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Google, Facebook rivalry to heat up in 2012

Sharon Gaudin | Jan. 4, 2012
As Google works to make its Google+ social network a major competitor to market leader Facebook, the battle between the two could reach a critical point in 2012, analysts say.

"I think Facebook wins 2011," he added. "I'd say most observers would have predicted that Google and Google+ would put a big dent in Facebook by capturing a significant number of Facebook users. But that didn't happen. Facebook held onto their market share and even expanded it a bit."

Moorhead disagreed, giving Google an edge in 2011 as a company that gained a strong foothold in a market where it didn't even compete in 2011.

"Google finally arrived with a compelling value proposition, but is very far behind in engagement and reach," said Moorhead. "[For the next year], Google will integrate Google+ into every property it has, including the Android OS. Facebook will develop benefits programs to reward users to share every element of their life on Timeline -- where they eat, shop, drink, work out, what they watch, read, listen to."

 

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