Broker → Market

Search and social interaction are two of the most popular functions of internet users. Google has been dominating internet search for years now. Similarly, Facebook has emerged as the leader in social networking.

Why is Google so obsessed with the social space?
We have seen Google make quite a few attempts at breaking into the social space without success. With the recent launch of Google+, you might be wondering why they’re so persistent following so many failed attempts (Google Wave, Buzz, Dodgeball, etc.). The reason is that both spaces are slowly converging into one. A good search engine provides quick and accurate results (weeding out the masses of clutter, spam and “black hat” sites). Social interaction plays a very interesting role in the “accuracy” of results.

In the earlier days of search engines, very few factors were considered outside of the terms you were searching for. Since then, search has evolved to take into account as much external data as it can gather. For example, once Google realized it can decipher your geographic location, they started basing results on sites that may be more relevant to your search based on your location.

The same is now true for social sites. As social platforms evolved, the search industry realized that not only could you acquire all the same data about users via these sites, but that other important data can be captured including users’ opinions, taste and circles of influence. A dynamic profile for every user (and other entities) exists with all their personal details and interests. Search engines can now factor a searcher’s likes and preferences as well as their friends’ opinions when delivering results. This makes personal data extremely valuable and a significant motivator for investing so heavily in social platforms.

Seeing that most of the valuable data relates to opinions and taste, one of the most important features of a social network is the “like” button. Google realized this and has recently released the Google “+1” button. It’s really quite surprising that it took so long for Google to realize the importance of the “like” feature. For years Google has placed significant weight to the quality and number of domains linking to a specific site when determining its rank for a specific term. These inbound links are in effect acting as a “like” feature. (more…)