Archive for February, 2009

Trulia in Co-Brand Deal with WashPo

February 11, 2009

picture-181This morning Trulia is announcing that it will become a partner with the WashingtonPost.com, bringing its search and listings, as well as other content, to the real estate section of the newspaper site. The deal won’t be implemented until April however, presumably the end of the contract with current partner HomeFinder (owned by Classified Ventures).

This latest deal is part of Trulia’s Publishing Platform program that brings Trulia content and functionality to third party sites. Also using the platform are:

  • St. Petersburg Times
  • The Bakersfield Californian
  • Press of Atlantic City
  • The Charleston Gazette
  • The Sun Chronicle
  • The Citizen Tribune
  • US News
  • Kiplinger
  • Belo TV sites

However the WashPo deal is the highest profile one to date for Trulia.

I spoke briefly yesterday with CEO Pete Flint about the state of Trulia and the specifics of the deal. He said that Trulia had seen its best month ever in terms of traffic in January. Flint told me that revenue growth has been good — especially in a down economy where the bursting of the real estate bubble was the trigger for the collapse.

Trulia also expects to be profitable in the near term, which is another remarkable thing for a “startup” in a bad economy.

Trulia has dramatically evolved since its launch. In the beginning the site was conceived as a crawler that would bypass traditional real estate listings sources. Later it began taking feeds directly from brokers. Now the site is also working with MLSs. Flint said that this was to make coverage more comprehensive.

Most “Web 2.0″ sites are now largely toast, although the features of Web 2.0 live on (e.g., user-generated content). Many people may take issue with this statement but my view is that Trulia is one of the few “Web 2.0″ sites to succeed. Trulia competitor Zillow (which has raised much more money than Trulia) is also in that camp and succeessful in terms of visibility and traffic — though probably farther from profitability.

eLocal Listing: Video Boosts Calls 3.3X

February 10, 2009

Steve Espinosa of eLocal Listing is on the podium giving a presentation in a session I’m moderating about Google Maps and ranking in Google Maps.

Espinosa said that based on all their data the presence of video on SMB sites/landing pages boosts call volumes by more than 3X vs. those that don’t have video.

This was an impressive statsitic to me.

Report: RHD, Idearc to File Bankruptcy

February 10, 2009

I was alerted this morning to a Reuters report based in turn on a Moody’s Investors Service report that suggests Idearc and RHD may file for bankruptcy protection:

Moody’s Investors Service on Monday warned that directory publishers R.H. Donnelley & Sons (RHDC.PK) and Idearc Inc (IDAR.PK) may be each likely to pursue a prepackaged bankruptcy or distressed debt exchange as they struggle to overcome high debt loads.

If true this will affect creditors but is unlikely to have a negative impact on advertisers or cash flow.

Oodle Traffic Up, Raises More Cash

February 10, 2009

picture-17Oodle announced what may be its fourth round of funding: $5.6 million from existing funders Greylock Partners, JAFCO Ventures and Redpoint Ventures.

Oodle also said that it has crossed the 10 million monthly uniques traffic threshold.

Oodle has created an impressive network of partners, which include Walmart, MySpace and Facebook. The company has positioned itself in some respects as the anti-Craigslist, seeking to improve upon or compensate for what it perceives to be the deficiencies in Craigslist.

I also don’t believe Oodle has any competitors at its level of scale among “horizontal” sites (except, when I first posted yesterday I competely forgot about eBay’s Kijiji):


This chart is undoubtedly inaccurate but shows trends directionally.

TheFind Debuts ‘TheFind 100′

February 10, 2009

picture-16Awards are almost always about promoting the entity giving out the award as much or more than the recipients. But everyone seems to love awards and rankings — so it’s smart marketing.

TheFind, which offers both mobile and local shopping search in addition to more traditional online shopping, has created an award it’s calling “TheFind 100.” The company’s announcement says the list recognizes “the best 100 online stores in sixteen shopping categories.”

What’s nice about this is that many of these stores, if not all of them, are independent. It would be interesting to know how many sell exclusively online and how many have an offline business as well. I would imagine that a majority do fall into the latter category.

Goodrec: 50% of Reviews from Mobile

February 10, 2009

picture-13Goodrec is out of beta. The site, as I wrote originally, has several would-be differentiators from a broad range of local-review-site competitors:

  • Simplification of ratings process (others do this)
  • Mobile centric approach, including the ability to generate ratings and reviews from mobile devices (also not entirely unique, Citysearch does this)
  • Longer term horizontal approach to a broad range of categories, including products
  • Ability to filter/sort by friends’ reviews and ratings

When I say “reviews,” I’m talking about the “Twitter version”: a short annotation to a thumbs up or thumbs down rating:

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I spoke briefly to CEO Mihir Shah yesterday afternoon. We digressed into a discussion about the mobile ad market and mobile consumer behavior. But the thing that’s relevant for purposes of this post is the following data point; Shah told me that 50% of his contributions/ratings were coming from mobile devices and the majority of those from the iPhone. 

