1. Facebook Graph Search:
Revenue Potential &
Marketplace Implications
Excerpt from a BIA/Kelsey Client Report
Jed Williams
Senior Analyst
BIA/Kelsey

2. Executive Summary
 Facebook recently unveiled Graph Search, its long-awaited foray
into search. CEO Mark Zuckerberg calls it‟s the company‟s “third
pillar,” alongside the news feed and timeline.
 Graph Search is distinct from traditional web search. It doesn‟t strive
to beat Google at its own game, but give users a unique in-network
experience to foster greater stickiness and engagement.
 Rather than show links to third party content, Facebook will instead
leverage its 1 billion users, 240 billion photos, and 1 trillion total
connections to answer queries with interrelated social signals.
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3. Facebook Graph Search: What It Is
Multi-Dimensional Search: The engine can surface multiple levels of
connections using “likes” and other social signals as connective
elements. For example:
 Cafes in New York „liked‟ by Friends living in New York
 Friends working at a particular company (e.g., Facebook) with Friends
working at another company (e.g., Google), with specific job titles
(e.g., Sales Manager)
Closed-Query Search: Google‟s engine uses algorithms to present
numerous likely answers to open-ended queries. Graph Search mines
layered connections to find a precise answer, with “likes” and other
social engagement signals serving as “authority votes.”
 For example, photos of the Eifel Tower (open) vs. photos taken by
Friends of the Eifel Tower (closed)
Initial Focus: People, Photos, Places, Interests
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4. Graph Search:
Search Headings & Sample Searches
Search Categories & Connections
Sample Searches
Source: Facebook
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5. Graph Search: Revenue Potential
The Big Idea: Facebook moves down-funnel into demand
fulfillment by monetizing intent-based search
“Sponsored Discovery” – How It Could Work:
 Facebook has already been testing “search typehead ads,”
which insert sponsored results above and within organic listings.
 Search ads related to places can extend naturally to other core
Graph Search categories, photos & interests.
 Potential for “related query” ad placement (e.g., transit services
against restaurant/event searches; retail products against travel
searches).
 Premium tools similar to LinkedIn could give recruiters special
access and capabilities.
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6. Sponsored Graph Search Results - Mockup
Source: TechCrunch
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7. Competitive Analysis: Potentially Disrupted
Segments & Companies
Location-based services and local content sites
Horizontal Directories
Facebook’s Developer Ecosystem
<Details on each area are delivered in the client report.>
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8. Graph Search: BIA/Kelsey Takeaways
 Facebook Graph Search offers a unique, companion search experience
that isn‟t a direct threat to Google. However, its success is crucial for
Facebook to continually increase its user engagement and offer a
distinct advertising opportunity beyond display. If Graph Search
succeeds, these two drivers will propel each other in a virtuous loop.
<Full BIA/Kelsey takeaways are delivered in the client report.>
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9. Questions & Comments:
Jed Williams | 703-227-9657 | jwilliams@biakelsey.com
www.biakelsey.com/SLM
Copyright © 2013 BIA/Kelsey. All Rights Reserved.
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