The Kelsey Group Blog Local Media Blog 2006-02-20T12:26:20-05:00 Copyright 2004-2005 Ublog Reload 1.0.5 Greg Sterling gsterling@kelseygroup.com <![CDATA['Net Neutrality' and Future Growth]]> http://206.106.174.250/blog/blog_comment.asp?bi=898 2006-02-20T12:26:20-05:00 2006-02-20T12:26:20-05:00 2006-02-20T12:26:20-05:00 editorial:

If access tiering takes hold, the Internet providers, rather than consumers, could become the driving force in how the Internet evolves. Those corporations' profit-driven choices, rather than users' choices, would determine which sites and methodologies succeed and fail. They also might be able to stifle promising innovations, like Internet telephony, that compete with their own business interests.

Telcos and cable companies (correctly) perceive the Internet to be a threat to or, in some cases, already eroding their core businesses and are frustrated that their pipes are feeding the growth of their competitors. One of the not-so-hidden dimensions of these debates is the desire of some of those same providers to stifle or at the very least control the development of the Internet and thus protect their traditional revenue streams, which are more certain and generally predictable than their ability to compete in an open Internet marketplace.

While it's not entirely clear how all this would play out, it's quite possible that local and small business marketing online would likely be harmed by such fees. Yet in the same way that China will ultimately not be able to control the Internet and free speech (notwithstanding the current complicity of the big Internet brands) the ISPs/access providers will not be able to control the trajectory and growth of the Internet.

Just as soon as these potential fee structures were implemented, assuming Congress doesn't intervene to prevent it, alternative access paradigms would emerge. There's too much competition, too much consumer demand and too much at stake for it not to happen. ]]>
Greg Sterling gsterling@kelseygroup.com <![CDATA[MySpace: PR Nightmare in the Making]]> http://206.106.174.250/blog/blog_comment.asp?bi=897 2006-02-20T08:29:18-05:00 2006-02-20T08:29:18-05:00 2006-02-20T08:29:18-05:00
  • 24.2 million unique users in October 2005
  • 11.6 billion page views in October 2005
  • More page views than any destination other than Yahoo!, AOL and MSN.
  • Twice the page views of GoogleBut what goes up ...

    Now the MySpace backlash has begun. Numerous stories about stalkers and sexual predators using MySpace to target teens have started to appear. While most users of MySpace at this point won't care about such stories, this is a PR nightmare in the making that threatens to take over the MySpace "success narrative."

    Hence the consideration of a "MySpace Safety Czar." According to an article that appeared in the WSJ on Friday:

    News Corp. is scrambling to make MySpace a safer place for young people. News Corp. plans to appoint a "safety czar" to oversee the site, launch an education campaign that may include letters to schools and public-service announcements to encourage children not to reveal their contact information. It also is considering limiting access to certain groups, such as "swingers," to those over 18; blocking search terms that predators could use to locate kids; and encouraging users between 14 and 16 to make their profiles "private," meaning they can only be viewed by people they already know.

    "We're going to take some pretty dramatic steps to provide industry-leading safety," says Ross Levinsohn, president of News Corp.'s Fox Interactive Media unit, which includes MySpace.


    As the Journal points out those measures might strike at the "cool factor" that has made MySpace such a hit among teens, who can be fickle and might not like the introduction of controls or restrictions. We'll see if the site can navigate this rough patch and regain control of its own story. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Adieu Jeeves]]> http://206.106.174.250/blog/blog_comment.asp?bi=896 2006-02-20T08:01:14-05:00 2006-02-20T08:01:14-05:00 2006-02-20T08:01:14-05:00 Search Engine Watch writes up a bit of the history of Ask Jeeves now that the butler's retirement is here. This is something that has been well over a year in coming. The question now is whether jettisoning the Jeeves part of the brand will help the engine gain share. Ask has been in the fourth or fifth position in terms of search market share, depending on whose numbers you consult.

    One of the motivations behind IAC's acquisition of Ask was that it was to be the glue in the IAC system that knit together the disparate brands into a network of sorts. That network or more coherent whole has yet to materialize, though an Ask search box has been added to many IAC properties (see, e.g., RealEstate.com).

    IAC-owned Citysearch provides the content for the Ask local product. The city guide has historically had a very strong brand in the local space (mostly in the A&E category), though it is somewhat weaker today in my view. However, over time, I could see the Ask brand taking over and being a broader, more effective starting point for local search at IAC.

    One of the things that was nice about Ask Jeeves was that it had personality, which probably was a detriment in certain quarters. But at least it was a differentiator. While Ask owns top-tier search engine Teoma, great search results aren't enough at this point. The challenge now will be how to make the experience at Ask.com different and compelling enough to grab share from its larger competitors.

    I think that the answer lies in some mix of unstructured and structured data (especially in local). For example, if About.com hadn't already been aquired by The N.Y. Times, it would have been a good property for Barry Diller to buy and fold into Ask results.

    _________

    More from Search Engine Journal.

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    Mike Boland MBoland@kelseygroup.com <![CDATA[More on the Olympics and Online]]> http://206.106.174.250/blog/blog_comment.asp?bi=895 2006-02-17T16:34:37-05:00 2006-02-17T16:34:37-05:00 2006-02-17T16:34:37-05:00 post yesterday about online vs. traditional broadcasting of the Olympic games. Read them here and here.]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Broadband: Growing but Slowing?]]> http://206.106.174.250/blog/blog_comment.asp?bi=894 2006-02-17T10:19:14-05:00 2006-02-17T10:19:14-05:00 2006-02-17T10:19:14-05:00 data by aggregator eMarketer on broadband adoption — now pegged at 61 percent of U.S. households, according to Ipsos. eMarketer summarizes that price is the major barrier to continued penetration in the U.S. market:

    According to a new survey from the Yankee Group, the most common reason US consumers don't subscribe to broadband is that it's too expensive. Despite promotional price cuts for DSL (which often cover slower connection speeds and eventually expire, shooting the price up), broadband is more costly than dial-up, especially for truly high speeds. Presumably, dial-up consumers have little need for tasks beyond e-mail, IM and simple Web browsing, which are doable through broadband, and want to keep their monthly expenses low. Price isn't the only factor. More than 30% of consumers say that they just don't want broadband, and about 14% say they feel dial-up is adequate for their needs. Less than 10% are not able to get broadband access in their area.

    However, municipal Wi-Fi efforts aim to provide no- or low-cost high-speed access to urban areas throughout the country. According to this article about municipal Wi-Fi in Boston:

    In its 40-page report, the Boston Foundation further said: "Respected technology companies like Earthlink, Google, and Hewlett-Packard are extremely interested in partnering with local government to come to Boston to build a low-cost or no-cost system capable of providing affordable and reliable service." ... The question is no longer whether Boston is going to build a citywide Wi-Fi network, but rather how and when," the report, released Wednesday, stated.

    And here's information on Chicago's new effort.

    All the Internet consumer trends that TKG studies and writes about are tied to broadband adoption in one way or another (local search, the impact of online on newspaper and directory usage, VoIP adoption, etc.). That's why this question of how much more deeply BB will penetrate (and when) is of critical interest and importance. Companies such as Earthlink and search engines such as Yahoo! and Google recognize that they benefit from increased penetration and so are interested in facilitating access. (Yahoo! has DSL relationships with almost all the major telcos.)

    For all these reasons, the first panel of our Drilling Down event is:

    The Broadband Juggernaut: Slowing Down or Speeding Up?
    High-speed Internet access is the backbone of the new consumer paradigm. It took a decade for broadband to reach “critical mass” in the U.S. Now we are witnessing the disruptive effects for traditional media and potentially for some newer technologies as well. While some predict broadband is slowing, others believe competition and new initiatives (e.g., municipal Wi-Fi) and technologies could drive high-speed access to nearly 100 percent penetration in the next several years. Which version of the future is correct? This panel will debate the potential scenarios and look outside the U.S. to higher-speed markets to see what the future might hold.

    On that panel will be:

    • Chuck Haas, CEO, Metrofi
    • Om Malik, Senior Writer, Business 2.0 Magazine
    • David Payne, Director of Development, Earthlink Municipal Networks
    • Brian Jurutka, Director of Marketing Solutions, comScore
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Women.com: Taking Verticals Too Far?]]> http://206.106.174.250/blog/blog_comment.asp?bi=893 2006-02-17T08:40:56-05:00 2006-02-17T08:40:56-05:00 2006-02-17T08:40:56-05:00
    Fundamentally, however, people cannot remember all these sites and don't want to have to. That's why search engines remain popular; they're the "front door" or gateway to all this content.

    Some sites, such as the recently launched Healthline.com, are a mix of structured, proprietary content and broader Web search in a category specific area. Simply Hired and Indeed are examples of vertical search in the Jobs category. By contrast, I wouldn't call Cars.com a vertical search site. It's a vertical directory site with highly structured fields and content and it doesn't offer anything from the broader Internet. I would also not call TheKnot.com a vertical search site, though it uses search-based navigation.

    Confused? Have another cup of coffee. Let's get away from all this semantic mumbo jumbo for a moment.

    According to this blurb in PaidContent, iVillage plans to soon relaunch and rebrand as Women.com (a site/URL it bought for many many millions some time ago). According to quoted remarks from the earnings call:

    "We anticipate launching the new search at the end of the second quarter 2006. Our objective with Search for Women is to enhance and further customize our users and advertisers experience by participating in the so-called vertical search marketplace ... this new product will allow us to promote iVillage brand by blanketing the Internet with add campaign promoting Search for the Women's Intuition."

    PaidContent questions the move: "It will be branded 'Search for Women,' whatever that means."

    Precisely: What does that mean? It might effectively mean nothing and be a dismal failure. It might simply be a branding/marketing ploy.

    However, let's assume that this isn't simply a marketing ploy and that the new Women.com is going to try to provide a better Web-search experience for women in general — a daunting task given how broad a category "women" is. And calling "search for women" vertical search almost renders the term "vertical search" meaningless. (I make the same argument when people say Local is a vertical.)

    Yet women are arguably the most important constituency online. They are driving e-commerce and online shopping and they're the ones writing the reviews on Judy's Book and InsiderPages and engaging in the "social networking" activities, much more so than men.

    So trying to grab the attention — and some of the wallet — of this group is wise. But what will Women.com provide (assuming again that it's Web search for women) that Google, Yahoo!, MSN, AOL, Ask or InfoSpace/DogPile cannot?

    I believe iVillage is working on that with Eurekster (I'm not 100 percent certain). After my meeting with Eurekster CEO Steven Marder, I recently wrote about about the company here:

    They're really an enterprise search B2B play that offers site search and more contextually relevant Web search. "Contextual" here means relevant to the user population of the site (teens, moms, sports fans, etc.). They do that with clickstream analysis of aggregate user query behavior. Initially Web search is weighted according to specific business rules, but the engine learns what the group thinks is relevant to particular queries. It's a different relevance paradigm that gets "smarter" over time.

    Women.com, using Eurekster's engine/algorithm, at least in theory does offer a potentially differentiated search experience — one that is hypothetically more relevant because it's less "generic” and based on aggregated user behavior. So there is at least a potential value proposition here with some meaning (assuming I'm right about the relationship).

    But whether Women.com could become something like the "Google for Women" is another story entirely. (My words not theirs.) That's a hugely ambitious proposition. Let's see when iVillage relaunches in the second quarter.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Video Launch Roundup]]> http://206.106.174.250/blog/blog_comment.asp?bi=892 2006-02-16T17:41:20-05:00 2006-02-16T17:41:20-05:00 2006-02-16T17:41:20-05:00 Here is yet another roundup of broadband video channel launches. ]]> Mike Boland MBoland@kelseygroup.com <![CDATA[Will The Olympics Go the Way of Live 8?]]> http://206.106.174.250/blog/blog_comment.asp?bi=891 2006-02-16T16:51:05-05:00 2006-02-16T16:51:05-05:00 2006-02-16T16:51:05-05:00 This USA Today piece explains that Olympics video content is perfect for online distribution. Much like the Live 8 event that AOL covered online to much acclaim, the Olympic games are filled with simultaneous events that happen sometimes on the other side of the globe. Some events only appeal to niche audiences — like the biathlon — and some viewers want to watch entire events rather than chopped-up retrospectives of each day’s events interspersed with montages, inspirational segments and Bob Costas.

    So with the recent explosion in demand and media coverage of Web-delivered video, why don't we have all the Olympic events streamed Live 8 style to our desktops? (Some clips and highlights are currently available on nbcolympics.com, and live streaming video is available only in France and the U.K.) Well, NBC's broadcast rights compel the network to protect its television advertising. Remember, Live 8 rights were divided between AOL and MTV. And AOL had no conflict or worry of cannibalizing an offline channel or business model — only that of MTV, which of course belongs to a different media empire.

    As an aside, CBS has made an interesting move along these lines by announcing it will webcast NCAA tournament games (perfect content for Internet distribution because of simultaneous games and all the other reasons stated above), despite the fact that it is the very network that will carry (and always has) the television rights. We blogged about it here.

    Back to the Olympics: Comprehensive online coverage would have to happen with either NBC deciding the benefits will outweigh the loss in television viewers/ad dollars (fear of cannibalization) or the rights being restructured to include online and offline channels — a la Live 8. The latter is more likely, as it could bring the Olympics more money in rights distribution, but it won't happen until 2012 when NBC's current contract expires.

    When that day comes, all the curling and biathlon fans out there can look forward to watching their events in their entirety and on demand. The pull aspect to this kind of viewing will also allow for better targeting and local advertising opportunities than is available from an NBC broadcast.
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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Search Marketing Event]]> http://206.106.174.250/blog/blog_comment.asp?bi=890 2006-02-16T14:00:38-05:00 2006-02-16T14:00:38-05:00 2006-02-16T14:00:38-05:00 Search Engine Journal covers the upcoming Yahoo Search Marketing Searchlight Awards in N.Y. The program is highlighting the innovative work of agencies that have combined traditional campaigns with search marketing.

    I'll be racing from the Newspaper Association of America show in Orlando to N.Y. to be one of the "industry expert panelists" at the Yahoo! event. I was somewhat surprised and flattered to be asked to be on the panel. It promises to be interesting and fun.

    YSM's Ron Belanger, the organizer, likened the format of the event to "American Idol," though I'm sure it won't be as acerbic.



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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Office Live to Offer Free SME Sites]]> http://206.106.174.250/blog/blog_comment.asp?bi=889 2006-02-16T13:31:41-05:00 2006-02-16T13:31:41-05:00 2006-02-16T13:31:41-05:00 free basic Web sites to local/small businesses.

    I haven't set one up so I don't know how "robust" it is compared with what Yahoo! offers. It's pretty clearly a kind of "foot in the door" strategy to get SMEs on board.

    I've long believed that free Web sites could be an effective channel or way to get small businesses into paid search and other online marketing. It has to be both simple to set up and professional looking. Once the site is established, then there's a potential upsell opportunity.

    Web hosting is quickly becoming a commodity business, although switching is painful and inertia (especially at the SME level) probably means there isn't a lot of churn. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Podcasting and Local Music]]> http://206.106.174.250/blog/blog_comment.asp?bi=888 2006-02-16T10:47:29-05:00 2006-02-16T10:47:29-05:00 2006-02-16T10:47:29-05:00 blogs about Podbop, a site that combines podcasting and local. It allows you to hear podcasts of bands that are playing in the local market. One can search by artist or location. The site links to Eventful.com, which provides the venue information.

    Local events are a relatively still undeveloped area online — probably a feature or RSS-based feed rather than a stand-alone application or destination in my view. Along those lines Yahoo! not long ago acquired Upcoming.org. And IAC's Evite has pushed into local events as well.

    Jambase is another local music events and community site. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[MySpace Launches MVNO]]> http://206.106.174.250/blog/blog_comment.asp?bi=887 2006-02-16T10:05:10-05:00 2006-02-16T10:05:10-05:00 2006-02-16T10:05:10-05:00 MySpace, the supersite for teens, has announced the launch of its own branded "mobile virtual network operator" network. The service and phones will be powered/provided by Helio LLC, which is a joint venture of Earthlink Inc. and South Korean carrier SK Telecom Co. The service will reportedly use the networks of Sprint and Verizon. No specific launch date has been set.

    The idea is that teens and others on MySpace can use the phones to access their personal pages and other content on the go.

    Like the integration of Google or Yahoo! into forthcoming Motorola handsets, this has the potential to do some very interesting things. If successful (let's wait and see) it could help determine what the effective mobile ad models will be. It could also spur the launch of a 1,001 of these MVNOs, many of which are already in the works. It will also reveal the impact of social networks on mobile devices and could generate an entire range of new, similar applications or at least accelerate their development and deployment.

    MySpace is smartly leveraging its hot brand to expand to other areas now, before it has a chance to cool or falter. There's a growing MySpace backlash because of the concern about sexual predators using the site to target teens and young people. This danger, if real, would be considerably exacerbated by a mobile MySpace.

    Parents' growing concern/dislike for MySpace is only likely to boost its popularity in the near term, however. It is hard to imagine that MySpace will be as big three or five years from now. But it is possible the site will have "morphed" into something else with greater stability and staying power.



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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Judy's Book Redesigns, Adds 'Structured Blogging']]> http://206.106.174.250/blog/blog_comment.asp?bi=886 2006-02-16T08:48:26-05:00 2006-02-16T08:48:26-05:00 2006-02-16T08:48:26-05:00 Judy's Book has done some very interesting things to its site that if I were comfortable using that term ... might describe some of what they've done.

    First, they've redesigned the site in a much more graphically dynamic way. That may disorient some users but it creates a very distinctive look for the site (maps are prominent) and takes it farther away from the realm of directory sites than before. It also differentiates the site from its closest cousin online, InsiderPages.

    You can search for dentists or restaurants or hair salons as usual. But the site has also added a significant personalization component, "MyBook." MyBook is a personalized "home page" within JudysBook where users can see their questions, others' questions and recommendations in their area as well as a personal "directory" of local information, including local business contact information. It's the start page when I log in — essentially a blog. I can also upload photos and invite friends, etc. (similar in many respects to Yelp, Tribe or Yahoo! 360).

    This change subtly and not so subtly shifts the emphasis of the site from one that is more "utilitarian," where I go to find a plumber or Ethiopian restaurant to something more like an online community where I might be inclined to spend more time and interact more extensively with people regarding things to do, places to go, etc., in my area.

    But the clever folks at Judy's Book are mindful that some people already have blogs and so they've adopted an export, structured blogging feature that amounts to a kind of syndication strategy. From the press release:

    Recognizing that many online authors already have a traditional blog, Judy’s Book has also made it easy for members to take their Judy’s Book content with them via a new “post to my blog” feature. This optional feature automatically formats Judy’s Book reviews in the hReview microformat, an emerging standard for online reviews, and reposts them to the member’s existing TypePad, LiveJournal, Blogger, or WordPress blog.

    That "syndication" approach (also the "interoperability" with all the major blogging platforms) is also reflective of "Web2.0" trends. Syndication has been around forever, but there's an emerging understanding that the decentralized nature of online behavior requires new ways and strategies to reach people where they are rather than always trying to get them to show up at your door or trying to erect so-called "walled gardens," whether visible or invisible, to their use of other systems.

    I tell people that every time I expect things to calm down in local, they just keep speeding up. One of the very interesting trends is the marriage of social/community and local, which is a natural of course (online word of mouth). And all the new attention, energy and competition in the space can only lead to consolidation in the near term. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Verticals and Local]]> http://206.106.174.250/blog/blog_comment.asp?bi=885 2006-02-15T18:03:26-05:00 2006-02-15T18:03:26-05:00 2006-02-15T18:03:26-05:00 post I came across from the Internet Stock Blog (quoting the earnings call) on how local advertising is driving revenue growth at online wedding vertical/portal and directory site TheKnot.com:

    Online ad sales constituted 57% of the company’s revenue for the quarter, and just over 50% of the year’s revenues (other revenue streams: merchandise sales and print publications). In the conference call, The Knot CEO David Liu made a number of statements indicating that localized online advertising in The Knot’s 69 local sites is a key factor behind the company’s ongoing growth:

    Our local advertising continues its steady growth largely due to the fact that we do deliver measurable results to give our advertisers immediate payback from their investment on The Knot. A basic local listing on The Knot site goes for about $1000; still a bargain compared to the cost of the plain Vanilla yellow pages of advertising and in listing.

    The average spend by our local advertiser is approximately $1400 as many local advertisers take advantage of the extras we offer above the basic listing. These include a premier listing on a category page like photography or banner on the front first stage of their online city guides, say for example, Atlanta … An incremental cost can still be below that of the yellow pages or their local newspaper.

    Last April, we’ve raised our local rates by 10%, and plan a similar increase this April. Given our strong local revenue growth through 2005, our rate increases have in no way affected our customers’ appetite for advertising with us…

    We launched local advertising on The Nest in the fourth quarter and are now in ten of the 69 local Knot markets. Since advertisers seeking to reach newlyweds have far greater ad budget in many categories like automotive, financial services and real estate, related advertisers are already spending a growing proportion of their budgets online.


    (emphasis mine)

    Fascinating stuff. It shows that a vertical that can establish a strong brand and become a destination (not all can) has the ability to generate some strong revenue because of the very high-quality leads such sites can deliver — especially highly targeted local leads in the case of TheKnot.

    And everyone selling to local advertisers is selling against newspapers and Yellow Pages. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Traffic 'Smackdown': Yellowbook vs. InsiderPages]]> http://206.106.174.250/blog/blog_comment.asp?bi=884 2006-02-15T12:32:26-05:00 2006-02-15T12:32:26-05:00 2006-02-15T12:32:26-05:00 Alexa traffic data that show basically that YellowBook.com and the newer online-only site are neck and neck.

    YellowBook has been running a TV campaign during the Olympics, whereas InsiderPages relies on SEO/SEM, syndication and word of mouth. If the Alexa data are to be believed (and they're not as credible as some sources), then TV is delivering very limited value to YellowBook vs. other more "grassroots" techniques being used by InsiderPages.

    But this may also go to the product itself. Take, for example, a query for "contractors, Chicago":

    Here are the YellowBook results. Here are the InsiderPages results.

    In many ways these products are comparable, although there are no "decision support" filters, reviews or other tools to help users choose between contractors on the YellowBook site, and InsiderPages has many fewer listings. While it's true that users can click "view ad" and see the print ad, which some argue does offer decision support, YellowBook.com is now essentially a White Pages product with some additional/enhanced features. In other words, I've got a "name in mind" and I'm looking for contact details.

    Take a look at "contractor, Chicago" on Yahoo! Local. One can argue the data are incomplete here. But I'm focused right now on Yahoo! Local's filtering/drill down features (left column) as being examples of "decision support." They offer me several ways as a user narrow down the universe of potential choices.

    The InsiderPages results have fewer of these features, but they do offer reviews (though sparse in this particular geography and category). Assuming no fraud, they offer insight and information about the business and thus help me decide which one(s) to contact.

    This is not to say that reviews are mandatory to compete, but there need to be filters, sort features or other ways for people to get from the 100 or 50 or 20 listings to the three or the one.



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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Sober Review of Google Desktop and Privacy]]> http://206.106.174.250/blog/blog_comment.asp?bi=882 2006-02-15T10:59:19-05:00 2006-02-15T10:59:19-05:00 2006-02-15T10:59:19-05:00 Chris Sherman has a very balanced write-up of Google's enhanced destop search and its privacy implications.

    My personal view is that Google has become highly sensitized to its perceived position in the market and the privacy issues swirling around the company. I've had several conversations about this with Google folks.

    Anyway, privacy is a serious issue — especially in view of the U.S. government's domestic spying and illegal wiretapping. But critics should take a thoughtful, careful view and not simply react in a knee-jerk fashion. ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Eniro to Launch Dedicated Internet Sales]]> http://206.106.174.250/blog/blog_comment.asp?bi=883 2006-02-15T10:39:42-05:00 2006-02-15T10:39:42-05:00 2006-02-15T10:39:42-05:00 Local Media Journal next week.

    One key revelation was that print revenues in Norway are going to decline by 10 percent in 2006. Eniro just acquired Findexa, Norway's leading publisher, and this revelation generated a lot of questions on the call about the extent of Eniro's visibility into Findexa's challenges when it bought the company. Eniro's stock was down almost 13 percent yesterday. Today it is trading about 1 percent lower.

    Another notable detail is that Eniro is moving to a dedicated online sales force in Sweden. One reason Eniro CEO Tomas Franzen cited was that the publisher needed to get out of the cycle of selling online advertising based on a print publishing cycle. We are going to write about evolutions in online selling practices in an upcoming Advisory from The Kelsey Report.

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Kelsey Group Forecast]]> http://206.106.174.250/blog/blog_comment.asp?bi=881 2006-02-15T10:00:36-05:00 2006-02-15T10:00:36-05:00 2006-02-15T10:00:36-05:00 press release this morning highlighting some top-level numbers from our forecast released to clients late last week. Here are some of the numbers featured in the release:

    • Global print Yellow Pages revenues will increase 1.5 percent from $26.3 billion in 2005 to $28.4 billion in 2010.
    • Global local search revenues (Internet Yellow Pages, local search and wireless) will increase 30.5 percent from $3.4 billion in 2005 to $13 billion in 2010.
    • Global classified advertising revenues will decrease 0.2 percent from $79.5 billion in 2005 to $78.5 billion in 2010.
    • Performance-based phone leads or "pay-per-phone call" revenues are expected to grow to $3.7 billion (in both online and offline media) by 2010 (this is U.S. only).
    All percentages above are compound annual growth rates (CAGRs).

    We added classifieds to the forecast this year because it involves the same user mind-set/behavior as Yellow Pages and Search: a user has a predetermined need/interest and is looking for a provider/seller to fulfill that need.

    We also expanded the definition of "Local Search" to encompass online YP, search engines and wireless (mobile local) for similar reasons.

    In the past we had been using the term "Local Search" in a broad sense to capture all these but simultaneously in a more narrow sense to refer to geotargeted lookups on search engines alone. That created some confusion in the marketplace. Also, the "form factor" between the IYPs and the local products of search engines are becoming virtually identical on the front end and the Yellow Pages Assn. has adopted the term "local search" as a branding/marketing vehicle as well. Ultimately, we probably will include classifieds engines in that category. But for now we declined to include them because of potential confusion and dilution of the term.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[A Few Newsbits]]> http://206.106.174.250/blog/blog_comment.asp?bi=880 2006-02-15T08:44:48-05:00 2006-02-15T08:44:48-05:00 2006-02-15T08:44:48-05:00 Search and Win: A story that's circulating today is one about the prospect of MSN and Yahoo! "incentivizing" users to switch to their search engines with rewards and prizes. MSN is further along; Yahoo! floated what might be called a "trial balloon" on the subject. Nielsen's Ken Cassar thinks the general idea is "smart promotion." Others have been critical of the idea as one that smacks of "desperation." (This is the common journalist question: "Doesn't this suggest desperation?")

    I wouldn't say it's a desperate move; I would say it's an effort to get attention and motivate users to show up and try the engine. Many people argue there's effectively no difference between the top search engines' results (Infospace disagrees). And there's plenty of data that says there's effectively no search engine "loyalty" out there. I think there's a great deal more nuance here, but it's a much longer discussion.

    Here's my view: Prizes might be a good marketing hook, but they aren't going to win over users permanently or cement loyalty longer term. The search experience itself has to deliver value and be as good or better than the preferred engine (read: Google in many cases). There's also the danger of what might be called "search fraud" by users just seeking to fulfill requirements to qualify for incentives/prizes. This danger will diminish or destroy the credibility of the engine with marketers over time.

    AOL the Conversions King: Analytics firm WebSideStory reported (consistent with a similar report last year) that AOL had the "best conversion rate at business-to consumer e-commerce sites" of the four major portals/search engines. Here are their data:

    • AOL Search (6.17 percent)
    • MSN (6.03 percent)
    • Yahoo (4.07 percent)
    • Google (3.83 percent)

    The WebSideStory explanation of this (user demographics/intent) isn't entirely satisfying. However, one might explain the difference in the fact that Google is perceived as a starting point for research, while AOL, Yahoo! and MSN to varying degrees are destinations that keep people on their sites longer. According to Nielsen, here are the relative, average amounts of time (minutes) spent on each:

    • AOL Search (2:16:49)
    • MSN (0:37:29)
    • Yahoo (1:09:19)
    • Google (0:18:40)

    Google Schadenfreude: Since Google missed the sky-high expectations of Wall Street in Q4, there's a distinct quality of "schadenfreude" (pleasure at the misfortune of others) in the air. Barrons caused a further decline in GOOG when it speculated that competition would weaken Google's market position this year. There's nothing new or especially thoughtful in the article. It's simply that investors may now be nervous about future performance and are selling (GOOG is off about $130 from its 52 week high).

    Also, John Battelle, who owes Google quite a bit for his current status as best-selling author and search "guru," argues now that Google had "jumped the shark" given its appearance on Time magazine's cover.

    Lining the halls of Google are high-profile magazine stories dating back to 2000. (The Time cover is nothing particularly special or significant.) Google will succeed, grow or fall to earth largely based on the actual value (quality of search, tools and services) it provides to users and how the competition stacks up. The danger as I see it is that Wall Street's distorted expectations will cause the company to do things (to produce growth/revenues) that are not in the long-term best interests of the user experience and, ultimately, the company.

    Nokia Wi-Fi Phone: This week Nokia announced a Wi-Fi phone that offers can "travel" between cell and Wi-Fi networks. Carriers DO NOT LIKE this development and it's a parallel one to VoIP on the fixed-line side of the house. But because they do not control the handset makers and because there's competition and potential demand for these phones, this is a development that they cannot prevent. Thus there will be more pressure on wireless carrier revenues (both on voice minutes and data use). The only real question here is: Will Wi-Fi networks proliferate to make them real alternatives to cell networks on these phones?

    PC vs. TV: Reported in today's MediaPost (reg. req'd) is a piece of research that argues consumers want to be able to watch movies and TV on their PCs and vice versa:

    25 percent of Internet users are interested in watching downloaded TV shows and movies on their PCs, 38 percent expressed interest in watching that same video on their TVs.

    WebTV was largely a failure because of the bad user experience. The opportunity this time is to build a Web-surfing capability into IPTV, cable, etc., that combines the best of both worlds.

    This leads me to another "shameless plug" for our coming Drilling Down conference and the session:

    Who Will Own the Living Room?
    The battle for the living room has begun with cable companies, telcos and search providers, among others, seeking to control the pipe, the programming and the advertising channel to the local audience. Will people hook up their PCs (or Macs) to their TVs? Will telcos succeed in installing IPTV and gaining share versus entrenched cable companies? Or will cable providers, arguably in the dominant position today, extend their dominance in TV to local advertising delivered through the living room?]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[IPTV News Roundup]]> http://206.106.174.250/blog/blog_comment.asp?bi=879 2006-02-14T13:40:27-05:00 2006-02-14T13:40:27-05:00 2006-02-14T13:40:27-05:00
    --"Punk'd" and "Beauty and the Geek" creators Ashton Kutcher and Jason Goldberg will team up with AOL to deliver five new programs exclusively on AOL.com.

    -- ZDNet has an interesting piece on what John Nicol will do for MSN's video and multimedia efforts.

    -- Business Week reports on Cisco's move into the IPTV space through this interview with senior vice-president Mike Volpi.

    -- This interesting piece from Media Daily News explores the cultural differences that exist between traditional television ad sales, and the new IPTV paradigms emerging.

    -- Disney spin-off MovieBeam announced (reg req.) an on-demand service that will make movies available through a special set top box the same day they're released on DVD.

    -- Comcast has announced it will add geographically targeted ads to some of its video on demand content.

    -- Olympic winning runs and highlights can be seen on the games' official site here.

    -- Lastly, A Harris interactive study came out with some interesting numbers on how IPTV is being recognized and anticipated as an attractive alternative to cable and satellite. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[A Whole New Kind of Speed Dating II]]> http://206.106.174.250/blog/blog_comment.asp?bi=878 2006-02-14T13:24:38-05:00 2006-02-14T13:24:38-05:00 2006-02-14T13:24:38-05:00 Friday, here is coverage from Thomas Hawk's Digital Connection.]]> Mike Boland MBoland@kelseygroup.com <![CDATA[First Signs of Google Click-to-Call]]> http://206.106.174.250/blog/blog_comment.asp?bi=877 2006-02-13T23:58:42-05:00 2006-02-13T23:58:42-05:00 2006-02-13T23:58:42-05:00 Seth Godin (found via SEW) reports on a Google click-to-call option that is being served up with some sponsored links. He gives an example of sponsored search results that instead of links, include a small phone icon (same icon used to place calls in Google Talk) which can be clicked to open a small Ajax-based window for initiating a call between the user and a business.

    A phone number must be entered the first time it is used, but it offers the ability to save that number so subsequent uses are easier (and truer to the term "click-to-call"). To see this in action, note that Godin's says to do a search for "Artisan Hotel" (without geographic modifier). I assume he did this from New York, because when I did this search from San Francisco, I ended up with different search results. The way around this if you are in a location that gives you geographically relevant links that don't include these click-to-call examples, just add a New York zip code, or the words "New York" (or just follow this link). Then you'll see what he's talking about and be able to give it a whirl.

    Google appears to be testing it on a limited basis (which we already knew it was doing), but this is the first sign of it. It could be an intriguing cross-platform offering to entice existing AdWords customers, and more notably the large segment of SME advertisers that prefer calls to clicks and currently aren't "sold" on AdWords. On another level it extends Google's growing list of options and platforms offered to local and national advertisers that now include print magazines and radio, and will likely soon involve television or video (look for the company to acquire or develop something similar to Spot Runner soon). From a consumer facing standpoint, the user experience could likewise be groundbreaking given the sheer mass of Google users.

    There will be a consumer adoption learning curve however, as there is with most new technologies, and which there certainly is with internet telephony. But it's important to note that this isn’t VoIP, as the click-to-call tool we’re talking about initiates a call between a business and a phone number that a user provides. But it’s certainly a step towards VoIP.

    That little green phone icon that signifies click-to-call in these new search results is the very same one that represents a PC-to-PC call when it appears in Google Talk. The search click-to-call could evolve into something similar where instead of a call initiated between a business and a consumer land line, an outbound call is made directly from the user’s computer – building on the technology currently available in Gtalk.

    Search as a point of entry into the whole Google experience, could therefore push along the mainstream adoption of VoIP overall because it will show mainstream consumers that VoIP isn’t so scary. This is the very strategy behind introducing VoIP in an IM context, as we pointed out in a recent advisory. Once it becomes mainstream, it can be fully leveraged and monetized across IM, email, search, local, and mapping products. And the advertising models built around click-to-call will be the monetization lever.

    In the meantime look for those little green phone icons to start to multiply across the Googleverse. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Windows 'Expo' Replaces 'Fremont']]> http://206.106.174.250/blog/blog_comment.asp?bi=876 2006-02-13T17:34:29-05:00 2006-02-13T17:34:29-05:00 2006-02-13T17:34:29-05:00
    My understanding is that site won't go live for a couple of months, which is a bit of a disappointment, but it offers some tantalizing possibilities. It's classifieds + community + chat + maps + personalization. (The site also features local events.)

    Windows Live Local maps, including Birds Eye photography, is integrated into Expo, which will be especially relevant in the apartments/homes category. Chat, a really valuable feature, requires both buyer and seller to have MSN Messenger (and could become a promotional tool for Messenger). Microsoft has also integrated Expo with MSN Spaces -- you can present your listings via an icon on your Spaces blog (and there's similar functionality for Messenger).

    I was told that Expo listings would be integrated into Live Local and I asked whether the opposite would be true. That is being considered. The business model is contextual advertising from Kanoodle right now; but may include premium placement and/or Craigslist-style charging for selected verticals like Jobs.

    Basic listings are free (now standard for online) and they include the ability to add images. The listings set-up process, which requires Passport registration, was pretty simple and fast.

    The product will launch in the U.S. but ultimately will be global and will thus compete with eBay's Kijiji sites. But right now Expo has more functionality. The challenge is getting the content and building the user base. But the huge installed Messenger base should jump start that process for Microsoft.

    Given all the advanced capabilities and potential content richness it's quite possible that this product could become more popular than Live Local. (There's the beginning of a services directory.) But the opportunity for Microsoft is to integrate the two products to build a kind of "uber-local marketplace" (not very "Web 2.0" I realize), where both local business listings and classifieds information would reside.

    That would create more convenience and utility for local users who don't, generally speaking, want to go to one site for this, one site for that and five other sites for the other thing -- if they can get all their needs met in a single location or destination.

    For the time, the market share distribution of general Web search seems to be fixed. But local is still in its early stages and there's still lots of opportunity. Apple has proven you don't have to be first to market to become the market leader. So if Microsoft can build a great and complete local product it has a chance to differentiate itself and gain consumer traction, which has to date eluded it in the general search arena.



    ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Berry Adding 100 Digital Reps]]> http://206.106.174.250/blog/blog_comment.asp?bi=875 2006-02-13T16:06:17-05:00 2006-02-13T16:06:17-05:00 2006-02-13T16:06:17-05:00 this article in the Dayton Business Journal about The Berry Company's growing online sales force. As we wrote in the last edition of Local Media Journal , Berry recently signed a deal with Marchex to upgrade its guaranteed clicks program, which the publisher tells us has been selling well, with growth at a much faster pace than IYP sales. The new reps will sell both IYP and search engine advertising. TKR will be coming out with an advisory soon that examines current best practices in IYP sales. ]]> Mike Boland MBoland@kelseygroup.com <![CDATA[IPTV Quick Hits]]> http://206.106.174.250/blog/blog_comment.asp?bi=874 2006-02-10T12:10:35-05:00 2006-02-10T12:10:35-05:00 2006-02-10T12:10:35-05:00 Drilling Down on Local Conference in March in this panel;

    1,000,001 Channels: But Is Anybody Watching?
    TV used to be simple for everyone. But the newly fragmenting world of video search, mobile TV, on-demand cable and IPTV makes the range of potential consumer choices staggering. What are the new technologies that are rapidly turning TV from a mass medium to one that is highly personalized? What is the new consumer “video consumption” model, and what are the implications for networks, content producers and advertisers? Will a million “Wayne’s Worlds” and the potential “Tower of Babel” effect destroy the medium for advertisers or open it up to a range of exciting new possibilities, including some for SMEs?

