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August 8, 2011 02:00 am GMT

Is G+ Putting Facebook On The Defensive?

Tom AndersonIf it's not obvious yet, Google+ is going to be able to "undercut" Facebook when it comes to game developers and platform transactions. Instead of taking a 30% cut of all Farmville seeds (or whatever people are buying), Google will be able to take a smaller percentage for themselves. They may even take nothing. And when it comes to "monetization" on the G+ "website," Google's trump card against Facebook is that we may never even see an ad on G+. Google has plenty to gain without ever showing an ad and, put simply, Google doesn't need the money. Facebook's got to know this, and it's got to have them just a little bit concerned.This week, the WSJ reported that FB is testing out a "real-time" feed (as opposed to Facebook's current default "Top News" algorithm). Presumably this new feed would become the new norm for users. Though I'd like to think Facebook has been listening to me when I critique their Top News algorithm, what's really moving Facebook's hand here (according to the WSJ) are complaints by advertisers and app developers. It seems that the "Top News" stream is killing the virality of advertisers "content" and of apps that are trying to find new users.

Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/--H4JqKGXfk/

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