Some Things Never Change
Looks Can Be Deceiving
Sometimes looks can be quite deceiving, though. For instance, when you consider some of the raw numbers that these companies claim – head held high – like the number of users they serve, or the number of people they employee, or the amount of revenues they generate, not all of it is put into clear perspective.
For eaxmple, facebook, recently claimed it had 800 million users. This is indeed a huge number of users. If you were to compare it to the average website on the web today or even the average corporation, this makes it seem like a huge company. But facebook only employs around 2,000 people and none of their users pay a single dime for using the service. The service is free so clearly 800 million people aren’t facebook’s customers. Then again what does facebook actually do for its 800 million users? Well, we know a lot about what they don’t do. They certainly don’t write all of the software that their users come back for so often. There are tens of thousands of facebook developers that either develop facebook apps or build on top of the facebook platform just for the benefit of having access to the huge social graph that gathers under the umbrella that is facebook. So nothing about their software actually makes their service unique per se, just that they have access to a huge userbase which interests a lot of parties. They also don’t do much of anything significant with what software they have built. If we consider their largest and probably most significant work it would have to be Casandra. HipHop might probably rank second. Their SDK is actually pretty much poorly documented and poorly supported, for the most part. Photos? Well, they do claim to have the largest photo sharing application on the web, but then again flickr isn’t far behind. And it’s not like facebook photos does anything really interesting with the actual photos apart from tagging (clearly their most popular feature). Other sites have actually done a far better job with photo sharing than facebook even though they may not be as popular. So in all reality these numbers – once put into some perspective – actually indicate pretty negative things about facebook even though it tries to put them in a positive light with a flashy spin (in hope that this will only boost their already growing popularity of course). The reality, however, is that this only indicates how under-staffed, under-paid, and over-commited facebook really is.
Here are some charts to demonstrate what these numbers actually indicate with some contrast for visualization.
Even if we consider every single user on facebook to be a customer of facebook, as a company, this would mean they are gaining the attention of about half the number of customers Microsoft currently attracts with it’s dominant Windows Operating system market share. They are neck and neck with Google in terms of users, but facebook claims to have surpassed Google in pageviews. There are probably very good reasons as to why that is. Let’s not forget people who visit facebook are usually their to do a lot of things. Chat with friends, browse every photo their friend ever took of their toe-nail, armpit, mirror-shot, bar-hoping-night, passed-out-magic-marker-art, and just about every other pointless moment their friends have ever captured on camera and uploaded to facebook for the world to see, not to mention the hundreds of wall-posts, messages, and I-Like hits the site gets every day from all of its users. In a single second facebook will probably have received around 2,000 photo uploads from its users. In about the time it has taken me to write this blog post they will probably have gotten around 3 Million new photo uploads. Each one of those uploads will generate a page view. Each time you play farmville or use an app that lets you know when your friend made a funny face or tried to some-how through the powers of dark magic poke you over TCP/IP that also generates what facebook considers a page-view.
The point I’m trying to make here is that facebook is clearly a content-provider. But just like Google, they aren’t the ones producing all of the content. However, unlike Google, facebook does actually facilitate a place for you to store and share all of this content and encourages it profusely by not setting a lot of stringent restrictions on how much content you can share.

If we took the amount of content users shared as an indication that a company was powerful in reach, however, we would have to say Hotmail is probably more of a social networking tool than facebook and twitter combined. Consider that Hotmail has only around 364 Million users and they share billions of emails every day – this would indicate more active sharing than facebook has ever openly claimed – even though Hotmail has less than half the userbase. Additionally if we compare the number of developers that actually work on supporting the service that these users are making use of facebook clearly has a higher developer to user load ratio than any of these other companies.
Stepping Outside of the Browser for a Minute
So it’s not clear that twitter, facebook, myspace or any of these other very popular social networking sites, are actually proving to be nearly as profitable as they are popular, despite them clearly being a great tool for people to communicate. The reasons for this are mainly the advertising risk. Twitter, facebook, myspace all clearly strong in numbers (any company that has to support a site that has users in the millions is nothing to laugh at), are still weak in strategy. There’s no good reason for a serious advertising (with billions of dollars to invest) to make long-term commitments to a user base that may very well disappear in a few years.