    But for now, here are a few news bits from across the industry.

    -- SlingShot Media was founded by former Yahoo! execs to act as a sort of Hollywood talent agency that will bring together talent and content for online and mobile distribution. The company's contacts in both Hollywood, and in the online world are hoped to create value in bringing the right content to the right online distribution channels. Given that content aggregation is an ongoing challenge with IPTV, this middleman or agent type of model could be one that grows (apart from the self published long tail type of content that will have a separate place among the Google Video-type offerings).

    -- Videobomb.com has launched with an interesting model that is similar to the online news site digg.com, which places aggregated news items (without human editors) in order of popularity, or hits. The site hasn't been monetized yet but will likely be ad supported in the future.

    -- NBC Universal has formed a content partnership with Aeon Digital which has an entirely new model for IPTV delivery. The service requires a one time fee of $299 for a set top box that connects to a broadband line. Users can then access on demand music, television, and movies for an additional fee. It also comes with a built in DVR.

    This is somewhat similar to offerings by DaveTV and Akimbo, and like them it will face challenges to survive in IPTV's next generation. When telcos launch their IPTV services later this year, the IPTV world will be divided between their closed system service offerings (video watched on your television with a set top box and a range of channel choices), and video viewed on your computer screen that will encompass most of the long tail content out there.

    Services such as Aeon fall somewhere in between, and have deficiencies when stacked up against Telecos and the online aggregators. Their revenue models also aren't as flexible, having only fee based content. Telecos and online aggregators by comparison have existing channels for ad delivery (including targeted and local ad delivery which will be an important attribute of IPTV), and fee based video on demand. As we've said in the past, this flexibility in charging customers will be important in experimenting with revenue models and consumer preferences.

    --Lastly, Disney has expanded the video content available disneychannel.com by making full episodes of some kids programming available for free. It will be ad supported and allow advertisers the ability to stream full-length or customized spots next to content. More here ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[A Whole New Kind of Speed Dating]]> http://206.106.174.250/blog/blog_comment.asp?bi=873 2006-02-10T11:08:46-05:00 2006-02-10T11:08:46-05:00 2006-02-10T11:08:46-05:00 promotional event on Monday (close enough to Valentines day), that mixes speed dating and well, TiVo.

    The event will match San Francisco singles with "their perfect TV compatable Valentine". Basically this means that they'll wear name tags that list favorite shows, and work the room with a list in hand that indicates who would be a good match for them.

    So the idea is that the speed daters can "fast forward" through the crowd to find their TiVo-suggested match. Clever TiVo.

    And don't worry, other TiVo trademarks have been worked in for maximum promotional bang for their buck, such as thumbs up and thumbs down stickers that singles can use to privately rate those they meet.

    This likely isn't something that will take the dating vertical by storm, but it's a quirky item that's good enough for a laugh on a Friday.

    And who knows, television for some is a central part of life and looking for a match that likes the same shows could prove an effective way to meet that special someone. But probably not. We'll see...]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Jobs Classifieds: Crossing a Threshold?]]> http://206.106.174.250/blog/blog_comment.asp?bi=872 2006-02-10T09:17:33-05:00 2006-02-10T09:17:33-05:00 2006-02-10T09:17:33-05:00 this survey written up in MediaPost (reg. req'd), the Internet has become the primary hiring vehicle for employers. The research was sponsored by the DirectEmployers Association, "a non-profit consortium of over 200 U.S. employers and operator of the JobCentral.com employment search engine."

    The survey reportedly found that the Internet was responsible for "51 percent of all hires in 2005, with the largest source of hires being the employers' own corporate Web sites, while newspaper classified advertisements were the source of only 5 percent of the new hires."

    Ouch: bad PR certainly for newspaper classifieds. The NAA forecast that 2006 would see $18.14 billion in print classified revenues in the US. Just like Yellow Pages, the revenue is offline, but the growth is clearly online.

    Here's how the survey broke down the distribution of online hiring sources:


    • Corporate Employment Web Sites: 21 percent
    • General Job Boards: 15 percent
    • Niche Job Boards: 6 percent
    • Social Network Web Sites: 5 percent
    • Commercial Resume Databases: 4 percent

    These categories are quite broad; I assume that CareeBuilder (owned by newspapers), Monster and HotJobs fall into the "general job boards" category. But it's not clear. Sites like SimplyHired and Indeed, crawl corporate job boards (in addition to other sources) as does Yahoo!'s HotJobs. So there's more complexity probably in the actual market than the survey reflects.

    One must always be skeptical of sponsored research (which almost always has an agenda), but directionally at least these results are certainly accurate.

    More and more print newspapers (a la the Tribune Co.) will need to start offering "free" classifieds (with upsell opportunities) in order to be competitive. If the perception in the marketplace is that newspaper classifieds no longer "work," (which we may be approaching), there will be a precipitous decline in print classified advertising.

    It makes the issue of how newspapers respond to online trends, regarding classifieds in particular, quite urgent.

    Classifieds seem to be on everyone's minds these days. I just moderated a panel on classifeds and search and I'll be at the NAA show later this month doing the same. And then again at the Editor & Publisher conference in May. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Media Discovers Google 'PrintWords']]> http://206.106.174.250/blog/blog_comment.asp?bi=871 2006-02-10T09:06:36-05:00 2006-02-10T09:06:36-05:00 2006-02-10T09:06:36-05:00 WSJ (sub. req'd) and MediaPost (reg. req'd) today both have articles about the new, public auction of ad placements in major magazines on Google.

    We first blogged about it (after a tip from Battelle's blog) here on Wednesday.

    From the WSJ article:

    Google has been placing ads on behalf of its advertisers in three magazines and the Chicago Sun-Times newspaper in what it has characterized as tests. Last month, it said it would acquire closely held dMarc Broadcasting Inc., a Newport Beach, Calif., company that places ads on radio using an online system similar to Google's.

    Google has said it aims to integrate radio-spot buying into its AdWords program. Tim Armstrong, Google's vice president of advertising sales, said that if the print tests prove successful, print-ad buying would eventually be integrated as well. AdWords allows advertisers to bid on keywords, which Google uses to target ads to Web surfers, to set the price they will pay each time a consumer clicks on their ad.

    "The hope here is we'll have an integrated format for advertisers and agencies ... across multiple media," he said.

    Regarding Google print ads, "we know there's demand both from advertisers, agencies and publishers," Mr. Armstrong said. The current magazine-ad auction will allow Google "to work on the product itself and continue to roll it out and look at the results over time."


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Eurekster and MyWeb 2.0.2 Part II]]> http://206.106.174.250/blog/blog_comment.asp?bi=870 2006-02-09T17:33:53-05:00 2006-02-09T17:33:53-05:00 2006-02-09T17:33:53-05:00 Eurekster. These guys were way ahead of the "social search" curve but confused users and the marketplace with their early positioning. People saw them as a complicated Google/Yahoo! competitor.

    They're really an enterprise search B2B play that offers site search and more contextually relevant Web search. "Contextual" here means relevant to the user population of the site (teens, moms, sports fans, etc.). They do that with clickstream analysis of aggregate user query behavior. Initially Web search is weighted according to specific business rules, but the engine learns what the group thinks is relevant to particular queries. It's a different relevance paradigm that gets "smarter" over time. But its nature, this is a vertical search engine par excellence.

    They get paid on a PPC revenue sharing basis by including Google and/or Yahoo! paid results on search results pages of their publisher partners. And Eurekster has offerings for large publishers and small publishers (e.g., bloggers). The interface of the "buzz cloud" (now a "Web 2.0" standard) is also interesting as a visual search/browse (even advertising) tool.

    Marder and I went into their roadmap a bit and there were some interesting possibilities on the advertiser side. He and I talked about local and its complexity, which is on their radar but not in the immediate future.

    The "genius" of Eurekster is that it's passive, meaning the engine serves up progressively more relevant results (than general Web search) on the basis of communal search behavior -- without any effort on the part of users.

    How does this relate to MyWeb? As Mike points out below, one might infer that MyWeb is growing slowly. One rumor behind the del.icio.us acquisition was that it wasn't about technology but about the gaining the large user community (and perhaps the talent behind it).

    I'm a huge fan of MyWeb and use it daily. I find it incredibly useful, but I'm not a mainstream consumer. I'm motivated to use it. But it takes affirmative effort to save and tag the pages (not that much really, but some).

    MyWeb, in addition to being a content repository, offers an alternative, human-edited index to Yahoo! search engine users (who are also MyWeb users). Eurekster does a very similar thing but in a way that is totally “passive” and invisible to the user (although it offers none of the "bookmarking" functionality).

    Here are my MyWeb wishes:


    • A simpler way to create groups (maybe multiple groups) within MyWeb -- there's an enterprise application waiting to happen here.
    • A way to search within categories/tags for content. The more content you save (I have 1,239 items) the more unwieldy the thing becomes; this would help solve that and make it even more useful.


    Despite all the “social bookmarking" buzz there’s a real question about whether sites like Wink and Kaboodle will catch on with mainstream users and become viable (which begs the question of what “viable” means in this context; maybe big enough to be acquired).

    The shared knowledge of the community is clearly a powerful asset to these engines/applications. But they need to be very simple and intuitive in order to generate large-scale adoption among what you might call "non-early adopters."
    _________

    Here's more from the Yahoo! Search Blog. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[MyWeb 2.0.2]]> http://206.106.174.250/blog/blog_comment.asp?bi=869 2006-02-09T15:38:25-05:00 2006-02-09T15:38:25-05:00 2006-02-09T15:38:25-05:00 John Battelle reported today that Yahoo! has upgraded MyWeb 2.0. Users can now search "everybody's tabs," which basically expands the social search aspect of the service. MyWeb along with Yahoo!-owned del.icio.us could be central elements to Yahoo!'s overall "folksonomy" strategy that relies on the power of people to tag content (rather than the more Google-esque approach of using lots of computing power to index the Web).

    BUT, there are still very few users of MyWeb, and Yahoo! hasn't done much to market it (the company doesn't disclose how many users it has, but there are 709,927 saved pages as of today — I alone account for 350 of those). This could change soon, as enhancements to the service are a good sign that it's getting closer to prime time (remember, it's still in beta), and a possible marketing push.

    The point is that social search can only be as good as the amount of people using it, and there's definitely a critical mass to make it work on a large scale. We'll explore MyWeb and the dynamics of social search in an upcoming White Paper. ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[AT&T Weighs in on Syndicated Research]]> http://206.106.174.250/blog/blog_comment.asp?bi=868 2006-02-09T15:30:06-05:00 2006-02-09T15:30:06-05:00 2006-02-09T15:30:06-05:00
    AT&T Yellow Pages (formerly SBC) is the world's largest Yellow Pages publisher, and it operates in major markets in the Midwest, Southwest and West Coast, including such large markets as Los Angeles, San Francisco, Dallas, Houston, Detroit and Cleveland.

    According to its press release, AT&T has garnered an average 72.5 percent share of the 26 Yellow Pages Market Reporter studies released so far covering its markets. We called AT&T to ask if they could share any specific examples. They declined, saying that level of detail is being reserved for CMRs and advertisers. Nonetheless, a company spokesman did say that the publisher has a "major usage leadership position, except in a handful of markets."

    The AT&T release makes it the fourth publisher to issue a press release touting the outcome of the synidicated research. The others are Verizon Information Services, Yellow Book and Ambassador. ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Hicks Quick to Expand in Canada]]> http://206.106.174.250/blog/blog_comment.asp?bi=867 2006-02-09T14:52:05-05:00 2006-02-09T14:52:05-05:00 2006-02-09T14:52:05-05:00 acquisition of Phone Directories' Canadian operations, U.S. buyout firm Hicks Muse is pushing an aggressive expansion into bigger Canadian markets.

    Next week, Canadian Phone Directories, the Hicks-backed company led by industry veteran Olivier Vincent, will begin a sales canvass for a Vancouver, BC, phone book. The book will overlay four Yellow Pages Group directories in the city. Vincent told us the distribution will be about 700,000 and rates will be about half those of the largest of the competing YPG books.

    Also, CPD will re-launch the Calgary book to give it more distribution and sales muscle. Vincent told us the new Calgary book will distribute 600,000 copies, compared with 350,000 before.

    The Calgary and Vancouver directories will both publish in the fourth quarter of this year.

    These two developments make it clear that CPD plans to invest in making a more serious competitive challenge to YPG, which is by far the largest incumbent in Canada, than the previous Phone Directories operation was able to do. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Bright Spots for The New York Times Co.]]> http://206.106.174.250/blog/blog_comment.asp?bi=866 2006-02-09T12:20:18-05:00 2006-02-09T12:20:18-05:00 2006-02-09T12:20:18-05:00 Local Media Journal, we break down the Q4 earnings announcements of major U.S. newspaper publishers. You probably know the story; circulation and revenues are in decline, while online assets continue to show growth.

    To add to this, yesterday The New York Times Co. announced some numbers for January that showed a 3.4 percent ad revenue increase for About.com (which it purchased last year) while the company's overall revenues slipped 3.2 percent.

    From Paid Content:

    --"Outstanding growth" in cost-per-click advertising drove About.com's growth to $7.1 million in ad revenues; the unit's ad revenues increased 124 percent compared to january '05, when it was still owned by Primedia. (This January included four more reporting days than the previous year.) About.com also reported display growth.

    — Online ad revenue was up 22 percent across the News Media Groups with "strong growth" in display and classified advertising.

    — Despite the strength of Craigslist and other classified competitors, real-estate classified rose 15.3 percent.

    — TimesSelect: The Times' groundbreaking premium service continues to grow. As of Jan. 31, TimesSelect had approximately 410,000 subscribers — about 62 percent get the service as part of their print subscription and about 38 percent are online only.


    The New York Times also just struck a deal with fast moving Internet video start-up Brightcove (the company offers large and small video producers a platform to distribute their content and generate ad or sales revenues). Under the multiyear arrangement, Brightcove will distribute and syndicate broadband video across NYtimes properties. This gives Brightcove more ad inventory (and valuable inventory it seems) in its network, and it gives the Times a branded platform for distributing video on its sites — something that is becoming very high in demand in online news and that The Times certainly couldn't have done on its own.

    We expect to see more deals between advertiser and publisher facing video networks, and traditional media companies that wish to differentiate themselves (or stay competitive) with video capability. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Privacy and Google Desktop]]> http://206.106.174.250/blog/blog_comment.asp?bi=864 2006-02-09T11:59:40-05:00 2006-02-09T11:59:40-05:00 2006-02-09T11:59:40-05:00 article by Jefferson Graham pushes the privacy angle: "will/should consumers be fearful of the privacy issues" associated with the new "search across computers" feature of Google Desktop?

    I spoke to Graham about this late yesterday and told him that I felt Google was being more sensitive to privacy concerns this time around than it has been in the past.

    I also told him I felt that how the issue is presented to consumers — much like a political survey — will determine how consumers react.

    For example, when Americans are asked about whether they are comfortable with Bush's wiretapping program directed at American citizens, a majority say "no." But with the more Orwellian spin of the Bush handlers — "terrorist surveillance program" — people are more inclined to support the illicit operation.

    In my view, the real concern with all the recent Internet privacy debate swirling around Google is not whether the company has my data on its servers as much as who can access that data through Google (i.e., the government). But unless that question is definitively resolved in favor of individual privacy there may not be a practical difference. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Murdoch Stresses Targeting]]> http://206.106.174.250/blog/blog_comment.asp?bi=865 2006-02-09T11:32:04-05:00 2006-02-09T11:32:04-05:00 2006-02-09T11:32:04-05:00 earnings yesterday. During the earnings call Rupert Murdoch stressed the value of its Internet properties, which has yet to be shown in reported financials. To read into this, the value of MySpace's 50 million dedicated users hasn't been monetized anywhere near its potential.

    Our mandate now is clear: to monetize this vast audience with targeted advertising made possible by the wealth of information we have from our engaged, passionate users. The revenue and profit potential from monetizing this audience, even a fraction of it, is significant, he said.

    A few questions arise from this: what is the best way to integrate advertising into a user experience that a dedicated, yet possibly fickle (teenage) demographic has gotten very accustomed to? There is a dangerous risk in inferiorating (made-up word) the user experience, while infuriating the user base.

    MySpace has proved to be extremely sticky and the barriers to compete are high (users have established networks of friends and sunken investments in their time to create their content-rich MySpace home pages). But anything can happen with a demographic for which viral marketing resonates so well. And new challengers continue to enter the social networking space to share the wealth. It's MySpace's game to lose.

    It has been proved by some (Google, Topix) that targeted ads, if targeted enough, aren't seen as intrusive but rather part of the content of a given page. So it will be interesting to see how and if MySpace pulls this off. The degree that local ads play a part in this strategy and what channels FIM will use to bring it all together are also important questions. The company is vague about its plans in this respect but it is interesting to extrapolate its strategy, given the sheer volume of the MySpace user base. We'll be watching this closely.
    ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Yell's Irritation Over Rate Cap Issue]]> http://206.106.174.250/blog/blog_comment.asp?bi=863 2006-02-09T11:28:13-05:00 2006-02-09T11:28:13-05:00 2006-02-09T11:28:13-05:00 solid numbers for the first nine months of its financial year, which ends on March 31. Its U.S. unit, Yellow Book, continues to post double digit gains, even when acquisitions are taken out of the picture. Results were also good in the U.K., where overall growth was 5.6 percent, and the IYP Yell.com continues to accelerate, growing at 62.4 percent.

    The mixed blessing is that in the U.K. Yell faces a looming decision from the Competition Commission on whether to end, minimize, maintain or intensify the rate cap that Yell now operates under. The decision is expected in August, and last month, the commission issued a glimpse into its thinking that suggests its options may have narrowed to either maintaining or intensifying the rate cap.

    Yell executives, understandably in our view, have not done very well at hiding their irritation. Yell issued a stinging rebuke of the commission's statement, and has refused to back off since.

    The commission seems to think that it can will a share shift into existence by curtailing Yell's ability to raise prices. We think the commission has invoked the law of unintended consequences by forcing Yell to grow through innovation and improved service (both good outcomes), and it has also given the publisher a bit of good news to bring into sales calls each year ("Good morning, prices are lower again this year!").

    Rather than accept that pricing intervention has failed because it is fundamentally wrong-headed, the commission seems to think it will work sooner or later if only it causes Yell enough pain.

    We see the U.K. as a competitive market, with BT and Thomson competing for share, along with a smattering of other smaller players. Is Yell strong? Of course. In the U.S., its division Yellow Book has grown as a competitive publisher by exploiting a pricing umbrella. In the U.K., that umbrella has been all but folded up by the regulators, leaving competitors out in the wet. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[SkypeWeb, Presence Management and PPCall]]> http://206.106.174.250/blog/blog_comment.asp?bi=862 2006-02-09T09:32:05-05:00 2006-02-09T09:32:05-05:00 2006-02-09T09:32:05-05:00

    Skype, the global Internet communications company, today announced SkypeWeb, a Web presence feature that is already integrated into more than 50 Web sites in 20 countries around the world. SkypeWeb allows people to see Skype users’ online status and call or chat with them from any Web site as well as Skype people from each site with the simple click of a mouse.

    “With just a few simple steps we were able to incorporate SkypeWeb into our AppExchange platform,” said Adam Gross, vice president, developer marketing, salesforce.com. “In addition to free Skype voice calls, the SkypeWeb presence feature gives our subscribers the ability to know when their contacts and colleagues are available and online — all directly from within Salesforce."

    SkypeWeb integrates Skype seamlessly and into any Web site. With SkypeWeb, Web administrators can easily enable all site visitors to talk for free over the Internet.

    Here are the buttons.

    There are potentially many things to discuss about this. One is the rapid "mainstreaming" of VoIP. But the thing I want to focus on is the local/PPCall aspect. There's no PPCall system in place yet (it's VoIP click-to-call) but a system like SkypeWeb could become an advertising vehicle for local businesses at some point. (ContactAtOnce distributes "presence management" icons/chat windows as an advertising tool today.)

    According to the Skype release, "DBA.DK the number one Danish classifieds portal, is using SkypeWeb to show the Skype status of people who have posted classified ads."

    This is the kind of functionality that eBay promoted when it bought Skype to enable communication between buyers and sellers. But as the classifieds forum I moderated last night made clear, calls are much more important to local sellers than to e-commerce vendors. Thus the local business implications of click-to-call (and the potential business model layer of PPCall on top of that) are immediate.

    Microsoft suggested integration of VoIP as a layer on top of its Windows Live Local product when Live was launched last year in San Francisco.

    It could well be that every Web site or landing/profile page associated with every local business will one day have such functionality. It could be free, subscription-based or performance-based (PPCall).



    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Classifieds Search Forum]]> http://206.106.174.250/blog/blog_comment.asp?bi=861 2006-02-09T08:38:04-05:00 2006-02-09T08:38:04-05:00 2006-02-09T08:38:04-05:00 SDForum's Search SIG event last night on classifieds and search.

    Panelists were:


    • Bindu Reddy, Product Manager Google Base, Google
    • Craig Donato, Founder/CEO, Oodle
    • Keith Teare, Founder/CEO, Edgeio

    The discussion was very candid and informal and revolved around the transition from traditional classifieds to online, the online classifieds business model (a question that wasn't fully answered to my satisfaction) and the coming impact of self-publishing and RSS on online classifieds (could be revolutionary).

    To that latter point, this was the first time I got a look at Edgeio, which uses the tagline "listings from the edge" ("the edge" might be a fresh and worthy substitute for the somewhat tired term, "the long tail"). Among other things, Edgeio allows people to self-publish "listings" (stuff/services for sale) on their own sites, which then get picked up via RSS and distributed to Edgeio and beyond.

    It has pretty significant implications if it catches on. Teare described the site as a kind of "middleware" in the process of publishing and distributing listings/advertising across the network (this is a cousin of former Tribe CEO Mark Pincus' vision articulated in his keynote at ILM:04). But the site's not public yet and so I won't go into it further.

    The initial question I asked was, "What are classifieds; is there something fundamentally different about classifieds vs. other types of online advertising?" The answers were quite interesting, with Keith Teare arguing essentially that classifieds were just one form of "listings." Craig Donato (who wore a fabulous chartreuse shirt) made a powerful case that there were essential characteristics that distinguished classifieds (they're "perishable," they're local, fulfillment is offline). He argued that these traits required and justified a specific approach.

    Bindu Reddy, who sought to emphasize that Google Base accepts classifieds content but is not "Google Classifieds," (I agree) said some fascinating things about how Google is experimenting with Base (e.g., tagging) and how the organization of content there may have broader implications for the next generation of Google search. (I also had another "vision" of Google's vertical future during her demo.)

    Reddy and Donato agreed that PPCall was a model that would have more and more resonance and application in the local market, including with classifieds (and the Jambo deal reflects that in a traditional publication).

    This was my first such event and I think they're very valuable (here's the calendar), though unfortunately only available to people in the Silicon Valley area. They were recording it for podcast, but I don't yet have a link. I'll post one if I discover it.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Desktop Upgrade]]> http://206.106.174.250/blog/blog_comment.asp?bi=860 2006-02-09T01:16:53-05:00 2006-02-09T01:16:53-05:00 2006-02-09T01:16:53-05:00 feature enhancements (remote PC/file access, "undocking" of plugp-ins and sharing functionality). That's a very "quick and dirty" summary. The most interesting feature of the new enhancements from my point of view is the "social" or sharing dimension.

    Users can send articles and "Web Clips" to one another via e-mail or IM or directly to each other's Sidebars. And there's some "wiki-like" functionality in that, in a few cases, people can be in the same module at the same time (think shared "to-do list"'). Right now that wiki/collaborative element is very limited, but it will likely evolve quickly as developers build more of these modules (which have become much more like Yahoo!'s widgets in this version).

    Yahoo! has made huge bets on "social search" and other community functionality and Google has to date not done much in this realm. But the company is moving into tagging rapidly (e.g., Google Base) and these new "social" features of Sidebar create a community/viral dimension that Google hopes will boost adoption.

    It's also interesting to start seeing many elements coming together with intersecting or overlapping functionality: the personalized home page, personal search history, the upgraded toolbar, Gmail + IM, Google Talk in Sidebar, etc.

    You can start to see some set of these functions closing in on some sort of "center," although there won't ever be a single application I don't believe. But over time Google will get a sense of where the concentration of its users are and what they're doing and will emphasize those tools and applications accordingly.

    _____________

    Here's the official Desktop Google Blog statement. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Goes Public with Print]]> http://206.106.174.250/blog/blog_comment.asp?bi=859 2006-02-08T18:59:37-05:00 2006-02-08T18:59:37-05:00 2006-02-08T18:59:37-05:00 John Battelle for pointing out that Google has gone "public" with its program to allow advertisers to buy access (via auction) to print advertising in some very high-profile magazines:

    As you may know, as part of Google's ongoing effort to develop new opportunities for our advertisers, we've been running tests of ads in a limited number of print publications. Now, we're excited to test an auction of ad space in select magazines.

    In this test, the control is in your hands: you choose the ad size, set your price, and decide how you'd like to use the space. There's no risk to you – you pay only if you win the auction.


    Here's the page that features Martha Stewart Living.

    The catch here is you provide the creative (a barrier for many smaller advertisers). But this is now step 2 (dMarc being step 1) in the process of Google becoming a "unified platform" for media buying — online and off.
    __________

    On Day 2 of Drilling Down, we'll have this relevant panel:

    The Future of Local Media Buying: The Integrated Online-Offline Platform
    Until recently, online marketing was regarded with skepticism and ambivalence. In 2005, led by paid search, online marketing in general came to be seen as a credible medium. While newspapers and Internet Yellow Pages have long been selling online advertising on their sites (and more recently into broader networks), the Google acquisition of dMarc suggests a potentially new, more integrated online-offline media future. It also directly brings the harsh light of performance-based marketing and Web analytics to a traditional advertising medium. The panelists will discuss these and other recent developments and what the near and long term will hold for online marketing and interactive local media.

    ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Yellow Book in Clicks Business]]> http://206.106.174.250/blog/blog_comment.asp?bi=858 2006-02-08T10:35:08-05:00 2006-02-08T10:35:08-05:00 2006-02-08T10:35:08-05:00 acquired Click Forward, a Coral Gables, Florida-based search engine marketing company. Terms were not disclosed. Yellow Book plans to use the assets gained through the acquisition to develop a local search product to sell through its more than 5,000 local sales representatives.

    This deal is in keeping with Yellow Book's recent push to elevate its digital strategy to a higher level. The publisher has been accused by some in the investment community of paying too little attention to digital as it pursues growth opportunities in the traditional business. This acquisition certainly helps Yellow Book break out of the perception that it is all about print. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yellow Book Buys Click Forward]]> http://206.106.174.250/blog/blog_comment.asp?bi=857 2006-02-08T09:54:02-05:00 2006-02-08T09:54:02-05:00 2006-02-08T09:54:02-05:00 Click Forward. Before I saw the release Loren Baker at Search Engine Journal confirmed it.

    Click Forward was started by alumni of WebVisible, formerly SME Global Solutions. And like WebVisible, Local Launch, Reach Local, MatchCraft and Marchex (which just announced a search marketing distribution relationship with The Berry Co.), the company helps enable third parties (e.g., Yellow Pages publishers) to sell search marketing to local businesses in simplified form (flat pricing, guaranteed clicks).

    The release quotes Joe Walsh, Yellow Book's president and CEO:

    "We feel that Click Forward is the best of breed and is a natural fit within our portfolio of products," said Joe Walsh, President and CEO of Yellow Book USA. "By working with Click Forward, Yellow Book will be able to continue to connect buyers and sellers together in a way that will provide more choices to the consumer and a great return on investment for small business owners. The acquisition of Click Forward represents another step in Yellow Book's continued focus on the internet. With over 5,000 sales people nationwide, it makes sense for Yellow Book to innovate and expand its product offerings both in print and online."

    Now Yellow Book can sell search clicks along with its other suite of traditional ad products (it fully controls the offering). The acquisition indicates just how far Yellow Book has come. Formerly a big skeptic of the Internet, Yellow Book is the first to bring one of these "simplified search" businesses in-house. This may set in motion events that result in more consolidation or similar acquisitions by other YP companies. We'll see.

    The move is good for Click Forward because it was one of the smaller and less established players in this market. In addition to the YP publishers, expect more newspapers this year to offer similar products to their local advertisers.

    As we've argued before, traditional media sales channels are the primary way that local businesses will get into paid search marketing — in the near term.

    Here's the press release.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[PPCall Goes Offline With Jambo]]> http://206.106.174.250/blog/blog_comment.asp?bi=856 2006-02-08T09:02:47-05:00 2006-02-08T09:02:47-05:00 2006-02-08T09:02:47-05:00 piece in MediaPost (reg. req'd), PPCall provider Jambo has announced that it will enable PPCall for LA Weekly:

    The first slate of ads will be in the Feb. 9 issue, and will focus on Valentine's Day services, including florists, spas, limos. The ads will be sold through Jambo's own ad-selling platform.

    So, you may ask, why is this a big deal? (It is.)

    It's PPCall in a newspaper (Village Voice Media owns several weeklies throughout the U.S.). If it works, expect to see the Voice expand the program in its other publications, which puts some pressure on other, traditional newspapers to try this (or it will at least start them thinking about it).

    We have argued that one of the really exciting things (and scary to traditional publishers) about PPCall is that it's a performance-based ad medium that can go anywhere in the offline/local world (outdoor, print, TV, etc.).

    Verizon has said it will test PPCall in the print Yellow Pages in special "generic" category ads. But I wouldn't expect other directory publishers to follow suit any time soon. There's too much potential risk.

    This Jambo deal has the potential to really take off and spread in the weekly newspaper world. It's a differentiator in their battle with other media and the Internet to set their advertising apart. And it might also be a weapon in the broader newspaper battle with free classifieds.

    I have been meaning for weeks to write about Jambo and workload has kept me from it.

    Expect to now see PPCall start to penetrate the offlline/traditional media world more rapidly. In The Kelsey Group's upcoming forecast we have performance-based advertising accounting for 10 percent of traditional "directional" ad revenues in 2010 (all of it call driven, obviously). In view of this deal, that might wind up being conservative.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Demo Happening]]> http://206.106.174.250/blog/blog_comment.asp?bi=855 2006-02-08T08:43:06-05:00 2006-02-08T08:43:06-05:00 2006-02-08T08:43:06-05:00
    The Washington Post's Leslie Walker has a rundown of some of the companies and their "demos."

    One company at DEMO with local in its blood is Transparensee. (CEO Steve Lavine has spoken at TKG conferences in the past.) The company has a search technology that helps unearth/discover related items that are similar to the user's initial query (restaurants, real estate, dating, shopping, etc.) It's a B2B enhancement for consumer-facing sites.

    And local is a prime application for the company's technology. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Spot Runner Announces Vertical Partner: Cendant]]> http://206.106.174.250/blog/blog_comment.asp?bi=854 2006-02-08T08:26:48-05:00 2006-02-08T08:26:48-05:00 2006-02-08T08:26:48-05:00 Spot Runner and Cendant Corp. Cendant is the parent of many familiar travel and real estate brands. For example, Cendant is the world's largest franchisor of real estate brokerage offices, 15,000 to be precise. It also owns Century 21 and Coldwell Banker, among other brands. Spot Runner is the recently launched cable TV buying platform for local businesses (think of it kind of like dMarc for local cable TV).

    Here's the WSJ's piece (sub. req'd) on the partnership:

    Under the deal, Spot Runner will create hundreds of TV commercials that local real-estate brokers and agents affiliated with Cendant's real-estate franchises can customize and then pay to have played in specified local markets. Spot Runner is creating special sites to sell TV ads to the more than 9,000 U.S. real-estate brokerage offices and 260,000 sales agents affiliated with Cendant's real-estate units, which include Century 21 and Coldwell Banker.

    Spot Runner will give those brokers and agents discounted rates, normally less than $500, on creating the custom TV commercials, which may include digital photos of properties agents send them. Spot Runner declined to disclose financial details of the arrangement with Cendant.


    I spoke to WSJ writer Kevin Delaney about the relationship and the final piece is sort of a "just the facts, ma'am" version of our extended conversation.

    One of the things he and I discussed was the challenge that Spot Runner faces. It's a great offering, but there's the difficultly of not only building awareness among local businesses but also getting them to show up and actually set up the campaigns, which is relatively simple to do. This is another version of the familiar "push vs. pull" debate about local businesses and online marketing.

    This "vertical" strategy (and it's not yet a "strategy" for Spot Runner, but may become one) is very smart because Cendant's brands and relationships give Spot Runner instant credibility with these local real estate franchisees. Cendant will also "push" (systematically market) the offering to those local Realtors.

    This goes a very long way to overcoming the inherent challenges of getting local businesses to show up and test the product.

    Kevin and I also discussed something of a paradox about Spot Runner and the Cendant deal. Even as large advertisers (think car companies) are questioning and, in some cases, abandoning TV for the Internet and as TV audiences are fragmenting, this cable TV advertising opportunity will be fresh and exciting for local Realtors. They haven't had the ability to buy TV and Spot Runner now makes that possible.

    I believe the partnership will be successful for Spot Runner and, with corresponding lessons learned, create a kind of "vertical template" for the company going forward. Other professional services categories are ripe for this: lawyers, doctors, accountants, etc.

    _________

    Spot Runner Chairman and Chief Executive Nick Grouf will be on the final panel at Drilling Down:

    The Future of Local Media Buying: The Integrated Online-Offline Platform
    Until recently, online marketing was regarded with skepticism and ambivalence. In 2005, led by paid search, online marketing in general came to be seen as a credible medium. While newspapers and Internet Yellow Pages have long been selling online advertising on their sites (and more recently into broader networks), the Google acquisition of dMarc suggests a potentially new, more integrated online-offline media future. It also directly brings the harsh light of performance-based marketing and Web analytics to a traditional advertising medium. The panelists will discuss these and other recent developments and what the near and long term will hold for online marketing and interactive local media.







    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Zillow Launches]]> http://206.106.174.250/blog/blog_comment.asp?bi=852 2006-02-08T06:55:49-05:00 2006-02-08T06:55:49-05:00 2006-02-08T06:55:49-05:00 Zillow, which apparently stands for "zillions of pillows" (or that's the genesis of the name/URL), launched today.

    The site is a very polished and sophisticated new entrant in the increasingly competitive online real estate market. Its primary — and somewhat amazing — attribute is that you can potentially look up the value of any residential property in most markets across the U.S. (The coverage is not total but impressively broad.)

    It also uses a map as its principal interface (similar to HomePages.com before it).

    For example, here's a valuation on the two-unit apartment I used to live in in San Francisco. And here's more detail on the property. (The owner recently sold it and I think the data reflected are generally accurate.)

    I got a briefing on the site from CEO Rich Barton, founder of Expedia, a couple of weeks ago and was very impressed by the "heavy lifting" he and his team had done to collect, distill, scrub and present all this data. That effort seems to erect fairly significant barriers to duplicating what they've done.

    The site is intended to provide, as Barton said to me, more "transparency" to both buyers and sellers about the value of homes as they're contemplating either side of the transaction. The site intends to support itself with advertising from Realtors and others associated with real estate transactions (mortgage brokers, moving companies, etc.).

    Impressive as Zillow is, the missing piece here is the for-sale listings themselves. In other words, Zillow currently doesn't allow would-be home buyers to look for homes for sale on the site (they have to go to HomeGain, Realtor.com, HomePages.com, Trulia or any number of other sites). So right now it's a tool that complements other sites that present MLS listings.

    Yet to make the site more complete it will eventually need to present this for-sale information. (It might also be a great platform for "for sale by owner" listings.) Yet Barton and co. have many interesting ideas up their collective sleeves for "phase II" and "phase III" features.

    Barton, who is also a partner at VC firm Benchmark Capital, and his team have grabbed a considerable $32 million in funding, which sets the expectations fairly high for them and Zillow.

    I anticipate that as word of Zillow gets out people will show up to check the values of their houses and their neighbors' houses out of curiosity. That will generate some good word of mouth for the site. Barton also indicated he's going to try to syndicate some of the data across the Internet (and perhaps to traditional newspapers).

    I got a question yesterday from a reporter about whether this would "disintermediate" the local Realtor. The short answer is "no." There's still too much micro-local knowledge that can't be embodied on the Internet (and the Internet can't really negotiate for you). But it may over time — depending on its success — put pressure on real estate commissions or enable some incremental number of buyers and sellers, where it's legally possible, to do the transactions themselves. We'll have to see. (Maybe appraisers will have something to fear from Zillow.)

    Real estate is a fascinating market and we believe something of a leading indicator of trends in local. There's a great deal of money circulating in the "real estate ecosystem" — $12 billion annually is spent on advertising, according to the National Assn. of Realtors. And consumers are using the Internet now as an integral part of their home-buying process: 77 percent, according to the same trade association's most recent data.

    It will be interesting to see how the public responds to Zillow, how the site evolves and the response of competitors. And undoubtedly it will ultimately be acquired.
    _________

    Another B2B map-based real estate site launched almost simultaneously: PropertyShark.com (which takes aim at Zillow in its press release). There's a lot of coverage out there. Here's more from the Seattle PI and SiliconBeat. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[A9's Udi Manber Reportedly Going to Google]]> http://206.106.174.250/blog/blog_comment.asp?bi=851 2006-02-07T17:46:29-05:00 2006-02-07T17:46:29-05:00 2006-02-07T17:46:29-05:00 John Battelle.

    This is obviously a blow to A9 and raises a big question about its future in my mind. It's got lots of innovative features but almost no consumer traction.

    ________

    Here's Battelle's updated post about it.



    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Online Influencing Offline]]> http://206.106.174.250/blog/blog_comment.asp?bi=850 2006-02-07T15:36:06-05:00 2006-02-07T15:36:06-05:00 2006-02-07T15:36:06-05:00 this article, Jupiter says:

    The amount of money consumers spend online is expected to increase 75 percent by 2010, with the Internet influencing nearly half of all U.S. retail sales ... U.S. consumers are expected to spend $144 billion in 2010 from $81 billion last year ... Spending this year is expected to reach $95 billion.

    comScore's full 2005 e-commerce number was $82.7 billion. Yet total U.S. retail spending was more than $3.5 trillion in 2004.

