Will Facebook Be Tomorrow’s Google, and Google Tomorrow’s Microsoft?
Google doesn’t get brand / discovery advertising
Google’s ad business models are based on intent and relevance and not on discovery. The performance based AdWords and AdSense models are easier to measure and appeals to the logical / analytical minds at Google. The power of influence, discovery and brand advertising needs more right-brain thinking than Google’s left brainers are used to.
Also, instead of innovating and exploring new forms of brand advertising, Google’s strategy in that space over the last few years has been to simply buy DoubleClick which is the leader in old-school brand advertising (mostly banner ads). This basically means that there is no fresh thinking in this area at Google compared to Facebook, which understands the power of discovery and recommendation.
Bindu Reddy makes some interesting points in this great piece on Techcrunch. Google owns publishers, but unfortunately Facebook owns a large number of the users.
Considering she oversaw product management at Google. She knows her stuff.
The only thing that can hopefully slow Facebook's domination is the revolt building up due to Mark Zuckerberg's tendency to show his disregard for user privacy.

