The Facebook stock debacle from yesterday makes me think that maybe there is a limit to how user-hostile a tech giant can be before it really starts to hurt their bottom line. For a while it seemed like companies like FB had captured enough of the market that they seemed impervious to backlash from their many controversies, too big to fail in a way. It’s too early to tell if this is the beginning of FB’s demise, but it looks like letting resentment towards your product build among your user base can come bite you in a very real way after all.
FB used outrage as a way to increase engagement and it worked for a while, but now FB is increasingly a non-desirable place to hang out. Instead you can go to TikTok where you will find mostly amusing and at times informative content. When Apple added restrictions that cut off oxygen to FB, FB started a PR campaign to paint it as one grave injustice. It seems like that was met with a collective shrug. Who cheers for the bad guy?
All that is to say, it seems like Google has been in this value extraction mode for a while and I don’t see what the long term plan is. They don’t seem to be innovating much, but are instead intent on squeezing as much money as they can from their existing assets. And while that may work in the short term, FB has shown tech giants are not invincible. I’ve seen a lot of talk online lately about how bad the quality of search results have gotten. If a credible competitor emerges, I think a lot of users would gladly switch. If/when that happens, Google better hope they don’t find themselves in FB’s position where they can’t acquire their way out of their rut.
FB used outrage as a way to increase engagement and it worked for a while, but now FB is increasingly a non-desirable place to hang out. Instead you can go to TikTok where you will find mostly amusing and at times informative content. When Apple added restrictions that cut off oxygen to FB, FB started a PR campaign to paint it as one grave injustice. It seems like that was met with a collective shrug. Who cheers for the bad guy?
All that is to say, it seems like Google has been in this value extraction mode for a while and I don’t see what the long term plan is. They don’t seem to be innovating much, but are instead intent on squeezing as much money as they can from their existing assets. And while that may work in the short term, FB has shown tech giants are not invincible. I’ve seen a lot of talk online lately about how bad the quality of search results have gotten. If a credible competitor emerges, I think a lot of users would gladly switch. If/when that happens, Google better hope they don’t find themselves in FB’s position where they can’t acquire their way out of their rut.