Google Inc (NASDAQ:GOOG) is the clear leader in online search right now, but with the web world becoming more and more social-facing questions have arisen about the ability of the company to keep up with the quality of data available to the likes of Facebook Inc (NASDAQ:FB). Wedbush Research thinks that Google holds the cards. Their advantage lies in something called the “database of affinity.”
According to the company’s most recent report, which deals with the goings on at SXSW, the “database of affinity” is a data set that allows marketeers to find out what users actually like. Google Inc (NASDAQ:GOOG), according to the report, has an advantage over Facebook Inc (NASDAQ:FB) in building that set.
According to the analysis, Google has three major advantages. The first is an access to a wider set of data. Google’s search platform allows it access to a huge range of data, while Facebook relies on its more limited Like system. Google’s second advantage is its experience and ability to analyze the data they collect and turn it into meaningful pointers for advertisers.
The third factor that Google has going for it is its advertising platform. Google Inc (NASDAQ:GOOG) has had a long time to perfect its advertising model, and its been shown to be an incredibly effective monetizing platform. Facebook Inc (NASDAQ:FB) has not yet managed to give evidence of an effective money making ability.
Google Inc (NASDAQ:GOOG) has, according to the report, much more going for it in the race to build the best database of affinity. That database will give advertisers the materials they need to be more effective in their work, giving advertisements a higher value and increasing revenue streams for the platform.
Facebook Inc (NASDAQ:FB) is attempting to catch up to Google with its graph search feature. According to the Wedbush report, however, that service is more likely to be a threat to intermediary social services like Yelp! and Foursquared. Facebook’s ability to compete directly with Google is still a couple of years down the road according to the analysis.
Google Inc (NASDAQ:GOOG) has always been in a better position than Facebook Inc (NASDAQ:FB) to dominate the search market, simply because it was there first. The company is unlikely to be disturbed by Facebook for a couple of years according to Wedbush. That gives Google time to improve its service, and build a “database of affinity.”