“(…) Facebook may be a bigger success than Google long term (…)”
To extend on that: Facebook won’t replace Google. Facebook and Google get so many visits because of different things. Demand for search won’t falter because social networks increase in popularity. I, at least, cannot see how that would be possible.
But – just so there are no misunderstandings – Google and Facebook are nevertheless clearly competitors. There is a finite amount of money that will be spent on advertising and Google and Facebook will both be fighting for a large piece that cake. And at some point in the future online advertising will have grown up so that there won’t be always more and more money coming into the system.
Note that Google is starting to step on Facebook's toes a little with Google Buzz. I don't think it'll put more than the tiniest dent in Facebook, but they aren't entirely mutually exclusive.
To extend on that: Facebook won’t replace Google. Facebook and Google get so many visits because of different things. Demand for search won’t falter because social networks increase in popularity. I, at least, cannot see how that would be possible.
But – just so there are no misunderstandings – Google and Facebook are nevertheless clearly competitors. There is a finite amount of money that will be spent on advertising and Google and Facebook will both be fighting for a large piece that cake. And at some point in the future online advertising will have grown up so that there won’t be always more and more money coming into the system.