Olds added that while missing the social networking boat has already cost Google in the short term, the long-term implications can be even more significant.

"Facebook and the other social networks give advertisers a very viable Google advertising alternative and also a richer set of research data," said Olds. "This isn't a good development from Google's standpoint, which is why they've been scrambling to find their own way to capture those users and their data."

So the question now is if Google will now follow up this admission of failure with more social media advancements.

For months now, the Internet has been abuzz with speculation that its own social networking platform that may be either gaming or entertainment focused.

Ezra Gottheil, an analyst with Technology Business Research, said Google for now is simply trying to make their products more social.