Google+ and Facebook Set for Bloody Face-off Following Launch of Facebook for Business

Moreover, Google+'s limited access (Google+ is in beta phase and users are allowed to use it on invite-only basis) has disappointed many users. After checking it out and setting up a basic profile, Google+ users are exiting the site and seldom returning because a critical mass of their friends aren't on it yet.

Not surprisingly, Hitwise said that after visits to Google+ had soared 283 percent for the week ending July 16 compared to the week before and 821 percent for the week ending July 9 compared to the week before that, for the week ended July 23, Google+ received only 1.79 million visits (down three percent compared to the previous week) and the average time spent on the site was also down 10 percent, compared to previous week, to five minutes and 15 seconds.

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Hitwise hasn't explained the reasons for the traffic drop and Google+ has suggested that one shouldn't take the data too seriously as it excludes "critical" aspects such as Google+ visits through mobile apps or APIs, which means that users accessing Google+ using the Google+ app on their iPhone or Android smartphones aren't being counted. Google has a point here because the Google+ iPhone app, which was launched last week, has risen quickly to the top of the App Store rankings (and beating Facebook iPhone app in the process) and there's a good chance that mobile users could have made up for the losses that Hitwise is reporting. Also, the Hitwise figures are just for the U.S. and do not include countries like India, where Google+ has seen an uptick.

Meanwhile, Facebook didn't hesitate to take advantage of Google+'s troubles. The site quietly and quickly launched Facebook for Business that walks the businesses through Facebook's "powerful marketing tools" and teaches them how to create a Facebook Page, build relationships with members of the Facebook community, and use Facebook Ads and Sponsored Stories.

"Facebook allows small businesses to create rich social experiences, build lasting relationships and amplify the most powerful type of marketing -- word of mouth," a Facebook spokesperson wrote in an email to Reuters. "We created Facebook.com/business to make it even easier for people to reach these objectives and grow."

"Business owners can learn best practices for creating a Page and engaging customers in a two-way conversation to answer questions, get valuable feedback, and to reach their friends," a Facebook spokesperson wrote. "Businesses can learn how to find new customers before they search for them using Facebook's targeted Ads, and bring customers from the Web into their stores. And we want to inspire small businesses by seeing how other businesses have found success on Facebook by sharing their stories."

Earlier, Facebook also had teamed up with Skype to offer the multi-user video conferencing feature, a week after Google presented Google+ Hangouts, that allows up to 10 users to see each other simultaneously on video and talk.

Facebook's latest move wasn't surprising because it perceives Google+ as a threat. Why else would Facebook go on an overdrive to delete Google+ ads on its site or try to keep Facebook users from exporting Facebook contacts into Google+?

Though Google+ is a fledgling site compared to Facebook, which boasts of 750 million users, it's not surprising why Facebook may consider Google+ to be its greatest threat.

According to Search Engine Land's founder Sullivan, Google is "the only company well positioned to launch a Facebook alternative."

"People like alternatives. Twitter doesn't offer a full-fledged alternative to the Facebook experience. Google does," he says.