    Thus e-commerce is about 2.5% of total U.S. retail spending. But we agree with the thrust of the Jupiter prediction that the Internet will influence an increasingly large number of total transactions (the overwhelming majority of which will be local/offline in physical stores). ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Video Game Ad Placement Takes a Step Forward II]]> http://206.106.174.250/blog/blog_comment.asp?bi=849 2006-02-07T12:56:26-05:00 2006-02-07T12:56:26-05:00 2006-02-07T12:56:26-05:00 been on our long-term radar screen. It will take a while before it has relevance to local, but it's an interesting area where a lot of development is happening, and where an ad revenue stream could offset faltering revenue growth in the video game industry.

    The latest news from the field is that in-game ad placement firm IGA has raised $12 million in Series A funding. The company places ads in computer and video games using its own ad network. A great deal will be told from the successes and failures of such early entrants in this space, in terms of market dynamics and sustainable business models. We'll continue to watch them closely for any signs of local ad models. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Barriers to Mobile Adoption]]> http://206.106.174.250/blog/blog_comment.asp?bi=848 2006-02-07T09:07:20-05:00 2006-02-07T09:07:20-05:00 2006-02-07T09:07:20-05:00 piece raising the question, "When o when will users take to the mobile Web in earnest?" Indeed, until they do there can be no effective mass mobile marketing.

    My belief is that the user experiences that drive real adoption will determine what ad models ultimately work in a mobile context.

    According to Forrester's data (cited in the article): 65,000 U.S. households, some 15 percent of mobile services subscribers accessed the Internet from their devices in 2005, compared to only 6 percent in 2004.

    At that rate we're years away from any meaningful adoption. But there are lots of mobile marketing initiatives going on now. That's why we've set up the panel "Mobile Ads That Work Today" at Drilling Down '06:

    Mobile Ads That Work Today
    We keep hearing about wireless/mobile advertising and its potential. But The Kelsey Group argues that potential can’t be realized until there’s substantially more usage to create real value for those marketers. It’s a version of the chicken-and-egg problem of local search two years ago. MSN’s Erik Jorgensen said at ILM:05 that the majority of local search may be conducted on wireless devices in the future. In the meantime, how are carriers, device makers and ad networks dealing with the many challenges of the current wireless environment? Are there ad models that will actually work today or next year, and what sort of user experience will make them viable?

    _________

    Here's third-party data compiled by eMarketer on mobile usage in Japan and Asia. Of interest is that 76 percent of Japanese wireless users access the Web over their mobile phones. However, there may be cultural and historical factors here that prevent direct extrapolation to the European and, especially, U.S. markets.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA['Social Search' and 'Review Fraud']]> http://206.106.174.250/blog/blog_comment.asp?bi=847 2006-02-07T07:34:28-05:00 2006-02-07T07:34:28-05:00 2006-02-07T07:34:28-05:00 Nielsen BuzzMetrics points me to an article in The N.Y. Times (reg. req'd) on review fraud in the travel industry and specifically with hotel reviews.

    Recently Judy's Book introduced what it calls "TrustScore" to address this potential problem.

    Having some system in place (that isn't too Byzantine) to ensure the integrity of reviews is going to be important as more marketers try and "game the system."

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[GMail Integrates 'Talk']]> http://206.106.174.250/blog/blog_comment.asp?bi=846 2006-02-07T00:33:11-05:00 2006-02-07T00:33:11-05:00 2006-02-07T00:33:11-05:00

  • Potentially differentiate GMail
  • Offer the first (that I know of) browser access to IM/chat
  • Potentially expose more GMail users to Google Talk functionality and thus, longer term, potentially boost the Google Talk user base.
    Chat "transcripts" are archived like mail and will be scanned like mail and contextually relevant ads will be served against them. More GMail usage = more page views, more ads and more clicks.

    The presence awareness feature is a nice aspect of all this, as is the browser-based IM functionality. Here are the official FAQs.

    According to Nielsen traffic data cited by MediaPost (reg. req'd):

    Google's e-mail service is the fourth most popular on the Web, but lags far behind the three market leaders — Yahoo, AOL, and MSN Hotmail ... Gmail last month had 6.7 million users, compared to Yahoo Mail's 50.7 million, AOL's 34.3 million, and MSN's 31.3 million. AOL's instant messenger was the most popular IM service, wtih 52.8 million users — followed by MSN Messenger, with 27.2 million, and Yahoo Messenger, with 21.8 million.

    Now that it's live in my GMail account and I've had a bit of a chance to use it, I can say that the integration is very convenient and seems to work well. (Although it takes a little getting used to.)

    Here's a full write-up from The N.Y. Times today (reg. req'd) and more from Chris Sherman at Search Engine Watch.

    ________________

    Google's running its own version of the "switch" campaign for e-mail.

    Update: I was corrected by a reader that Yahoo! has had browser-based chat for some time, though not yet integrated into e-mail. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Hearsay Dept: 'Googster']]> http://206.106.174.250/blog/blog_comment.asp?bi=845 2006-02-06T19:26:23-05:00 2006-02-06T19:26:23-05:00 2006-02-06T19:26:23-05:00 SiliconBeat discusses an unsubstantiated rumor about a possible Google acquisition of now tainted "social networking" (read: dating) site Friendster.

    Back in 2003 Google reportedly made an offer for Friendster (in the $30 million range — also unsubstantiated). Friendster, riding high at the time, spurned the offer, according to hearsay.

    Yahoo! has been gobbling up every new social/"Web 2.0" site in sight. But Google has made few forays into this realm. It's own Orkut has enjoyed limited success.

    Highly unlikely, but we'll see what happens. And, by the way, "googster.com" is taken.

    ___________

    One longtime "industry observer" I casually mentioned this to suggested that such rumors are usually started by the companies seeking to be acquired themselves as a last-ditch effort to create buzz.



    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Mobile Content in SB Ads]]> http://206.106.174.250/blog/blog_comment.asp?bi=844 2006-02-06T08:19:07-05:00 2006-02-06T08:19:07-05:00 2006-02-06T08:19:07-05:00 here. (You can also watch and vote for favorites at AOL.)

    I counted at least three ads touting mobile content: Motorola/Verizon, Sprint and ESPN; in other words, trying to promote mobile data usage and the phone as something other than a phone.

    The Motorola RAZR ad in particular was striking for its "meta communication." It showed a paperboy on a bike, delivering the newspaper and a homeowner (male) focused on his phone. When the newspaper flies into his yard the man picks it up and, without even considering it, heaves the paper back at the boy. The "tag" on the commercial was a promotion for Verizon content services (including "news and weather").

    The clear message of the commercial was: "you don't need the newspaper anymore now that you have mobile content on your phone." Ouch! — literally, as the paper hit the kid in the head.

    Next year will we see an ad for Google or Yahoo! Maps and other mobile local services?

    ___________

    Here's more on the commercials from Search Engine Journal and from the WSJ (sub. req'd).

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google, Skype Invest in FON]]> http://206.106.174.250/blog/blog_comment.asp?bi=843 2006-02-06T07:19:16-05:00 2006-02-06T07:19:16-05:00 2006-02-06T07:19:16-05:00 FON? No it's not a Spanish dessert — that's flan — although it is based in Spain.

    FON is an effort to build a global Wi-Fi network of hotspots with existing broadband connectivity — "members" are referred to as "Foneros" (Arriba!). These can be established ISPs as well as individuals. Google, eBay/Skype, Sequoia Capital and Index Ventures invested $22 million in the effort.

    Here's an AP article explaining FON, as well as identifying some of the potential challenges to the realization of FON's objectives.

    Here are the FAQs and here are some of the interesting people (scroll) behind FON.

    Both Google and Skype have a keen interest in seeing Wi-Fi/broadband proliferate. Whether FON ultimately takes the place of the hypothetical GoogleNet initiative is unclear. And whether FON ultimately succeeds or fails, the development of low-cost or free-access broadband networks will undoubtedly continue.

    In terms of the local angle, obviously a Wi-Fi hotspot provides precise location information and would allow for more geographically relevant organic or paid search results (without a user inputting location information).

    Broadband is of critical importance to anyone whose business model is tied to the Internet. And we’ll be examining the state of and outlook for continued broadband growth on the panel “The Broadband Juggernaut: Slowing Down or Speeding Up?” on day 1 of Drilling Down.

    Here's Om Malik's post on the investment (he'll be speaking on the broadband panel mentioned above BTW).

    And here's more from SiliconBeat.

    Here's the latest on the Google "dark fiber" rumors. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Navigators Wanted]]> http://206.106.174.250/blog/blog_comment.asp?bi=842 2006-02-03T18:53:56-05:00 2006-02-03T18:53:56-05:00 2006-02-03T18:53:56-05:00 Reuters discusses the VW-Google partnership to develop a "prototype vehicle which features Google Inc.'s satellite mapping software to give drivers a bird's eye view of the road ahead." Nvidia is also part of the deal.

    There's lots to say about the long-term potential here: personalization, routing with brands and advertising on the map, click-to-call/PPCall and so on.

    Without too much imagination, one can imagine a range of interesting local and local advertising possibilities.

    Let's see if it makes it to market.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[NBC Reaches Locally for Online Content]]> http://206.106.174.250/blog/blog_comment.asp?bi=841 2006-02-03T16:44:37-05:00 2006-02-03T16:44:37-05:00 2006-02-03T16:44:37-05:00 Yesterday we wrote about network-affiliated local television stations using their Web sites as distribution points for network content. NBC Universal has announced it will redesign all of its local station Web sites to handle multimedia content such as video and podcasts.

    Each new site will feature a predominantly placed video player for news clips, as well as daily webcasts by station anchors. Each station will also create original health, entertainment, sports and consumer news content, and share it across the network.

    They will also have access to NBC’s programming, weather forecasts from NBC’s digital weather service and downloadable coupons from Coupons Inc. Other local advertising will likely play a part, although little has been revealed.

    The move gives NBC Universal better local penetration online, and each local station benefits from additional content and branding. We’ll see how it works. ]]>
    John Kelsey jkelsey@kelseygroup.com <![CDATA[Mini Directories March On]]> http://206.106.174.250/blog/blog_comment.asp?bi=840 2006-02-03T16:38:21-05:00 2006-02-03T16:38:21-05:00 2006-02-03T16:38:21-05:00
    While some of these companions are indeed poor replicas of the real thing, particularly when a normal-size phonebook is simply shrunk by about 25 percent, others can be much more pleasing to the end user. The primary way to accomplish this is by avoiding type that is unreadable.

    According to eLink, R.H. Donnelley will begin to introduce companion directories in Trumbull, Ohio; Sussex, New Jersey; and Citrus, Florida. My view is that while these are not RHD's first mini directories, they are the first ones it is building specifically as companions. More are likely to follow, but I was unable to reach anyone who would comment.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Online News Gets Some Respect]]> http://206.106.174.250/blog/blog_comment.asp?bi=839 2006-02-03T16:12:23-05:00 2006-02-03T16:12:23-05:00 2006-02-03T16:12:23-05:00 on the rise, newspapers are increasingly putting more emphasis on their online news production. More specifically we're seeing an overhaul of many newspaper operations to change the mind-set that online is an afterthought. Its importance is gaining steam among users, and newspapers are trying to reflect that importance internally, starting with the news production.

    Editor & Publisher takes a look at The Sacramento Bee's "continuous news desk," which was recently created to update its Web site 24 hours a day. The change showed immediate improvements in content and a mind-set change across the organization about how to cover and publish breaking news. An interesting read.

    This is similar to changes we're seeing across the industry, such as The New York Times' and USA Today's (among other papers) moves to merge their online and print newsrooms. We expect to see more of this in the future. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[The MyWeb 2.0 of Video]]> http://206.106.174.250/blog/blog_comment.asp?bi=838 2006-02-02T17:07:26-05:00 2006-02-02T17:07:26-05:00 2006-02-02T17:07:26-05:00 YouTube.

    Om Malik reports on a site called Dabble that is taking this concept to the next level. Like Yahoo!’s MyWeb 2.0, and del.icio.us, the service lets users tag and bookmark video clips that will be displayed on personalized pages. From there users can do things such as create video playlists and share with friends.

    The benefits of social search include the cost savings and effectiveness of having users do the “heavy lifting” of indexing content. This could apply especially well to video because there will be lots of it (user-generated and long-tail content on which sites like YouTube thrive — kind of like Flickr), and because video content has proved difficult to tag and index using software. Advertiser benefits are also present, as more human participation enables better behavioral targeting.

    We’ll further explore social search and its place within the emerging online video space in an upcoming White Paper.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Super Bowl Ads Aplenty]]> http://206.106.174.250/blog/blog_comment.asp?bi=837 2006-02-02T15:56:36-05:00 2006-02-02T15:56:36-05:00 2006-02-02T15:56:36-05:00
    PaidContent has a roundup of where you can see the ads on-demand. Now you can actually get up to get a snack during commercial breaks without missing out.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Straight From the Source]]> http://206.106.174.250/blog/blog_comment.asp?bi=836 2006-02-02T15:44:53-05:00 2006-02-02T15:44:53-05:00 2006-02-02T15:44:53-05:00 Neal's comments earlier about direct distribution of content that could increasingly render middleman distribution channels unnecessary, CBS has done something similar with its famous "Survivor" reality show. Though CBS is a distribution channel itself, in this case it is cutting out the digital “on-demand” distribution channels that have recently formed for online content such as iTunes and the Google Video store.

    Along those lines, NBC has announced that it will do the same thing with its new reality show — an "American Idol"-like music competition called "StarTomorrow" — by offering it exclusively on NBC's site.

    This is a young industry, so expect a great deal of experimentation with distribution strategies such as this. PaidContent reports on another online distribution model that is beginning to gain attention, which mirrors that of the offline broadcast world in that it relies on local broadcast affiliates. In this setup, such affiliates would offer downloads and streams of network programming on their Web sites.

    In the offline world, local affiliates make sense because they can provide local news and broadcast towers. But online, these things are less relevant. So local affiliate Web sites need to prove a value-add to networks if they are going to use their content and profit from it. Local advertising and increased distribution of content (with a revenue share model) might be the answer.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Online Newspaper Growth a Bright Spot]]> http://206.106.174.250/blog/blog_comment.asp?bi=835 2006-02-02T15:36:49-05:00 2006-02-02T15:36:49-05:00 2006-02-02T15:36:49-05:00 gloomy reports (WSJ sub. req'd) about the health of print newspapers, there's some very good news in online revenues and traffic growth for newspaper sites. According to Nielsen and the NAA:

    Both the overall number and percentage of Internet users visiting newspaper Web sites hit new all-time highs in November 2005, according to a new report by Nielsen//NetRatings for the Newspaper Association of America. The data, which takes into account home and work Internet usage, shows that more than 55 million people visited newspaper Web sites in November, a 30 percent increase (42.5 million) from the same period a year ago.

    The November visitors also represent more than one third (36 percent) of all active Internet users that month, the most of any month since NAA began tracking online usage in January 2004.

    For the year’s fourth quarter, the monthly unique audience averaged more than 53.6 million and 35.2 percent of all active Web users. The time Internet users spend on newspaper sites also continues to rise as users’ visits averaged 42 minutes a month during the quarter.


    In addition, news content is the No. 1 type of content that users seek out online.

    Separately, here's a piece in Ad Age (reg. req'd) about Neil Budde and Yahoo! News and the delicate dance he's doing with his traditional media partners:

    “We’re not interested in setting up a full news service with a correspondent in the White House,” said Neil Budde at the Software & Information Industry Association meeting held at New York’s Cipriani restaurant on 42nd Street. Perhaps to calm the jittery nerves of some of the traditional-media pros in the audience, he added, “We want to be your partners.”]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Click-to-Call (PPCall?)]]> http://206.106.174.250/blog/blog_comment.asp?bi=834 2006-02-02T11:47:31-05:00 2006-02-02T11:47:31-05:00 2006-02-02T11:47:31-05:00 piece on Google's "click-to-call" initiative. According to the article, the company is working with Florida-based VoIP Inc.

    Click-to-call is not PPCall. There are many companies using click-to-call, which is about connecting calls between individuals and merchants. PPCall is a business model that can be built upon click-to-call. It seems, however, pretty certain that Google's rollout of PPCall is imminent.

    Once that happens, or maybe before, we’ll see Yahoo! go live with PPCall and later MSN. Here’s a list of average PPCall prices (from several providers) in several top YP categories:

    • Florists ($2.50)
    • Lawyers ($10-$30)
    • Towing ($8)
    • Carpet Cleaning ($8)
    • Travel ($8)
    • Dentists ($5)
    • Mortgage ($35)
    • Cosmetic Surgery ($20)
    • Auto Glass ($15)

    The average click price at the national level at the end of 2005 was $1.43, according to Fathom Online's keyword price index.

    Of course this also could be about Google offering calls to consumers and thus creating another revenue stream, a la Vonage or Skype. But that's less likely in the near term.



    ]]>
    Neal Polachek NPolachek@kelseygroup.com <![CDATA[Coldplay Tickets, NFL Football, MTV]]> http://206.106.174.250/blog/blog_comment.asp?bi=833 2006-02-02T11:07:10-05:00 2006-02-02T11:07:10-05:00 2006-02-02T11:07:10-05:00
    Earlier this week the NFL awarded some set of games to its own NFL Network rather than the usual suspects who had bid on them — namely Fox, Comcast, CBS and some new bidders — Verizon in particular. That the NFL chose its own network points to the diminished role the traditional networks and carriers have in a world where the pace of convergence is accelerating. While the NFL Network's reach may be considerably smaller, it is obviously a highly targeted market that is — oh by the way — probably willing to pay to watch NFL games. And besides, go ask Joe's AAA Plumbing if he wants to advertise on the NFL Network — my guess is his answer will be "where do I sign."

    MTV recently launched its broadband channel targeted at the 18-24 college crowd called Uber. The site mixes professional and amateur content into a constellation of images and sounds and information that in theory appeal to the audience. The college audience has long been desired by local advertisers — just consider the volume of burritos and pizzas consumed and you get the picture. It will be interesting to see if Uber can find a way to sell local advertising to Betty Joe's Homemade Pizza store while keeping the site sufficiently cool and edgy. ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Eniro Adds Click-to-Call]]> http://206.106.174.250/blog/blog_comment.asp?bi=832 2006-02-02T10:55:05-05:00 2006-02-02T10:55:05-05:00 2006-02-02T10:55:05-05:00 here.

    Eniro plans to offer the service for free initially to its 30,000 online customers as a way to add value to existing programs. Eniro is a leading player in print and online directories and search in the Nordic markets. Its chief rivals include the major "international" search engines, including Google, with which Eniro also is a partner. Offering click-to-call is consistent with Eniro's positioning as the search and directory service that facilitates buyer-seller interaction.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Local Provides 'Answers']]> http://206.106.174.250/blog/blog_comment.asp?bi=831 2006-02-02T10:04:34-05:00 2006-02-02T10:04:34-05:00 2006-02-02T10:04:34-05:00 Yahoo! Answers launched it was immediately clear that people would be asking for local recommendations and seeking answers to questions with local implications.

    Now, consistent with Yahoo!'s strategy to push user-generated content from anywhere within Yahoo! to anywhere else relevant within the network, the company has started to integrate Answers information into Local.

    Here's a San Francisco page that shows some of that content integration (middle of the page: "people are asking about.")

    You can also find, among other information, local business content in Answers directly. (Scroll lower left for cities.)

    Yahoo! is starting to reap the benefits of its multifaceted "social search" strategy and it could pay long-term dividends for the company. User-generated recommendations and referrals are uneven but often of very high quality or at least unique. That's because this is information (online word of mouth) that might not be available through search or otherwise online at all. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[StepUp to the Future of Online (Local) Shopping ]]> http://206.106.174.250/blog/blog_comment.asp?bi=830 2006-02-02T08:51:55-05:00 2006-02-02T08:51:55-05:00 2006-02-02T08:51:55-05:00 StepUp launched a couple of years ago with the intention of delivering real-time inventory information and product availability to the Internet it was met with considerable skepticism, along the lines of "yeah, how are they gonna do that?" and "good luck."

    But now that the company has a deal with Google to provide local shopping information, it's clear that other shopping search engines have to take notice. (CNet and Yokel offer versions of this.)

    As we've pointed out before, e-commerce (though impressive and growing) is only 2.5 percent of all U.S. retail spending, according to the U.S. Commerce Dept. (Forrester has a somewhat larger number). It doesn't matter, however, whether the actual number is what the U.S. says it is or Forrester's larger projection. Even in the most "optimistic" scenario, online shopping is no more than 5 percent of total retail spending.

    Yet our data show that 70 percent of local consumers (which is everybody ultimately) are using the Internet to find products and services locally. That doesn't mean they're not using other traditional media. However, it does mean they're online doing research and price comparisons — and then spend their money in a physical store (whether it's a mom-and-pop or a Best Buy).

    So what does this mean? It means that consumers are generally not finding information about where they can buy products locally online or they're having great difficulty in doing so.

    Google's decision to be "agnostic" about whether consumers buy something online or locally is smart, given consumer interests and behavior, and I would expect other shopping engines to follow suit this year.

    If they don't they may put themselves at a competitive disadvantage and potentially leave money on the table. E-commerce isn't going to take over the world as everyone once thought; it's just one channel.

    The far larger channel — but increasingly influenced by the Internet — is offline/local shopping.

    __________

    Some interesting data compiled by eMarketer on multi-channel/big-box retailers. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[WLL Super Bowl Mashup]]> http://206.106.174.250/blog/blog_comment.asp?bi=829 2006-02-02T07:03:02-05:00 2006-02-02T07:03:02-05:00 2006-02-02T07:03:02-05:00 Super Bowl mashup. (So there's a football pun/joke in there, but I'm going to leave it alone.)

    Here's the official MSN/WLL word on the site:

    [MSN has] created a Super Bowl mashup to help the thousands of fans expected to travel to Detroit for the game navigate their way around, look for parking, hotels and directions to the stadium, as well as find good places to eat, drink, or to pass the time before Sunday’s game ... [P]eople can view a map of Detroit with information on local attractions, such as the Motown Museum or the Detroit Opera House. Also, we’ve just added Detroit to the list of major cities with birds-eye aerial imagery.

    I continue to be amazed by the "bird's-eye" imagery. Too bad it's not real time so you can actually see how many parking spots are left in that Historic Trinity Lutheran Church parking lot.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Simply Hired Is Simply Fascinating ]]> http://206.106.174.250/blog/blog_comment.asp?bi=828 2006-02-02T05:12:56-05:00 2006-02-02T05:12:56-05:00 2006-02-02T05:12:56-05:00 Simply Hired. Beyond some interesting things that they were telling me about their roadmap, I was fascinated by the "vertical"' vs. "horizontal" search discussion we had.

    My personal belief is that the more verticals there are, the more people will "default" to general search engines because they're overwhelmed and confused. However, there are lots and lots of interesting things going on in "vertical search" or verticals where search is the primary navigation tool.

    Simply Hired is a "metasearch" engine for jobs (job search is inherently local), but on top of search results the company is building lots and lots of added value. In other words, aggregating the listings from multiple providers (including the big three) is just the beginning.

    Look at this result for "marketing" + "new york." Beyond the filtering of results by selected criteria (e.g., location, education level, company size, etc.), one can save jobs, rate jobs, map jobs, virally e-mail jobs, do salary research and, perhaps most significantly, network via linked-in (find contacts who work or have worked at the company).

    All these additional job-specific services illustrate the value verticals can bring to the user experience that is hard for general search engines to duplicate for many reasons.

    As I've remarked before, we're seeing the development of an "ecosystem" in which the general/horizontal search engines are where many "verticals" are discovered by consumers and in the subsequent exploration or drill down within the vertical is where the potentially best hand-off is to the advertiser (or at least this is the vertical argument. But this is seemingly proven in IYP contexts; IYPs aren't a "vertical" per se, but see below.)

    In this "vertical environment" is also where you're likely to find the bulk of local businesses going forward, for many reasons. (This applies to newspapers and Yellow Pages sites as well, which are obviously not "verticals" but stand in the same relation as verticals to general Web search in the broader structure of the ecosystem.)]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Newspapers Are Mad at Search Engines]]> http://206.106.174.250/blog/blog_comment.asp?bi=827 2006-02-01T18:59:16-05:00 2006-02-01T18:59:16-05:00 2006-02-01T18:59:16-05:00 this article this morning but was racing out to a meeting at StepUp.com and so I didn't have time to do a post earlier. From Reuters:

    The Paris-based World Association of Newspapers, whose members include dozens of national newspaper trade bodies, said it is exploring ways to "challenge the exploitation of content by search engines without fair compensation to copyright owners."

    Web sites like Google and its specialized Google News service automatically pull in headlines, photos and short excerpts of articles from thousands of news sources, linking back to the publishers' own site. Google News does not currently carry advertising.

    "They're building a new medium on the backs of our industry, without paying for any of the content," Ali Rahnema, managing director of the association, told Reuters in an interview.

    "The news aggregators are taking headlines, photos, sometimes the first three lines of an article — it's for the courts to decide whether that's a copyright violation or not."


    While this attitude (and the frustration behind it) is certainly understandable, it's unlikely that a litigation-oriented approach will be successful as a strategy for newspapers in the long run.

    This is a larger version of the Craigslist-Oodle aggregators vs. content producer debate. (And see Jakob Nielsen's anti-search screed as another salvo in this same debate.)

    The newspapers (at least as represented in WAN's public statements) are frustrated that Google, Yahoo! and others appear to be reaping the benefits of their content creation while they struggle to maintain subscribers and defend against advertiser defections. But it's a mistake to simply say, by implication, our industry's challenges and problems can be attributed to news aggregators that take our content for free.

    I'm quite sympathetic to newspapers and believe that news organizations have a critical role to play in democratic societies and thus need to succeed and thrive online (The N.Y. Times broke the NSA wiretapping story, not a blogger and not TV).

    If the newspapers can collectively negotiate some financial/content licensing arrangement with news aggregators (one of which, Topix, is owned by newspapers) that's great. However, ultimately, they should focus on delivering value to their users and advertisers and working together to create networks to leverage their traffic — rather than on legal efforts to block or tax the collection and distribution of their content.

    Litigation in this case is not a competitive strategy; it's a form of denial.

    ___________

    Danny Sullivan at Search Engine Watch does a nice roundup of the coverage of the "newspapers want search engines to pay" story.

    My colleague Mike Boland points me to this news aggregation aggregator. :)

    And, from the other end of the spectrum, AT&T raises the toll road question again per Om Malik.







    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Notable VoIP Happenings]]> http://206.106.174.250/blog/blog_comment.asp?bi=826 2006-02-01T15:00:44-05:00 2006-02-01T15:00:44-05:00 2006-02-01T15:00:44-05:00 The San Jose Mercury News reported that Google is working with Florida-based VoIP Inc. to possibly add voice calling to its network of offerings, which can be seen as a step toward bolstering its search advertising with pay-per-phone-call.

    Google currently offers PC-to-PC calling through its Google Talk IM client that was released in April. But adding PC to PSTN (land line) would bring it closer to click-to-call functionality, a key underpinning of a PPCall model. SEW reminds us that Google has been testing click-to-call since November.

    Given that many small businesses prefer calls to clicks, this could be a powerful tool in leveraging the base of SME advertisers that already participate in its AdWords program and could appeal to the larger segment of SMEs that haven’t been enticed by the promise of clicks. It could also be more disruptive to directory publishers whose businesses thrive on such SMEs.

    BusinessWeek meanwhile reported today that Microsoft has a similar plan up its sleeve to integrate PC-to-PSTN calling to its e-mail and IM clients. Also notable is the possible VoIP integration into its Windows Live Expo classifieds service that hasn’t officially launched yet.

    From BusinessWeek:

    It will allow people to find buyers and sellers who are connected, even if distantly, to their social network of IM buddies or e-mail friends. For example, a user could see if a pal or member of another friend's social network has a sofa for sale.

    Where VoIP comes in: In addition to e-mailing the sofa seller, the Live Expo user can lob a call directly from a PC. Currently in an internal trial, Expo will enable Microsoft to compete with classifieds services Google Base, currently in beta tests, and Craig's List, one of whose investors is eBay.


    Indeed, this could be similar to eBay’s possible plan to integrate the VoIP platform of its recently acquired Skype to its auction and classifieds listings.

    There are also mobile implications according to BusinessWeek:

    Microsoft's VoIP plans even reach beyond the PC. The company is also angling for a piece of the mobile-search pie. Though it involves tiny screens — consumers can use cell phones or personal digital assistants to search the Web — this market has huge potential. It's expected to rise to $1.4 billion in 2010, from $90 million last year, according to consultancy Visiongain.

    In other VoIP news, Om Malik reports that Time Warner (as announced in its quarterly earnings report) has added 246,000 VoIP subscribers for the fourth quarter and 880,000 for the entire year, which gives it a grand total of 1.1 million (this class of VoIP service doesn’t involve an IM client or a computer at all, but rather a normal phone that is connected to a piece of hardware to make calls over the Internet. Competitors in this space include Verizon and Vonage). In a separate post, Om also provides some good stats on overall VoIP adoption and projections.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA['Need Something' Ad Campaign]]> http://206.106.174.250/blog/blog_comment.asp?bi=825 2006-02-01T09:43:30-05:00 2006-02-01T09:43:30-05:00 2006-02-01T09:43:30-05:00 posted about the YellowPages.com "Need Something" ad campaign when it officially launched earlier this week.

    Here's more on the size and reach of the campaign from ClickZ. You can view the online ads here and the TV ads here.

    I think both sets of ads are quite effective (in particular the TV spots are clever). It remains to be seen whether the campaign will have the desired impact and help burn the YellowPages.com brand into consumers' minds as a local search destination. At a minimum, I think they will get consumers who are currently unaware of the site to check it out.

    As I've written before, there has to be a there there when consumers show up. And the site has made great strides in usability. Yet YellowPages.com must continue to develop itself as a consumer destination to be competitive over the long term. An intuitive URL and great brand are only part of the equation. Of course, Charles Stubbs and his team know this very well.

    YellowPages.com is also being quite aggressive in developing a distribution network and recently announced a significant partnership with Yahoo! (an extension and expansion of the previous SBC, BellSouth deals).

    Surveying the local online space, we can see not only growth and opportunity, but furious competition as well. It's a very exciting as well as perilous time for traditional media companies, including Yellow Pages publishers, trying to develop their online properties into real growth and revenue engines.

    It's great to see YellowPages.com really putting the "pedal to the metal" (to use an old colloquialism) in promoting itself and trying to build consumer awareness.

    I believe this campaign is coming at the right time and really has a shot at "priming the pump" but YellowPages.com must continue to innovate and focus on the user experience if it really wants the campaign to pay long-term dividends. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA['Point & Search' Part II]]> http://206.106.174.250/blog/blog_comment.asp?bi=824 2006-02-01T08:57:52-05:00 2006-02-01T08:57:52-05:00 2006-02-01T08:57:52-05:00 Search Engine Journal covers the recent GeoVector/Mapion announcement about "point and search" mobile local technology in Japan.

    From the GeoVector announcement:

    With Mapion Local Search, users can now walk down the street anywhere in Japan and point at over 700,000 objects such as buildings, shops, restaurants, banks, historical sites and instantly retrieve information on what they are looking at or find what they are looking for just by pointing their phone. Just like one uses a mouse to click on an object on a computer screen and retrieve information, now users can Click on the Real WorldŽ using their mobile phone.

    There's a company called NeoMedia, which has similar technology, that I wrote about awhile ago. And my colleague Mike Boland previously wrote about "point and search" mobile-local/visual model last year.

    What's interesting — and exciting — about this is the way in which this kind of model potentially accommodates the limitations of current cellphones and is relatively "passive" for users. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Is Human]]> http://206.106.174.250/blog/blog_comment.asp?bi=823 2006-02-01T08:08:01-05:00 2006-02-01T08:08:01-05:00 2006-02-01T08:08:01-05:00
    I had expected Google to beat expectations. But the key word here is "expectations." If you look at what the company actually did, the results were impressive. Google revenues were $1.92 billion vs. $1.57 billion last quarter (22 percent growth, up from 14 percent vs. Q2). So revenue growth has accelerated.

    These are very solid figures. They're just not mind boggling compared with Google's history of triple-digit revenue growth.

    Google investors are a tough crowd — 86 percent growth (vs. last year) wasn't good enough. Admittedly, Google itself has conditioned expectations and set the bar pretty high with its past performance. But it's as if investors are saying the equivalent of "we expect a 100-point game every time" (to use a basketball analogy).

    That's just not possible.

    There are plenty of reasons to believe that Google's future performance will continue to be very strong. The company has consumer market-share leadership, which should continue for the immediate future at least. And, according to this MediaPost article (reg. req'd) citing an advertiser survey, marketers perceive greater value in Google advertising than in that of its main rivals:

    About 71 percent of respondents said that search ads on Google were effective, compared to 62 percent who considered search ads on Yahoo effective and 49 percent who thought MSN search ads were effective.


    In addition, WebSideStory asserts that search marketing produces double the conversions of other types of online marketing. Conversion here is defined as the percentage of visitors who click on a search result and go on to make a purchase or conduct a transaction of some sort. That percentage was 2.3 percent. (For every 100 consumers, 2.3 went on to spend money.)

    So search can be expected to continue to attract marketing dollars. And it's still very much an "immature" medium; we estimate there are only about 475,000 to 500,000 such advertisers across the globe.

    Moreover, the Internet is not going away. While there are challenges to growth on the advertiser side (bringing in more small businesses and so on) consumers show no signs of abandoning the Internet or search engines any time soon.

    All these factors point to continued strong performance though perhaps not at the triple-digit levels of the past.

    Google set up its bifurcated stock structure to partly insulate itself against the "whims" of the marketplace. (And it doesn't provide guidance for analysts.) That "insulation" isn't entirely working, as the company clearly feels the pressure to perform and explain why it didn't do better than expected.

    That pressure should accelerate Google's efforts to diversify some of its revenues and roll out more new consumer and advertiser offerings this year.

    Effectively, that means no letup in competition among the major brands (Google, Yahoo!, MSN, AOL), which, as one VC recently put it to me, "are in a feature war," and no rest for those of us who cover them.

    ____________

    More analysis from Andrew Goodman at Traffick and extensive information and analysis from The Internet Stock Blog.

    Here's Om Malik's Business 2.0 piece. ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Dex-RHD Deal Closes]]> http://206.106.174.250/blog/blog_comment.asp?bi=822 2006-01-31T12:53:02-05:00 2006-01-31T12:53:02-05:00 2006-01-31T12:53:02-05:00 here.

    More detail was revealed about the newly combined company's management structure. As we knew, Dave Swanson is CEO and George Burnett will lead the board of directors. Maggie LeBeau, who ran marketing at Dex, will be in charge of marketing in the new organization, and Dex's IYP chief, Simon Greenman, will play the equivalent role in the new RHD. The very top of the organization will be dominated by RHD executives, including Peter McDonald, Steve Blondy and George Bednarz. Al Duy, a longtime associate of Peter McDonald, will be in charge of information technology.

    One of the decisions we will watch for is whether RHD will join forces with YellowPages.com to achieve additional scale, or if it will ride on Dex's well-regarded IYP platform to leverage its own substantial footprint.



    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Muni Wi-Fi and Sling Bling]]> http://206.106.174.250/blog/blog_comment.asp?bi=821 2006-01-31T07:41:22-05:00 2006-01-31T07:41:22-05:00 2006-01-31T07:41:22-05:00 finalized its deal with Philadelphia to provide what amounts to wholesale wireless/Wi-Fi access that can then be resold to ISPs (which would then sell to consumers). So this isn't "free" Wi-Fi, but reportedly EarthLink would only be charging $9 per month as a wholesale rate — so retail costs could wind up being pretty low (given potential competition). Regardless, Philly wants to keep the ultimate costs under $20 for city residents. This is probably the model for municipal Wi-Fi "going foward" (rather than free).

    In addition, EarthLink is the latest to launch VoIP. We're likely to see an accelaration of VoIP adoption late this year or perhaps very early next year.

    Separately, per SiliconBeat, MetroFi is launching Wi-Fi for Santa Clara and Cupertino, California. This one is free and intended to be ad-supported. From the MetroFi press release:

    The MetroFi network also brings a new opportunity for local businesses to reach the community through a truly local internet advertising medium. Customers that are accessing the network will be shown a banner advertisement in the frame of the browser. Local businesses can take advantage of the local and regional nature of the network by providing links to their website, coupons or announcements to those that are guaranteed to be near their establishment.

    But here's a skeptical article that appeared in The Mercury News.

    And here's a totally unrelated development (also per the intrepid folks at SiliconBeat): Sling Media raised a whopping $46 million round of financing:

    Sling Media, Inc., a digital lifestyle products company, today announced it closed a $46.6 million round of financing. Goldman, Sachs & Co., Liberty Media Corporation and Echostar Communications led the financing round. Allen & Co. LLC, DCM — Doll Capital Management, Mobius Venture Capital, The Hearst Corporation and other undisclosed investors also participated in the financing ...

    Sling Media’s first product, the Slingbox™, is a breakthrough consumer electronics device that enables consumers to watch their living room TV programming from wherever they are by turning virtually any Internet-connected Windows-based laptop or desktop and any Windows Mobile-based PDA or smartphone into a personal TV. The Slingbox redirects, or “placeshifts,” a single live TV stream from a basic cable connection, cable box, satellite receiver or digital video recorder (DVR) to the viewer’s PC — located anywhere in the home or anywhere in the world, via the Internet.


    Why do we care about this? Because it's part of two important trends:

    1. Fragmentation of the consumer audience and increasing consumer control over media consumption
    2. The transformation of TV/video into a targeting medium

    Those are themes at this year's Drilling Down event. ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[My Yahoo! Reaches 30 Million Mark]]> http://206.106.174.250/blog/blog_comment.asp?bi=820 2006-01-30T12:11:39-05:00 2006-01-30T12:11:39-05:00 2006-01-30T12:11:39-05:00 Greg's post last week about My Yahoo!, there was an interesting article in The New York Times yesterday about the site's usage and strategy.

    The Times reports that as of December, there were 30 million Americans that have created a My Yahoo! page. RSS is the main feature of My Yahoo!, but the site has marketed its advantages without ever using the term "RSS" (yet another tech acronym that has the potential of scaring away mainstream Internet users).

