At the Goldman Sachs Technology and Internet Conference in San Francisco, Levchin and Benchmark Capital’s Bill Gurley answered questions about “game-changing technology.” During their fireside chat, the moderator raised the question of Facebook’s unprecedented growth and its impact.
“Facebook has all but successfully monopolized White Pages,” Levchin said, explaining that when you want to find and connect with someone, you go to Facebook. Unlike the White Pages though, Facebook also has information on a person’s interests, likes and social graph.
That alone has turned Facebook into a $50 billion compan y. However, Levchin says that that becoming the repository for personal information could result “in Facebook successfully replacing core messaging.” If it becomes the web’s primary communication platform, it could become the most valuable company in the world.
Levchin quickly stressed that Facebook’s business shouldn’t be confused with demand generation or demand discovery — a.k.a. search, Google’s specialty. The PayPal co-founder says that he’s read that social graph signals have not been particularly effective in optimizing search-related advertising. Benchmark Capital’s Gurley agreed, arguing that social signals might deliver untargeted ads at inappropriate times.
In fact, Levchin argues that Twitter may be a better advertising platform because following a brand or expert on Twitter is more likely to deliver credible information and advice than your friends, who are likely not experts in biking, financ e or other subjects. ...