He also told me that the company is going to launch (when approved by Apple) another iPhone app called “Good Food,” which will focus on restaurants. Shah envisions rolling Goodrec, Good Food and potentially others apps out to the many smartphone platforms that all have or will  have apps stores:

  • iPhone
  • Android
  • Microsoft (to be announced next week)
  • BlackBerry
  • Palm

Goodrec is an illustration of how mobile will become an important source of online content in the local segment as more people write reviews, upload photos, Twitter/tweet, update their Facebook status and interact with others online, etc., from mobile devices.

Posts from LMS

February 10, 2009

The following are posts at LMS today and over the past 24 hours:

ShopLocal Makes Retailer Data More ‘Searchable’

February 9, 2009

sl-logojpgShopLocal has introduced a new way to distribute retailer content: search. Wait, haven’t retailers have been advertising in search for several years? Yes, but ShopLocal’s new “SmartDelivery” capability takes retailer data and offers and turns that content into dynamically generated search ads. Compare a hypothetical current retailer ad on the left with what ShopLocal is now capable of:

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Anecdotal and empirical evidence shows that the specificity of the ad on the right (sale data, location, date) will generate much higher response. The ads also click through to specialized landing pages that correspond to the content of the ads, rather than a “generic” retailer home page.

When I first encountered ShopLocal, the company was putting newspaper circulars — as they appeared in print  — online. (It still does that but has “diversified” greatly.) ShopLocal became  a shopping comparison engine and online shopping destination. More recently the company has integrated more deeply with PointRoll (also owned by Gannett) to feed its retailer data and offers into graphical ad units from PointRoll that appear on third party sites and portals.

ShopLocal is also working with Yahoo! to deliver different versions of retailer content to users based on Yahoo!’s targeting capabilities.

In some ways, this new offering is the most compelling. Search is used very heavily throughout the consumer product research process. Yet there’s a disconnect between consumer and advertiser behavior. Etailers are aggressive search marketers, but consumers primarily buy things offline. And traditional retailers are not well represented in search results. If they’re there it’s generally in some more “generic” form, as the ad on the upper left indicates.

On an example search for, say, “plasma TV” only Sears (second position, right column) is present among traditional retailers:

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The Sears ad copy reads: “Save on Plasma Televisions and More Online Now at Sears.com.” In ShopLocal’s SmartDelivery ads offering that ad could show specific deals on flat panel TVs and be geotargeted. The greater effectiveness of this is almost self-evident. This would also likely be true for product-category searches (as above) as well as specific brand/product searches (e.g., 42″ Sony flat panel TV).

Using that specific example, we again see relatively generic ads and only one more traditional retailer (Target), though 80%+ of TVs will be researched online and 98% of TV purchases will be made offline.

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The greater specificity of the ShopLocal ads (deals + local) and the fact that they’re more aligned with actual consumer behavior (research online, buy offline) should make those ads much more effective than any/all of the e-commerce vendors that right now dominate product query advertising in search results.

Sign of the Times: Dalai Lama on Twitter

February 9, 2009

Technology meets tradition: the Pope is on YouTube and now the Dalai Lama is Tweeting. This creates a new category of “followers” :)

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(via Read/WriteWeb)

Update: The Dalai Lama’s Twitter account is apparently a fake.

Network Solutions: Back to the Future?

February 9, 2009

Network Solutions has introduced a recurring revenue product that sounds very much like those that were widely promoted in the late 1990s — directory and search engine “submission” — but which fell into disfavor because they really did nothing for local businesses.

Here’s the release and the key blurbs:

The Network Solutions’ Local Search Visibility offering includes local directory submission to more than 130 directories, including Google® Maps submission, YellowPages.com submission, Yahoo® Local submission, MSN® Local submission, and submission to Superpages.com. In addition, the company’s website will be submitted to major search engines, including Google, Yahoo!, and MSN.

One of the most important aspects of the local directory submission service is the business profile that will appear in local directories and Network Solutions’ own ThinkLocal.com, featuring a business description, list of products and offerings, keywords, payment options, and hours of operation. This business profile can be easily updated.