    Making an easy way to create RSS feeds, and partnering with news and travel sites on which an "add to My Yahoo!" button is offered, has proved successful.

    The company is now developing the next-generation RSS software called media RSS, in anticipation of the ramp up in demand for online video. As Yahoo! told us directly, this will be a powerful tool for users to create a personalized hub and launchpad for all their digital media.

    The next step is to continue forming partnerships with travel, shopping, auto, jobs and other verticals to make it easy for users to set up feeds on their My Yahoo! pages for alerts that fit their predefined criteria (see our recent advisory RSS and Email Alerts: Shopping 2.0). This could prove to be a powerful tool for classifieds and other advertisers to get in front of users that have expressed a very specific interest.
    ]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Verizon Settles Strike]]> http://206.106.174.250/blog/blog_comment.asp?bi=819 2006-01-30T10:14:27-05:00 2006-01-30T10:14:27-05:00 2006-01-30T10:14:27-05:00 Here is an article with details. ]]> Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[YPC Launches Ad Campaign]]> http://206.106.174.250/blog/blog_comment.asp?bi=818 2006-01-30T10:02:43-05:00 2006-01-30T10:02:43-05:00 2006-01-30T10:02:43-05:00
    The stakes for this campaign are fairly high. YPC has a real opportunity, given its intuitive URL, to establish itself as a premier IYP. This would be a real source of strength to YPC's owners, who are increasingly looking to the IYP as a key to restoring top-line growth.

    You can read the announcement here. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Will the Real 'True Local' Please Stand Up?]]> http://206.106.174.250/blog/blog_comment.asp?bi=817 2006-01-30T04:29:50-05:00 2006-01-30T04:29:50-05:00 2006-01-30T04:29:50-05:00 True Local search engine has gone live in Australia. Its purpose is to compete with Sensis and it's "powered" by News Corp.-owned newspapers. This is an interesting thing for U.S.-based newspapers to consider, but perhaps impossible for them to pull off as a collective (sort of a YellowPages.com approach).

    I suspect we can expect a similar launch in the U.S. in the near term, given all Rupert Murdoch's statements and his aggressive buying of online properties. The only problem is that there's already an established True Local search engine: TrueLocal.com. So this launch reflects either arrogance or stupidity or some mysterious combination of the two.

    Unless they intend to build a separate local search brand in the U.S., which is possible, they can't think that they're going to be able to use that brand (indeed, the URL is gone). TrueLocal.com has been operating as a commercial enterprise for well over a year and has plans to expand its geographic coverage.

    While two brands or identical company names can exist in circumstances where they're in different businesses, they cannot where there is a "substantial likelihood of consumer confusion." And unless I miss my guess, two local search engines with the name "True Local" would probably be confusing to the ordinary consumer.

    So we've got a bit of a David vs. Goliath story here, unless, as I said, News Corp. creates a completely different local search brand in the U.S. Regardless, we can probably say with 100 percent certainty that News Corp./Fox will be getting into local search "stateside."

    Yet another player to stir things up (and cover). [:0] ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL Ready to Give BB Another Go]]> http://206.106.174.250/blog/blog_comment.asp?bi=816 2006-01-30T04:05:51-05:00 2006-01-30T04:05:51-05:00 2006-01-30T04:05:51-05:00
    AOL had limited success with this the first time around, so why is the company "giving it another go"? This Reuters article quotes Joe Redling, president of AOL access services:

    "What we've seen from early indications is that as we've moved customers from dial-up to broadband, we've seen significant improvements in member life ... It's really a long-term play to stabilize the membership."

    Despite the fact that AOL has been losing dial-up subscribers, it still has more than 20 million.

    And a high-speed offering will enable AOL to have a more direct channel into broadband homes, which are characterized by more disposable income and education. It may also more effectively enable the company to sell things like its TotalTalk VoIP offering (which is, of course, directly competitive with its telco partners' fixed line phone businesses). ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Adds Personalization to Toolbar Upgrade]]> http://206.106.174.250/blog/blog_comment.asp?bi=815 2006-01-30T01:28:08-05:00 2006-01-30T01:28:08-05:00 2006-01-30T01:28:08-05:00 here.

    Worth noting from my point of view are the following:

    • Bookmarks (the ability to add any page or custom search to the toolbar; it's the return of bookmarks to a degree)
    • Custom buttons (Google has created a bunch of custom buttons and an API to allow third parties to create them — a la "widgets")
    • Send to (ability to share Web sites through e-mail, SMS or publish on blogger). Yahoo! currently offers a comparable feature
    • Account sign-in (from the toolbar; creates another incentive to sign up for an account/Gmail)
    Google also enables users to put Local, Froogle, Image Search, Video, News and Gmail (as mentioned) into the toolbar. Will this affect use of these services? It could well boost their visibility and, ultimately, their usage.

    For example, I rarely use Froogle (except when I'm comparing it with other services for my work). But with the button always there, it's very easy to click over and use Froogle to do a quick product search, etc. No need to go to Shopzilla or Shopping.com or eBay for these sorts of casual lookups. Just click the button and execute the search. (It removes a step.) Same thing for local: click the button, do the search; it's more "elegant" than conducting a local search on Google.com and clicking the compass icon after the fact.

    The previously much-criticized "Autolink" feature does some interesting things with Local, displaying all the addresses that appear on a map (e.g., "wine shops, Oakland, CA"') as a pull-down menu. That enables the user to quickly select a location if s/he knows it ("I want the one on Main," etc.).

    Google has a new marketing (and to some degree branding) vehicle to build awareness for these various services (Local, Video, Froogle) through their (opt-in) presence on the toolbar. And the Google Pack "Updater" will notify users of changes and updates, etc. How about a Google Music or Google Travel button in the future?

    We previously wrote about toolbars (in an ILM Client Advisory) as a driver of search market share and how they will become more strategic over time. Yahoo! had the greatest toolbar share, according to comScore (July '05: 51 percent of all toolbar searches). About 12 percent of all U.S. searches were executed through toolbars in July, an 8 percent increase over 2004, according to comScore.

    I'm sure I haven't captured all the tricks the new toolbar can and will be able to do. But the thing that is most intriguing to me is the way in which the toolbar can house alerts/dynamic searches and could potentially become an RSS reader.

    Third parties can create buttons (think blogs: "add to Google Toolbar"') or users can effectively plug feeds into the bookmarks feature. Therefore, it's possible to use the toolbar for all your feeds — something the "ordinary user" won't think about or discover in the near term.

    But what that "ordinary" person might well do is set up a Google Alert for some term (e.g., "Kelsey Group") and plug that dynamic search result into his/her bookmarks. This is something that A9 now permits.

    Imagine third parties creating buttons or feeds (as more sites are doing) for specials/deals/offers that can become buttons or persistent searches in the toolbar. It creates some very interesting possibilities.

    Despite the 1,000,001 toolbars out there, Google and Yahoo! are dominant in terms of market share. They each offer somewhat different features and are thus complementary. Until now, one of the advantages of the Yahoo! toolbar over Google's was the custom buttons (Yahoo! gave you two). The new Google toolbar offers almost unlimited customization possibilities through buttons and bookmarks.

    Yahoo!'s toolbar also has "anti-spy," a feature that the new Google toolbar doesn't offer (which I use to delete tracking cookies every day). Indeed, Google hasn't duplicated all the features on the Yahoo! toolbar, but it has eliminated the "customization gap" that existed and created a broader range of potential personalization opportunities.

    In addition, the Google toolbar ties in to Google's personalized home page (for those registered and signed in) and to your "search history." In this way we start to see how the "Fusion" strategy might knit together some of these disparate elements (personalized home, sidebar, desktop search, toolbar).

    Google right now has a "many doors" approach, in that users can access Google and search through any number of tools and utilities (personalized home, sidebar, toolbar, desktop search, etc.). Over time it will start to be clear to Google how users are predominantly tapping into its features and services, and the company will place emphasis accordingly.

    Toolbars have been important, but we expect that over time they will become even more strategic. Yahoo! will not likely leave this development unanswered (at the very least I'd anticipate more custom buttons to be introduced).

    So expect more competition and increasing levels of functionality on the "toolbar front" in the future.
    ___________

    More from Chris Sherman at Search Engine Watch.

    Here's some interesting discussion of tagging and bookmarking and the new toolbar at Search Engine Journal. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[What's in a Name(TM)?]]> http://206.106.174.250/blog/blog_comment.asp?bi=814 2006-01-28T04:57:41-05:00 2006-01-28T04:57:41-05:00 2006-01-28T04:57:41-05:00
    Here's a post by Danny Sullivan (SEW) about a dispute between Judy's Book and presumably Yahoo! regarding Judy's Book's asserted trademark over the term "social search." Judy's Book has been granted the registered trademark to the term

    As Danny suggests in his post, "social search" is a little like a "generic term" that has been used for a few years with increasing frequency as the market has evolved.

    Now Judy's Book can send "cease and desist" letters to the host of companies directly or indirectly using the term in their marketing. If they do, it won't necessarily do anything for them; however, if they get a lot of coverage on this story that might be good for their consumer awareness.

    Judy's Book, which is run by smart people, will sink or swim not on the marketing value of the term "social search," but on the merits of the user experience it offers and the value it delivers to local advertisers (to which the company sells phone leads, otherwise know as "pay per [phone] call.")

    Speaking of which, the term "pay per call" has been TM'd by Ingenio. So everyone else in the phone leads business needs to use another term — and they're starting to.

    In the PPCall arena there might be a few more (marketing) reasons (than in "social search") to assert trademark rights over "pay per call." Yet, again, whether a service is called "pay per call," "pay per phone call," "phone leads," "performance calls," whatever ... the value delivered to Ingenio's advertisers and its partner distribution network will determine whether the company achieves its ultimate business objectives.

    "Google" and "Yahoo!" are essentially nonsense terms that have become mega-brands because of what they actually do and deliver for people.

    In fact, if you start a company today and you want your brand and your URL to be the same you have to "make up a word," as Richard Barton, CEO of new real estate site Zillow, told me today (more on Zillow later).

    Somebody needs to write a piece about all the distorted names and brands of new companies out there because all the URLs are taken. Case in point: Here's another new (health) search engine: Kosmix.]]>
    Charles Laughlin CLaughlin@kelseygroup.com <![CDATA[Yellow Book's Usage Results]]> http://206.106.174.250/blog/blog_comment.asp?bi=813 2006-01-27T15:37:07-05:00 2006-01-27T15:37:07-05:00 2006-01-27T15:37:07-05:00
    At the CMR meeting, and in a press release issued yesterday, Yellow Book revealed data from several of the market reports released last week. You can read Yellow Book's press release here.

    While Yellow Book did not win every market, it did consistently have either a plurality of usage or a strong second position (notably Chicago). There were some notable weak spots (Yellow Book came in third in Manhattan, for example), but the general picture from the data we have seen thus far is of a competitor that is going toe-to-toe with incumbents, and in some cases besting them. This was not lost on the CMRs in attendance at the Yellow Book meeting yesterday in Orange County, California. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[New Google SERP Display]]> http://206.106.174.250/blog/blog_comment.asp?bi=812 2006-01-27T10:42:22-05:00 2006-01-27T10:42:22-05:00 2006-01-27T10:42:22-05:00 screenshot of the test.

    More to come later. Precious little additional info in this article. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Music.Google.com?]]> http://206.106.174.250/blog/blog_comment.asp?bi=811 2006-01-27T09:18:01-05:00 2006-01-27T09:18:01-05:00 2006-01-27T09:18:01-05:00 Gary Price speculating about and discussing the seemingly impending Google Music.

    Music and other potential vertical domains raise the broader question of how Google intends to handle "vertical search" going forward — separate sites for everything (video, local, shopping, music, travel, financial, etc.)? Although one might argue for a separate "media hub" that contained video and music, etc.

    Earlier I wrote about the current Google Music search as one indicator of how Google might be handling verticals and still maintaining the primacy of the Google.com domain:

    As I’ve argued before, Google is “ambivalent” about verticals — the company wants to push out as much as it can through Google.com results. It created “News,” “Local,” “Shopping,” “Blog Search,” “Video” and some other arguable “verticals” because it felt it needed to do so to offer the optimal user experience. But the company doesn’t want to keep doing this for every possible content area: Finance, Health, Cars, Jobs, Real Estate and so on.

    Google would really start fragmenting its audience, which is a big problem with local generally. So what does it do as it expands its “content” offerings and introduces richer data for each new area?

    It does what the company is starting to do in music and doing in weather. But an even better example is what it’s doing with movie showtimes. Google is offering what we might call “Page 2.”

    You get a tease or a set of links on top of the search results page (similar to Local now), and then you’ll be taken into a specialized content area. This is how Google will keep users going to Google.com (where most go anyway) and also offer a competitive “vertical” experience (Page 2), where the features and content can be tailored to the specific topic: Cars, Jobs, Real Estate, Movies, Finance, Music, etc.

    Google also starts to create very valuable ad inventory on these pages — inventory arguably much more valuable than that on Google.com.

    This is, I believe, how Google solves and resolves the problem of maintaining its almost religious devotion to “one box” and Google.com while offering richer/deeper content and specific navigation — a vertical user experience — in particular areas, which it needs to do to maintain market share and, ultimately, deliver more value to marketers over the long term.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Bullish on InfoSpace]]> http://206.106.174.250/blog/blog_comment.asp?bi=808 2006-01-26T19:26:37-05:00 2006-01-26T19:26:37-05:00 2006-01-26T19:26:37-05:00 Dogpile, "what do they want to be when they grow up?" In other words, what's their business model?

    Here's a very bullish piece, originally published in The Motley Fool, that argues the model is healthy and InfoSpace is undervalued by the market:

    Last night, InfoSpace closed out 2005 in fine fashion. Earnings before one-time favorable charges rose from $1.40 to $1.60 per share, while revenues came in 36% higher to hit $340 million.

    Even after buying back $70 million worth of its stock, the company's cash balance remains strong, clocking in at $11.16 a share. Back that out to arrive at an enterprise value of less than $450 million. A leading and consistently profitable technology company at just 2.2 times 2005 sales? Let's put this into perspective. Last month, Motley Fool Stock Advisor pick Electronic Arts (Nasdaq: ERTS - News) agreed to buy online gaming upstart Jamdat Mobile (Nasdaq: JMDT - News) at more than 10 times trailing revenue.

    Adding a little more color to that particular acquisition, EA's buyout price of $680 million would be more than enough to swallow InfoSpace whole, yet InfoSpace's mobile revenues are nearly twice Jamdat's.


    While InfoSpace owns a very small share of the consumer search market, it has considerable mobile assets that are not as visible to consumers (or many in the industry for that matter). Separately, today, the company announced a multiyear renewal of its relationship with Yahoo! (search results and text advertising). ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[Rich Media Ads on Google?]]> http://206.106.174.250/blog/blog_comment.asp?bi=810 2006-01-26T17:49:19-05:00 2006-01-26T17:49:19-05:00 2006-01-26T17:49:19-05:00 Jennifer Slegg uncovered today that Google is experimenting with rich media ads. The undisclosed plan will, according to Slegg's sources, involve site targeted campaigns (rather than contextual) and have interstitials (those that precede a link's destination), expanding ads and floating ads.

    If true, this will be a major departure from Google's text-only ad setup and could provide a much different (read: inferior) user experience. Although there will be many advertiser benefits that Slegg does a good job of describing.

    Along with Google's decision to censor certain content to enter the Chinese search market, the company is going down paths that many thought it never would. Little is known about the rich medi ad plan, but we'll follow it as closely as we can.]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[IPTV in 10 Million Homes in Five Years?]]> http://206.106.174.250/blog/blog_comment.asp?bi=809 2006-01-26T17:18:29-05:00 2006-01-26T17:18:29-05:00 2006-01-26T17:18:29-05:00
    With so much tied up in IPTV, the company has a vested interest in making predictions about how the medium will change our lives and how quickly and seamlessly it will be deployed. Its latest public prediction is that IPTV will reach 10 million homes in the next five years. This could happen because of broadband penetration, anticipated demand and an increasingly digital culture. But consider that cable took 17 years to reach the same goal.

    We will get more into this topic, and our predictions for IPTV ubiquity, business model sustainability, and the all-important advertising model in an upcoming Advisory. ]]>
    Neal Polachek NPolachek@kelseygroup.com <![CDATA[Smartphone Dilemma]]> http://206.106.174.250/blog/blog_comment.asp?bi=790 2006-01-26T12:47:44-05:00 2006-01-26T12:47:44-05:00 2006-01-26T12:47:44-05:00 Mike Boland MBoland@kelseygroup.com <![CDATA[My Yahoo! Addendum]]> http://206.106.174.250/blog/blog_comment.asp?bi=798 2006-01-26T12:23:40-05:00 2006-01-26T12:23:40-05:00 2006-01-26T12:23:40-05:00 post earlier this month about Yahoo!'s expressed plans for the personal hub. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[MyYahoo! to Get Push It Deserves?]]> http://206.106.174.250/blog/blog_comment.asp?bi=806 2006-01-26T10:51:14-05:00 2006-01-26T10:51:14-05:00 2006-01-26T10:51:14-05:00 Om Malik reports that it may be ready to rise to the level of attention that it deserves internally.

    It’s really a potential personal dashboard for search, local, email, news, mobile, video, calendar, etc.—everything to help users manage what is now coming to be know as “the digital lifestyle.” Let’s see what evolves/emerges.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[TV Advertisers Cling to Oscars, SuperBowl]]> http://206.106.174.250/blog/blog_comment.asp?bi=805 2006-01-26T06:37:31-05:00 2006-01-26T06:37:31-05:00 2006-01-26T06:37:31-05:00 advertisers are clinging to large-scale “live TV” events that still draw large audiences, i.e., the “Oscars” and the Super Bowl. There’s something of a paradox going on: even as audiences shrink, TV networks (in certain cases) have been able to command advertising premiums and the Super Bowl is an example (rates are up from last year).

    But every day brings news of another video search/video sharing Web site.

    How is all this viral video and fragmentation going to ultimately impact TV advertising and the targeting strategies that must emerge to compensate for loss of audience reach? For example, what will be the contextual match for two guys driving naked through the San Fernando Valley or someone bored in his cubicle at work or two drunk teenagers at a party? And what brand advertiser or local business will want to be associated with those streams? (12-step programs? Monster.com? The Gap?)

    This is something we’ll be investigating at Drilling Down:

    1,000,001 Channels: But Is Anybody Watching?
    TV used to be simple for everyone. But the newly fragmenting world of video search, mobile TV, on-demand cable and IPTV makes the range of potential consumer choices staggering. What are the new technologies that are rapidly turning TV from a mass medium to one that is highly personalized? What is the new consumer “video consumption” model, and what are the implications for networks, content producers and advertisers? Will a million “Wayne’s Worlds” and the potential “Tower of Babel” effect destroy the medium for advertisers or open it up to a range of exciting new possibilities, including some for SMEs?

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Live Labs]]> http://206.106.174.250/blog/blog_comment.asp?bi=804 2006-01-26T06:09:34-05:00 2006-01-26T06:09:34-05:00 2006-01-26T06:09:34-05:00 announced that it was creating a new research group “Live Labs”:

    MSN and Microsoft Research are creating a dedicated applied research division named Live Labs. Live Labs will be staffed by top researchers that will leverage the capabilities of MSN and Microsoft Research to work through prototyping new products and services. Microsoft will invite technologists and scientists to join the dedicated group. Live Labs will make it a priority to work in collaboration with academic researchers, industrial labs, government research labs and others and by offering opportunities for grants and fellowships to promote continued innovation in the industry.

    This doesn’t have to do with local per se, but this Live Labs “beta” site has been set up to document or reflect the progress of various Windows Live initiatives. Each separate initiative has an associated blog (e.g., Windows Live Local blog).

    There’s also something of a “culture shift” being undertaken in this effort. From the Live Labs “manifesto” by Gary William Flake, who’s in charge of the new effort:

    Inline with our vision, Live Labs’ near-term charter is to bootstrap a virtuous cycle in three parts: (1) empower Microsoft employees to more rapidly create great Internet technologies; (2) sponsor higher bandwidth exchanges of ideas and innovations between our internal partners, academia, and the Internet community; and (3) foster a community of people and projects which will inspire others to join us in this mission.

    and

    Ostensibly, the charter of Live Labs suggests a dilemma: How can we simultaneously be small and agile but also influential enough to have a meaningful impact? Indeed, this is a dilemma that all organizations face as they grow and mature. Our answer is embarrassingly simple: We are a perpetual startup within Microsoft . . .

    There are a lot of elements that go into success (or failure) for a company and one of the underappreciated factors, in my view, is culture. And there’s an implied recognition in the manifesto that there needs to be some change within Microsoft for the company to more effectively compete online.

    Here’s more from Search Engine Watch.

    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Bad Signal for Yell on Rate Cap]]> http://206.106.174.250/blog/blog_comment.asp?bi=803 2006-01-25T19:57:57-05:00 2006-01-25T19:57:57-05:00 2006-01-25T19:57:57-05:00 This article appeared today in the Guardian Newspaper in the U.K., regarding the ongoing review of the rate cap imposed on Yell in the United Kingdom. The Competition Commission has issued a report indicating it may extend or expand the rate cap. We will follow up with our analysis of this development in the coming days. ]]> Charles Laughlin claughlin@kelseygroup.com <![CDATA[Shareholders OK RHD-Dex]]> http://206.106.174.250/blog/blog_comment.asp?bi=802 2006-01-25T19:47:08-05:00 2006-01-25T19:47:08-05:00 2006-01-25T19:47:08-05:00 release. The deal, which combines two of the top five U.S. incumbent publishers, is expected to formally close at the end of this month.

    Here is a summary of the deal from our Local Media Journal, published shortly after the deal was announced last October:

    The acquisition will form the third-largest U.S. directory publisher, with estimated combined adjusted revenues of US$2.69 billion and adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of roughly US$1.48 billion. The new company will have more than 600 titles, 1,800 sales representatives and distribution of about 73 million directories.

    The acquisition will have a significant impact on the U.S. directory industry, even if it does not transform the competitive landscape. Acquiring Dex will offer RHD some additional bargaining power with search engines as it looks for ways to drive more traffic to its online customers. The deal also extends RHD’s geographic coverage to 28 states, with incumbent status in 8 of the top 40 U.S. metropolitan markets. Key markets include Chicago, Denver, Las Vegas, Orlando, Phoenix and Seattle.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Classifieds TV: Interesting but Flawed]]> http://206.106.174.250/blog/blog_comment.asp?bi=801 2006-01-25T18:00:24-05:00 2006-01-25T18:00:24-05:00 2006-01-25T18:00:24-05:00 MediaPost story (reg. req’d) from Monday about the SF Chronicle (owned by Hearst) launching a cable TV show devoted to classifieds advertising, which will also be streamed on the SF Gate site.

    Classifieds on “Chronicle Jobs TV” will be up to 30 seconds in length and will be divided into six categories: general, sales and marketing, professional, health care, skills and trades, and technology. In addition to appearing three consecutive days on the TV show, the ads will also be streaming at www.SFGate.com for a one-week period.

    The show is being created by Digital Media Classifieds, a Denver-based company that makes customized TV programs as well as Internet videos for online and print publishers. Company founder Evan Neubeiser said at least 100 newspapers nationwide have similar TV shows, and that many of them go beyond recruitment advertising to include categories like automotive, real estate, and rentals. Among his larger newspaper clients, he said, are the Houston Chronicle, the Arizona Republic, and the Dallas Morning News.


    In the broadest sense, this is in the same category as Spot Runner, bringing video distribution to local businesses. I like it as a unique offering but I think the cable TV piece is not what’s interesting and/or valuable about it. Rather the Web streaming is going to be far more potentially effective. The online distribution preserves the powerful “directional” aspect of classified advertising, whereas the cable TV version will dilute it somewhat.

    If you can make the economics work then it makes sense to throw in the cable TV as well. But I don’t know who’s going to be watching those shows on conventional TV—it’s a lot less efficient for users than the Internet.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[March Madness: the Next Live 8?]]> http://206.106.174.250/blog/blog_comment.asp?bi=796 2006-01-25T15:58:33-05:00 2006-01-25T15:58:33-05:00 2006-01-25T15:58:33-05:00 PaidContent reports today that CBS Digital president Larry Kramer announced the network will offer all of its NCAA March Madness coverage online for free. The coverage will be ad supported, and Kramer likened it to AOLs Live 8 coverage which put its broadband video delivery on the map.

    Online would seem to be a great venue for the NCAA tournament because like Live 8, there will be simultaneous events (games) happening. CBS has traditionally dealt with this issue by showing different games in different regions -- using a combination of formulas and judgment, that never fails to irk a certain segment of transplanted basketball fans that want to see their alma-mater or favorite team from a different region. This is especially true during the first round of the tournament which has 64 teams playing in about 48 hours.

    CBS is hoping that online coverage of such a high profile event will incite the same PR storm that AOL received post Live 8, in staking its claim as a new source of digital and interactive media.

    There is a big difference here however. Live 8's smashing success was partially because there was a dependent variable with which to compare it; MTV’s lackluster coverage of the event. But in the case of March Madness, the comparison is CBS’s own television coverage. So the online coverage, if successful (as successful as Live 8), could in fact make its television coverage look bad.

    Every year, there are qualms about CBS’s March Madness coverage – some involving the game choices as mentioned above; and others such as inane commentary during and between play, and the over dramatized segments about “cinderella" teams or other inspiring stories surrounding the tournament. These are usually met with a fair share of grumblings from fans, but then are mostly forgotten until the next year. But with an online alternative that delivers just the good stuff (all games) without the fluff, CBS could be setting itself up for quite a conflict.

    Indeed it was similarly overdone commentary, and choices of events to cover (i.e. cutting away from Pink Floyd mid-set) that were at the top of the long list of grievances of MTV live 8 viewers.

    It will be interesting to see how CBS handles this, and what the media world can learn from broadband content delivery, and its effect on affiliated offline channels. We can only wait and see. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[PEW: Internet Strengthening Social Nets]]> http://206.106.174.250/blog/blog_comment.asp?bi=800 2006-01-25T15:35:01-05:00 2006-01-25T15:35:01-05:00 2006-01-25T15:35:01-05:00
    45% of internet users – about 60 million Americans – say the internet has played an important or crucial role in helping them deal with at least one major life decision in the previous two years.

    This sounds a lot like Yellow Pages historical behavior and confirms earlier findings by comScore about the connection between “life events” and online consumer patterns. Here’s an earlier post about the same phenomenon. And here’s a MediaPost article (reg. req’d) specifically about the now year-old comScore findings.

    There’s probably lots of juicy stuff in the Pew report that I haven’t yet had time to digest. But the full report is available for download here.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[NY Times Revenues/Subscribers Growing]]> http://206.106.174.250/blog/blog_comment.asp?bi=799 2006-01-25T09:55:48-05:00 2006-01-25T09:55:48-05:00 2006-01-25T09:55:48-05:00 summary of the NY Times earnings call (revenues up 30 percent in Q4)—there are lots of datapoints about traffic/users, etc. And the ranks/rolls of TimesSelect paying subscribers (I’m one) continues to grow. I was really skeptical at launch, but there seems to be some momentum (now 156K online only subs in 4 mos, 390K total)

    The apparent success The Times is having in getting online only subscriptions is probably more a function of its brand strength and perceived unique content than a validation of the notion that online newspapers can charge for content. The Times is becoming much more than a “newspaper site” and doing lots of interesting things (especially with video).

    Here’s the full earnings release .
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Craigslist Adds Another Paying Vertical]]> http://206.106.174.250/blog/blog_comment.asp?bi=797 2006-01-25T09:46:03-05:00 2006-01-25T09:46:03-05:00 2006-01-25T09:46:03-05:00 apartment rentals in New York. This adds a second category, the other being jobs, to its source of revenues. I believe that Peter Zollman’s Classified Intelligence has estimated annual Craigslist revenues at $10 million (that’s my memory).

    A long time ago now (about a year and a half ago), I was on a panel with Craig Newmark at Real Estate Connect, a vertical trade show produced by Brad Inman (founder of HomeGain and now TurnHere.com). I think he alluded then to considering the move, as much to deter spam and other unethical practices as to make money.

    The remarkable thing about Craigslist (among many things) is its “restraint.” As I’ve said to many people ... If Craigslist had VC money when it started it would not exist today. Slow and steady wins the race.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[eBay Building Pan-Media Platform?]]> http://206.106.174.250/blog/blog_comment.asp?bi=795 2006-01-25T08:45:27-05:00 2006-01-25T08:45:27-05:00 2006-01-25T08:45:27-05:00 MediaPost (reg. req’d):

    On Tuesday, some of the nation’s biggest advertisers got a pitch from a surprise media buying “solutions provider:” online auction service eBay. Details of the presentation, and the reaction of the ad executives—members of the Association of National Advertisers influential Television Advertising Committee—could not be discerned at press time, but executives privy to the meeting told MediaDailyNews that eBay was invited by the committee to present ideas for building an electronic trading system for buying and selling media.

    Recently Google purchased dMarc and Spot Runner launched. dMarc extends Google’s platform to a traditional, offline medium and may be the first move as part of a larger, consolidated media-buying platform the search engine is developing. And Spot Runner brings the efficiencies of the Internet to local cable TV ad buying.

    Clearly we’re starting to see the future of all ad buying—the Internet (or at least electronic platforms). Is eBay trying to get a jump on Google here? Perhaps. Regardless, this is extremely interesting and would now seem to be part of an emerging larger trend.

    We’re going to speculate about the future of media buying—and integrated online and offline buying in particular—in our final panel at this year’s Drilling Down event:

    The Future of Local Media Buying: The Integrated Online-Offline Platform
    Until recently, online marketing was regarded with skepticism and ambivalence. In 2005, led by paid search, online marketing in general came to be seen as a credible medium. While newspapers and Internet Yellow Pages have long been selling online advertising on their sites (and more recently into broader networks), the Google acquisition of dMarc suggests a potentially new, more integrated online-offline media future. It also directly brings the harsh light of performance-based marketing and Web analytics to a traditional advertising medium. The panelists will discuss these and other recent developments and what the near and long term will hold for online marketing and interactive local media.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Search Not 'Giving Up']]> http://206.106.174.250/blog/blog_comment.asp?bi=793 2006-01-25T07:56:50-05:00 2006-01-25T07:56:50-05:00 2006-01-25T07:56:50-05:00 Yahoo! Search response to the “controversy” created yesterday by the Bloomberg article in which Yahoo! CFO Susan Decker seemed to be saying Yahoo! was perfectly happy being No. 2 (to Google) in search:

    [W]e thought it made sense to briefly recap how focused we are in search and our passion to be the world’s leading search engine…

    We’re continuously innovating and finding new ways to help people connect to information and knowledge—part of our vision to help them find, use, share and expand all human knowledge. We’re working on literally hundreds of projects to improve search, and some of the most visible examples include My Web, Yahoo! Answers, and Open Shortcuts. We have also brought in some of the most innovative companies like Flickr and del.icio.us, to help bring the promise of social search and tagging to the rest of the world and advancing search beyond what it is today.

    Finally, we’ve turned Yahoo! Search into an open platform for innovative third-party developers—we’ve built the most comprehensive set of Web Services, allowing a new generation of applications to be built such as Rollyo and Eurekster and many others.


    There were lots of responses “across the dial” yesterday from surprise to dismay to “those clever devils” (thinking she was trying to lower Wall Street expectations).

    Clearly Yahoo! has done and is doing lots of innovative things, including in search. This response and all the reaction that flared from the article makes me wonder whether the remark was calculated or casual/off the cuff.

    As someone who talks to reporters now with some regularity, my experience is that it’s very easy for remarks to be taken out of context or for things to be misquoted (this happens a high percentage of the time).

    However, the reporter on the story, Jonathan Thaw, is a quite good and thoughtful writer from my perspective so it’s probably not a misquote. Regardless, the subsquent Yahoo! Search Blog response clarifies that Yahoo! doesn’t want to be seen as “giving up” in any way.

    __________

    More from the SEW blog.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Has Public Support — For Now]]> http://206.106.174.250/blog/blog_comment.asp?bi=792 2006-01-24T16:55:57-05:00 2006-01-24T16:55:57-05:00 2006-01-24T16:55:57-05:00 this AFP story:

    A survey from the Michigan-based Ponemon Institute, released Tuesday, indicated that approximately 56 percent of respondents believed Google shouldn’t hand over the information demanded by the Department of Justice. Nearly 90 percent of those polled were under the impression that their Internet searches were kept private.

    But this sentence underscores the high stakes and risks for Google:

    Of those who backed Google’s position, 41 percent contended they would stop using the Mountain View-based search engine if it yielded to the government’s demand.

    We’ll see if that actually happens if Google “caves.” Regardless, it opens a new chapter in the Internet privacy discussion given the public’s newfound awareness of the potentially discoverable nature of private search behavior.

    And here’s a piece from the NY Times (reg req’d) citing anecdotal examples of the “chilling effect” and paranoia starting to set in among some search engine users in the wake of the government’s effort to get at search engine data:

    Ms. Hanson, 45, immediately told her boyfriend what she had done. “I told him I’d Googled ‘rent boy,’ just in case I got whisked off to some Navy prison in the dead of night,” she said.

    I make jokes like this to friends during wireless phone calls. The reality of government action/reprisals is quite remote, but the paranoia and corresponding inhibitions that set in are the greater issue.

    Really disturbing stuff…

    And this willingness to participate in state censorship in China is very disappointing (though it should come as no surprise) given the strong “democratic” stand Google has taken in this country in resisting U.S. government strong-arm tactics.

    ___________

    Here’s more on polling data and user attitudes from Gary Price at SEW.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[What is News 2.0?]]> http://206.106.174.250/blog/blog_comment.asp?bi=794 2006-01-24T14:35:28-05:00 2006-01-24T14:35:28-05:00 2006-01-24T14:35:28-05:00 Om Malik has an interesting take on what constitutes the term "News 2.0" (the latest phrase within the Internet buzzword parlance that started with "Web 2.0").

    There are many high-traffic news sites out there, he contends, that don't create any news at all -- they only aggregate. This has been a successful model for many news aggregators such as Topix, Google News (which came out of beta yesterday after four years) and others. But we must remind ourselves that these sites are nothing without the "News 1.0" (as Malik phrases it) that provides the content.

    This concept applies to a broader argument of the necessity and longevity of print newspapers in a Web 2.0 world. As much as some bloggers will take the anti-establishment, free-content attitude that continues to be chic throughout Internet culture, it must be recognized that the source of all their information, and the generously supplied daily flow of fodder for their ruminations, is the work of newspaper and magazine reporters. And you can't have the newsroom without the newspaper.

    Newspapers are facing unprecedented challenges, as shown by the ongoing woes of Knight Ridder and others. But their assets (original reporting, journalistic standards, established trust within their communities, etc.) are fueling the success of the medium that is in some cases slowly exacerbating their decline. An interesting paradox.

    Some newspapers will always be around. But online is clearly where the growth is taking place, and established publishers need to find a way to compete with online distribution of both news and classifieds. Given the long-established business models and cultures of many publishers (and inertia), this might not happen without partnerships with online players, or some M&A activity (i.e., Classified Ventures). The latter is hard to execute in the face of falling margins. But we hope it does for the sake of quality news and its survival. ]]>
    Mike Boland mboland@kelseygroup.com <![CDATA[MySpace Goes Mobile, Faces a New Challenger]]> http://206.106.174.250/blog/blog_comment.asp?bi=791 2006-01-24T13:54:16-05:00 2006-01-24T13:54:16-05:00 2006-01-24T13:54:16-05:00 PaidContent reports that a new social networking site for Teens called Tagged has received funding. Little is revealed about the business model, but it will be difficult for anyone entering the space to gain market share from MySpace.

    The average age of MySpace users skews a bit older than a teenage user base (roughly 18), but it still has a great deal of users in their teens who aren’t likely to abandon the accounts they have set up and developed (and made known to “friends” in the network). This gets to the stickiness of social networking, and the advantages of being first to market. Although this clearly didn’t work for Friendster, a combination of features, differentiation (MySpace’s focus on music) and marketing are clearly important in this space.

    Fox Interactive Media President Ross Levinsohn, meanwhile, announced at the NATPE show in Las Vegas that this is the year MySpace will “go mobile.”

    “You can see [users] interacting on their computer now want to extend that to the phone. … We want to empower MySpace screen names to supplant mobile numbers,” he said.

    How this will be done isn’t exactly clear. It could require hardware partnerships as well as carrier partnerships. It could be complicated. But all that aside, it could be a very powerful integration, given that the MySpace demographic also represents a large market of mobile users.

    More importantly, they are also an attractive demographic for advertisers, especially when mobile and inclined to transact locally. Bring in the possibility of contextual and geotargeted advertising, and you start to get the picture. We’ll have to wait and see what FIM has up its sleeve.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google: Improved Local Imagery]]> http://206.106.174.250/blog/blog_comment.asp?bi=789 2006-01-24T08:38:27-05:00 2006-01-24T08:38:27-05:00 2006-01-24T08:38:27-05:00 Official Google Blog:

    We’re always trying to improve the imagery in Google Earth and Google Local, but our latest update is bigger than usual. Not only have we added extensive 6-inch imagery for many parts of the U.K., but we’ve updated the Google Local database to match the coverage we have in Google Earth, and (drum roll, please) ... we’ve added two more zoom levels in Google Local’s Satellite mode! Now for many areas around the world you can see a lot more detail than you could before.


    As examples, Google is offering new and improved views of Buckingham Palace, the Statue of Liberty and the Sydney Opera House.

    I tried to find the identical landmarks in Windows Live Local to offer a comparison on this post and found it very difficult—it’s not a good tool for landmark search. One has to have the address first; but what’s the “address” of Buckingham Palace? (It’s Buckingham Palace, London SW1A 1AA, of course—not much of an “address.")

    I spoke to MapQuest the other day and, to my surprise, they said they were exploring options to offer something “at least as good” as what Microsoft was doing with aerial photography.

    All these tools will get better, including landmark search (which isn’t that great in Google either).

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Content to Be No. 2 in Search?]]> http://206.106.174.250/blog/blog_comment.asp?bi=788 2006-01-24T06:36:56-05:00 2006-01-24T06:36:56-05:00 2006-01-24T06:36:56-05:00 Seattle Post-Intelligencer quoting Yahoo!’s CFO Susan Decker on the implied unliklihood that Yahoo! will gain any significant search share from Google in the immediate future.

