by Bruce Tyson

Created on: August 30, 2010

Challenging Google on its own turf, Facebook rolled out its Facebook Places application that helps its half-billion users find businesses located near them.

The Google Places application is designed to help users find local businesses in Google Search. Businesses can enter facts about them such as their hours, phone numbers and other information so users in their area will find them in local search results.

Facebook, perhaps gearing up for a confrontation with Google in the social networking arena, now uses Facebook Places to provide users with local businesses in their area whenever they check in with their location. Expect thousands of businesses to register with Face book as they seek to have their hat in the ring when mobile users look for shopping, dining, and entertainment in their locale.

As Internet users seem to move toward social networking as their prime destination, the ability to find businesses could continue to steer users away from Google and to Facebook where users can find friends and benefit from their reviews and recommendations. Facebook users will have the ability to check into a Place and share their experience right there on the social network, giving businesses a powerful way to extend their reach throughout the online community.

Advertising seems to be a draw for Facebook Places. Using a self serve system, users can advertise their pages and places and even target users who have liked their Facebook page. To some, having a page and a place on Facebook seems redundant, but Faceboook has said that some businesses will eventually merge their page and their place into a single Facebook location.

The integration of other networks with Facebook Places promises to make the feature even more powerful. An API published by Facebook will allow other services such as Foursquare, Yelp, and Gowalla to integrate Facebook Places results with their own, extending its reach to a huge segment of the mobile population.

Millions of potential customers spend a lot of time of Facebook, so businesses will likely jump at the opportunity to expand their Facebook presence and market themselves through user accounts and via advertising.

Where does Facebook Places leave Google? Some speculate that the sensation of social networking already lures a large segment of the online generation away from Google. As Facebook provides a growing array of services within its realm, expect Google to start losing traction in its position atop the online world. Google, however, recently purchased a social networking service called Slide and social currency company Jambool and has long been rumored to be preparing an assault on Facebook.

Sources:

Krazit, Tom. "Facebook Places takes aim at Google." CNet. August 19, 2010. http://news.cnet.com/8301-30684_3-20014162-265.html (accessed August 29, 2010).

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