If you think of what Twitter is really all about, for example, it’s like reminds me of when we used to pass short little notes around in class during high school on tiny snippets of paper with messages like “see you at lunch…” or something silly like that. You basically send messages to people who choose to read them in tiny bite-sized pieces. This is nothing fascinating. The only reason the service is even popular is because a lot of people – at one point – found their friends using it (just like myspace and facebook evolved) and decided to use it as well. That’s the thing about these social-based sites. They are easy to gather around and just as easy to turn away from. Eventually some one gets bored and a collapse of the social graph brings down the whole thing.
Google, on the other hand, doesn’t actually want to keep you within its borders all day long. It actually wants to get you the information you were looking for and out the door as quickly as possible with little to no distraction along the way. Quite the opposite from what facebook aims to do, because facebook understands it’s only value is in how long its users chose to stay. So they will do everything in their power to keep their users there longer. Google knows its users only come back because they know something else is out there to be found and that Google is probably going to find it for them more quickly (since it’s done so numerous times in the past with great success).
If you’re looking for a nice read on the subject of Google – by the way – I’d recommend this title right off my recent bookshelf Googled The End of the World as We Know It by Ken Auletta
It’s Not Browsing, It’s Searching
It makes sense that someone would turn to their friends or colleagues, etc, to find out about which of the latest blockbuster movies is popular when deciding on purhcasing a DVD or paying a visit to the movie theater, for example. But it might not make a whole lot of sense that someone would spend their time searching facebook when they’re looking for information on World War II history, or a photo of the point contact transistor at Bell Labs in 1947. People are probably more likely to turn to Google or Wikipedia for that type of search. Even though I have no doubt people are probably starting conversations on facebook groups or posting messages on people’s walls with very similar questions as you read this. To be fair, however, facebook and twitter probably do have good uses in searching for information as well. For example, you might hear about some new trend or some recent local, national, or even global event that just took place on one of these social networking sites, but it’s not like you can’t hear about that on the news either.
It’s just people’s naturally insatiable curiosity that won’t stop them from asking questions or looking for answers. This is why Google has become so popular today. They found the ultimate way to keep users coming back for more. Facebook, while it appears to have done the same thing, it apparently does it for all the wrong reasons. Google’s mission is to solve the problem of search (people are always asking questions about something) by making use of the worlds information as it becomes available (i.e. the web, books, news papers, television, etc…). However, facebook’s mission (while not even clear at this stage) seems to publicly say it’s attempting to do something fancy with something called the “social graph” (yes I really put a quote-unqoute on that). However, internally, facebook developers aren’t really sure what they’re doing. They seem to blog a lot about all these neat new technologies the company is getting its hands on, but what about this social graph? What does it do? How does it really make our lives better? Because we can communicate with our friends? No, that can’t be it. We’ve been communicating with our friends long before facebook ever showed up. Is it because facebook makes it easier to see what our friends are doing? No, that can’t be it either, because our friends still have to show us what they’re doing for us to see it (so instead of you seeing your friend getting drunk at the bar you get to see them in a photo on facebook drunk at the bar). Clearly, that isn’t making anyone’s life better (at least not yet). Is it because facebook offers a platform where you can connect millions of people and extract large quantities of useful information out of this so-called social graph? Well, to whose benefit is that, exactly? I don’t know about you, but I really don’t want everyone having access to all of my information just because I want to use their app to see what books my friends are reading (and yes there are very little to virtually no restrictions on how much information each app you use can access about you). I really don’t care to know how many people poke how many other people every day instead of getting off the computer or pulling their eyes away from their smart phone for a minute to take a look at the people in their immediate presence for a change. I don’t find anything about that useful, do you? Perhaps some might, but who? It’s probably not the average joe. It would probably be someone with a serious vested interest in you. Someone like say a company that produces hundred dollar designer jeans and seeks yet another way to pry into your personal details to figure out just how much influence they can muster to get you and all of your friends to buy those really expensive jeans that will just make your butt look spectacular.
At the end of the day, the numbers speak for themselves.
But, you’re just browsing the web. It’s not like any of this occurs to the average person on a regular basis as they “just browse the web”…



