• GigaOm, Tuesday, November 6, 2007 11:30 AM

GigaOm's Om Malik considers the implications of Google's OpenSocial platform, comparing the search giant's approach to social networking to that of Facebook. Malik points out that Google's entire business model depends on information being public--search is just a tool used to glean more information about us so the company can serve more targeted advertising. The idea behind OpenSocial is more of the same: provide free tools for (developers in this case) to create free, open software and then help developers monetize their programs through AdSense. Therefore, Google doesn't really have to get into the social networking game.

However, Facebook's business model has been all about keeping information inside a closed little world--at least so far. Indeed, the social network is one of the few places where Google's crawlers aren't welcome. As Malik says, being boxed out of such a data goldmine is "a scary proposition for a company whose very existence depends on open access to all information."

The open versus private debate is reflected in the companies' advertising strategies, Malik says. Google personalizes ads based on the content consumers choose to view or search for, while Facebook plans to use the sensitive information we provide and the behaviors we demonstrate on its site. It has the ability to deliver both contextual and personalized ads--"the ultimate goal for Google." Even so, Facebook has to prove it can leverage its advantage properly. A lot will be revealed later today.

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