Wired has just published an excellent article on the battle between Facebook and Google. It covers the key issues concisely and is well worth a read.
However, I think both companies (and possibly Wired) are wrong to think that this is a battle for future of the internet. Instead it is a battle for today’s internet. In my view neither Google nor Facebook will win the battle for the future of the internet because both are fighting in the wrong space. Both organisations are basing their strategies on the assumption that the future lies in an ad-driven, data capture, real estate model of the internet – and this is a 1.0, traditional institutionalised communications model.
Advertising is a creation of the world of traditional institutionalised information. No one is suggesting that advertising is still not incredibly important – but it is a pot that is shrinking as distribution-based communication itself shrinks. And while some of it is moving on-line, the on-line opportunity is never going to be as big as the current total pot and ultimately will disappear altogether.
Here’s why. Continue reading →