The notion of a single point of entry for SMB data is desirable and has been discussed here many times. The question is: is this a meaningful/valuable offering — or just something that sounds that way?

Micropayments Won’t Save Newspapers

February 6, 2009

Time Magazine, among other things, advocates “micropayments” as a solution for the struggling newspaper industry:

The key to attracting online revenue, I think, is to come up with an iTunes-easy method of micropayment. We need something like digital coins or an E-ZPass digital wallet — a one-click system with a really simple interface that will permit impulse purchases of a newspaper, magazine, article, blog or video for a penny, nickel, dime or whatever the creator chooses to charge.

Gawker/ValleyWag offers an astute criticism of the approach (thanks Malcolm Lewis for pointing out):

The problem with micropayments is not technology. It’s that consumers are fundamentally uninterested in paying per article. Isaacson dismisses the problem of “mental transaction costs,” but it’s quite real. It’s almost impossible to determine the value of an article before you read it. And the amounts we’re talking about — 3 cents? 5 cents? 10 cents? — aren’t worth the time it takes to decide how much one is willing to pay.

People might be willing to pay for a “day pass” or individual edition (same thing online effectively) but I agree they’re not going to pay for bits of content (an article here, a video there). Online magazine Salon has done a version of the day pass approach for a long time; I’m not sure how effective it is. But Salon is still in business. :)

At this zenith of financial crisis what newspapers really need to do is get together and say to online readers, “We know you’ve been getting all this great free content for a decade at least, but we newspaper publishers are all going to fail if we continue down this path. We now need you to pay something for that great content” (a subscription, a membership, a rescue fee; call it what you like).

That kind of behavior, however, is legally prohibited as anti-trust activity. It wouldn’t be price fixing because publishers might charge different amounts. But this effort to change the culture of online news/content only works if everyone does in it concert and people don’t have free “workarounds.” For all these reasons it’s not something we’re likely to see.

NYTimes.com, the newspaper site with the most online traffic (18M monthly uniques according to Nielsen) could ask users to pay $19.99 a year, say, for access to the site. (You have to deal with the free rider problem somehow.) But if 18 million people paid just $19.99 per year that would represent $358 million dollars. Total 2008 revenues for the company were just under $3 billion (circulation was $900M).

How much would you be willing to pay for your favorite news site? The problem is we’ve all gotten used to visiting tons of sites or collecting tons of feeds for free. Probably can’t put the genie back in the bottle in this case. And there are going to be those who would argue what I’m hypothetically suggesting is totally misguided.

The “culture” of free, celebrated by Chris Anderson (now carefully qualified in a recent WSJ article), is the problem for newspapers — as the Time magazine article points out in its discussion of the history of online news. Anderson’s answer in an ad recession is a “freemium” model, which Salon has tried for news for a long time with mixed results I think.

I really have no idea what to recommend at this point. But I think I’m going to resubscribe to the Sunday print edition of the NY Times both for my nine year old daughter and as an act of patriotism.

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Related: Newspapers and magazines in near free fall (based on Q4 ad numbers, reported in MediaPost).

Landlines That Do More

February 6, 2009

Verizon has introduced a device called the Verizon Hub in a bid to make the home phone more dynamic and prevent further declines of the wireline (wireless only households in the US are estimated to be at about 18% or so). It uses both a wireline and wireless broadband Internet connection.

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According to the press release:

Information will be at a family’s fingertips, literally from an easy-to-navigate touch screen with clear icons on the Verizon Hub. Families will start and end their days with nuggets of customized information from the Verizon Hub:

  • Check local traffic and weather in the morning before leaving the house
  • Update your calendar and automatically receive a text when an appointment changes or as a reminder not to be late
  • Get directions to the new site when the location for soccer practice is moved
  • Find the number of the new pizza parlor to order a pie
  • Preview the trailers from an upcoming movie that you might want to take the family to over the weekend, then purchase tickets using the Verizon Hub

The Hub is quite similar in intention and design (touch screen) to the AT&T Home Manager (a landline phone with a touch screen), which has received mixed reviews.

I haven’t used the Verizon Hub and it’s not clear how much the device costs — that will be a driver of success or failure. The “closed universe” of the AT&T Home Manager will be mostly unsatisfying. Beyond cost, the success or failure of these devices, will be the degree to which their screens offer real utility and something that approaches genuine Internet access.

Marchex Optimizes Profiles for Mobile

February 5, 2009

Marchex announced that it is now offering business profiles that are optimized for mobile phones. Here’s an example provided by Marchex. Note the click to call/call tracking element in the upper right.

