I don't yet see any overlap. Google and FB still perform entirely different functions for me. So where is the threat?
Making money on the internet can be explained quite simply:
He who has the most eyeballs and/or traffic to their online properties wins.
Google understood this along time ago, hence their huge investments into Search, Email, IM, Maps, Blogs, RSS (Google Reader), Mobile services, as well as their purchase of Youtube, Picasa and countless other online properties, for what others would have called
ridiculous amounts of money. They monetized these millions of eyeballs and traffic by advertising to them.
Almost all of the above services are free to use by Joe Public, allowing Google to snap up eyeballs and traffic very quickly, and in return driving their advertising business.
Now Facebook is another big fish when it comes to controlling large amounts of eyeballs and traffic, and as the stats pointed out, people spend more
time on Facebook, then on Google properties, even though the actual number of unique visitors to Google properties far outnumbers those on Facebook.
The fact that Facebook and Google target different segments of the market with very different services (with lots of overlap here and there), is of no consequence to who will win this war.
This is a fight about eyeballs & traffic, and Google should be worried.
