who say Google has failed to gain a foothold in social networking. Google has had successes, he often says, especially with Orkut, the dominant service in Brazil and India.
Brin may soon have to revise his answer. Facebook, the social network service that started in a Harvard dorm room just six years ago, is growing at a dizzying rate around the globe, surging to nearly 500 million users, from 200 million users just 15 months ago.
It is pulling even with Orkut in India, where only a year ago, Orkut was more than twice as large as Facebook. In the last year, Facebook has grown eightfold, to eight million users, in Brazil, where Orkut has 28 million.
In country after country, Facebook is cementing itself as the leader and often displacing other social networks, much as it outflanked MySpace in the United States. In Britain, for example, Facebook made the formerly popular Bebo all but irrelevant, forcing AOL to sell the site at a huge loss two years after it bought it for $850 million. In Germany, Facebook surpassed StudiVZ, which until February was the dominant social network there.
With his typical self-confidence, Mark Zuckerberg, Facebook’s 26-year-old chief executive, recently said it was “almost guaranteed” that the company would reach a billion users.
Though he did not say when it would reach that mark, the prediction was not greeted with the skepticism that had met his previous boasts of fast growth.
“They have been more innovative than any other social network, and they are going to continue to grow,” said Jeremiah Owyang, an analyst with the Altimeter Group. “Facebook wants to be ubiquitous, and they are being successful for now.”
The rapid ascent of Facebook has no company more worried than Google, which sees the social networking giant as a threat on multiple fronts. Much of the activity on Facebook is invisible to Google’s search engine, which makes it less useful over time. What’s more, the billions of links posted by users on Facebook have turned the social network into an important driver of users to sites across the Web. That has been Google’s role.
Google has tried time and again to break into social networking not only with Orkut, but also with user profiles, with an industrywide initiative called OpenSocial, and, most recently, with Buzz, a social network that mixes elements of Facebook and Twitter with Gmail. But none of those initiatives have made a dent in Facebook.
“There is nothing more threatening to Google than a company that has 500 million subscribers and knows a lot about them and places targeted advertisements in front of them,” said Todd Dagres, a partner at Spark Capital, a venture firm that has invested in Twitter and other social networking companies. “For every second that people are on Facebook and for every ad that Facebook puts in front of their face, it is one less second they are on Google and one less ad that Google puts in front of their face.”