Facebook’s creativity isn’t too destructive yet. The social network on Tuesday unveiled a tool that allows users to find people, photos and interests more easily. It should make Facebook’s site stickier and could eat into Yelp, LinkedIn and IAC. But the search results will still be limited and there’s no clear revenue windfall.
Graph Search, the clumsily named first major product launch since Facebook went public last year, will be rolled out slowly. Significantly, it’s not yet available on mobile devices or languages other than English. There’s still potential, however. Facebook contains in its status updates, “likes” and elsewhere among its one billion users a trove of information that can’t be found anywhere else. Most of it is now irretrievable.
At the least, the company led by Mark Zuckerberg seems to have started figuring out how to tap into its network. That should make the site more rewarding, and less frustrating, to use. Online socialisers probably will stay on the site longer. Eventually, Facebook could reap additional advertising revenue and fend off would-be challengers like Google+.
The bigger upside is in relevant searches. Queries from “what’s the best Korean restaurant nearby” to “which of my friend’s friends are single” would provide useful results. It also could mean Yelp reviews, LinkedIn job searches and IAC’s OKCupid.com date-seekers are less needed. The three companies alone have a combined market value of nearly $20 billion. That’s a big opportunity for Facebook if it can truly harness the power of its users.
But first, Facebook will need to show its search works well. For privacy reasons, only information that has been shared or made public will turn up. That means results could be sparse — or annoyingly influenced by a vague acquaintance with questionable judgment who posts too often. It might also encourage boring digital ghettos where friends recommend the same songs and restaurants. The promise of Facebook, to users and investors alike, is a site that can do more than just connect schoolmates. Valuable search results would be a step in that direction. It’s just not yet evident that’s what the company can deliver.