    Recall, however, that overall Yahoo! is number 1 in terms of uniques (a position it has traded with AOL back and forth).


    What is amazing is that Google grew search market share (by all accounts) in 2005, a year of incredible competition. This year promises to be at least as competitive and Yahoo! may turn some attention from search per se to other assets (e.g., video, mobile, content creation, podcasting and so on).

    The Yahoo! Go strategy playing out will also be an important one to watch. (There have also been rumors that Yahoo! will seek to buy TiVO.)

    I would also make the unsolicited recommendation that Yahoo! devote more time and attention to MyYahoo (though the company recently “AJAX-ified“ the content modules). This is an application that is very strong (for the mainstream user) and should be leveraged sooner rather than later.

    On the advertising side, Yahoo! will likely try to continue to leverage its relationships with national advertisers—display ads were an area of growth for the company—and the success it has had in its initial trials with behavoral targeting. Yahoo! is also slowly developing its contextual product.

    Local is also an area of great strength and innovation for Yahoo! And, as mentioned, social media and community will continue to develop at Yahoo!

    We sometimes forget that there’s a great deal more going on on the Internet than search, even though search has become the driver or starting point for so much commercial and non-commercial activity.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Social Search Review]]> http://206.106.174.250/blog/blog_comment.asp?bi=787 2006-01-24T05:39:34-05:00 2006-01-24T05:39:34-05:00 2006-01-24T05:39:34-05:00 nice overview of Yahoo!’s “differentiation strategy” (vs. Google) using community and “social search.” (I believe JudysBook has tried to TM the term “social search.")

    We wrote about Yahoo!’s broader social strategy and how it related to local back in August last year and blogged a bit more about it in November.

    I also wrote previously here about how Yahoo! is integrating community across its site in Answers, Shopping, Trip Planner, etc.

    We’ll also be doing an update of our 2004 White Paper “Social Networking: Building a Better Local Online Marketplace” this year.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Jeeves' New Image Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=786 2006-01-24T05:11:18-05:00 2006-01-24T05:11:18-05:00 2006-01-24T05:11:18-05:00 nice presentation.

    According to the recent Keynote Systems research on search user satisfaction, image search is playing a more significant role in the overall search picture (so to speak):

    Image search appears to have caught on quite quickly with consumers, with 63% of Yahoo! users and 56% of Google users turning to the image search areas of those sites when searching for an image. There is less awareness and usage of the local search tabs, with just 28% of Google users and 39% of Yahoo! users in the study turning to the local search function when conducting a local search although there is great appreciation for Google’s integrated local search results. There is significantly less consumer demand for the special product search functionality on all leading sites.

    As competitive as Ask’s functionality and search results are, the engine has struggled to differentiate itself and gain share. However, according to comScore, between November 2004 and 2005, Ask gained 1% market share:

    November ’04:

    • Google: 34.6%

    • Yahoo!: 32%


    • MSN: 16%

    • AOL: 9.1%

    • Ask: 5.5%




    November ’05:

    • Google: 39.8%

    • Yahoo!: 29.5%

    • MSN: 14.2%

    • AOL: 8.7%

    • Ask: 6.5% (+1%)



    At 5+ billion monthly searches that’s not insignificant. Still, if Ask is going to further break out it will have to do some fairly radical things to draw users away from the top three.

    _____________

    Here’s more from Loren Baker at Search Engine Journal.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[The Earnings Guessing Game]]> http://206.106.174.250/blog/blog_comment.asp?bi=785 2006-01-23T13:33:37-05:00 2006-01-23T13:33:37-05:00 2006-01-23T13:33:37-05:00 SiliconBeat and John Battelle raise the question (citing Yahoo! employee Amr Awadallah’s reasoned speculation) of whether Google will hit or fall short of estimates. I think the company will hit its targets (but it still may loose if it doesn’t exceed them).

    Eight days to go; we’ll see.
    ]]>
    Mike Boland MBoland@kelseygroup.com <![CDATA[First the Web, Then IPTV, Next Radio]]> http://206.106.174.250/blog/blog_comment.asp?bi=772 2006-01-23T13:20:22-05:00 2006-01-23T13:20:22-05:00 2006-01-23T13:20:22-05:00 New York Times about HD radio. Better described as “digital radio”, the technology allows broadcasters to fit three additional channels in the space now occupied by just one.

    A digital signal also allows for much better behavioral targeting for advertisers. Combine this with Google’s recent move into radio advertising, and you have a new growth medium for targeted local advertising.

    The move towards digital radio will largely be fueled by the new on-demand marketplace. There will be more content choices and more of a pull of content, rather than a broadcast push. The pull is also where targeting can be more acutely executed.

    WIRED magazine wrote a great forward looking piece last March which speculated some of the possibilities of digital radio.

    From the article:
    As listeners select the programs they want to hear, they're instructing the radio about their interests. "Whenever you pull the dial like a piece of taffy and let more signals come through, you are of course going to get a lot more niches," Griffin says. As a broadcaster, "you make money [running a collection of niche stations] because targeted ad buys are so much more valuable than nontargeted. Traditional media isn't a great way to reach fly fishermen or people who are in quilting bees, but niches are."

    In this TiVo-esque environment, Clear Channel-style mass broadcasting becomes less and less effective.

    The technology is in an early adoption stage, and the pricing for necessary hardware reflects that. But the price will come down and it should follow a typical new technology life cycle. When it reaches wide scale adoption, we can expect to see many of the targeting abilities of the web, and of IPTV, manifest in radio.

    There is a lot more to it, and we will continue to analyze this interesting area as it develops.]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[ReachLocal Deal with FTD]]> http://206.106.174.250/blog/blog_comment.asp?bi=784 2006-01-23T12:51:15-05:00 2006-01-23T12:51:15-05:00 2006-01-23T12:51:15-05:00 reports on a large-scale deal between ReachLocal and FTD local florists:

    ReachLocal and FTD Florists are working together on a customized local search campaign in which 20,000 FTD merchants will be advertising on Google AdWords, Yahoo Search Marketing, IYP’s like SuperPages, and Advertising.com. According to the agreement, FTD will implement all of its local search advertising through ReachLocal.

    Efficient Frontier manages these sorts of large campaigns for Reach. Last week I had a very interesting conversation with EF regarding paid search generally and local in particular, and related trends in automated management of search campaigns for local businesses.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Real Estate Roundup]]> http://206.106.174.250/blog/blog_comment.asp?bi=783 2006-01-23T11:50:01-05:00 2006-01-23T11:50:01-05:00 2006-01-23T11:50:01-05:00 Search Engine Watch discussing the proliferating tools in real estate search. It’s quite thorough and worth a read definitely. Real estate is one of the most interesting verticals since it’s map-intensive, involves offline transactions and local businesses and is being driven by accelerated consumer adoption of online applications. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Elusive Millenials]]> http://206.106.174.250/blog/blog_comment.asp?bi=782 2006-01-23T10:13:02-05:00 2006-01-23T10:13:02-05:00 2006-01-23T10:13:02-05:00 NY Times (reg. req’d) from Sunday about the elusive “millenials” (people born between 1980 and 2000). If anyone believes that the consumer behavior model and the media landscape isn’t fragmenting and radically changing should read this article.

    This emerging consumer behavior model is the inspiration for the upcoming Drilling Down event.

    Here’s another NY Times piece on online “recommendations” (a cousin of what used to be called “social networking” and now is more appropriately and inclusively called “community"):

    This is the now well-documented “long tail” (I’m sorry for saying it again), in action:

    At NetFlix, the online DVD rental company, for example, roughly two-thirds of the films rented were recommended to subscribers by the site - movies the customers might never have thought to consider otherwise, the company says. As a result, between 70 and 80 percent of NetFlix rentals come from the company’s back catalog of 38,000 films rather than recent releases.

    A collaborative filtering mechanism (pioneered on a large scale by Amazon) is one solution to the emerging problem of media fragmentation—what’s interesting to me is what’s interesting to my friends/community/people like me.

    The so-called millenials are notoriously oriented toward community and use technology as a way to reach out to and manage their relationships with their friends. And to the extent that marketers can get into the fiber of those communities (which is Yahoo!’s meta strategy) it could pay off well. But whatever the “it” that is being marketed or sold is must be relevant and very highly targeted.

    For this audience, irrelevant marketing is ignored or, worse, destroys credibility.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Search Marketers Paying Too Much?]]> http://206.106.174.250/blog/blog_comment.asp?bi=781 2006-01-23T09:58:43-05:00 2006-01-23T09:58:43-05:00 2006-01-23T09:58:43-05:00 ClickZ). The thrust of this Kevin Newcomb piece is that the paid search auction model is flawed and inefficient for less sophisticated marketers:

    “We want to educate advertisers about the fact that in some sense they are being taken advantage of,” Ostrovsky said in a statement. “Under the current mechanism, if they don’t think carefully about their bidding strategies, they can end up paying a lot more to the search engines than they need to."


    This critique of general paid search may be especially true for local. Here’s what an A-list search marketing firm said about local keyword prices/buying:

    Geographic-qualified keywords have less inventory than generic words and phrases, which drives the bid landscape higher and forces all advertisers to bid more aggressively. This happens a lot with major metropolitan areas like NYC & San Francsico.

    There’s less competition on a national level. There are a lot of regional advertisers that bid aggressively using geo-qualified keywords only without any nationwide initiatives. In addition, a lot of these advertisers are not as educated on the space and many times end up creating extremely artificially-inflated markets for these keywords.


    So this is pretty consistent with what we’ve been hearing directly from the people on the front lines: people are bidding more for local because it converts better and for some of these “irrational” reasons also.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Tension Between On-Demand and 'Old' TV]]> http://206.106.174.250/blog/blog_comment.asp?bi=780 2006-01-23T05:54:35-05:00 2006-01-23T05:54:35-05:00 2006-01-23T05:54:35-05:00 MediaPost (reg. req’d) about the tension between “programmed” (read: scheduled) TV and the emerging model of “on-demand” TV (whether online or off). The theme: consumers still want programmed TV.


    Implied in this discussion is the idea that without programmed TV consumers won’t know where to point their TiVOs. There may be an analogy here between browse and search on the Internet. They’re complementary approaches to navigating content online. In this analogy, “‘browse” stands for the TV program schedule.

    Indeed, without some idea of “what’s on” online video consumers will have to guess and conduct random searches for content by keywords. (For past programming, i.e., “classic TV,” that works fine.)

    However a pure search (”on-demand”) model is inefficient for both consumers and advertisers because it completely fragments the audience (despite the success of search marketing). So the future, as the article suggests, is some mix of scheduled content produced by big media companies with high production values and—dare I use the term again—a “long tail” of both low-end professional and user-generated video content that people can search for as their whims or needs dictate.

    Of course it’s not quite as simple as all that, but at a conceptual level I think that’s what we’re in store for.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google News: More 'Up Close and Personal']]> http://206.106.174.250/blog/blog_comment.asp?bi=779 2006-01-23T03:20:27-05:00 2006-01-23T03:20:27-05:00 2006-01-23T03:20:27-05:00 how it works:

    By signing in to personalized news and keeping Personalized Search enabled, you allow Google to track and save your news selections. Then, Google News can automatically recommend relevant stories just for you by using smart algorithms that analyze your selections. The algorithms compare your tastes to the aggregate tastes of other groups of similar Google News users. Simply put, we recommend news stories to you that have been read by many other users who’ve also read similar stories as you in the past.

    The more you use Google News while you’re signed in to your Google Account, the better your recommendations will become over time. Note that we cannot provide recommended news for you if you do not sign in to your Google Account or if you turn off Personalized Search component of personalized Google News.


    There’s also a new “most popular” button (which has long existed on Yahoo! news). Essentially, the new recommendations feature is like the passive RSS and news feeds/tracking that Google has been doing with its Sidebar tool.

    This is another incentive for users to “sign in” to Google (create an account).

    This and many recent initiatives like it are the fruit of Google’s effort, since early last year, to gather more personal and behavioral data about its users. It will be very interesting to see whether and how the recent privacy flap with the Justice Department has any long-term chilling effect on users’ willingness to register or otherwise offer their personal data to search engines.

    ____________

    Here’s a Google announcement about News coming out of beta:

    I wanted to let you know that today we are announcing Google News is graduating from beta with a couple of shiny new features. When we introduced Google News in September, 2002 our goal was to enable readers to get a broader perspective and dig deeper into the news—perhaps reading ten articles on a topic instead of one.

    To do this, we developed a service that delivered news in an entirely new way by presenting it in “clusters” that displayed related articles in a single group. In only a few years, Google News has grown to 22 regional editions in 10 languages.

    In addition to taking Google News out of beta, we are also introducing personalized news headlines. By further integrating Personalized Search into Google News, users can now receive recommended news stories based on their past news searches and articles they’ve read, giving them suggestions for interesting stories to explore that they may not have discovered otherwise.

    Users who want to receive personalized news headlines simply sign up for Personalized Search. Then, whenever they’re signed in to their Google Account, they’ll see recommended headlines based on what they’ve read in the past. These results appear along the left hand column but users can also get a full page of recommended stories by clicking on the section. All of this is done automatically using algorithms: for example, we might recommend news stories to you that many other users have read, especially when you and they have read similar stories in the past.

    We have also added another new section to the left-hand column that shows the most popular recent stories in the Google News edition you are viewing. Now you can see the top stories being published by editors across the web, other stories popular with readers, and topics that you track or are interested in—all on one page.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[DCCI Becoming Telmetrics]]> http://206.106.174.250/blog/blog_comment.asp?bi=778 2006-01-23T02:26:34-05:00 2006-01-23T02:26:34-05:00 2006-01-23T02:26:34-05:00 DCCI changing its name to telmetrics—that appeared in Ken Clark’s YPTalk blog/newsletter. Call tracking will become more important and more central to integrated online-offline campaigns in the very near future.

    Call tracking will likely be the way that Google, for example, will measure the efficacy of its new radio inventory—at least the intended direct response component.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Chrysler and Local Click-to-Call]]> http://206.106.174.250/blog/blog_comment.asp?bi=777 2006-01-23T02:01:13-05:00 2006-01-23T02:01:13-05:00 2006-01-23T02:01:13-05:00 DMNews piece offers a case study of sorts on how Chrysler is having success connecting potential purchasers to local dealers:

    ...80 percent of calls generated through the click-to-call technology were transferred to local dealers. Of those calls, 15 percent closed the sale...

    There are many critics of click-to-call out there (they contend it requires a change in consumer behavior). But for my purposes this is an example of online-offline integration, which we should see a great deal more of, in various forms, in the very near future.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Video and Behavioral Boosting]]> http://206.106.174.250/blog/blog_comment.asp?bi=776 2006-01-23T01:41:48-05:00 2006-01-23T01:41:48-05:00 2006-01-23T01:41:48-05:00 broad ClickZ article about media fragmentation, consumer control and video coming to local. These are all themes of the upcoming Drilling Down event. Also eMarketer compiles data from Tacoda-sponsored research showing that behavioral targeting beats contextual. The data aggregator further cites MarketingSherpa regarding the relative effectiveness of different categories of online ads.

    According to a late 2004 MarketingSherpa poll, in order of effectiveness, it goes like this:




    1. Paid search

    2. Email “house list”

    3. Rich media

    4. Behavioral targeting

    5. SEO

    6. Contextual ads

    7. Affiliate marketing




    I am something of a behavioral targeting skeptic, especially given the “political” obstacles it faces re privacy. But these survey results do indeed suggest it works better than contextual ads, which is not that hard to believe. Behavioral targeting is “opaque” to the user and promises greater relevance based on their interests/actions.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Wisconsin WiMax]]> http://206.106.174.250/blog/blog_comment.asp?bi=775 2006-01-22T18:15:12-05:00 2006-01-22T18:15:12-05:00 2006-01-22T18:15:12-05:00 is coming to Wisconsin (and then beyond). Some form of broadband will likely cover almost 100 percent of the U.S. within 3 to 5 years. Why? Because there are many competitors seeking to provide that access. That’s also why incumbent telco surcharges for high-speed access will likely fail. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[The (Unintended) PR Genius of Google]]> http://206.106.174.250/blog/blog_comment.asp?bi=774 2006-01-22T16:35:18-05:00 2006-01-22T16:35:18-05:00 2006-01-22T16:35:18-05:00 act of resistance toward the Bush Administration’s effort to obtain porn-related search data, has now turned into something of a PR coup for Google. I don’t think this was a calculated move but there’s a great deal of good will being generated by Google’s thumbing it’s nose at the Justice Dept. subpoenas.

    Search Engine Journal quotes last week’s ABC News report and interview with Google co-founder Larry Page:

    “Our company relies on having the trust of our users and using that information for that benefit,” said Page. “That’s a very strong motivation for us. We’re committed to that. If you start to mandate how products are designed, I think that’s a really bad path to follow. I think instead we should have laws that protect the privacy of data, for example, from government requests and other kinds of requests.”

    In the same way that Google’s meteoric rise in search made Microsoft appear to be an underdog and thus generated sympathy for the world’s largest and most powerful software company, this legal standoff has generated sympathy for Google. The company was starting to experience a backlash that had been slowly building since Google went public in 2004.

    A growing number of critics had started to believe that the Mountain View-CA company had become too big and too powerful too quickly. It was starting to appear to some as a “Big Brother,” with too much data about too many things.

    And while the other portals and search engines have turned over data to varying degrees, with varying justifications and explanations, Google digging in its heels against the Bush Administration at a time when government overreaching and legally dubious behavior is all around seems almost heroic.

    Indeed, the move has generated a ton of news reports and PR (most positive), although the stock fell Friday amid the standoff and concern about potentially softening revenues. But Google’s stand, at least temporarily, has reversed the perception that the company is becoming Big Brother as it fights what to some is a more real version of Orwell’s shadowy political leader portrayed in his 1949 dystopian classic 1984.

    Again, I don’t think the PR angle was a calculated motivation; I think it was a secondary effect of wanting to keep its search data from disclosure. But by saying “no” to the Justice Dept. Google has raised the stakes and created some high drama that the world is now watching. And if Google now “caves” it may grab as many or more negative headlines and reactions for doing so than it gained for taking a stand.

    While I personally applaud it, Google’s decision was either very courageous or very arrogant—or a little of both.

    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Labor Fired Up About Verizon Talks]]> http://206.106.174.250/blog/blog_comment.asp?bi=773 2006-01-21T15:48:35-05:00 2006-01-21T15:48:35-05:00 2006-01-21T15:48:35-05:00 here. The two sides have apparently come close to settlement, but have failed to reach terms.


    We have no comment to offer on the merits of the positions in this current dispute.

    This ongoing strike does lead us to wonder how well the directories industry will be able to manage labor peace given the changes taking place in this industry. In particular, how successfully will management and labor negotiate adaptations publishers are making and will need to keep making in order to remain competitive next year, in five years and a decade down the line?

    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Verizon Quick to Leverage Usage Data Results]]> http://206.106.174.250/blog/blog_comment.asp?bi=771 2006-01-20T08:58:56-05:00 2006-01-20T08:58:56-05:00 2006-01-20T08:58:56-05:00 release says nothing about the degree to which it beat its competitors.


    This announcement suggests syndicated research may become as much a public relations tool as it is a credible research resource for agencies and national advertisers.

    What is interesting about this announcement is that it shows how much the syndicated research game is subject to spin. The syndicated research methodology has undergone tremendous scrutiny, and all participants have accepted it, so the results Verizon is touting do not appear to be in dispute. However, it really isn’t necessary for Yellow Book or Ambassador to have a No. 1 market position for either of them to declare their own victory. All that is required is enough usage to make buying an ad in one of their books a good value.

    We imagine this announcement will be the first salvo in an ongoing press release battle over which publisher really is the winner in the syndicated usage game. We hope ultimately everyone wins by attracting more advertisers, who now gain confidence in the medium because it has a third-party measurement program in place.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Drilling Down: Targeting the 'On-Demand' Marketplace]]> http://206.106.174.250/blog/blog_comment.asp?bi=770 2006-01-20T08:10:38-05:00 2006-01-20T08:10:38-05:00 2006-01-20T08:10:38-05:00 Drilling Down” event.

    We finally (whew!) have the agenda online. It took so long because we had to cut about 10 excellent potential panels to squeeze it into two days with no breakout sessions.

    We’ll announce panelists (there’s still time, contact me) and keynote speakers very soon.

    It should be a very interesting show (I’m not just saying that) as we tackle our perennial local search theme with emphasis on some of the related developments in video, VoIP and wireless.

    We’ll have both national and local advertisers “live on stage” in what should be two very good sessions about the changing nature of marketing and the different “national-local” and “local-local” responses to that. The local advertiser sessions are always a hit and make for some great feedback and occasionally some surprises.

    We’ve also made the final session a wide-open discussion about the evolution and potential integration of online and offline media buying (which of course YP and newspapers have been doing) in the wake of the Google dMarc acquisition.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[JamBase: The Next MySpace?]]> http://206.106.174.250/blog/blog_comment.asp?bi=769 2006-01-20T07:26:38-05:00 2006-01-20T07:26:38-05:00 2006-01-20T07:26:38-05:00 live music and community site has quietly generated a solid business and extremely loyal following without funding and totally under the radar. Founded about eight years ago, the site has built a huge local music events database.

    Events is an immature piece of the local search product mix, although an important one ultimately.


    Founder Andrew Gadiel previewed for me some of the coming site features that may make it a good deal more like MySpace. The company has spoken with a couple of the major search players about providing its feed for live events, but has yet to do any deals as far as I know.

    It will be very interesting to see how the site evolves and to see, given the spectacular growth of MySpace, whether funders and others try and court JamBase at this still relatively early stage of its development.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google, Bush and Privacy]]> http://206.106.174.250/blog/blog_comment.asp?bi=768 2006-01-20T06:20:31-05:00 2006-01-20T06:20:31-05:00 2006-01-20T06:20:31-05:00 NY Times (reg. req’d).


    Yahoo! spokespeople said none of the information revealed individual identities and thus did not violate individual privacy rights. The government claims—although given the history of this administration any claims must be viewed with skepticism at a minimum—that the search-engine data will enable it to defend the Child Online Protection Act of 1998 (which the U.S. Supreme Court previously blocked from implementation).

    It may well be that the information being requested by the Bush Administration can be provided without revealing any sensitive, personal information; I don’t have any insight into the technical issues nor have I yet read the subpoena(s). But I would defer to Danny Sullivan on this point who said:

    In particular, the Bush administration wanted one million random web addresses and records of all Google searches for a one week period. The government apparently wants to estimate how much pornography shows up in the searches that children do.

    Here’s a thought. If you want to measure how much porn is showing up in searches, try searching for it yourself rather than issuing privacy alarm sounding subpoenas. It would certainly be more accurate.

    Getting a list of all searches in one week definitely would let US federal government dig deep into the long tail of porn searches. But then again, the sheer amount of data would be overwhelming. Do you know every variation of a term someone might use, that you’re going to dig out of the hundreds of millions of searches you’d get? Oh, and be sure you filter out all the automated queries coming in from rank checking tools, while you’re add it. They won’t skew the data at all, nope.

    Moreover, since the data is divorced from user info, you have no idea what searches are being done by children or not. In the end, you’ve asked for a lot of data that’s not really going to help you estimate anything at all.


    There’s a bigger picture and a bigger struggle here. The government wants unfettered access to desired information about individuals’ behavior online and off and the NSA wiretapping and spying is reflective of that intent. As the NY Times piece points out:

    Whatever the courts ultimately decide on the pornography law at issue, however, Tim Wu, a professor at Columbia Law School, said the Google case pointed to a larger struggle for the identity of the Internet.

    “Search engines are at the center of that battle, both here and in other countries,” said Professor Wu. “By asserting its power over search engines, using threats of force, the government can directly affect what the Internet experience is. For while Google is fighting the subpoena, it’s clear that if they lose, they will comply.”


    The now discredited “Total Information Awareness” (TIA) initiative is being revived piecemeal through myriad techniques (search-engine subpoenas among them) and under myriad guises (Patriot Act, COPA, etc.).

    As EPIC points out, the TIA “was as envisioned to give law enforcement access to private data without suspicion of wrongdoing or a warrant.”

    The recent US Supreme Court decision this week to uphold Oregon’s assisted suicide law was about federalism, but was also widely seen as a rebuke to the Bush Administration’s unfettered exercise of executive power and discretion.

    One of the things that we all should be concerned about, liberals and libertarians alike, is whether the Internet will become a vehicle for creative innovation, communications and growth or whether it will become something else—a mechanism to monitor dissent and to help exercise social control (through intimidation or chilling of free speech).

    I realize that’s a “black and white” distinction but those who are interested in the health of the Internet and the society more generally (and more importantly) need to be extremely vigilant during these precarious times and speak out against unilateral assertions of anti-democratic authority whether they appear nakedly as such or in the guise of protecting children.

    _______________

    Lots of material on the issue resides at the bottom of Danny Sullivan’s blog post I linked to above.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Touch Local to Challenge Thomson, Yell]]> http://206.106.174.250/blog/blog_comment.asp?bi=767 2006-01-20T06:12:33-05:00 2006-01-20T06:12:33-05:00 2006-01-20T06:12:33-05:00 Search Engine Watch blog identifies a new (to me) local directory/search site in the UK, Touch Local.

    Touch Local allows users to search locally and nationally and offers products (through a relationship with Yahoo!-owned Kelkoo) in addition to traditional, YP-style service listings. The site features ratings and reviews and the ability for businesses to update and enhance their information for free.

    Advertising options for local businesses include guaranteed leads packages, PPClick and PPCall.

    The site is relatively new and so content in some areas is sparse, but local ratings/reviews and product search capability appear to be two consumer differentiators from more established competitors Yell.com (the dominant incumbent) and Thomson Local.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[I Love Coffee . . .]]> http://206.106.174.250/blog/blog_comment.asp?bi=766 2006-01-20T06:05:37-05:00 2006-01-20T06:05:37-05:00 2006-01-20T06:05:37-05:00 story that originally appeared in the New York Post. Yahoo! personals and Starbucks are reportedly hooking up to provide $10 Starbucks gift cards to people who register for Yahoo! Personals. As part of the promotion, Yahoo! will direct aspiring matches to the nearest local Starbucks.]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Search Satisfaction Survey]]> http://206.106.174.250/blog/blog_comment.asp?bi=765 2006-01-19T11:29:36-05:00 2006-01-19T11:29:36-05:00 2006-01-19T11:29:36-05:00 Keynote. Briefly, here are some general and local highlights:

    For the fourth consecutive wave of the Keynote study, Google topped the Keynote Customer Experience Rankings, an aggregate ranking of leading search engines based on an analysis of 250+ metrics measured during the study. In fact, Google outperformed its competitors in all 13 business success drivers measured in the study, including those for general search quality, local search quality and image search quality.

    Yahoo! Search ranked second in the study, Ask Jeeves third, MSN fourth and AOL’s public site ranked fifth. Yahoo! performs most competitively with Google in the local and image search categories. When searching for local services or information, 82% of Yahoo! users reported task success, as compared to 83% of Google users, and 66% of Yahoo! users were very satisfied with their search as compared to 71% of Google users.


    More from Chris Sherman at Search Engine Watch.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Video and the Future of PPC]]> http://206.106.174.250/blog/blog_comment.asp?bi=764 2006-01-19T07:48:05-05:00 2006-01-19T07:48:05-05:00 2006-01-19T07:48:05-05:00 reports, among other things, that Microsoft will be seeking (at some undetermined point) to add video ads to PPC. As ContactAtOnce! has already shown, you can put dynamic ads and pop-ups behind a PPC campaign. Why couldn’t one also do that with a video module (turning search truly into a branding vehicle)?

    SEM firm IMPAQT had something similar in its “intelligent landing page,” which is video-enabled.

    It strikes me that building in more dynamic capabilities (e.g., PPCall, video, maps, etc.) behind or off PPC ads is inevitable given the centrality of search in the online user experience. It will be interesting to see what comes to pass as the medium evolves.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[iPod Phone Coming?]]> http://206.106.174.250/blog/blog_comment.asp?bi=763 2006-01-19T07:29:59-05:00 2006-01-19T07:29:59-05:00 2006-01-19T07:29:59-05:00 trademark applications suggest a mobile phone/iPod hybrid. Why do we care about this? Because an iPod phone that also permitted Internet access (as one would expect it to) could be the breakthrough device that would unlock the potential of mobile local search.

    The iconic status of the iPod and inherent consumer appeal—assuming Apple could pull it off elegantly—would drive immediate adoption of such a device and potentially accelerate usage of mobile data, we believe.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Search Key in VoIP Research]]> http://206.106.174.250/blog/blog_comment.asp?bi=762 2006-01-19T06:49:58-05:00 2006-01-19T06:49:58-05:00 2006-01-19T06:49:58-05:00 MediaPost (reg. req’d) and by Search Engine Journal.

    This study of VoIP awareness/research by consumers, though not yet a mainstream consumer category, shows that search is used early in the buying cycle (as well as later) and can function as a pseudo-branding medium at that early stage as well as a direct response medium later in the process.

    According to the Search Engine Journal write-up:

    The Yahoo SEM VOIP survey, commissioned by the National American Testing Organization, explored the role that Search plays in the research process for consumers seeking VoIP (Voice Over Internet Protocol) calling solutions. Conducted in August of 2005 using a nationally representative sample of US adults with high-speed connections at home, Yahoo found that Search is the most trusted, essential information resource for consumers researching VoIP calling services.

    Traditional media (31%) and the Internet (28%) as the two primary sources used to drive initial awareness of VoIP technology, products and services; according to Yahoo survey results. Television spots (14%), banner ads (14%) and newspaper/magazine ads (10%) held the top three spots.


    Here’s another panel at Drilling Down that will address some of these interesting questions about the relationship of search to the purchase cycle and consumer buying behavior:

    The New ‘Purchase Funnel’: Online Shopping, Offline Conversions
    Even though e-commerce may have reached US$30 billion in 2005, it represents just 2.5 percent of total U.S. retail. Yet the Internet is having a growing influence over offline consumer behavior. What is the precise nature of this new “purchase funnel”? Where do consumers start and where do they typically end up online before buying offline? Is paid search truly a direct response medium? What categories of sites are the most effective source of offline conversions? Will we see more search/shopping engines add local “inventory” information this year? These and other relevant questions will be explored in depth.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[eBay: Record Revenues, Stock Falls]]> http://206.106.174.250/blog/blog_comment.asp?bi=761 2006-01-19T06:43:43-05:00 2006-01-19T06:43:43-05:00 2006-01-19T06:43:43-05:00
    More on the numbers from InternetNews.com. Also, Om Malik takes a look at Skype revenues (mostly from outside the U.S.).
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Govt. Now Pursuing Google Data]]> http://206.106.174.250/blog/blog_comment.asp?bi=760 2006-01-19T06:17:43-05:00 2006-01-19T06:17:43-05:00 2006-01-19T06:17:43-05:00 John Battelle about the Bush administration’s efforts to get at users’ online behavior and search data. Battelle excerpts a San Jose Mercury News article on the Justice Dept. efforts:


    In court papers filed in U.S. District Court in San Jose, Justice Department lawyers revealed that Google has refused to comply with a subpoena issued last year for the records, which include a request for one million random Web addresses and records of all Google searches from any one-week period.

    The Mountain View-based search engine opposes releasing the information on a variety of grounds, saying it would violate the privacy rights of its users and reveal company trade secrets, according to court documents.

    Nicole Wong, an associate general counsel for Google, said the company will fight the government’s effort “vigorously.’’


    Google, to some, was starting to look like Big Brother; now it can say it is defending privacy against Big Brother. Indeed, government spying on private citizens’ communications means privacy is once again on the front burner.

    But this dispute isn’t just about privacy; it’s also about the First Amendment and potentially chilling free speech. I’m not going to go on at length about my strong personal views on this issue except to repeat myself:

    The “transparency” of online communications, Wi-Fi and wireless phone usage make it all the easier for unscrupulous commercial entities (or unscrupulous governments) to track our behaviors and even privately expressed attitudes (and that will only get easier going forward). And in a “free” country, that’s all really scary ... REALLY SCARY.

    Privacy (among other important issues like free expression) is something none of us should be complacent about. It’s up to those who have strong views on the subject to express them loudly and publicly or risk further erosion of the kind of rights and protections we all take for granted.


    ___________

    More detail and thoughts from Danny Sullivan at Search Engine Watch.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Nielsen Search Numbers for Nov.]]> http://206.106.174.250/blog/blog_comment.asp?bi=759 2006-01-19T05:52:33-05:00 2006-01-19T05:52:33-05:00 2006-01-19T05:52:33-05:00 Nielsen reported that total search volume was flat at 5.1 billion (vs. October). The following were the search market share numbers:



    • Google: 46%

    • Yahoo!: 23%

    • MSN Search: 11%

    • AOL: 7%


    Here are the November comScore numbers:



    • Google: 39.8%

    • Yahoo!: 29.5%

    • MSN Search: 14.2%

    • AOL: 8.7%



    Here’s Hitwise:

    • Google: 61.8%

    • Yahoo!: 25.6%

    • MSN Search: 5.1%

    There’s some general consistency regarding the Yahoo! search numbers, but wide variation regarding Google. Nielsen is the middle number between the very high Hitwise and the lower comScore figures.

    Nielsen also reported that consumers are using “the search box” (this would apply to toolbars, which account for 12 percent of search activity per comScore) like “White Pages”:

    Web surfers often use search engines to navigate their way to common Web sites rather than typing the Web site’s URL directly into the address bar. Web users’ top search terms were popular, well-known Web site names, such as “ebay” and “google,” ... [and] 43 percent of online searchers use the search box much like an address bar. Leading the top 10 most popular search terms for November was “ebay” with 13.9 million requests, followed by “google” and “yahoo,” with 13.3 million and 8.0 million requests, respectively.

    So there are some interesting SEM (and trademark) implications of this behavior. But more on that later.

    Here’s Nielsen’s list of the top 10 U.S. search terms for November for the combined home and work audience (000):

    1. “ebay” 13,871
    2. “google” 13,301
    3. “yahoo” 7,997
    4. “mapquest” 7,431
    5. “yahoo.com” 6,528
    6. “pogo.com” 4,062
    7. “walmart” 3,688
    8. “ask jeeves” 3,389
    9. “msn” 3,166
    10.”ebay.com” 3,125


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Ready to Fight BB Fees]]> http://206.106.174.250/blog/blog_comment.asp?bi=758 2006-01-19T05:30:07-05:00 2006-01-19T05:30:07-05:00 2006-01-19T05:30:07-05:00 public discussion by the telcos and perhaps other broadband providers about trying to charge fees/taxes/tolls to the Googles and Vonages of the world for the high bandwidth usage they directly and indirectly cause.

    Om Malik points to a CMP column that quotes a Google PR person, Barry Schnitt, saying:

    "Google is not discussing sharing of the costs of broadband networks with any carrier. We believe consumers are already paying to support broadband access to the Internet through subscription fees and, as a result, consumers should have the freedom to use this connection without limitations."

    I believe the telcos are not in the “political position” to effectively impose such fees. If they were to succeed, potentially unintended consequences would flow from their actions (i.e., development of alternative access paradigms, including free Wi-Fi).

    And Rupert Murdoch recently indicated he’s going to push broadband (or WiMAX) to consumers, so his DirecTV service doesn’t suffer in the hands of “triple play” competitors (cable, IPTV).

    At Drilling Down ’06, we’ll have a panel on broadband and some of the future scenarios:

    The Broadband Juggernaut: Slowing Down or Speeding Up?
    High-speed Internet access is the backbone of the new consumer paradigm. It took a decade for broadband to reach “critical mass” in the U.S. Now we are witnessing the disruptive effects for traditional media and potentially for some newer technologies as well. Yet there are predictions that broadband is slowing. But competition, new initiatives and new technologies could drive high-speed access to nearly 100 percent penetration in the next several years. Which version of the future is correct? This panel will debate the potential scenarios and look outside the U.S. to higher-speed markets to see what the U.S. future might hold.


    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Inflated Expectations, Inevitable Disappointment]]> http://206.106.174.250/blog/blog_comment.asp?bi=757 2006-01-18T16:14:03-05:00 2006-01-18T16:14:03-05:00 2006-01-18T16:14:03-05:00 net income doubles but falls short of estimates) ... But the company’s shares weren’t off as much as Yahoo! yesterday after missing analysts’ estimates by A PENNY. There were blog postings here and there and a few articles today that used the “B” word, as in bubble ... bursting. Or the more restrained: Is the air starting to leak out?


    The expectations for the top Internet firms—especially Google and Yahoo!—are, in my opinion, unreasonably high. A climate in which people expect these companies to produce triple-digit growth quarter after quarter is ludicrous and unsustainable. So maybe what we have is an expectations bubble. In fairness, those expectations have been fueled in part by the spectacular performance of these companies in the past 12 to 18 months.

    But in the current market of inflated expectations, disappointment is inevitable and when psychology becomes “reality” then you have a kind of self-fulfilling prophecy. Case in point: this recommendation shift from “hold” to “sell.” Indeed, if everyone starts to sell, that accelerates the leakage and—voila—the bubble effectively bursts.

    Clearly, it’s not as simple as that, but what is clear is that the stock market is driven by psychology (herd mentality) as much as it is by anything rational or empirical. I suspect that on Jan. 31, Google will beat estimates and everybody will be happy and buying once again.

    But everyone should be a bit more sober when predicting the gains and upside and similarly less reactive on the downside.

    _____________

    Here’s a roundup of financial analysis about Yahoo! from the Internet Stock Blog.

    ]]>
    John Kelsey jkelsey@kelseygroup.com <![CDATA[Volt's DataNational Proves the Exception]]> http://206.106.174.250/blog/blog_comment.asp?bi=756 2006-01-18T16:03:01-05:00 2006-01-18T16:03:01-05:00 2006-01-18T16:03:01-05:00
    On the other hand, most independent publishers were (and still are) focused primarily, if not exclusively, on the directory business. They are able to compete by charging a rate that is typically half what the incumbent publisher charges. They also compete by scoping differently and by offering smaller directories that fit neatly on top of the incumbent’s book in the kitchen drawer. Not surprisingly, there is often trench warfare between the competing sales forces that leads to animosity.

