Google Plus...what?

Last week I found myself on the outside looking in at the Google+ frenzy that was their short lived beta test.  Now that I'm in (with everyone else)...I can understand the criticisms Google received for their failure to answer (ask) the right question.  I almost didn't write this blog because Semil Shah covered most of the points to be made about the addition of a new social network but it would be remiss not to include my commentary.

Where Google+ falls short is in its lack of integration with the existing social networks.  Taking their tools and blending them into a new network isn't enough of a value proposition for Google to kill Facebook.  What the ecosystem needs is an application or platform that makes sharing and consuming information across platforms more intuitive.  Google should have created a tool to make sense of the endless stream ("firehouse") of Comments, Likes, Tweets, Retweets, Shares, and now + 1s rather than creating another stream of information in a silo.  Until I can broadcast out of Google +, I'll continue loading Facebook, Twitter, Linkedin, and now Google+ whenever I launch Chrome.

Facebook Deals Challenges Groupon et al.

A few weeks ago, the NY Times and Tech Crunch leaked that Facebook was ready to launch their latest product in the US, Facebook Deals.  Deals is simply another competitor for Groupon and their cohort of web startups which offer time sensitive deals at steep discounts for restaurants, golf courses, movies, etc.  Facebook’s decision to compete with Groupon is an extension of their advertising based business model which will pay tremendous dividends for a company looking to grow revenue in anticipation of an IPO early next year.  What makes this announcement interesting (threatening to Groupon) is the fact that Facebook Deals will not charge retailers a cut for using their platform.  That poses a tremendous threat to Groupon’s business model which charges each retailer approximately 50% of the deals price.  Facebook has made the fastest jump possible in the race to the bottom of the group buying margin which will curb the astronomical growth that Groupon has experienced over the past four years.  

Facebook can offer their deals for free because the purchasing data is more valuable to their business model than the potential revenue.  Knowing what people buy in addition to what they Like will make their advertising pitch that much more attractive and should lead to a much larger share of the coveted online display advertising market.  

I'm planning a lengthier post about the Economics of Groupon and why I think it will be another blip of the consumer web industry.