Facebook Inc (NASDAQ:FB)'s share went up again after it announced its 'Graph Search'. The company's chief executive officer, Mark Zuckerberg, introduced an enhanced search engine, labelled as their "third pillar", which, along with the timeline, enables users stay up-to-date with their friends and newsfeed. Now, it looks like Facebook is trying to compete with the likes of Google Inc (NASDAQ:GOOG), which still dominates the search engine market. The new search engine called Graph Search, could just change the way people use search engines.
It's apparent that digital marketing is where it's at. Research firm eMarketer estimates that $17.6 billion alone was spent on search advertising and Google Inc (NASDAQ:GOOG) earned about three quarters of that number. Facebook has kept their focus on digital display advertising, which they've some major success in. But if they can take search advertisements from Google as well as others, it would be a boon for investors.
This new search engine delivers answers to queries by sifting through people's Facebook pages and social networks. This new search engine will make it easier to find anything from restaurants to job connections, creating ample opportunities for advertisers and marketers.
It's important to point out that not everyone is thrilled with Facebook Inc. (NASDAQ:FB)'s new search engine, some people have said it's too late for them to attempt a search engine. If it's any console to the company, Google's foray into the social media market with Google+ is still no match for Facebook.
On another positive note for Facebook, analysts predict that it's new search may help counter interest in Apple's Siri personal voice-activated assistant.
The goal behind this new search engine is to keep Facebook users on the website longer and thus entice advertisers to spend more money on ad space on Facebook Inc (NASDAQ:FB). Companies may start paying more for target advertisements.