Google Buzz: Taking Social Media to Infinity and Beyond

In the spirit of this week's Super Bowl, Google is throwing an incomplete pass at rather than making an end run around the social media world zooming past the Internet giant with its new Google Buzz sharing tools inside Gmail.

While the new social sharing logistics (Google's sweet spot) will likely appeal to some portion of Gmail users once they catch on, Buzz is not enough of a game changer to pose a competitive threat to Facebook or Twitter. It has value as a social sharing extension to its own services such as Google Maps, which will provide an expansive location-based patina to the mobile application of buzz.google.com on the iPhone and Android-driven devices. Mentions of Pixar's questing hero, Buzz Lightyear, ("to infinity and beyond) will be unavoidable.

Maybe, if Google applies its algorithmic magic, it will produce meaningful information and data in the order of relevance about friends' location, activities, thoughts and preferences. Social search based on relevant information rather than on people (like Facebook) can open up an entirely new world of connections, argues some analysts such as Web Strategy's Jeremiah Owyang. A fragile line separates real-time and personal search, as Facebook has discovered to the dismay of its members. Maybe Google has its sights set on the next big profit center-individually relevant, real-time search.

Then again, it's unclear whether Google will get that ambitious given the first wave of criticism within minutes of the Feb. 9 Buzz announcement. Described by Silicon Alley Insider Dan Frommer as "part email, part Facebook, part Friendfeed (recently acquired by Facebook), part Foursquare, a popular hyper local sharing service; Buzz represents all of the mechanics Google is good at without Facebook's core personal spontaneity.

So, it is worthwhile contemplating Google's objectives with Buzz, which represents a considerable investment, but a fraction of the estimated $1 billion it would take to buy Twitter's micro blogging service.

First and foremost, Google wants to put the advertising it sells (generating more than 90 percent of its revenues) in front of more eyeballs. The obstacle with Facebook, Twitter and other social networks is that much of their banter and content are considered private and not searchable. Microsoft's Bing powers the Web search and related ads for Facebook's 400 million global users -- the outgrowth of its $240 million investment in the social network several years ago.

Having its own social platform allows Google to demonstrate how it can successfully traverse the sensitive, highly personal terrain with its services. Buzz extended into all corners of Google's spectrum, providing new places for its AdSense ads. Clearly, more ad dollars are headed into social media, according to a recent Forrester Research/Association of National Advertisers survey of 140 marketers representing $14 billion in spending. Some 77 percent said they are moving TV dollars to social media this year.

This may be especially significant for TV stations and newspapers that can be supported by Google's ad service in their hyper local extensions to create much needed new revenues sources.

Other rationale for Google's foray into social media:

• Google ultimately may seek to position itself as an investor in Facebook (with no or minimal ownership stake) in exchange for providing branded search and sharing ad-related revenues. Facebook has made notable progress with its homegrown target and display advertising business, although many contend it is no Google-killer. Google says it is considering ways to integrate with Facebook Connect. Google plans to make a fully integrated Buzz (with maps, photos, relevance search filters) so appealing, Facebook and others cannot resist an alliance.
• With a $24 billion cash hoard, Google could throw enough money at Twitter to embellish the mix. But making such a collaboration profitable takes time, just as with its acquisition of YouTube three years ago. Even without Twitter, Google is attempting to take email -called the first social network by some--to the next level with more intense interactivity.
• While Google has had mild success with its Orkut social network globally, it has been late to the game domestically. If Google woefully underestimated the potency of social media, what else is it missing? Then again, only a few companies -most notably Facebook, Twitter and LinkedIn -- do it well. Yahoo launched a similar status-casting social overlay to its email service a year ago. Who knew?!
• Just maybe Google is making up for lost time by playing the social media card off of its strengths. Observes Forrester Research analyst Augie Ray: "For some, it would be a powerful combination to aggregate email and status feeds in one simple and powerful tool. And add Google's Android and Nexus One into the mix for mobile viewing, and you begin to see the makings for a dominant and portable tool for managing highly personalized real-time information."
• If Google is smart, there has to be a planned push to provide enterprise Buzz applications for business. JP Morgan analyst Imran Khan observes some hopeful signs. "Users will be able to post publicly to followers and their Google Profile or privately to existing groups and custom groups. We believe that this capability is key to the use of one product for both business and personal communication," he said in a note late today.