    Volt Information Sciences is an exception. Volt’s primary business is staffing services, which accounted for 82 percent of the company’s fiscal 2005 net revenues. The telephone directory segment’s sales, including their DataNational “Community PhoneBook” brand, accounted for less than 4 percent of the company’s sales but almost 19 percent of its total operating profit. Clearly, this is a critical business for Volt.


    The telephone directory segment grew last year by $10 million to $82.3 million through a combination of expansion and sales growth in its current markets. In fact, “DataNational was one of the first true competitors to incumbent BellSouth Advertising & Publishing in its core area markets,” according to our 2005 Global Yellow Pages™ report. DataNational competes against BellSouth in many of the same ways other independents rival incumbents, but the rancor does not seem to exist. DataNational CEO Jerry DiPippo is on the YPA board. Vice President of Sales Greg Shearer said that competition was good for the marketplace and that BAPCO was a tough but fair competitor.

    DataNational also offers an online Yellow Pages site, http://www.communitybook.com. It doesn’t yet offer national search capabilities but rather listings for specific DataNational directories. We expect to see enhanced and expanded IYP and local search over the next year. In the meantime, Volt is an example of a company that doesn’t always think that it’s “we vs. they.”


    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[News Corp. Taking on Sensis]]> http://206.106.174.250/blog/blog_comment.asp?bi=755 2006-01-18T11:15:35-05:00 2006-01-18T11:15:35-05:00 2006-01-18T11:15:35-05:00 here.

    News Corp.’s challenge is interesting on many levels, including the fact that, unlike a search engine, News Corp. takes on Sensis from the position of also claiming original, rich local business information. According to the Australian article, the News Corp. site would bring with it listings from 100 community newspapers, as well as 700,000 listings acquired with ALS. And just as Sensis has a built-in promotional platform with its print directories, News Corp. does so with its community papers.

    This developing competitive match-up speaks to one key question about the directories, classifieds and local search businesses, which is whether these entities will be distinguishable (online at least) within a few years’ time. It appears we might see one of the earliest examples of competition among truly morphed directory/classified/search products in Australia.

    The Kelsey ReportŽ is currently developing an Advisory that examines the intersections between directories and classifieds, in particular online.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Tribune Adds Video to Newspaper Sites]]> http://206.106.174.250/blog/blog_comment.asp?bi=754 2006-01-18T08:34:09-05:00 2006-01-18T08:34:09-05:00 2006-01-18T08:34:09-05:00 WorldNow, according to an article in today’s MediaPost (reg. req’d), to provide streaming video for all Tribune’s online properties (newspapers and TV).

    WorldNow also operates the Local Media Network, which offers video and other geotargeted ad opportunities to national advertisers across 140 local TV Web sites.

    I’d hate to argue that video is a must for local newspaper sites, but it may well be in the not-too-distant future.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Gannett + 4INFO]]> http://206.106.174.250/blog/blog_comment.asp?bi=753 2006-01-18T08:22:55-05:00 2006-01-18T08:22:55-05:00 2006-01-18T08:22:55-05:00 4INFO. Here’s more detail in the release. Gannett properties will gain distribution on the service as part of the deal. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Developments]]> http://206.106.174.250/blog/blog_comment.asp?bi=752 2006-01-18T07:44:31-05:00 2006-01-18T07:44:31-05:00 2006-01-18T07:44:31-05:00 column all about local today (roundup of recent developments).

    LiveDeal.ca (a joint venture with Canada’s Torstar, which owns book publishing and newspaper properties) went live this week. The site is being integrated into Torstar’s various newspaper sites.

    PremierGuide, one of the early local search platforms, has quiety built an impressive portfolio of clients: 130 newspaper, TV station and city portal Web sites, according to today’s release. Here’s a map of its customers across the U.S.

    In other Canadian Internet news, Search Engine Watch points to a Toronto Star report that Google has signed a multiyear deal with Canada.com:

    The multiyear partnership will provide Canada.com users with content and search related advertising, while offering Google’s advertisers access to Canada.com’s extensive reach across the country, the companies said.

    There were no disclosed terms. Many newspaper sites (and some TV and radio sites) are part of the Canada.com network. Yellow Pages Group supplies the content for Google Local in Canada.

    News Corp., which has been pushing aggressively into online in the U.S., said it will launch a local listings site to challenge Sensis in Australia:

    The website will pull together the hundreds of thousands of business listings collected by News’s network of 100 community newspapers, along with ALS’s 700,000 listings.

    The News Corp.-owned papers will also feature the listings data on their respective sites.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[BeanPool Joins a Crowded Field]]> http://206.106.174.250/blog/blog_comment.asp?bi=751 2006-01-17T19:28:56-05:00 2006-01-17T19:28:56-05:00 2006-01-17T19:28:56-05:00 BeanPool has launched. It looks like they built this on blogger (same colors, etc.).

    Here’s the full release. Search Engine Journal offers a more in-depth discussion.
    ]]>
    Mike Boland mboland@kelseygroup.com <![CDATA[A New Strategy for Outdoor Advertising?]]> http://206.106.174.250/blog/blog_comment.asp?bi=750 2006-01-17T17:28:27-05:00 2006-01-17T17:28:27-05:00 2006-01-17T17:28:27-05:00 Here’s an interesting concept that circumvents some of the challenges of integrating advertising in online maps. SEW points out that the rooftop ads probably aren’t for the sake of online mapping satellite imagery; they actually target commercial flights as they approach airports.

    It still makes one wonder about the possibilities in online mapping. It probably wouldn’t take off to a large degree; and if it did, mapping providers would likely blur out any ads that didn’t pay for placement. But it’s an interesting anecdote that demonstrates the creativity of marketers finding every last nook and cranny of advertising space in the physical and online worlds.
    ]]>
    Mike Boland mboland@kelseygroup.com <![CDATA[Yahoo! Continues Toolbar Distribution Strategy]]> http://206.106.174.250/blog/blog_comment.asp?bi=749 2006-01-17T17:18:44-05:00 2006-01-17T17:18:44-05:00 2006-01-17T17:18:44-05:00 Greg Sterling gsterling@kelseygroup.com <![CDATA[The 'Other' Google Announcement]]> http://206.106.174.250/blog/blog_comment.asp?bi=748 2006-01-17T17:09:24-05:00 2006-01-17T17:09:24-05:00 2006-01-17T17:09:24-05:00 the other Google announcement today. This is about the ability of IM clients/systems to connect with one another. More from Om Malik.]]> Mike Boland mboland@kelseygroup.com <![CDATA[News Corp. Plans to Compete for Broadband]]> http://206.106.174.250/blog/blog_comment.asp?bi=747 2006-01-17T16:57:01-05:00 2006-01-17T16:57:01-05:00 2006-01-17T16:57:01-05:00
    This BusinessWeek article outlines his plans to compete with cable and telecom “triple play” bundles by updating News Corp.-owned satellite network DirecTV to carry data and voice into subscribers’ homes. The challenge? Updating the satellite network to carry faster data in two directions, as cable and DSL networks currently do (and satellite currently does not).

    The alternative is to build a Wi-Max network from the ground up, which is cheaper than building a terrestrial broadband network. Murdoch is willing to earmark about a billion dollars for the cause, a necessary investment to fully leverage the Web properties he recently acquired, including MySpace, and the launch of Fox Interactive Media.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Numbers]]> http://206.106.174.250/blog/blog_comment.asp?bi=746 2006-01-17T16:02:16-05:00 2006-01-17T16:02:16-05:00 2006-01-17T16:02:16-05:00
    Here’s the earnings call and related info. PaidContent offers a nice summary of the call. And here’s a bit more commentary from the Internet Stock Blog.
    ]]>
    Mike Boland mboland@kelseygroup.com <![CDATA[A Whole New Kind of Local Ad Inventory]]> http://206.106.174.250/blog/blog_comment.asp?bi=745 2006-01-17T15:03:49-05:00 2006-01-17T15:03:49-05:00 2006-01-17T15:03:49-05:00 This just in from the bizarre item of the day department. A new trend in local advertising? Probably not, but good for a quick laugh on a Tuesday. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Google AdRadio]]> http://206.106.174.250/blog/blog_comment.asp?bi=744 2006-01-17T10:15:57-05:00 2006-01-17T10:15:57-05:00 2006-01-17T10:15:57-05:00 dMarc Broadcasting of Newport Beach, California. There’s a reported downpayment of just over $100 million and more than $1 billion if performance targets are met over three years. dMarc is a media buying service and digital automation provider for radio. Here’s how the company represents itself:

    As the parent company of Scott Studios and Computer Concepts, dMarc boasts the largest installed customer base for radio automation and digital systems, spanning thousands of stations across all markets and formats. Scott Studios is the radio industry’s largest digital air studio systems vendor in the US. Scott has a larger market share than the #2, #3 and #4 digital studio vendors combined. Computer Concepts, through its Maestro product line, is one of the radio industry’s most popular digital audio systems vendors.


    This is the first major public statement that Google intends to be a kind of one-stop shop for its advertisers. Spot Runner, the local cable buying service we wrote about last week, is a similar example of a kind of company—or at least a capability—that we would expect Google to also want to acquire to extend into TV.

    Google reportedly plans to integrate dMarc’s radio buying capability into AdWords, extending the platform into the “real world” and offering radio distribution (more geotargeting) to its advertisers.

    This is a fascinating development, for its competitive implications and because it points the way to a kind of new integration of online and offline media buying. This will undoubtedly be a year for more M&A from Google and its competitors.

    I was really skeptical of the Google $600 target, but if Google is able to extend into other advertising media it could well be justified as the company taps into more of marketers’ spend.

    Already we see two attempts at diversification this year from Google: video (pay-per-view/download) and radio. I would expect more such moves this year—and TV is definitely on the radar for Google.

    Universal McCann’s Robert Coen has projected that radio advertising will be worth approx. $16.1 billion in 2006.

    Lots of additional coverage here.

    _____________________

    Update: Spoke to VoiceStar about PPCall in radio advertising. The conversation was interesting for several reasons. Among them, we discussed how radio was both a branding and a direct response medium and how you need to use PPCall or call tracking to bring the analytics to the direct response piece of radio. Also, one question: How will the AdWords auction platform work with radio advertisers that are not used to that model?
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[MLK Jr. Day]]> http://206.106.174.250/blog/blog_comment.asp?bi=743 2006-01-16T14:08:25-05:00 2006-01-16T14:08:25-05:00 2006-01-16T14:08:25-05:00 The New York Times (reg. req’d).

    And here’s bio info from Wikipedia. And here’s Google’s “I have a dream” homepage and search results.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Drilling Down on Local '06]]> http://206.106.174.250/blog/blog_comment.asp?bi=742 2006-01-16T13:20:33-05:00 2006-01-16T13:20:33-05:00 2006-01-16T13:20:33-05:00 show in March and I’ve had to defer people. Our agenda is done and we’re going though a quick final review. This is only a two-day event and we could have had (and originally did have) 10 more panels. But we have real time constraints and cutting stuff was very challenging.

    The formal agenda will be up later this week. People should take a look when it goes up (probably by late tomorrow or early Wed.) and then approach me. Some of the issues we’ll be tackling are below.

    • TKG Forecast Walk-Though

    • How, When and Where I Want It: Profiling the New ‘On-Demand’ Consumer

    • Online Shopping, Offline Conversions: The New ‘Purchase Funnel’

    • 1,000,001 Channels: Broadband Video and ITV

    • The New Networks: Alternatives to the Search Giants?

    • Behold the Omnibus Channel: Selling Everything to Everyone

    • Live from Ground Zero: SMEs in Their Own Words

    • The Broadband Juggernaut: Slowing Down or Gaining Speed?

    • Can You Hear Me Now: VoIP, Wi-Fi and Market Disruption

    • What Is the Mobile Ad Model?

    • Who Will Own the Living Room?

    • 2006: Year of the Tipping Point?

    • Free DA: A Flawed Model or Mo-Lo Made Simple?
    • ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[A Few Quick Hits]]> http://206.106.174.250/blog/blog_comment.asp?bi=741 2006-01-16T05:32:47-05:00 2006-01-16T05:32:47-05:00 2006-01-16T05:32:47-05:00 AP story exploring the privacy implications of high-resolution online mapping. Nothing particularly new here except that the issue is getting flagged. We may be in an era of new privacy initiatives (we’ll see). The consumer zeitgeist may be moving in that direction (helped along by the NSA shenanigans).

      This story in MediaPost (reg. req’d) cites a shopping study by a firm called Questus about consumer abandonment of sites (1 in 3) once they hit registration pages. (To some degree this goes to privacy concerns, but it also argues by implication that newspapers should abandon registration. And it suggests some potential obstacles for behavioral targeting.)

      DA alternatives (Jingle Networks, 1800Free411Metro) are profiled in this article . We’ll have a panel on FreeDA at Drilling Down on Local: “Free DA: A Flawed Model or Mo-Lo Made Simple?”
      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[MSN AdCenter's Ambitions]]> http://206.106.174.250/blog/blog_comment.asp?bi=740 2006-01-14T14:32:45-05:00 2006-01-14T14:32:45-05:00 2006-01-14T14:32:45-05:00 announced Friday that it will step up its adCenter online ad platform to handle all the paid search results that appear on MSN search.

      Currently about 25 percent of sponsored links come from adCenter, and the rest are outsourced to Yahoo! (Overture). The contract with Yahoo! expires in June though.

      So its in-house ad placement is hoped to bring in higher paid search revenues and provide some competition for Google and Yahoo!.


      It also represents a step toward developing a platform for placing ads across multiple platforms, as search is beginning to seep across various devices and platforms (i.e. Yahoo! Go). The development work for this platform will mostly take place at Microsoft’s newly launched adLab, a marriage between its Redmond-based adCenter team and its Chinese research lab. adLab will work on ways to better target user demographics, behavior and device use.

      It’s a clear move to catch up to Google and Yahoo!, behind which it currently trails in paid search market share. As ad inventory will increase with more search happening across different platforms and devices, it’s a good time for Microsoft to make such a move.

      It will have some catching up to do, however, as Yahoo! has already signed partnerships with Motorola and Nokia to bundle Yahoo! Go in new phones, and Google is beginning to make some moves of its own in the portable device market. These partnerships will cement Google and Yahoo! into the interfaces of these devices. Look for Microsoft to do the same, as this is where much of the new growth in search market share will come from.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[NeoMedia Linking Wireless and Real Worlds]]> http://206.106.174.250/blog/blog_comment.asp?bi=739 2006-01-13T16:38:46-05:00 2006-01-13T16:38:46-05:00 2006-01-13T16:38:46-05:00 NeoMedia, which has a range of product offerings. What we talked about, however, was a pretty compelling mobile ad infrastructure called “PaperClick," which links the wireless and physical worlds together.

      There are lots of marketers experimenting with SMS short codes, but this technology is broader, more flexible and has more interesting applications. While SMS campaigns have interoperability limitations across U.S. carriers, PaperClick uses the mobile Web, eliminating cross-carrier barriers.

      Through keywords or bar code entry via a camera phone, the company’s technology enables consumers with wireless devices to access targeted promotions, offers and coupons from anywhere—a cereal box, a TV commercial, a poster a billboard, a magazine, etc.

      Users are encouraged to set up an online profile that enables marketers to run different promotions for different market segments and profiles. So a message on a billboard or a cereal box might yield one promotion for you and a separate one for me based on our differing profiles.

      It also extends the life of otherwise “static” traditional media; the promotions can change “on the back end” even as the billboard creative remains the same over a period of weeks or even months.

      There are more narrow versions of this happening in Japan now. And this type of promotion-based wireless advertising model starts to look more and more viable and less and less like something that’s “cool” but still far off.

      We’ll cover this company and its offerings more in future writing.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Do Blue Balloons Signal Death for Yellow Pages?]]> http://206.106.174.250/blog/blog_comment.asp?bi=738 2006-01-12T16:05:31-05:00 2006-01-12T16:05:31-05:00 2006-01-12T16:05:31-05:00 David Galbraith is being credited as the first to discover that Google is beginning to offer blue “Adballoons” on maps, which for now appears limited to hotels in New York City. One of Galbraith’s basic conclusions is that this application will help tip print Yellow Pages over the edge into oblivion (my words, you can read his).


      I think it is fair to say that map-based advertising is potentially a pretty big deal and a direct threat to Yellow Pages publishers. The list of threats is getting pretty long at this point, and yet the industry is still standing, wounded but not yet destroyed.

      While map-based advertising is a higher-level threat, I stop short of buying the argument that this will be the bullet that finally fells the beast. If I can switch metaphors, perhaps this is cut No. 216 of the 1,000 required to cause death. I doubt whether the 1,000th cut will ever be administered, at least within the time frame many appear to be suggesting.

      One fact worth noting is that, so far, the only participants in the adballoons product are national hotel chains. When it comes time to include local businesses (think restaurants, health clubs, dentist offices, cleaners and the like), who will bring these relationships to Google? The local sales channel may not be the impenetrable armor that some suggest, but it remains an unrivaled advantage.

      Nonetheless, this is a development that directory publishers have had time to anticipate and should take seriously.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[IPTV Article of the Day]]> http://206.106.174.250/blog/blog_comment.asp?bi=737 2006-01-12T15:18:47-05:00 2006-01-12T15:18:47-05:00 2006-01-12T15:18:47-05:00 piece today about IPTV.

      From the article:

      No single company put everything together into a magical product at the Consumer Electronics Show this year, but you didn’t need much imagination to connect the booths and see the Internet TV networks of the 21st century struggling to be born. The unmistakable theme was how video is moving over the Internet onto home televisions and mobile devices in ways that will finally allow consumers to talk back to their TVs, much as they have been interacting with Web sites for the past decade.

      This is a point we have continually raised about the benefits IPTV will bring to consumer targeting and advertising. The interaction or pulling in of on-demand content will not only serve users in innovative ways, but will also give networks, service providers and advertisers invaluable, detailed information about what viewers want and exactly where they are. The inherent advantages of IP technologies over cable and satellite will allow this tracking—as they have done on the Web—as Walker pointed out (and as we have in the past).

      This point she makes is also intriguing:

      Basically, IPTV allows multiple layers of video, pictures and text to be mixed with video feeds in ways viewers can control with their remotes. It’s the old interactive TV vision—point your remote at an actress on screen and up comes her name, prior credits and perhaps a “buy me” button for her blue sequined dress.

      The big question is: How will all the moving parts come together, such as content creation and aggregation, hardware integration, service providers, monetization strategies, and advertising sales channels (or perhaps self provisioning).

      An interesting read and a primer for many IPTV issues we’ll raise at the upcoming Drilling Down on Local conference.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Ads on the Map]]> http://206.106.174.250/blog/blog_comment.asp?bi=736 2006-01-12T14:19:00-05:00 2006-01-12T14:19:00-05:00 2006-01-12T14:19:00-05:00 Pamela Parker ClickZ story about Google putting sponsored links on the map itself. (Click one of the blue “pushpins.")

      We knew this day would come (and have been talking about it at the past several conferences). Yahoo! has been doing a version of this for some time with its sponsor “icons."

      Consumers will want some version of this and so it doesn’t risk destroying the user experience if it’s handled thoughtfully. Indeed, we would expect to see more of this as maps become more and more central to the local search experience.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[LiveDeal Announces Program for Nationals]]> http://206.106.174.250/blog/blog_comment.asp?bi=735 2006-01-12T14:07:44-05:00 2006-01-12T14:07:44-05:00 2006-01-12T14:07:44-05:00 LiveDeal announced a new program, AdTarget, that permits national brands and large advertisers to target its local users across the U.S. and Canada.

      This represents a new revenue stream for LiveDeal, which has been creatively diversifying as a technology platform and developing an affiliate network, in addition to being a consumer destination site.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local.com Traffic Continues Growing]]> http://206.106.174.250/blog/blog_comment.asp?bi=734 2006-01-12T13:58:45-05:00 2006-01-12T13:58:45-05:00 2006-01-12T13:58:45-05:00 release that reflects continued traffic growth at Interchange Corp.’s Local.com destination. The company said that for the month of December 2005, Local.com reached 6.9 million unique visitors and over 33 million page views, up from 5 million unique visitors and 21 million page views in November 2005.

      Local.com has been adding content partnerships as well as new features to try and get ahead of the torrid pace of product development in the local search market.

      ______________

      Update: Local.com is adding Contractors.com content into results. Here’s the release.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Not So Fast on the Newspaper Obit]]> http://206.106.174.250/blog/blog_comment.asp?bi=733 2006-01-12T13:45:44-05:00 2006-01-12T13:45:44-05:00 2006-01-12T13:45:44-05:00 Centro, wrote a thoughtful commentary in MediaPost (reg. req’d) that argues online editions of local newspapers are far from dead in the water and represent desired inventory from an advertiser perspective. I tend to agree, but there are still some big “ifs” looming.

      Yet as has been empirically established, local newspaper sites have reach, consumer brand affinity and the most desired type of online content—news.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[SuperPages Extends Distribution to MSN Local]]> http://206.106.174.250/blog/blog_comment.asp?bi=732 2006-01-12T13:36:16-05:00 2006-01-12T13:36:16-05:00 2006-01-12T13:36:16-05:00 SuperPages advertisers (horizontal links across the top) will appear in MSN local search results. This is an extension of Verizon’s existing relationship with MSN, which provides the listings for MSN Yellow Pages. Verizon has been working aggressively to expand its network, as have other online Yellow Pages publishers.

      Also very recently YellowPages.com announced an expanded distribution relationship with Yahoo! very much like this.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[WSJ Roundup of New VoIP Phones]]> http://206.106.174.250/blog/blog_comment.asp?bi=731 2006-01-12T13:19:28-05:00 2006-01-12T13:19:28-05:00 2006-01-12T13:19:28-05:00 The Wall Street Journal (sub. req’d) has a piece today about the mainstreaming of VoIP through handsets that look and act like traditional cordless phones:

      A slew of new phones are heading to stores aimed at the millions of people who might like to try Internet calling but are put off by the prospect of sitting at a computer to make calls or hooking a phone to an adapter.

      Some of the new phones from makers like Panasonic, Motorola Inc. and Uniden America Corp. have built-in adapters and are preset to connect to popular Internet-calling services like Vonage and Skype. They communicate cordlessly with a base station that’s plugged into a computer or modem. Other devices will be able to shuttle automatically between operating as cellphones, cordless home phones or phones capable of working over the wireless Internet connections at many coffee shops and hotels.


      As VoIP become less like technology and more about just making cheaper calls—when you add Wi-Fi-enabled phones there’s additional incentive—it becomes an increasingly mainstream phenomenon.

      We wrote about VoIP and its implications last year. The expanding VoIP universe will be on the agenda at Drilling Down ’06.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Google Mobile Moves]]> http://206.106.174.250/blog/blog_comment.asp?bi=730 2006-01-12T12:16:57-05:00 2006-01-12T12:16:57-05:00 2006-01-12T12:16:57-05:00 announced button on Motorola phones, BlackBerry says it will support Google Talk IM (among others) and Google Local Maps.

      Separately, Google filed a patent application in the mobile space that appears to be about delivering calls vs. clicks to advertisers from a mobile device. Not being an engineer or a patent attorney, it’s challenging to read these things and comprehend their full scope. But it would seem to be about implementing PPCall from wireless as an ad model.

      Gary Price at Search Engine Watch Blog has more, including a link to the patent app. itself (makes for some nice bedtime reading).

      _______________

      Updated: Google personalized home page for mobile
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Cable Ad Buying for Local Business]]> http://206.106.174.250/blog/blog_comment.asp?bi=729 2006-01-11T12:51:36-05:00 2006-01-11T12:51:36-05:00 2006-01-11T12:51:36-05:00 Spot Runner launched today. It presents itself as an ad agency, but it’s really an Internet-based TV ad buying network. It’s totally local, and it’s potentially revolutionary (yes, that’s what I said), offering spot cable buying for small businesses.

      It’s a self-service platform where SMEs can choose markets, vertically specific creative (pre-produced TV commercials that can be customized), and then the desired distribution and scheduling (based on algorithm-driven recommendations). They gave me a demo last Friday, and it was very impressive. It sounds complex, but it’s not that complicated in actual practice.

      Started by the founders of Firefly and PeoplePC, it’s something Google or Yahoo! will probably look at and say, “Damn! I wish we’d done that; maybe we should.” And it’s something people should take a serious look at.

      These guys will be at Drilling Down ’06. We’ll have more to say later.
      _____________

      Here’s a brief interview with the company’s cofounder Nick Grouf.

      Here’s the press release.

      More from SiliconBeat.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[News Survey]]> http://206.106.174.250/blog/blog_comment.asp?bi=728 2006-01-11T10:18:25-05:00 2006-01-11T10:18:25-05:00 2006-01-11T10:18:25-05:00


      • Fast Search & Transfer’s Stephen Baker points me to a results page on the Denver Post site to show FAST’s aggregation of content from disparate sources in a single page—my search was for “Home Improvement.” FAST doesn’t do UI design (they should). This is getting there ...

      • New mapping and transit site Hopstop (per MediaPost) takes geotargeting down to the block level (using Yahoo! Maps).

      • A new report argues that consumers don’t want to pay for content (iTunes notwithstanding) but would rather have ad-supported video. (There will undoutedly be both in the marketplace going forward.)

      • Local TV Web sites want to be taken seriously as ad vehicles and so commissioned a Borrell report to validate and promote that opportunity to the larger marketplace. (PremierGuide is providing local search and directory content to many of those local TV sites.) The bottom line for local TV sites is that they need to be part of a network (one way or another) to realize this ad revenue potential.

      • EU search engine and Google/Yahoo! challenger Quaero is announced. Billing itself as a next-generation multimedia search provider, it will have to be good and won’t be able to rely on anti-American hostility or pan-EU nationalism for traffic. We’ll see ...
      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[MySpace Plans to Get More Interactive]]> http://206.106.174.250/blog/blog_comment.asp?bi=727 2006-01-11T08:00:17-05:00 2006-01-11T08:00:17-05:00 2006-01-11T08:00:17-05:00 announced the integration of downloadable video, VoIP and IM to MySpace, which News Corp. acquired for $580 million in July. These moves are intended to drive use of the wildly popular social networking site and boost ad revenues (its main revenue stream).

      Murdoch announced the new services Monday at a Citigroup media conference in Phoenix. He also outlined plans to offer wireless broadband Internet service through News Corp.-owned DirecTV. The company’s push into online media is evident through the launch of Fox Interactive Media (FIM) in July, not to mention Murdoch’s outspoken opinion on the maturation of newspaper and other brick-and-mortar media businesses.

      Free video, IM and voice are hoped to create more stickiness among MySpace users, in addition to increasing traffic and driving ad revenues. The site has a total of 47 million users and is adding about a million per week. Its average user age is 20, a demographic projected to be heavy users of video, IM and voice. Indeed, MySpace users already have a proven interest in music content and social networking, which these new offerings will each address in some way.

      The video content will likely come from News Corp. content assets including the Fox TV network, Fox News Channel and Twentieth Century Fox movie studio. Fox News Channel might not “speak” to the MySpace generation as much as the others. But we’ll have to wait and see.

      In fact, since News Corp. acquired MySpace, I’ve been waiting to see what it will do to screw up the site. In other words, an arguably anticorporate MySpace generation could quickly sniff out any commercialization strategies put in front of them. FIM seems to be doing OK so far, and these new offerings, if they aren’t perceived as an advertising Trojan horse, should be well-accepted by the MySpace crowd.

      But don’t forget the site’s name. Users have developed a strong and widespread affinity that it is their space. So if Murdoch & Co. wish to keep these users around, they should be careful what they do with it.


      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[IAC Launches Comparison Shopping Engine]]> http://206.106.174.250/blog/blog_comment.asp?bi=726 2006-01-10T21:01:11-05:00 2006-01-10T21:01:11-05:00 2006-01-10T21:01:11-05:00 SEW reports that IAC/InterActiveCorp has launched a comparison shopping service called Pronto. Check it out and let us know what you think. We’ll do the same.

      More on this later.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Earth for Mac OS]]> http://206.106.174.250/blog/blog_comment.asp?bi=725 2006-01-10T16:46:55-05:00 2006-01-10T16:46:55-05:00 2006-01-10T16:46:55-05:00 This came out today. Here’s what they had to say about it in Mountain View at “the plex.”

      Today is the 10th day of January and I’m counting four product announcements (or their equivalents) so far—ahead of last year’s pace.
      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Spin-Offs No Sure Bet to Unlocking Value]]> http://206.106.174.250/blog/blog_comment.asp?bi=724 2006-01-10T14:39:37-05:00 2006-01-10T14:39:37-05:00 2006-01-10T14:39:37-05:00 BusinessWeek has an interesting take on the benefits of spin-offs, which is apropos given the likelihood that Verizon will go the spin-off route with its Information Services directory publishing unit.


      A BusinessWeek study conducted by Dealogic found that “ ...the six big companies that announced spin-offs in 2005 and completed them by the first week of 2006 saw no big run-up in shareholder value as a result.” The magazine found that the six companies (American Express, Dean Foods, Fortune Brands, Viacom (VIA ), Liberty Media and Clear Channel Communications) generated the same 3 percent return as the S&P 500.

      One reason given for the disappointing results was that these spin-offs may have been perceived as “financial engineering” rather than strategic responses to threats from the Internet. Will this issue haunt Verizon? Probably not, since one of its objectives is to raise money to further its investment in building a digital network. Also, the balance of experience suggests directory organizations fare better as stand-alones than under the ownership of telecoms, particularly those with strategic objectives well beyond owning the local telephone exchange.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[MIVA Retains DB]]> http://206.106.174.250/blog/blog_comment.asp?bi=723 2006-01-10T14:16:10-05:00 2006-01-10T14:16:10-05:00 2006-01-10T14:16:10-05:00

      The press release states:

      [MIVA] announced that it has retained investment banking firm Deutsche Bank Securities to assist the Board of Directors in exploring and evaluating a range of strategic opportunities to enhance shareholder value. Deutsche Bank will help the Board analyze options including, but not limited to, the raising of capital through the sale of securities or assets of the Company, a recapitalization, strategic acquisitions, and the combination, sale or merger of the business with another entity offering strategic opportunities for growth.

      This may or may not mean the company is for sale. But in this market a quote from Woody Allen’s 1977 comedy Annie Hall is in order:

      “A relationship is like a shark, it has to constantly move forward or it dies.”

      In paid search if you’re not Google, Yahoo! or MSN, you’re in the same bind; it’s hard to move forward. LookSmart, Mamma, Enhance, Lycos, etc. all face the same challenge to varying degrees. That’s partly why LookSmart and Marchex (owner of Enhance) are building out vertical destination sites—to take control of their destinies.

      I would expect consolidation among the second-tier networks (the market and The Market will demand it). We’ll see.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[FAST Newspaper Deal]]> http://206.106.174.250/blog/blog_comment.asp?bi=722 2006-01-10T11:01:36-05:00 2006-01-10T11:01:36-05:00 2006-01-10T11:01:36-05:00

      This move toward a search-driven interface that can “surface” more newspaper content is a very positive step in making local newspaper sites more competitive as user destinations for more than just news (which is the hook and where it ends for many people today).

      They’ve got so many partners and have been so successful, the company may soon run out of prospects.

      Here’s the full release.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google in Car]]> http://206.106.174.250/blog/blog_comment.asp?bi=721 2006-01-10T10:15:42-05:00 2006-01-10T10:15:42-05:00 2006-01-10T10:15:42-05:00 MediaPost per Forbes) that it would be working with Volkswagen to develop an automotive nagivation system based on Google Earth:

      VOLKSWAGEN AG AND GOOGLE HAVE entered into a deal to develop a prototype navigation system for cars, according to a Forbes.com report Monday. The prototype will reportedly integrate the search giant’s satellite mapping product, Google Earth, into VW’s cars.

      That probably puts Google in direct competition with one of its partners, Tele Atlas.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Knight Ridder Bidders]]> http://206.106.174.250/blog/blog_comment.asp?bi=720 2006-01-10T09:54:29-05:00 2006-01-10T09:54:29-05:00 2006-01-10T09:54:29-05:00 TheDeal.com story (reg. req’d) about bidders for Knight Ridder. Potential suitors include:


      • Thomas H. Lee Partners, Bain Capital, Texas Pacific Group and Hellman & Friedman

      • Blackstone Group, Providence Equity Partners and Kohlberg Kravis Roberts & Co.

      • Gannett Co., Tribune Co., Freedom Communications and the McClatchy Co.

      There’s a lot at stake for the future of the industry hanging on which entity acquires the business and how it is subsequently managed.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Y! Center and G Updater]]> http://206.106.174.250/blog/blog_comment.asp?bi=719 2006-01-10T09:18:42-05:00 2006-01-10T09:18:42-05:00 2006-01-10T09:18:42-05:00 Charlene Li points out about Google Pack in her recent post—and this similarly struck me when when I downloaded it—Google and Yahoo! are developing direct channels onto the desktop in a way that, really, only Microsoft has done before. The hidden genius of Google Pack may be the updater that communicates with the user and notifies her of new software or software updates. Yahoo! has something similar in Yahoo! Central, which comes with Yahoo! Messenger:

      Yahoo! Central helps you to manage your internet default settings, such as default browser, email, and browser home page and search. Yahoo! Central collects and transmits information about each of your sessions to help us identify issues, evaluate how our program is used and provide our services. Y! Central will be set to alert you weekly about Yahoo! software updates.

      Clearly, this is nothing new. Software companies have done this many times in the past. But the power of Google and Yahoo! in the marketplace—and the intensity of competition between them and Microsoft—makes this something noteworthy.

      Now Google and Yahoo! don’t have to pull users to their respective sites to introduce new products. They can push those products directly to the desktop (or at least push notices to users). Of course, there are issues of trust and privacy. But think about the B2B side of this as well:

      “Hey SME you’ve tried our consumer products, now test drive our new simplified online marketing tool.” (No feet on the street needed.)

      Or a variation on that theme:

      “Here’s your small business dashboard” ... to manage your parallel universe (vs. MSFT) of SME tools and software.

      Imagine the possibilities ...


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL Buys V-Search Start-Up Truveo]]> http://206.106.174.250/blog/blog_comment.asp?bi=718 2006-01-10T06:15:13-05:00 2006-01-10T06:15:13-05:00 2006-01-10T06:15:13-05:00 Truveo:

      The acquisition of Truveo builds on the early leadership established by AOL in the video search engine arena, beginning with the purchase of Singingfish in November 2003 and continuing with the launch of AOL Video Search in June 2005. Truveo’s video search capabilities will be integrated with our search and video products in the coming months.

      Truveo had only just launched in September and boldly promoted itself as the best video search engine online. We blogged about it briefly here when it went live and it’s already been gobbled up.

      When I said “ripe for ultimate acquistion,” who knew that “ultimate” meant three-and-a-half months?

      Here’s more detail from Gary Price at Search Engine Watch . Here’s yet more from MarketWatch (scroll for Bambi Francisco video interview with Truveo CEO Timothy Tuttle)

      Here’s a TechCrunch September posting about Truveo.

      The online video news just keeps coming. In fact, more interesting stuff coming tomorrow!

      _____________

      Here are some video facts and insights into AOL’s rationale in the “backgrounder” it provided with the press release yesterday:

      BACKGROUNDER: TRUVEO ACQUISITION

      • 2005 marked the year video on the web arrived - and it will continue to explode in 2006:
      • Video streaming has consistently doubled year over year over the past few years and is projected to grow at this rate beyond 2009;
      • There were over 20 billion video streams in 2005 alone;
      • Challenge for consumers has been the absence of a good video search engine online. There’s simply no ‘TV Guide’ or ‘remote clicker’ to find the thousands of sites that have rich web video;
      • Consumers still find it difficult to find the videos they want to watch: 59% of those currently watching Internet video “discover online videos randomly while being on the Web”, and 53% of those not currently watching Internet video identified “ability to easily find my favorite types of video” as a primary motivator to increasing video consumption;
      • Also, no video search application anywhere on the web has emerged as the premier player;
      • All of this means there are huge opportunities in this space—for consumers, portals, advertisers, and others.
      • Truveo is the clear leader in the video search space, augmenting AOL’s very strong leadership position in online video:
      • Simply put, Truveo offers a completely new approach to video search;
      • The Truveo technology is unique, innovative, and unmatched - with a comprehensive index of up-to-the-minute video using proprietary ‘visual crawler’ techniques;
      • Truveo offers one of the most comprehensive, robust, high-quality video indexes on the web, allowing consumers to search for and discover hard-to-find video in real-time;
      • Truveo provides best-in-class search indexing, rich metadata, high-quality and constantly updated video content, a streamlined, visually-appealing search interface, and a powerful ranking engine - all on one screen;
      • As a result, Truveo hits the ‘sweet spot’ for consumer video making the experience more relevant, accurate, up to the minute, easy to use, simple and fun, powerful, compelling, and quick;
      • Internal testing shows that Truveo provides search results that are consistently better than others video search offerings on the web;
      • Truveo also possesses world-class search engineering talent - pioneers with remarkable experience in innovative search design and search indexing and who truly understand what today’s consumers seek in the online video search experience.
      • Truveo and AOL are a perfect match.a marriage of the best broadband portal with the best video search engine on the web - a remarkable breakthrough in the search arena.

      __________________

      This bullet is worth noting:

      Truveo also possesses world-class search engineering talent - pioneers with remarkable experience in innovative search design and search indexing and who truly understand what today’s consumers seek in the online video search experience.

      Talent is what many of these early-stage acquisitions appear to be about now—technology but also buying to hire.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[2006 Looks to be the Year of Web + TV II]]> http://206.106.174.250/blog/blog_comment.asp?bi=717 2006-01-09T13:08:11-05:00 2006-01-09T13:08:11-05:00 2006-01-09T13:08:11-05:00 exclusive interview with Marco Boerries, SVP-Connected Life, Yahoo!. With the recent media storm over content and online video (stepped up even further by last week’s CES conference and this week’s Macworld expo), an important question is: When will the moving parts come together to make online video become a pervasive medium? In other words, when will the hype turn into mainstream adoption reality. (In this discussion, it’s important to make the distinction between online video and IPTV.)