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It will take awhile for meaningful mobile ad revenues to appear. However that’s not the same as consumer usage of the mobile Internet, which is growing rapidly. Today — today — there are already 50 million users of the mobile Internet in the US. That’s just over 25% of the total Internet population.

Why No Good Local Biz Content? (Part II)

February 5, 2009

Marty Himmelstein’s previous post “Why We Don’t Have Good Local Business Content?” sparked considerable discussion and debate. I’m letting Marty respond to the comments (in two separate posts).

The first about the role of SEO in local search is below. The second one, according to Marty, “will address some of the questions on the role of the community in local search and gathering content directly from businesses.”

I have not edited the text.

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Several weeks ago I wrote a guest post, “Why We Don’t Have Good Business Content.” The post elicited a number of thoughtful responses, for which I am grateful. Instead of replying with additional comments, Greg was gracious enough to give me the floor again for a couple of  follow-up posts. This one covers the role of search engine optimization in local search.

I remarked that when local search is working as it should, the role of SEO will be diminished. Andrew Shotland responded to my statement that in local search “being found trumps search engine optimization” with a pithy comment to the effect that being found requires SEO. I agree with Andrew with the understanding that he is describing the current situation, and my intent was to describe why the current situation is broken. Andrew’s observation will continue to be true until we have an accurate layer of content about local businesses, and, more generally, local places.

Web search and local search start from two very different places. In web search, we have essentially infinite content, and the process of evaluating and ordering that content are inseparable. Local search doesn’t deal with infinite content. It doesn’t even deal with a lot of content. The necessary underpinning of local search is not evaluation, but fidelity to physical reality.

With web search there is no purely objective measure of goodness for a particular query. Therefore, search engine designers devise algorithms to approximate the best pages from a sea of content. These algorithms employ subjective measures of worth that involve tradeoffs amongst competing goals.  SEO, when used appropriately, can be seen as a way to help the search algorithms do a better job of ranking pages fairly. Sometimes SEO might be justified on the grounds that the unaided algorithms just get it wrong. On the other hand, when used injudiciously, SEO has the effect of subverting the algorithms, which, while imperfect, are usually pretty good.

Local search is simpler. The criteria for local search are factual and objective and it is therefore possible to get pretty close to unbiased results. Does the place exist where it says it does? Does the place do what it says it does? There aren’t twenty million plumbers  in my local area. (The number of results returned by a Google search for plumbers.) There aren’t even dozens where I live. In most places, the relevant listings can be displayed on a map, on the first page of results.

But in NYC there are well more than a dozen plumbers, and whether one is two-tenths of a mile or two miles away hardly matters. In the strictest sense, then, Miriam Ellis’s  observation that “any list-type listing means competition … even if it’s only alphabetical competition” is true. In a larger sense, however, a comparison between the minimalist ordering sometimes required for local search  and the sophisticated analysis needed to prune 20 million results demonstrates the differences between the two types of search. No matter how clever Google programmers are, they can’t design their algorithms to know who the good plumbers are. Or where the best sushi bars are. In any case, they can’t do as good a job as people can.  In web search, because of the overwhelming amount of content, we need the core search algorithms to do as much as possible. In local search we want the core algorithms to do only as much as necessary. The quality of businesses is of course important, but the way we can discern quality is by associating user-feedback systems (and other third party sources of content) with the core data. In the evolution of the web, we’ve come to understand that sometimes there is no substitute for human computation. Local search is exhibit one.

Assume for a moment we had a reliable and complete stratum of local search data, a database of record for local search.  This stratum would contain, as nearly as possible, a core of factual information for each business. This layer of content would be value-neutral. Its main purpose would be to maintain an accurate model of businesses and places in the real world.  When new places open or close, these facts would be reflected in the database as quickly as possible.

Gathering a layer of factual content might be hard, or it might not, but gathering it is a distinctly different task than making value judgments about it. If this layer existed, review sites would have access to it, and they would be free to enhance and order it in any way they like. Different sites could order it differently, or people could request different orderings. One person might want only handicap accessible stores, or stores with wi-fi, or Goth friendly places, or whatever. In all cases, though, the underlying content is the same.

Another reason the role of SEO should be minimized in local search relates to trust. In local search, if one business is optimized, it is at the expense of another. Such optimization might have no intrinsic relationship to the actual worth of the two businesses. This apparent arbitrariness serves to erode the confidence of the two most important local search constituencies: consumers and small and medium businesses. The best carpenters in my area don’t advertise at all. I still want to be able to find them. Most of the time, when people are looking for a carpenter online they will want a recommendation. But sometimes they won’t: they will want the carpenter they used last year, or the one their neighbor mentioned. And, as I said earlier, when they want an ordering, it will be one supplied by other homeowners, not an algorithm that can be ‘optimized’ by the initiated.

