Eden Zoller, principal analyst at tech research firm Ovum, said Graph Search could lead to a new avenue for revenue.
"Before the arrival of Facebook's Graph Search, the search function on Facebook was basic, and, as such, a wasted opportunity given Facebook's imperative to strengthen advertising revenues," he said in an email to TheStreet. "Graph Search will no doubt leverage member data to provide advertisers with more targeted, personalized advertising opportunities going forward."
The analyst said Facebook is wise to build a sophisticated search tool, as opposed to a Web search engine. "This is sensible, as a full-blown web search engine from Facebook would inevitably have to compete with Google (GOOG) search, and given Google's dominance of the search market, it would be hard for Facebook to make a serious impact -- and win advertising dollars."
Zuckerberg was careful to avoid mentioning his rival. "I'd love to work with Google," he said during a question-and-answer session with journalists. "We want to make search social in general."-- Written by James Rogers in New York. Follow @jamesjrogers >To submit a news tip, send an email to: firstname.lastname@example.org.
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