      Boerries is emphatic that online video will reach a tipping point in ’06:

      I think we’re going to see the first critical mass in ’06. I think with Intel’s Viiv, we’re going to see that. We’re going to start seeing it happening; it’s going to need some ramp-up time. That was the reason we partnered with Intel—see what they’ve done with Centrino, right? Five years ago, less than five percent of the notebooks had WiFi in them and it was not always working ... Now, 99 percent of the notebooks have WiFi and it works most of the time. That’s the leadership that Intel can provide to the industry ... in terms of technology, standardization and investment dollars in marketing and getting the digital home opened up ... We don’t have a million users today in the U.S who connect the TV and the PC. This is to me always a critical threshold (one million) and we’re going to pass this threshold this year.

      Read the rest here.

      A good comparison chart of the current video offerings of the four main portals (and Apple) is here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! and Starwood Team Up for Free Wi-Fi]]> http://206.106.174.250/blog/blog_comment.asp?bi=716 2006-01-09T09:54:14-05:00 2006-01-09T09:54:14-05:00 2006-01-09T09:54:14-05:00 The Wall Street Journal (sub. req’d), Yahoo! will be testing free Wi-Fi at two Starwood-owned hotels:

      Seeking new ways to distinguish their respective brands, Starwood Hotels & Resorts Worldwide Inc. and Yahoo Inc. said they will begin a test of Yahoo Internet lounges in two Sheraton hotels today.

      Dubbed Yahoo Link@Sheraton, the lounges opening today in the lobbies of the Sheraton Boston and Sheraton San Diego Hotel & Marina will be part business center, part Internet cafe. They will have desktop workstations and space for guests to plug in laptop computers. Internet access, including wireless capability, will be free, the companies said.

      ________

      A couple of comments:

      It’s totally annoying to pay $9.95 or more—on top of $200 to $300 (or more) for a room—at a major hotel for slow or “cludgey” Internet access. I dance with glee at the prospect of free Wi-Fi. And if this relationship takes hold and proves to be successful, expect Starwood competitors (e.g., Marriott, Hilton, Hyatt) to try something similar.

      Starwood is a global hotel chain:

      At December 31, 2004, our hotel portfolio included owned, leased, managed and franchised hotels totaling 733 hotels with approximately 231,000 rooms in 80 countries, and is comprised of 140 hotels that we own or lease or in which Starwood has a majority equity interest, 283 hotels managed by us on behalf of third-party owners (including entities in which we have a minority equity interest) and 310 hotels for which we receive franchise fees.

      So if it were to go global (or partly global), it would be a potentially significant deal. We’ll see.

      Notice also that Yahoo! is doing this without a partner provider. Where else might the company do this in the future?

      More at Search Engine Journal.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Forecast Time Again]]> http://206.106.174.250/blog/blog_comment.asp?bi=715 2006-01-09T06:17:52-05:00 2006-01-09T06:17:52-05:00 2006-01-09T06:17:52-05:00 write-up by Chris Sherman of the recent SEMPO survey that has lots of juicy data about search marketing. The organization offers figures for 2005 ($5.75 billion spent in U.S. and Canadian markets) and a forecast for 2010 ($11 billion).

      I’ll be putting together a “forecast roundup” for this week’s Local Media Journal.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Video Rising]]> http://206.106.174.250/blog/blog_comment.asp?bi=714 2006-01-08T12:28:47-05:00 2006-01-08T12:28:47-05:00 2006-01-08T12:28:47-05:00 SiliconBeat for unearthing TurnHere.com, which is posting local videos from all over the U.S.—watch a couple of them and you’ll immediately see the local biz advertising and travel implications.

      Here’s what the site says:

      TurnHere.com, a new Internet video destination, is seeking professional and independent filmmakers, who it pays for their work and creativity, to participate in an ambitious initiative which is chronicling the stories of American neighborhoods and places across the country through 2-5 minute short films made specifically for the Internet.

      Films should be artful and high-concept, focusing on the people, culture, history, local businesses and political landscapes across America. Importantly, the site is highly viral, as each film has it’s own unique URL which can be forwarded via email.


      There’s also a social dimension, which is very interesting and, of course, de rigeur for today’s Internet start-ups. SiliconBeat says distribution will come through TurnHere.com and third parties (e.g., Yahoo!, MSN, etc.)

      As we said, 2006 is the year of video and that extends to local as well. We’ll have several panels on video and its implications for local at our next event in San Jose at the end of March.

      Will be following up with Brad Inman (founder) to learn more next week about TurnHere.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Wi-Fi Phones Are Coming]]> http://206.106.174.250/blog/blog_comment.asp?bi=713 2006-01-08T12:08:13-05:00 2006-01-08T12:08:13-05:00 2006-01-08T12:08:13-05:00 piece on a Wi-Fi “cell” phone, introduced at CES, that can split calls between cell and Wi-Fi networks. This comes on the heels of the new Skype-Netgear Wi-Fi phone .

      The article talking about UTStarcom’s new GF200 (discussed in the first link) points out that cellphone carriers will resist this and other Wi-Fi-enabled cellphones because of the negative revenue implications.

      Howard Frisch, director of Handset Product Management at UTStarcom, said it’s highly unlikely that existing cell companies will want anything to do with a phone that could slash their revenue.

      Accordingly, Frisch said in the article that Europe will be the first market to see adoption of such phones.

      Eventually most cellphones will be Wi-Fi enabled and this trend toward a phone that can work on any network (at home or out and about) will be the norm. The only question is when? We will see whether and how the incumbent U.S. wireless carriers can delay this inevitability—and they may be able to do so for some time.

      But this potential disruption is what I’m talking about when I say the “new” biz models (e.g., wireless) are less stable than many traditional media models and may be undermined surprisingly fast—from a historical perspective.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[comScore Search Numbers]]> http://206.106.174.250/blog/blog_comment.asp?bi=712 2006-01-06T18:19:34-05:00 2006-01-06T18:19:34-05:00 2006-01-06T18:19:34-05:00 here. Here are the highlights:


      • Google Sites —39.8%

      • Yahoo! Sites— 29.5%

      • MSN-Microsoft Sites —14.2%

      • Time Warner Network— 8.7%

      • Ask Jeeves —6.5%



      According to comScore, Google and Ask.com were the only gainers.

      Also:

      Americans conducted 5.15 billion searches online during November 2005, up 9 percent from November 2004.

      Google Sites garnered the most searches in November 2005 with 2.05 billion searches measured, followed by Yahoo! Sites (1.52 billion searches), MSN-Microsoft Sites (728.8 million searches), Time Warner Network (446 million searches), and Ask Jeeves (336.3 million searches).

      Yahoo! and Google continued to battle for supremacy in the toolbar search arena. Yahoo! Sites received 48.5 percent of toolbar searches, edging out Google’s 46.4 percent share. While Yahoo!’s competitive edge is noteworthy, toolbar search activity represented only 12 percent of total searches in November.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Google and TV]]> http://206.106.174.250/blog/blog_comment.asp?bi=711 2006-01-06T16:45:04-05:00 2006-01-06T16:45:04-05:00 2006-01-06T16:45:04-05:00 SiliconBeat directs us to a post by Robert X. Cringely about the value and strategic potential of Google serving ads on TV (contextual targeting). At a high level, it’s consistent with this report.

      On a related note, I took a briefing from a company today in the TV/cable ad space that is going to make a big splash next week when they launch (with a local angle). Sorry to tease (I hate when I read cryptic statements like this on other blogs), but it was relevant and I’m eager to talk about this company.

      It was a very impressive demo. More later.

      Have a good weekend.

      __________

      Here’s a pretty comprehensive overview of the Page keynote. Lots of interesting bits in there (incl. the $100 laptop).

      Here’s a post-Page keynote update on the Google Video announcement from AP .

      Google Video is now live (and I now believe [after playing with it] that people will ultimately pay to watch online video content)

      Here’s more on the “Google Pack” software download bundle—OpenOffice isn’t there.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Google and Monster?]]> http://206.106.174.250/blog/blog_comment.asp?bi=710 2006-01-06T14:41:57-05:00 2006-01-06T14:41:57-05:00 2006-01-06T14:41:57-05:00 Greg Sterling gsterling@kelseygroup.com <![CDATA[Sour Grapes at the Big Pipes?]]> http://206.106.174.250/blog/blog_comment.asp?bi=709 2006-01-06T11:26:29-05:00 2006-01-06T11:26:29-05:00 2006-01-06T11:26:29-05:00 WSJ article (sub. req’d) details plans (and negotiations) to charge fees of content providers for priority high-speed delivery of broadband content:

      Large phone companies, setting the stage for a big battle ahead, hope to start charging Google Inc., Vonage Holdings Corp. and other Internet content providers for high-quality delivery of music, movies and the like over their telecommunications networks.

      One view of this is that the content providers/producers will want to ensure high-speed content delivery to consumers and so are motivated to cooperate. Another view is that this is partly about fairness but partly about sour grapes, as BellSouth, Verizon and AT&T (formerly SBC) see Google, Yahoo!, MSN, AOL, Skype and Vonage (among others) starting to encroach on their various businesses. They don’t want to be the “dumb pipes” that fuel the rise of their rivals.

      More from the WSJ article:

      The phone companies are motivated by a need to find new ways to make money from their networks as more and more customers turn to cable or Internet-based companies for less-expensive phone service. Further, the telecom companies argue that they have spent billions of dollars through the years to upgrade their networks so that users can effortlessly download content from Web sites such as Google and Yahoo—with little benefit to the phone companies themselves.

      “During the hurricanes, Google didn’t pay to have the DSL restored,” said BellSouth spokesman Jeff Battcher. “We’re paying all that money."


      There may be regulatory scrutiny of such efforts, but the more significant long-term unintended consequence of any such efforts by ISPs (if they’re implemented) is the development of alternative access paradigms (including free Wi-Fi). Any efforts of telcos to “tax” their rivals who rely on consumer access to bandwidth—and you can track the rise of search engines with the rise of broadband access—could spur development of those alternative access paradigms.

      Google, Yahoo!, MSN et al very self-consciously know that their growth is tied to unfettered, high-speed access (as well as new platforms). As The Journal suggests, a battle and intensifying competition is coming.

      As I argued before, the traditional media businesses such as print Yellow Pages may have greater staying power and profitability (quite ironically) than the “21st century” business models such as Internet access and wireless. I can hear the skepticism now—we’ll see.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[More on Google and Yahoo! Announcements Today]]> http://206.106.174.250/blog/blog_comment.asp?bi=708 2006-01-06T11:20:08-05:00 2006-01-06T11:20:08-05:00 2006-01-06T11:20:08-05:00 The New York Times (free reg. req’d) has more detail about the expected announcements from Terry Semel and Larry Page today. Semel’s keynote is going on right now, and Page’s is later today. We’ll follow up with recap and analysis later, and you can read more in next week’s issue of Local Media Journal. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Motorola 'Bakes in' G and Y!]]> http://206.106.174.250/blog/blog_comment.asp?bi=707 2006-01-06T09:31:31-05:00 2006-01-06T09:31:31-05:00 2006-01-06T09:31:31-05:00 announced that it will integrate Google and Yahoo! into handsets (“button on the phone’s keypad” ). A big deal—Motorola is the world’s second-largest handset maker—this will raise user awareness of mobile search (and especially Mo-Lo) and is more evidence of the coming ubiquity of these Internet mega-brands.

      Here’s more on Yahoo!’s everywhere (“Go ” ) strategy. Cingular (to become AT&T again) and Nokia have pending deals with Yahoo! Go.
      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[YPC in Tight with Yahoo!]]> http://206.106.174.250/blog/blog_comment.asp?bi=706 2006-01-06T09:08:49-05:00 2006-01-06T09:08:49-05:00 2006-01-06T09:08:49-05:00
      The deal essentially consolidates existing agreements between Yahoo and both AT&T Yellow Pages (ex-SBC) and BellSouth A&P. Stubbs notes that the new deal is considerably expanded in several respects, including:

      • The new agreement includes Yahoo! Local in addition to Yahoo! Yellow Pages

      • Under the new agreement, YellowPages.com handles national sales (through CMRs) for Yahoo! Yellow Pages and Yahoo! Local.

      • The new deal exposes all advertisers to Yahoo! YP & Local traffic, where the previous relationship with AT&T had limitations.


      Look for more coverage next week. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[2006 Looks to be the Year of Web + TV]]> http://206.106.174.250/blog/blog_comment.asp?bi=705 2006-01-06T08:42:59-05:00 2006-01-06T08:42:59-05:00 2006-01-06T08:42:59-05:00 BIG year for broadband video and offline “on-demand” cable and, maybe, telco IPTV. The fierce competition among Google, Yahoo!, MSN and AOL in the online ad/search world is spilling over into the world of TV and offline media—or maybe blurring the picture between the categories.

      Here’s a N.Y. Times piece from today’s paper on the general subject. And here’s one from MediaPost on the just announced “Web-to-TV” AOL-Intel deal. Both require registration.

      Here’s more on Yahoo! and Google’s plans from PaidContent. And here’s what Terry Semel is set to introduce today— Yahoo! Go (beyond the browser).

      Here’s Reuters’ Eric Auchard’s write-up of the full scope of the Yahoo! announcement (including the wireless aspects) and related third-party deals.

      And here’s a Jefferson Graham USA Today Q&A with Terry Semel about his vision for TV-Web interaction (I dare not say “convergence").

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Small but Venerable Independent Sells to YB]]> http://206.106.174.250/blog/blog_comment.asp?bi=704 2006-01-05T16:09:21-05:00 2006-01-05T16:09:21-05:00 2006-01-05T16:09:21-05:00 Mike Boland mboland@kelseygroup.com <![CDATA[2006 Tech Resolutions]]> http://206.106.174.250/blog/blog_comment.asp?bi=703 2006-01-05T15:13:33-05:00 2006-01-05T15:13:33-05:00 2006-01-05T15:13:33-05:00
      Interestingly, Schonfeld’s recommendations for Yahoo! mirror our own thoughts on the company’s trajectory, and the comments of Bradley Horowitz, Yahoo!’s director of media and desktop search, when I spoke to him in the fall.

      From Schonfeld:

      Yahoo (Research) helped make 2005 the Year of RSS (Really Simple Syndication) by incorporating it into MyYahoo, Yahoo News and even Yahoo Mail. Yahoo also championed the Media RSS format for video, which helps video producers upload content into Yahoo’s video search engine. With those pieces in place, Yahoo should now take the next step and turn My Yahoo into a hub for Internet TV. Just like an RSS reader pulls together blogs and news feeds, My Yahoo could be a single place to find, subscribe to and watch video (or listen to audio podcasts) from anywhere on the Web, whether it’s the most-viewed clips on YouTube, Saturday Night Live skits or Yahoo’s own Kevin Sites in the Hot Zone.


      Or as Horowitz put it to me:

      You might have different categories on the page, so at the top of the page you might have ‘What’s Hot’ kind of things that we’re bringing to you because they are general popular interest and most people want to watch them. You might also have ‘My Subscription,’ so you might subscribe to various shows like ‘Six Feet Under’ and you want to see when a new episode is available for viewing.

      Sounds an awful lot like RSS and My Yahoo!, which Horowitz agreed with. This brings the personalization strategy that Yahoo! is pushing across its network to yet another place. Such a video hub for users will also create valuable ad inventory that can be tied to Yahoo!’s already existing local ad network, and targeted acutely based on content pulled in and location.

      Schonfeld agrees that a user-friendly video hub—akin to My Yahoo!—is what we need to ignite “the Internet TV era.” Yahoo! could be just the company to do it. But we’ll hold off on that prediction until tomorrow, when we see what type of video product Google’s Larry Page unveils during his CES keynote.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Listen to Live CES Keynotes Online II]]> http://206.106.174.250/blog/blog_comment.asp?bi=702 2006-01-05T15:03:57-05:00 2006-01-05T15:03:57-05:00 2006-01-05T15:03:57-05:00 SEW has a link to listen to Terry Semel’s Keynote at CES tomorrow. They also cover Bill Gates’ keynote last night. A further roundup of keynote coverage and other CES news is posted below by my colleague Greg Sterling, and there will surely be lots more CES news to come… has a link to listen to Terry Semel’s Keynote at CES tomorrow. They also cover Bill Gates’ keynote last night. A further roundup of keynote coverage and other CES news is posted below by my colleague Greg Sterling, and there will surely be lots more CES news to come… ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Reported Google Video Announcement]]> http://206.106.174.250/blog/blog_comment.asp?bi=701 2006-01-05T09:27:19-05:00 2006-01-05T09:27:19-05:00 2006-01-05T09:27:19-05:00 WSJ (sub. req’d) has to say re Larry Page’s forthcoming CES keynote:

      Google Inc. plans to announce Friday that it will begin allowing consumers to buy videos from major content partners through the Google site and will also roll out a new downloadable bundle of software for consumers that could heighten Google’s competition with Microsoft Corp., according to people familiar with the matter.

      Under the major upgrade to Google’s video-search service, consumers will be able to pay to download and view videos, such as television shows, on their computers from Google content partners such as TV companies, people familiar with the matter say. Google plans to announce partnerships with some major players tomorrow, including CBS Corp. and the National Basketball Association, these people say. By virtue of Google’s huge presence online, the move could place Google in competition with other emerging powers in Internet distribution of video such as Apple Computer Inc.

      More later ...

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[CES News Frenzy]]> http://206.106.174.250/blog/blog_comment.asp?bi=700 2006-01-05T08:17:57-05:00 2006-01-05T08:17:57-05:00 2006-01-05T08:17:57-05:00 news and releases are coming out of CES. Among the many news items worth noting is the Skype-Netgear Wi-Fi phone—no PC required.

      The phone will work:

      “ ... in a home, office, cafe, open public hotspot, or any open municipal wireless access point being deployed worldwide. The Skype experience remains the same, in that users can make free domestic and international calls, as well as host conference calls and chat, with other Skype users anywhere in the world, and to non-Skype users for a small fee. With this device, headphones or USB phones plugged into a laptop or PC are not required."

      We wrote about VoIP and its potential impact on the directory listings database, PPCall and other related subjects here.

      There are other such devices that enable consumers to use VoIP without going through a PC. Commoca offers one such device. AOL TotalTalk offers calling with an adapter on users’ current phones. These are just two examples of ways that consumers can tap VoIP without having to use a USB mic/headset to make calls via IM (which is a barrier to mainstream adoption).

      What’s particularly interesting about the Skype-Netgear phone is that it’s wireless and will work at home, Starbucks or anywhere there’s a high-speed connection. (Now think about municipal Wi-Fi and it starts to get really interesting.)

      The next generation of traditional cellphones will have Wi-Fi embedded (they’ll have to). Consumers won’t want to carry multiple phones. But what if there were one phone—maybe with a handset I could take with me and one that I left at home—that worked anywhere there was a Wi-Fi connection and on the wireless networks of the major carriers?

      You start to get the picture.

      In late 2006 or early 2007, the stars will start to align for VoIP and more U.S. consumers will begin adopting—unless PSTN telcos start lowering prices to prevent it. But Wi-Fi calling is where cable may have an advantage over telcos in the TV-data-voice-wireless bundled features war ("triple-quadruple play").

      More to come. Here’s a roundup of VoIP-related announcements (so far) at CES.

      _______________

      Related:

      Coverage of Gates’ “digital lifestyle"/IPTV/Vista discussion and announcements here and here and here.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Listen to Live CES Keynotes Online]]> http://206.106.174.250/blog/blog_comment.asp?bi=699 2006-01-04T15:45:48-05:00 2006-01-04T15:45:48-05:00 2006-01-04T15:45:48-05:00 SEW points to a few places online where you will be able to listen to the live CES Keynote from Bill Gates tonight at 6:30 PST (If you aren’t watching the Rose Bowl). We expect that local search will play a part in some way in what he has to say. Yahoo!’s Terry Semel, and Google’s Larry Page speak on Friday and there will likely be live audio casts online somewhere, which SEW is committed to finding. We’ll keep our eyes open as well. ]]> Charles Laughlin claughlin@kelseygroup.com <![CDATA[Syndicated Data to Be Unveiled in January]]> http://206.106.174.250/blog/blog_comment.asp?bi=698 2006-01-04T13:14:38-05:00 2006-01-04T13:14:38-05:00 2006-01-04T13:14:38-05:00
      According to KN/SRI, 10 directory publishers participated in the study in 2005, and so far 12 certified marketing representative companies have signed up to receive the data.


      While 10 publishers doesn’t sound like many, the 10 that are participating account for the lion’s share of U.S. directory revenue.

      TKG has watched the process unfold of rekindling syndicated usage research. The process has been difficult due to complex methodology issues and conflicting interests among the participants. TKG applauds this development and acknowledges the hard work required to take this initiative this far. The next challenges include keeping the process together for the long haul and adding the participation of more publishers. But for now it is worthwhile noting that the initiative has achieved at least initial success.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[ISP Competition: 'Bring It On']]> http://206.106.174.250/blog/blog_comment.asp?bi=697 2006-01-04T13:07:09-05:00 2006-01-04T13:07:09-05:00 2006-01-04T13:07:09-05:00
      I have two contradictory thoughts: Being offline for most of last week gave me some much needed perspective that the Internet isn’t the alpha and omega of existence—of course, I already knew that intellectually— there are many more “human” problems (and pleasures) that should and do trump the questions of search engine market share and online demographics. However, admittedly, I am somewhat compulsively involved with the Internet and its many dramas.

      The Internet is now a utility and should be as reliable; it’s no longer a novelty. It must work all the time, and there must be redundant systems to ensure that it does. Right now, amazingly (because of my own “inertia"), I pay $61.90 per month for my Comcast “high-speed” Internet. I’ve considered switching to ATT-Yahoo!, but the speeds are slower (although so are the prices).

      Yet most of the time I don’t in fact get on at the promised superior cable speeds. Indeed, one of the amazing things I discovered during this little ordeal was that Comcast was actually rationing the signal strength to my house. That was revealed when one of the technicians removed the device constricting the bandwidth to boost the signal speed I was receiving.

      But enough of this griping ... Bring on the municipal Wi-Fi (GoogleNet, whoever; I don’t care). It can’t happen fast enough for me. Maybe that would put some fear into Comcast to deliver better service and better speed at more competitive pricing.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Let the Announcements Begin]]> http://206.106.174.250/blog/blog_comment.asp?bi=696 2006-01-04T12:41:45-05:00 2006-01-04T12:41:45-05:00 2006-01-04T12:41:45-05:00 Device convergence will be a major theme and IPTV will get a lot of attention.

      PaidContent reports that IPTV content aggregator and service provider Akimbo has struck a deal with Thomson (RCA) to launch a co-branded Akimbo video player (set-top box) that will interface with the broadband delivery of video content from Movielink. Akimbo had previously marketed its own set-top box but recently announced that it will seek hardware partners and focus more on being a content aggregator and service provider.

      News Corp. subsidiary NDS has also launched a service called XSpace, which allows users to access online video content on their television. This is basically a technology play that brings Web video clips (news, sports and entertainment already available online) to your television. So there is no content aggregation involved—just a form factor issue. The technology supports the ad delivery that comes with the content, as well as subscription-based content.

      IPTV start-up and content aggregator DaveTV (similar model as Akimbo) is expected to announce a new IPTV delivery platform this week that will include content partnerships for Hollywood movies. We’ll be watching closely for that announcement and others.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Pay-Per-View?]]> http://206.106.174.250/blog/blog_comment.asp?bi=695 2006-01-04T05:22:55-05:00 2006-01-04T05:22:55-05:00 2006-01-04T05:22:55-05:00 MediaPost (reg. req’d) about Google gearing up to potentially charge users to watch full-length videos.

      While more and more users are paying for content online, this move would (in my view) be premature. There’s too much competition out there and the broadband video market is too new (although it’s apparently working on the iPod) to institute a pay-per-view strategy.

      Speaking of such competition, Starz’s Vongo (a $9.95 subscription service as opposed to PPV) will soon permit movie downloads onto a variety of devices. Eventual consumer adoption of such services will largely put video rental companies out of business (and maybe Netflix too, unless they go forward with a similar service, previously “indefinitely postponed").

      _________________

      This USAToday column looks at the long tail of video content and the role of user recommendations in driving that content (rehash, but timely rehash).

      Here’s Om Malik’s theory about Larry Page’s keynote at CES and Google Video

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Than a Product a Week]]> http://206.106.174.250/blog/blog_comment.asp?bi=694 2006-01-04T04:53:00-05:00 2006-01-04T04:53:00-05:00 2006-01-04T04:53:00-05:00 Google Blog , the company introduced 77 new products in 2005.

      So there are 52 weeks in a year ... that makes approximately 1.4 product announcements per week. As I wrote last week, analytics firm Hitwise suggests that Google’s momentum (and share growth in the past six months) is partly tied to the introduction of many new products/offerings.

      I wonder if there’s a strategy in there somewhere: product rollout, frenzy of coverage, ubiquity of Google name reinforces usage, also drives market share gains, advertisers follow, stock gains (Hello $600!), et cetera, et cetera.

      I suspect there wasn’t a day in 2005 that didn’t see at least one article written about Google in the U.S. and abroad.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Traditional Media Audiences in Decline]]> http://206.106.174.250/blog/blog_comment.asp?bi=693 2006-01-04T04:42:51-05:00 2006-01-04T04:42:51-05:00 2006-01-04T04:42:51-05:00
      The currency, breadth, accuracy and ubiquitous availability of the Internet and online content are responsible for the trend, according to Burst (vs. one year ago):


      • 36.6 percent spend less time reading magazines

      • 44.1 percent spend less time reading newspapers

      • 44.0 percent spend less time listening to the radio

      • 43.6 percent spend less time watching TV


      The Kelsey Group’s next UserView consumer survey will be conducted this quarter. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Return of the Free/Low-Cost PC?]]> http://206.106.174.250/blog/blog_comment.asp?bi=692 2006-01-04T03:44:30-05:00 2006-01-04T03:44:30-05:00 2006-01-04T03:44:30-05:00
      How low can it go? The price of PCs, that is. The cheapest desktop PC I was able to find online was selling for less than US$300. That’s pretty cheap, but remember the era of FreePC and PeoplePC (now an ISP)?

      These and several other start-ups in the first round of the Internet offered free (ad-supported) PCs to consumers. The consensus was that the concept was flawed. (I had a friend who ran such a start-up and I almost worked for him.)

      But now, the US$100 laptop and the rumored “Google Cube” suggest the era of the free PC may be here again. The idea of an ad-supported PC is less preposterous today than it was seven years ago.

      Regardless, if it doesn’t get to free it will get close. Deflation (or something akin to it) is happening in the PC market.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Craigslist and the Revenge of 'Web 1.0']]> http://206.106.174.250/blog/blog_comment.asp?bi=691 2006-01-04T03:11:02-05:00 2006-01-04T03:11:02-05:00 2006-01-04T03:11:02-05:00 this posting at Search Engine Journal, “Craigslist has blocked the spidering and indexing of its classifieds sites from search engine robots.”

      This all began with the Craigslist-Oodle smackdown.

      What the blocking means is that individual Craigslist pages are not going to appear in search results—although several searches I performed did return specific Craigslist pages. Most “destination sites” would follow suit if they could, but since search is the “front door to the Internet” they cannot afford to lose the traffic and visibility.

      It’s like the old Pacific Bell/SBC (now at&t) YP ads (I’m paraphrasing from memory): “If it’s not in there, maybe it doesn’t exist.”

      _______________

      Ultimately there’s a longer, larger and more nuanced debate here about who owns the content, what is factual, what is proprietary and who has the right to publish it. Feist v. Rural is the arguably “controlling authority” (legal jargon), but it has yet to be tested in an Internet context. We may soon see one.

      Quotes from Feist:

      [F]acts are not copyrightable ... compilations of facts generally are. ... Factual compilations ... may possess the requisite originality. The compilation author typically chooses which facts to include, in what order to place them, and how to arrange the collected data so that they may be used effectively by readers. These choices as to selection and arrangement, so long as they are made independently by the compiler and entail a minimal degree of creativity, are sufficiently original that Congress may protect such compilations through the copyright laws. [citation omitted] Thus, even a directory that contains absolutely no protectible written expression, only facts, meets the constitutional minimum for copyright protection if it features an original selection or arrangement.

      This protection is subject to an important limitation. The mere fact that a work is copyrighted does not mean that every element of the work may be protected. Originality remains the sine qua non of copyright; accordingly, copyright protection may extend only to those components of a work that are original to the author.

      And ...

      ... [C]opyright in a factual compilation is thin. Notwithstanding a valid copyright, a subsequent compiler remains free to use the facts contained in another’s publication to aid in preparing a competing work, so long as the competing work does not feature the same selection and arrangement.

      So ...

      While one could forcefully argue that a search algorithm is proprietary and thus search results are a proprietary “compilation of facts,” could a site or search engine crawl/scrape another’s index, make some minor changes in the presentation of results and be perfectly legal in doing so?

      It’s a provocative and as yet unresolved question.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Maps in Gmail]]> http://206.106.174.250/blog/blog_comment.asp?bi=690 2006-01-04T02:31:01-05:00 2006-01-04T02:31:01-05:00 2006-01-04T02:31:01-05:00
      It’s a useful integration if, for example, someone provides an address as part of a party invitation (as happened several times over the holidays). It also makes users more aware of the ads to the right. And it probably also makes them somewhat more inclined to (over time) start clicking on those links—making that inventory more valuable, although it’s contextual rather than search.

      But it’s more than just addresses; here’s what Google has to say about it.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[CES: Google, Microsoft and Yahoo!]]> http://206.106.174.250/blog/blog_comment.asp?bi=689 2006-01-04T02:12:38-05:00 2006-01-04T02:12:38-05:00 2006-01-04T02:12:38-05:00 Google and Yahoo! join perennial CES keynoter Bill Gates on the podium.


      Yahoo! and Google are not (yet) hardware or traditional software companies. But Yahoo! is more and more a content company and has teamed up with hardware makers such as TiVo (which many believe Yahoo! will acquire this year); and Google is more and more, well, ubiquitous—the “GooglePC” rumor (officially denied by Google) being just the latest example of Googlephobia or Googlephilia (depending on your bias).

      Nevertheless, we should see some interesting developments this year in online/mobile video distribution and the further fragmentation of TV audiences.

      Here’s PaidContent’s ongoing CES coverage and highlights. More on convergence, cross-platform and hybrid devices and IPTV at CES from SiliconBeat.

      _____________________

      Here’s CNET’s take on why Google and Yahoo! are keynoting and why they’re not going into the hardware business.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[YouTube and Rupert Murdoch]]> http://206.106.174.250/blog/blog_comment.asp?bi=688 2006-01-04T01:47:27-05:00 2006-01-04T01:47:27-05:00 2006-01-04T01:47:27-05:00 blogged about hot video-community site YouTube . So did many people at MySpace, whose references to the site were apparently removed by Murdoch’s organization. (The site is perceived as competitive.)

      A backlash ensued and apparently the practice has been reversed. This is a fascinating example of “corporate media” confronting a very different set of rules ("Web2.0" etc.) online.

      It’s also a very precarious time for MySpace, which could go the route of Friendster if it’s not very careful—notwithstanding all the hype surrounding its metrics (page views, users, etc.) and the recent launch of its branded record label.

      _______________

      Recently I spoke to a tech journalist who had some very interesting theories regarding why MySpace was able to generate these page views and time on site it boasts, which had little to do with music ...

      ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[Google at $600?]]> http://206.106.174.250/blog/blog_comment.asp?bi=687 2006-01-03T09:41:20-05:00 2006-01-03T09:41:20-05:00 2006-01-03T09:41:20-05:00
      The primary reason Mr. Rashtchy is so enthusiastic about the stock is that he expects Google will continue to increase its share of the rapidly growing Internet search market. In particular he expects Google Base will contribute “meaningful” revenue by the end of the year.


      Earlier this week a New York Times article about the growth of online purchasing over the holidays indicated that 33 percent of households made an online purchase, up 10 percent over last year. The growth is coming from traditional brick-and-mortar stores that are getting more sophisticated in reaching their customer base. The traditional online leaders eBay and Amazon got their share, but it took advertising and search dollars to get people to shop online at traditional stores. Again, Piper Jaffray’s Safa Rashtchy was quoted, “It is getting harder to make money online.” He clearly believes a major beneficiary will be Google’s ad network.
      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Ford Rolls Out VOD Advertising]]> http://206.106.174.250/blog/blog_comment.asp?bi=686 2006-01-02T13:40:03-05:00 2006-01-02T13:40:03-05:00 2006-01-02T13:40:03-05:00
      So what is it exactly? It will be available with other on-demand programming (by clicking on a Ford icon in that will be placed in the on-demand menu) and will include branded entertainment, 30-second ads, car reviews by Edmunds and video tours of some cars. The branded entertainment will include things like the Ironman competition, which is sponsored by Ford’s Explorer.

      Ford will pay the cable operators for leads generated, which include viewers who select options to receive more information and give permission to be contacted. The cable operators will also be able to track user behavior and offer the data to Ford for marketing purposes, which will be interesting to measure the success of delivering ads this way.

      “We’ll be able to find the features viewers focused on, what they didn’t find interesting or even if an edit has too slow a pace,” Ford’s ad agent Brian Bos told Mediaweek. “We’ll be able to adjust as we better understand what the consumer is trying to get out of the various segments.”

      The rest of us will have to wait and see how successful ad-supported VOD will be, but it represents an interesting area where advertising could play in the VOD space, which is heating up as cable operators begin to strengthen their offerings to compete with forthcoming IPTV services from telecoms.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Happy New Year!]]> http://206.106.174.250/blog/blog_comment.asp?bi=685 2005-12-31T23:10:15-05:00 2005-12-31T23:10:15-05:00 2005-12-31T23:10:15-05:00 Greg Sterling gsterling@kelseygroup.com <![CDATA[Will 2006 Be a Breakout Year for Mobile?]]> http://206.106.174.250/blog/blog_comment.asp?bi=684 2005-12-31T22:54:44-05:00 2005-12-31T22:54:44-05:00 2005-12-31T22:54:44-05:00
      SiliconBeat on mobile couponing from Cellfire
      John Battelle writes about mobile initiatives, specifically Medio, in a couple of recent posts
      Here’s Search Engine Journal on Google and Opera for mobile devices

      Mobile is coming, but not this (2006) year. The pieces are still falling into place: network speeds, devices, databases. But they will fall into place. Then the question becomes: What is the business model to support it (fees, coupons, sponsorships, PPCall, PPClick or all of the above)? TBD.

      Also, there’s lots of interesting stuff going on with FreeDA now (e.g., inFreeDA, Jingle, 1-800-San-Diego and others)—but more on that later.





      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Marchex ZIP Destination Strategy]]> http://206.106.174.250/blog/blog_comment.asp?bi=683 2005-12-29T20:33:39-05:00 2005-12-29T20:33:39-05:00 2005-12-29T20:33:39-05:00 Stephen Baker at BusinessWeek asks whether Marchex’s previous acquisition of ZIP code-based domains will prove a meaningful local search strategy.

      The headline of the post is “Could zip codes burn Google in local search?” Short answer: no. Relatively speaking a very small percentage of users search for ZIP codes (as opposed to place names). The Marchex portfolio of ZIP sites is just part of a larger proprietary network the company is building to boost the quality of its traffic.

      The ZIP sites will need to be aggregated with some sort of “front door.” Otherwise, they’ll just catch occasional, random consumer searches but won’t make a meaningful impact on local search in general.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[FAST Doing Deals]]> http://206.106.174.250/blog/blog_comment.asp?bi=682 2005-12-29T18:21:42-05:00 2005-12-29T18:21:42-05:00 2005-12-29T18:21:42-05:00 Gary Price has a brief roundup of some recent Fast Search & Transfer enterprise search deals. FAST has become the de facto enterprise search platform for top-tier IYPs, verticals and newspaper sites.

      Of specific interest is the reported deal with Citysearch, once almost the only local game in town. Citysearch still has a very powerful local brand in the A&E space but has struggled to transform itself into a broader IYP.

      Citysearch last year lost some traction and mind share to local offerings from search competitors. The ability to surface more content more dynamically and effectively may help boost the city guide as it confronts intensifying competition in 2006.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Answers 'The Meaning of Life']]> http://206.106.174.250/blog/blog_comment.asp?bi=681 2005-12-29T12:18:12-05:00 2005-12-29T12:18:12-05:00 2005-12-29T12:18:12-05:00 Yahoo! Answers launched in early December, I decided just for fun to ask the question “What is the meaning of life?” to see what I’d get back. Just in time for the new year, and provided by the community, here’s the answer:

      Since birth, we are on a journey; a journey that God has commanded us to take. Imagine a huge tree in a middle of a long rough road in a hot day. This tree casts a shadow and provides food to the travelers. You will see people resting under this tree and their eye on the road thinking about their journey and you will see others occupied with what the tree has provided them and who forgot completly about their journey. The smart ones take only what is needed from the tree to help them in their travel while those who forgot, have wasted their time for nothing The road is your way to God. Life is the tree.


      There you have it! I didn’t make any of that up; it’s the real “answer.”

      Now, if Yahoo! Answers can tackle “the meaning of life” question, I’m fairly certain it can help me find a good pizza place in Berkeley.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[YouTube Blindsides the Video Search Marketplace]]> http://206.106.174.250/blog/blog_comment.asp?bi=680 2005-12-29T12:10:49-05:00 2005-12-29T12:10:49-05:00 2005-12-29T12:10:49-05:00 Danny Sullivan over at SEW points to YouTube, an entrant in the red-hot video search space. Think of it as the Flickr of video. Users can upload video and search its library of user-generated content. And like Flickr, users can tag and add editorial layers of content to video.

      Hitwise (linked through SEW), meanwhile, reports on the growth of the site and of the broader video search space, as well as some demographic data. Interestingly, YouTube has grown the most (in market share) over the past three months compared with Yahoo! video search, Google video search and AOL’s Singingfish (the only one that isn’t growing at all, which is surprising given that AOL has the greatest content assets of the four, and Singingfish has been around the longest).

      Look for others—especially Yahoo! which knows the power of user tagging—to consider folksonomy strategies in their video search offerings. And keep an eye on YouTube, as it seems to have come out of nowhere and attracted a young and powerful demographic, among which viral marketing can spread like wildfire. Sound familiar? It might be too soon to tell, but so far it’s reminiscent of another runaway success among this demo: MySpace.