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Marty Himmelstein is the principal of Long Hill Consulting, which he founded in 1989. Marty’s interests include databases, Internet search, and web-based information systems.

For the last eleven years, Marty has been active in location-based searching on the web, a field often called Local Search. Marty was an early member of the Vicinity engineering team. Vicinity was a premium provider of Internet Yellow Pages (Vicinity provided Yahoo!s IYP service from 1996-8), business locators, and mapping and geocoding services.

Help with a Numbers Question

February 5, 2009

I’m looking for help and opinions around a persistent question having to do with Google advertisers. There are really two questions:

1. What percentage of Google advertisers are SMBs? My sense has always been that it’s something like 70% (or so) who technically qualify as small businesses. The general estimate is that Google may have something like 1.5 million on a global basis but that’s unconfirmed.

2. What percentage of the overall ad spend at Google comes from larger/national vs. SMB advertisers? In other words, what part of Google’s $21.8 billion in 2008 (99% advertising revenues) comes from the different categories (if one had to crudely divide them)? Would it, for example, be 60% of the ad spend coming from national/larger entities? That’s just a hypothetical number.

What do you all think and why?

Posts at Local Mobile Search

February 4, 2009

The following are recent posts at LMS:

A Bunch of Stuff I Didn’t Get To

February 4, 2009

Here are some items that I’ve been meaning to get to but haven’t been able to:

  • Urban Mapping opens up its mass transit API to developers for free.
  • Razorfish’s Digital Mom report is full of great data about Mom behaviors online. Remember, moms are the most important (from a commerce perspective) constituency online
  • PaidContent reports on the NYTimes seeking additional ways to make money including potentially changing for content. The recession may be a good time to test out subscription models — again.
  • IAC’s ServiceMagic unit bought Market Hardware, which is a web development/hosting and marketing firm targeting SMBs that takes a vertical approach to customer acquisition. Peter Krasilovsky has additional numbers a detail. Congratulations to Market Hardware CEO Brian Kraff who built a real business over a period of several years.
  • ServiceMagic had Q4 2008 revenues of just over $25 million. Indeed it and Citysearch are among the stronger units at what remains of IAC. One question in my mind is will Citysearch start offering MarketHardware’s web development capabilities?
  • Google has apparently been testing this feature since 2007 but now offers a “show products” plus box:

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For those that offer local store inventory data, will we start seeing that sort of thing as well? ShopLocal has some interesting things up its sleve in this area.

Google Latitude: Location Sharing on Mobile

February 4, 2009

Google bought early mobile social networking service Dodgeball in 2005 and shuttered it in 2008. It also acquired the “Twitter-like” Jaiku in October of 2007. Google never really developed the Jaiku service and effectively jettisoned it, deciding to make the code open source for others to use and develop late last year.

The conventional wisdom (including mine) was that Google squandered an opportunity with these services — and especially — Dodgeball, which was well ahead of the mobile social networking curve that is now on the rise.

Well we might call the just-launched Google Latitude (part of a new version of Google Maps for Mobile) “son of Dodgeball,” although it’s more elegant and user friendly.

Steve Lee, Google’s product manager in charge of Latitude, told me that Latitude is not built on any of these prior acquisitions or technologies. But it is in a way a conceptual successor to those services. It also follows other, similar services from Loopt, Pelago/Whrrl and uLocate’s Buddy Beacon. There are some similarities to Yahoo Fire Eagle as well.

The rest of this post is at SEL.

NearbyNow’s New ‘Lucky’ iPhone App

February 2, 2009

picture-3At Internet2Go NearbyNow CEO Scott Dunlap demonstrated the new Lucky Magazine iPhone application that his company supports. The idea is to tie merchandise featured in the magazine to a rich mobile user experience that allows people to browse and find products in local retail stores.

The rest of this post is at LMS

Community Site Tries Membership Model

February 2, 2009

Tim Cohn points out an interesting new community (listings) site with a social conscience: Buythechange. The site allows businesses to promote themselves and allows members to buy, sell and barter stuff and to promote events.

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The idea of giving away a portion of fees or dues to non-profits or charities is nothing new. What’s interesting to me is the effort to support the site with membership/subscriber fees.

Over the long term a site like this can succeed if it gains “critical mass” in a single market and then expands. It must have a very lean cost structure and take a long term view because more established sites like Craigslist, Oodle and others in the local segment are going to be sufficient for the majority for quite some time.


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