      YouTube will certainly remain on our radar screens for the video search space, given its advertising implications as it fits into the broader IPTV ecosystem. Rupert Murdoch and a handful of other acquisition suitors are no doubt intently watching as well.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Looking Back, Forging Ahead]]> http://206.106.174.250/blog/blog_comment.asp?bi=679 2005-12-29T11:49:25-05:00 2005-12-29T11:49:25-05:00 2005-12-29T11:49:25-05:00 CNET and Search Engine Watch round up the top Web and search stories of 2005 in their respective editorial opinions. It’s interesting stuff to reflect upon.

      In many ways, 2005 reestablished the “credibility” of the Internet and the efficacy of online—search in particular—as an advertising medium. In 2006 we’re likely to see many of the same trends and themes repeat themselves and become even more pronounced. On the local front, we’ll see more competition, consolidation, accelerated consumer adoption of the Internet for local lookups, strong movement by some newspapers online, more penetration of PPCall, more social and user-generated media, and further acceleration of online video and fragmentation of the TV audience.

      We’re working on our 2006 forecast and hope to have that ready in the relatively near future. (We’re expanding the scope of the forecast this year.)

      Meanwhile, here’s MediaPost’s (reg. req’d) write-up of Borrell’s 2006 forecast (which appears to be directionally accurate and reflect a strong perspective re online newspapers and local TV). I disagree with some of the numbers, as reported, and there appears, from the article, to be an incomplete understanding of the relatively complex dynamics of the Local Search Ecosystem (TM) and SME behavior.

      But we agree there will be growth; where and how are the issues.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[NSA Gives New Meaning to 'Spyware']]> http://206.106.174.250/blog/blog_comment.asp?bi=678 2005-12-29T08:54:41-05:00 2005-12-29T08:54:41-05:00 2005-12-29T08:54:41-05:00 National Security Agency has given new meaning to the idea of “spyware." And the warrantless surveillance of U.S. citizens’ online and offline communications raises critical new questions about privacy and what ISPs, telecoms, portals and others do and should be doing to afford reasonable privacy protection to private citizens.

      As a practical matter, privacy may be all but gone in this country (as anyone who has applied for life or health insurance can readily attest). Nonetheless, it remains an important value and people generally continue to be concerned about online security and privacy . Yet they are largely ignorant of whether or how they’re tracked or how their personal data (or e-mail) are stored and/or used by their ISPs and the sites they visit online.

      The “transparency” of online communications, Wi-Fi and wireless phone usage make it all the easier for unscrupulous commercial entities (or unscrupulous governments) to track our behaviors and even privately expressed attitudes (and that will only get easier going forward). And in a “free” country, that’s all really scary ... REALLY SCARY.

      Privacy (among other important issues) is something none of us should be complacent about. It’s up to those who have strong views on the subject to express them loudly and publicly or risk further erosion of the kind of rights and protections we all take for granted.

      _________________

      More from the The Wall Street Journal (sub. req’d).
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Detail on the AOL-Google Deal]]> http://206.106.174.250/blog/blog_comment.asp?bi=677 2005-12-28T17:20:31-05:00 2005-12-28T17:20:31-05:00 2005-12-28T17:20:31-05:00 John Batelle chased down Marissa Mayer, VP of Search Products & User Experience, to ask her a bunch of questions about the deal and what it means.

      From the exchange it appears that Google thinks the deal will broaden its network and create increased appeal for advertisers—and then there’s the unmentioned retention of AOL’s traffic and thwarting of MSN. Mayer suggests that display/graphical/rich media ads will appear on Google sites other than Google.com pure search results. And as many people have already read, Google can sell the 5% stake as early as 2008 in an IPO (or perhaps back to TW!).

      Google is making a push into display advertising (read: attracting branding $$), which is a definite area of growth for them (if they can do it right). And AOL may help in attracting certain categories of advertisers.

      Search is often touted as a branding medium, which it certainly is in part, but most national advertisers and, especially, the agencies aren’t convinced. And Google doesn’t (yet) have as credible an offering for brand advertisers as, for example, Yahoo! does.

      The deal also could boost Google Talk by, down the line, making it interoperable with AIM (the market leader). But AOL may be wary of giving away too many goodies (e.g., TW video archive) lest Google benefit too much by the deal.

      There’s also a link at the bottom of the Battelle post to another Mayer interview with SEW's Danny Sullivan.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Hitwise: Google's Share Growing]]> http://206.106.174.250/blog/blog_comment.asp?bi=676 2005-12-28T11:57:27-05:00 2005-12-28T11:57:27-05:00 2005-12-28T11:57:27-05:00 report ort ("research note") that tracks holiday shopping trends and search market share, among several other things. The company found:

      In the category it calls “search engines & directories sites,” Google, Yahoo! and MSN accounted for approximately 73% of the total market share in November. It’s not clear whether Hitwise includes all IYP sites (my assumption is yes; it lumps 1,700 sites into this category) but SuperPages was the only IYP to crack Hitwise’s top 15.
      Google sites had a net gain in traffic vs. Yahoo! Search and MSN Search ( Yahoo! and MSN have greater reach/traffic than Google in general).
      Google had a 61.8% share of total search volume in November; Yahoo! Search and MSN Search had shares of 25.6% and 5.1%, respectively, (comScore and Nielsen’s numbers aren’t quite as dramatic).
      The report suggests also that Google’s momentum (and share growth in the past six months) is partly tied to the introduction of many new products/offerings.

      Google’s growth in market share appears to be confirmed (though at different levels) by all three major tracking firms, which is striking given the frenzy of competition in the search space. Next year will bring continuing competition and product innovation. Given the intensity of this year and the Hitwise data, it’s hard to imagine anything in the immediate future to affect the balance of power in the general search space.

      Local is more wide open and another thing all together—expect competition to only increase there too.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[For Better Shopping Search, Ask the User]]> http://206.106.174.250/blog/blog_comment.asp?bi=675 2005-12-28T11:08:18-05:00 2005-12-28T11:08:18-05:00 2005-12-28T11:08:18-05:00 nice overview of new shopping engines and their differentiating features. Most noteworthy from my point of view is Become.com , which offers a "research" button and a “shop” button. (Click the links in the previous sentence to see the differences in the results for “digital camera.") Yahoo! (and others) have experimented with similar strategies.


      There’s considerable skepticism about consumers’ understanding of and willingness to use such tools, but I think they offer intriguing possibilities for delivering more relevant results—and “disambiguating” consumer intent—at each “stage” of the buying cycle. I wrote more about that in a previous post (scroll for discussion).

      I think there are several (not necessarily linear) stages of the purchase cycle that could be addressed in this way: general research (identifying the product/service), editorial/user reviews and product comparisons (features), price comparisons, and where to buy (online/off). This approach creates distinct ad inventory at each stage: graphical branding ads at the research stage, PPC (and coupons) at the price comparison stage and maybe pay-per-phone call at the buy (locally) stage, for example.

      Shopping/comparison engines will continue to gain momentum over time as e-commerce grows. But again, look for more "where can I buy it locally?" offerings on the main comparison engines going forward.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[IPTV Fails to Steal Cable Market Share...For Now]]> http://206.106.174.250/blog/blog_comment.asp?bi=674 2005-12-27T14:55:00-05:00 2005-12-27T14:55:00-05:00 2005-12-27T14:55:00-05:00
      Cable companies have in fact been able to maintain core business revenues while taking voice customers away from telecoms with a strong marketing push for Voice over IP services bundled with cable and Internet service (triple-play bundle). At the end of the third quarter, cable company voice service was available to 48.6 million households, a 27 million increase over the year before, according to the article.

      For telecom IPTV providers, the failure to begin taking cable customers has mostly been because of delays in laying down the infrastructure and dealing with legal issues such as franchise rights from state to state. But when this all comes together and IPTV is ready for prime time, cable companies will have something to worry about. This will slowly happen over the next two years and beyond, meaning that cable companies have this amount of lead time to develop interactive and personalization features to compete with IPTV—both to entice consumers and to attract advertisers with the acute targeting capabilities that IP-based technologies possess.

      It will be an interesting area to watch.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Base's New Interface]]> http://206.106.174.250/blog/blog_comment.asp?bi=672 2005-12-27T02:20:57-05:00 2005-12-27T02:20:57-05:00 2005-12-27T02:20:57-05:00
      When Google Base launched and people said it’s the “Craigslist killer” or the “newspaper classifieds killer,” I argued that might only be so if Google could create a user experience and expectation that trained people to think of Google as a source of classifieds-related information. Based on my discussions with Google, I formed the opinion that the company wanted Base to be the entry point for content and not necessarily the place for users to access that content.

      Now Google has apparently redesigned Base. The new interface starts to resemble the kind of user experience that WILL condition people to go there to look for classifieds and other related content. The display of that content on search results pages still needs considerable work, if Google does want Base to be a user destination, but see this post re Google’s vertical strategy (which could equally apply to the display of content on Base results pages).

      Only a fraction of Google’s traffic comes through its “vertical” sites (Local, Froogle, etc.). So the challenge remains how to efficiently and effectively push out the Base content to Google.com and existing Google verticals where most people will search, rather than creating yet another destination. Yet Google seems to be experimenting with creating a kind of “content marketplace” for users in Base.

      We’ll see how far it will go with that concept in the coming weeks and months.
      _______________

      I didn’t talk about the “landing page” changes and controversy. But, apparently, there is controversy. The landing page (an interim page between the search result and the third-party content provider) is consistent with profile pages on Google Local and elsewhere on Google, but it does tend to de-emphasize the third party in the transaction.

      ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[...Now Give It a Review]]> http://206.106.174.250/blog/blog_comment.asp?bi=671 2005-12-26T22:52:55-05:00 2005-12-26T22:52:55-05:00 2005-12-26T22:52:55-05:00
      Out of curiousity, I was wondering just how long has The Kelsey Group been writing about this topic, and a search of our archives shows the first artcle turned up in a Fax Bulletin (honk if you remember those) on September 19, 1994 entitled, Attention Internet Shoppers: "Home Shopping Network (HSN), the company that originated and popularized video shopping, has trained its sights on the Internet as the next mass market retailing medium. Last week it completed its acquisition of the Internet Shopping Network (ISN). The purchase is one of many recent examples of the accelerating trend toward online commerce on the Internet." We predicted ISN would offer product reviews among other services. Oops. ISN is still HSN's online outlet, but don't look for a review, for good reason, I suspect. They want to sell products. The Times says Consumer Reports provides their testers' results...good, bad or ugly, but Consumerguide.com sticks with only nice things. Not surprisingly, they have different business models. The point is the Internet is still evolving the user review area and unless you are hopping mad (like at a hotel, restaurant or airline), or an expert (like about a movie), reviewing products or services is not first on anybody's to do list yet. It's too bad, because reviews can be both intereting and beneficial.]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[The Online Video Audience Might Be Older Than You Think]]> http://206.106.174.250/blog/blog_comment.asp?bi=666 2005-12-26T22:37:10-05:00 2005-12-26T22:37:10-05:00 2005-12-26T22:37:10-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Creating a 'Virtual Sales Force'?]]> http://206.106.174.250/blog/blog_comment.asp?bi=332 2005-12-23T16:26:25-05:00 2005-12-23T16:26:25-05:00 2005-12-23T16:26:25-05:00 flash/video presentation about Google's AdSense that appeared on a blog I was reading. Check out the video. It's not specifically directed to SMEs. But imagine an online sales presentation that was; it would be much more effective than this. More than 50% of SMEs have broadband Internet access, so this type of promotion/presentation becomes very feasible (set up and campaign management are another issue, however).

      On another note, Google has beefed up its personalized homepage and enabled the addition of different RSS feeds. One nice feature: The arrangement of the content "modules" is very easy to manipulate simply by dragging and placing them in the desired locations on the page. ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[Phone Directories Company Sells Canadian Business]]> http://206.106.174.250/blog/blog_comment.asp?bi=670 2005-12-23T15:56:51-05:00 2005-12-23T15:56:51-05:00 2005-12-23T15:56:51-05:00
      PDC has grown rapidly the past few years. John Woodall, President of PDC, told me that overall the business was up 43% this year and that there were over a dozen companies interested in buying the Canadian business before they whittled the bidders down to a manageable number. So what will they do with the money from the sale? Don't expect any of the current PDC management to go on long term vacations. We expect that this group will use the funds to take advantage of the opportunities the Yellow Pages world offers now. There is growth in them thar hills if you know where to prospect.]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Google Improves Personalized Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=668 2005-12-22T13:30:49-05:00 2005-12-22T13:30:49-05:00 2005-12-22T13:30:49-05:00 personalized search, a feature on the search horizon that will allow engines to better target users and optimize paid search. The carrot for users is a better way to organize their search history. It’s been slow to gain traction and be rolled out, however, because of general privacy concerns as well as normal adoption curve issues. The latest development from Google has been a “trends” feature that will give registered users a list of their top searches and patterns, such as most-visited Web sites and daily activity. The information is accessed through a link on registered users’ personalized search pages. For now the tool gives users a great deal more accessibility to search history than the history and bookmarks features of most browsers can offer, and it can be accessed from any computer. More ways to slice and dice this information will likely be coming soon from Google to further entice users. The more users catch on, the better Google can target them and deliver more relevant ads. Stay tuned for more developments.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[To Register or Not to Register]]> http://206.106.174.250/blog/blog_comment.asp?bi=669 2005-12-22T13:28:02-05:00 2005-12-22T13:28:02-05:00 2005-12-22T13:28:02-05:00 interesting thoughts on this.) On the other hand, the information gained in the registration process can be valuable in targeting users for advertisers and can actually drive traffic through opt-in e-mail newsletters. (Caroline Little, CEO and publisher of Washington Post.Newsweek Interactive expressed her thoughts on this at TKG’s recent ILM:05 conference.) Some fodder for this debate recently emerged, as reported by Paid Content:

      Longtime proponents of registration, the New York Times Company, has seen registration work well for NYTimes.com. Now their own Boston.com has reported more than one million registered users since the registration was put in place nine months ago. True, there is no way of knowing if the site traffic would be significantly greater if a registration barrier were not in place, but the site has been able to acquire valuable user data (i.e. 67 percent of users reside in New England, 54 percent are 25-44, and 29 percent have a household income greater than $100,000). The company has also announced that it is getting about 25 percent over the rate card for the behavioral and demographic targeted advertising that this data enables. Next the company plans on launching a Boston.com subscription service for premium content a la TimesSelect. Meanwhile, the Toronto Star's TheStar.com removed its main site registration on Nov. 28 (although it still collects personal information for access to some parts of the site). "We believe that in order to be competitive in the online news and information space, growth of both audience and page impressions will be the cornerstone of our success,” Publisher Michael Goldbloom told PaidContent. “We believe that the key to that growth is through the removal of all barriers, including registration." The bottom line is that there isn’t an answer to the debate. If there is an answer, it is that “it depends.” Newspaper Web sites have to figure out what their advertising sales strategy is, who their users are, how savvy they are, and what their threshold for filling out personal information is. These factors will go a long way in devising the best site access strategy. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Video Game Ad Placement Takes A Step Forward]]> http://206.106.174.250/blog/blog_comment.asp?bi=660 2005-12-22T11:10:31-05:00 2005-12-22T11:10:31-05:00 2005-12-22T11:10:31-05:00 announced that it has joined the online game advertising network of Massive Inc., which places real-time ads within the gamescapes of many popular online games. In-game advertising is a concept that is starting to become a reality, and it represents a large opportunity for advertisers to address an attractive demographic (18-34 y.o. males). Ads for products can show up on billboards or other places within games and be changed and updated dynamically by Massive or other online game ad networks. Interestingly, the ads aren’t seen as intrusive by most gamers and actually add to the authenticity of the games (it mirrors the real world where there are ads). And unlike television or feature film ad placement, the repetitive nature of gaming activity ensures repeat exposure.

      Ad rates are similar to those seen on cable television, according to Massive CEO Mitchell Davis. Nielsen expects the in-game advertising for static ads (those in non-online games that aren’t updated dynamically) to reach $75 million this year and about $1 billion by 2010. The main difference with online game ads is that they allow dynamic ad placement and better targeting, which has implications for local (given a geotargeting component). It could be a while before local ad placement reaches the online gaming world, but the pace of gaming advancement and adoption, and the endless virtual domain of ad inventory available there, suggest that it’s an intuitive place for it to happen. We will continue to follow this closely. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Yahoo! Launches Open Shortcuts]]> http://206.106.174.250/blog/blog_comment.asp?bi=662 2005-12-22T10:58:31-05:00 2005-12-22T10:58:31-05:00 2005-12-22T10:58:31-05:00 SEW, that allows users to create custom search commands. According to Yahoo!, this will let users: • Instantly navigate to any URL on the Internet • Easily recall common searches on Yahoo! • Quickly search favorite sites • Jump start frequently used Internet applications

      The feature is basically an alternative to bookmarking, in which the Yahoo! search box becomes a command field for taking you directly to a site or completing any of the functions listed above. It requires some setting up, but savvy Web users and the Yahoo! faithful will find it useful. The tool basically falls into the category of creating stickiness among users and is designed to drive traffic and increase search market share. It also falls nicely into Yahoo!’s product strategy for personalized tools (i.e., My Web, Yahoo! Toolbar, My Yahoo!, etc.), which it hopes will attract and keep users after they’ve spent the time to set up, customize and get accustomed to them. We expect no abeyance of such product launches, and their integration into the larger Yahoo! machine, as the feature race among portals continues‌]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[The Yellow Pages is the Yellow Pages]]> http://206.106.174.250/blog/blog_comment.asp?bi=663 2005-12-22T10:52:29-05:00 2005-12-22T10:52:29-05:00 2005-12-22T10:52:29-05:00
      I have trouble understanding how a top business publication like BusinessWeek can say, “Believe it or not, among the hottest media bets is the $15 billion a year U.S. Yellow Pages market.” Why has it taken so long to recognize that a bet on Yellow Pages is a rare example of having your cake and eating it too? Some Yellow Pages publishers are generating EBITDA in excess of 50 percent. How many legal businesses can claim those margins? At the same time, the ubiquitous YP sales force is providing small businesses the one thing they sorely lack to take advantage of the growth of online business: education. Our research shows that SMEs are slower to adopt e-commerce and other Internet services than the consumer. That will change when this holiday season is over and businesses evaluate how they did and what they could do better. The Yellow Pages will be there just as they always have been. Publishers will offer print and online solutions, including pay-per-click and pay-per-phone-call. Google offers a great product, as do Yahoo! and other companies in the local search business. But Yellow Pages is the modern Yellow Pages. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[blinkx on the Go]]> http://206.106.174.250/blog/blog_comment.asp?bi=664 2005-12-22T10:49:36-05:00 2005-12-22T10:49:36-05:00 2005-12-22T10:49:36-05:00 funding and with the iPod video making it the newest sexy thing to cover in the media. The latest move comes from online video search service blinkx, which has debuted a service to port its Web search and delivery platform to portable media players such as the iPod video. Known as blinkx.tv To Go, it will allow users to search for video content and video blogs (or “vlogs” as they have recently been christened in Internet parlance buzz-wordage) and download them to portable media players.

      The software boasts the ability to format the footage for a number of different devices and save certain search terms as “channels,” which are updated automatically to mobile devices when they are connected to users’ computers. For iPod users (who represent a majority of the portable media device market), a good question is, what does this offer that the iTunes music store doesn’t? The answer is that blinkx claims to index a wider range of content that includes, most notably, vlogs and the long-tail video content throughout the Web that the comparatively limited iTunes video library has thus far excluded in favor of licensed professionally produced shows such as "Desperate Housewives" and "Lost." iTunes monetizes licensed content by charging for downloads, while blinkx will likely integrate an ad-supported model that is more in line with its online strategy. Time will tell how it will do this on portable devices and if it has what it takes to survive an eventual shakeout in the online and mobile video space. So how does this relate to local? Search in this case takes place online, and results are then downloaded to a mobile device. But looking out further this could integrate with mobile local search when blinkx or someone else develops the search process for the mobile device itself. There are, of course, hardware restrictions and other challenges here, but the pulling in of video (VOD) and the geotargeting opportunities with mobile devices could create a powerful combination for contextualized local advertising to be delivered alongside video content. There are lots of moving parts to such a scenario (hardware, software, content aggregation, ad distribution) that could take a while to coalesce, but the local implications are there. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Well, It's Official]]> http://206.106.174.250/blog/blog_comment.asp?bi=665 2005-12-22T10:41:11-05:00 2005-12-22T10:41:11-05:00 2005-12-22T10:41:11-05:00
      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[More on Google-AOL]]> http://206.106.174.250/blog/blog_comment.asp?bi=667 2005-12-22T10:33:19-05:00 2005-12-22T10:33:19-05:00 2005-12-22T10:33:19-05:00 Om Malik takes an interesting look at the Google-AOL deal, including its implications for Video. Among other things, the deal will give a boost in the arm to Google’s beleaguered content aggregation efforts for its video search. It has thus far trailed most other video search players (including blinkx, Yahoo! and AOL itself) in acquiring content. This deal gives it a backdoor into the content libraries of AOL’s corporate siblings that include HBO, CNN and New Line Cinema.

      Or as Om put it: Google stands to make a lot of money from video advertising over the Internet... They have been fighting an uphill battle to find a toehold in Hollywood, and well there is no one more old school Beverly Hills than Time Warner. I think this will be the thing that helps the company get some traction for its Google Video business. IM integration with AOL’s pervasive AIM network is also a huge plus, and a key source of traction in competing with MSN-Yahoo! in the IM space. From Om: An interoperability between the two IM networks could soon be enhanced to facilitating between AIM and GTalk users. Add to the mix, other SIP based clients that can talk to GTalk, such as Gizmo Project, well there is an informal VoIM network that starts to form. Google is very ambitious about Gtalk, and I can bet they are working on developing a bigger ecosystem than most people realize. BusinessWeek’s Olga Kharif also points out that this could not only stimulate more Google Talk usage, but it could go a step further toward interoperability between other IM platforms. Until now, many Internet users might have hesitated to use Google's VoIP service for fear that they'd be left out of the communications loop since all of their friends used AOL Instant Messenger (IM). Now, they won't have to worry about that. Longer term, I believe that this agreement will push all VoIP industry heavyweights to make their IM-like VoIP services interoperable. Remember, years ago, if you were a Verizon Wireless customer, you could only send short text messages (SMS) to other Verizon customers. You couldn't send an SMS to Cingular customers. That hampered SMS adoption, and so, eventually, all wireless service providers got together and allowed for cross-carrier texting. An interesting concept indeed. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[New Year's Resolutions for Newspapers]]> http://206.106.174.250/blog/blog_comment.asp?bi=661 2005-12-20T15:58:54-05:00 2005-12-20T15:58:54-05:00 2005-12-20T15:58:54-05:00 here. It’s a good summary of many of the challenges facing the newspaper industry, and it echoes much of our own analysis and recommendations to the newspaper industry over the past year including;

      --“Become the primary social-networking venues for their communities‌ Not only do users benefit from such social networking, but the publisher gets to collect all sorts of useful information about its users' interests and preferences, a la MySpace. That can be mighty useful for targeted-advertising purposes.” --“Add an open comments thread on top of all content published on your news Web site. That means that for every story you publish, there's an easy way for people to post their feedback, questions, etc. Add this to every article, every photo... If you can't even open up to the public enough to allow an open feedback mechanism, then I'd say you're still at odds with the basic tenets of the Internet.” --“As Google so aptly demonstrates, the real future is in automating the advertising marketplace. I'm not saying to fire all the sales reps. But I do think there's much to be gained by automation used to attract new advertisers to the newspaper brand‌Newspaper Web sites can be and have been used to attract advertisers who previously have had no relationship with the newspaper. Lower ad prices to reach audiences online have opened up the newspaper brand to local merchants who previously found newspaper advertising too expensive, or who only wanted to reach a small segment of the community.” --“Publishers of daily newspapers may well keep some categories as fee-based advertising -- just as Craigslist is free but charges for job listings in a few cities. They will figure out how to get money from people who place free ads by offering paid "upsells" that improve a seller's chances of success, such as premium placement, enhanced photos (slide shows, larger images, etc.), video, etc. They will sell advertising around the classifieds "content"; for example, for classifieds search results on household appliances will be paid ads for appliance retailers and repair shops. And they will learn how to make money from the transaction itself between buyer and seller.” --“We all know the "problem" with newspapers: Young people aren't picking up the habit of print readership, because they're too distracted by the Internet, cell phones, Playstations and whatnot. So let's resolve to reach them where they are: on the Web, on instant messenger services, on cell phones, on Playstation consoles, etc‌ I think we've reached the point in the evolution of the news industry where online is equally as important as print.” It’s an interesting list that will be the subject for discussion well into 2006. Look for more newspaper industry analysis at the Kelsey Group’s Drilling Down on Local Conference this March, and in an upcoming white paper. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google: 'Alea Iacta Est' or 'Jump the Shark'?]]> http://206.106.174.250/blog/blog_comment.asp?bi=658 2005-12-17T18:27:06-05:00 2005-12-17T18:27:06-05:00 2005-12-17T18:27:06-05:00 Susan Mernit on her blog said the following about the AOL deal: [I]n a year, we'll be watching a very different Google--one that may have morphed into something alot more like AOL was back in the day, when they were fat and sassy and thought no one cared about search. John Battelle made the more dire prediction that Google's agreement to show image ads in search results and give "favored placement" to AOL content "throughout the site" potentially represented a watershed moment -- known in recent American pop culture lore as "jumping the shark" (originally referring to the 70s-80s TV show "Happy Days").

      There are two implied scenarios here, neither of them (according to Mernit and Battelle) favorable for Google's long-term health. The Caesar reference is mine and suggests that this deal coincides with a period -- how long is uncertain -- in which Google's market share dominance in search simply cannot be assailed or overthrown. But to continue my Roman Empire analogy (and to pick up on Battelle and Mernit's concerns), perhaps Google is, with this deal, showing the potential to undermine the user experience that got the company to where it is today: fast, clean and relevant (no paid inclusion) search results. If this moment is in fact akin to "jumping the shark," then an opening is created for a new Google to come in and do simply and elegantly what Google did several years ago when all the other search engines were corrupted by "overmonetization" or otherwise fat and lazy. Of course, this time, Google (or Yahoo! or MSN) won't allow a new Google to come into the market -- or will attempt to acquire new potential Googles before they can scale. (But recall how Microsoft allegedly tried to acquire Google early on and Sergey and Larry said "no"?) I'm not convinced that this deal will ruin Google -- the company is mindful of the consumer experience to an extreme degree -- but the rapidly evolving, hyper-competitive marketplace and the pressure to grow revenues may take Google in directions that the company never anticipated. Perhaps this is one. We'll see. _____________ Here's the "day 2" story in the NY Times (reg req'd)]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local.com to Distribute InsiderPages PPCall Ads]]> http://206.106.174.250/blog/blog_comment.asp?bi=659 2005-12-17T09:28:52-05:00 2005-12-17T09:28:52-05:00 2005-12-17T09:28:52-05:00 release: Insider Pages, the community-based local-search engine, and Interchange Corporation, owner of Local.com, a leading local-search engine, today announced an agreement for the distribution of Insider Pages Pay Per Phone Call advertisers and merchant reviews on Local.com. Insider Pages advertisers and merchant reviews will appear in relevant Local.com search results when a consumer types in a query for a local business, product or service. Here's more from ClickZ.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL: It's Google]]> http://206.106.174.250/blog/blog_comment.asp?bi=657 2005-12-17T08:06:08-05:00 2005-12-17T08:06:08-05:00 2005-12-17T08:06:08-05:00 The N.Y. Times. This is obviously a big deal and may give Google access to coveted content assets from Time Warner. And although the contours and terms are not yet final, this is interesting (from the Times' piece): Google, which prides itself on the purity of its search results, agreed to give favored placement to content from AOL throughout its site, something it has never done before. In 2004, AOL earned about $300 million from revenue share payments related to clicks on Google PPC ads shown on AOL search results pages.

      The original "merger” between Time Warner and AOL was worth approximately $163 billion (combined value of the companies at the time). This investment, if extrapolated, would value AOL at $20 billion today. At today's market close, Time Warner's market cap was approximately $84 billion, while Google's was roughly $127 billion. This deal represents something of an easier "integration" than a joint venture with Microsoft would have been. Here's what the Wall Street Journal (sub req''d)said earlier today about the terms and implications of the deal: The deal would help Google sell more of the display ads that run on some of the Web sites affiliated with Google. AOL's big sales staff would begin selling such display ads for an unspecified number of Web publishers that have outsourced at least part of their ad sales to Google. In turn, Google, whose technology powers the AOL search engine, would allow AOL to directly sell search ads, which appear when users type key words in queries or when the words appear in the texts of Web sites...Google also would promote AOL's Web properties among ads that appear beside its search results, and include AOL's online videos among search results. It would extend by five years its deal to operate AOL's search engine, which was to end next year. Most interesting here is the idea of Google having a greater "branding" (display ads, read larger advertisers) opportunity and leveraging AOL's sales force. Also, as I mentioned above, display/distribution of some of AOL's video content assets would probably benefit Google in its bind to become a video search engine/portal. AOL also owns Advertising.com and I wonder if the latter's inventory or technology (e.g., behaviorial targeting, rich media) are contemplated to come into play in any way in this? The analysts and commentators who spoke with The Mercury News think the retention deal was mainly about PR rather than revenue for Google (interesting): Although losing AOL as a partner would not have significantly hurt Google's financial bottom line -- AOL was shrinking as a source of ad revenue -- it would have been a public embarrassment for the company, several observers said. ``I think this has more to do with stature than economics,'' said Ellen Siminoff, chief executive of search marketing company Efficient Frontier. ``I think it was shrewd of Google to go after it, because it doesn't allow anyone else to come after that business.'' Standard & Poor's Internet analyst Scott Kessler agreed. ``Internet searching is going to be big for Microsoft, and I think the last thing Google wants to see is Microsoft making a splashy debut with their former best customer,'' Kessler said. ``I think to some extent it's a land grab.'' Of course $1 billion is a lot to spend on PR. :) More from Reuters and many other sources. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[MSN Offers PC-to-Phone Calling]]> http://206.106.174.250/blog/blog_comment.asp?bi=632 2005-12-16T17:34:36-05:00 2005-12-16T17:34:36-05:00 2005-12-16T17:34:36-05:00 PC-to-phone calling (through MSN messenger). MSN is doing this in partnership with MCI (being acquired by Verizon).

      Here are the details: MCI and Microsoft are testing the service as part of a Windows Live Messenger limited beta with subscriptions initially available in the United States, and expect to jointly deliver the PC-to-phone calling capabilities to France, Germany, Spain and the United Kingdom in the coming weeks. Once subscribed to the service, customers can place calls to and from more than 220 countries with rates starting at $.023 per minute to the U.S., Canada, the U.K. and Western Europe during the beta testing period. Upon sign-up, MCI Web Calling customers will receive up to one hour of free calls. Final pricing will be determined when the product officially launches in 2006. This is undoubtedly a prelude (at some future point) to PPCall (via VoIP) integration for local merchants through Windows Live Local. Here's more from AP. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Alexa API to Power Niche Searches]]> http://206.106.174.250/blog/blog_comment.asp?bi=633 2005-12-16T17:32:30-05:00 2005-12-16T17:32:30-05:00 2005-12-16T17:32:30-05:00 This is very interesting -- and we could see a proliferation of vertical search engines on top of this. No time to discuss extensively. Here are the opinions of: Danny Sullivan and John Battelle. Here's Susan Mernit and Om Malik. Here's the Wall Street Journal article (subscription req'd). Here's another discussion on Search Engine Journal.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Topix Adds User-Generated Content]]> http://206.106.174.250/blog/blog_comment.asp?bi=634 2005-12-16T17:24:35-05:00 2005-12-16T17:24:35-05:00 2005-12-16T17:24:35-05:00 Topix.net has launched a redesigned site and added user comments and community features, turning the entire site into a blog of sorts. Here's more from SiliconBeat.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[StepUp the Latest Local Company to Get Funded]]> http://206.106.174.250/blog/blog_comment.asp?bi=635 2005-12-16T17:23:20-05:00 2005-12-16T17:23:20-05:00 2005-12-16T17:23:20-05:00 StepUp announced that it had received a $6.6 million series B round. From the press release: StepUp Commerce, Inc., the Internet’s local shopping service, today announced it has closed a $6.6 million funding round to further enhance its local shopping service for retailers. The round was co-led by Allegis Capital and Granite Ventures LLC and also included participation by the company’s previous investors. StepUp is using a variety of strategies to get local retailers online and distributed across the Internet. Local retailer information (offline inventory) is now in demand, partly because of recent moves by Google, CNet and others.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Nielsen: Google Tops in Search, Local Growth]]> http://206.106.174.250/blog/blog_comment.asp?bi=636 2005-12-16T17:21:28-05:00 2005-12-16T17:21:28-05:00 2005-12-16T17:21:28-05:00 Nielsen/NetRatings, there were 5.1 billion total search queries in October. Here's how Nielsen recorded search engine market share (U.S.):
      • Google -- 48 percent
      • Yahoo! -- 22 percent
      • MSN -- 11 percent
      • AOL -- 7 percent
      • Ask -- 3 percent
      Nielsen also said that Local Search queries increased by 19 percent during the same period.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local.com Ads Furl Functionality]]> http://206.106.174.250/blog/blog_comment.asp?bi=637 2005-12-16T17:20:15-05:00 2005-12-16T17:20:15-05:00 2005-12-16T17:20:15-05:00 Local.com will be offering a del.icio.us-like tagging/bookmarking feature powered by LookSmart's Furl like The N.Y. Times). This is the latest in a series of moves (with more coming) to beef up the content and features of Local.com, among them: ShopLocal's content and PPCall ads from Ingenio.

      Earlier this week, Interchange announced that Local.com's traffic had risen drammatically: For the month of November 2005, Local.com reached 5 million unique visitors and over 21 million page views, up from 1.5 million unique visitors and 6 million page views in October 2005. Interchange paid about $700K for "Local.com" and if it can add the right combination of content and features -- which is still TBD in this evolving marketplace -- it may be able to be very competitive for consumer traffic (and ad $$). ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[PriceGrabber Grabbed by GUS]]> http://206.106.174.250/blog/blog_comment.asp?bi=638 2005-12-16T17:18:11-05:00 2005-12-16T17:18:11-05:00 2005-12-16T17:18:11-05:00 GUS announced that it's buying California-based comparison shopping engine PriceGrabber. The online shopping site was No. 6 in terms of August U.S. traffic, according to comScore. The reported price was $485m (ÂŁ274m). Back when Shopzilla was acquired by E.W. Scripps in June, we speculated about whether PriceGrabber and/or NexTag would be next.

      Because of the proven business model and increasing traffic and revenues to shopping engines, by early next year there probably won't be an "independent" left (review comparison site Become.com will go at some point too). However, as I've recently written, the next wave in online shopping is offline inventory. Why? See "E-Tail Reality Check."]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[$100 Laptop Coming to Market]]> http://206.106.174.250/blog/blog_comment.asp?bi=272 2005-12-16T17:13:52-05:00 2005-12-16T17:13:52-05:00 2005-12-16T17:13:52-05:00 picture of the MIT-developed $100 laptop. The computer, created in partnership with Google and AMD, is set to roll out soon. Reportedly, Intel Corp. Chairman Craig Barrett (and AMD competitor) said users will not want such a device.

      Right. MIT had originally said it is for the people/children of the Third World and “won’t be available for purchase by individuals.” (Although that tune has recently changed and commercial versions are actively being explored.) The computer will be manufactured by Taiwan's Quanta, which is the world's largest maker of laptops. Here's what we wrote before about how these cheap laptops might revolutionize the market. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Online Newsrooms Merge With Print]]> http://206.106.174.250/blog/blog_comment.asp?bi=642 2005-12-16T17:10:14-05:00 2005-12-16T17:10:14-05:00 2005-12-16T17:10:14-05:00 Following in the footsteps of The New York Times, USA Today announced that it will merge its print and online newsrooms. Both moves came out of a recognition that online news traffic is growing and that news distribution should be platform agnostic. Just one day earlier, Washington Post ombudsman Deborah Howell brought up the opposing view in her weekly column, stating that her paper’s print and online operations cooperate but maintain very different voices, readerships, advertisers and competitors.

      These are all true, although it can be argued that some of these factors shouldn’t have a direct impact on the actual production of news. And though online and offline news operations face different dynamics, timing is an issue on many stories for which Web distribution becomes a competitive advantage; parallel production of such stories online and in print might not be as efficient as a unified newsroom. However, The Washington Post is a unique case because it is a local paper whose online component is read widely and in much greater volume than print. Its daily circulation is 671,322, while the Web site's reach is 8 million unique visitors per month -- more than 6 million of whom are outside the D.C. area. If any paper could make a case for keeping the online and offline operations separate, it's the Post. Advertising becomes a challenge in such a situation because the paper’s content is read nationwide, but newspapers rely greatly on local advertising and classifieds. Caroline Little, CEO and publisher of Washington Post.Newsweek Interactive (WPNI), gave a keynote address at TKG’s ILM:05 conference that hit on this point. Eighty percent of the Web site’s traffic comes from outside the D.C. market, Little said, which is why it launched two homepages (one local and one national), user reviews, blogs and other personalization tools to get users involved. It also requires site registration, which is a perpetually thorny issue among online news sites. Little believes this drives repeat use through opt-in e-mail alerts for vertical content categories that link to WPNI content, as well as the all-important targeting it allows for advertisers. Whether to combine online and print newsrooms, divide online and offline operations further, or distinguish between local and national distribution will have a lot to do with reach -- national, local, online and off. The Washington Post is a rare case that excels at all of them. Determining this reach and how it plays into the ad targeting tools used by many newspapers, will help them form ad distribution strategies, which will in turn affect where they position their assets. Expect more newsroom, operational and distribution strategies to change at major papers, as online traffic continues to grow, targeting capabilities improve and online strategies evolve. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[What Does 'Google Music' Tell Us?]]> http://206.106.174.250/blog/blog_comment.asp?bi=643 2005-12-16T16:47:12-05:00 2005-12-16T16:47:12-05:00 2005-12-16T16:47:12-05:00 Reuters and SEW. When users search for, say, Madonna (the example used at SEW), they'll see some information: a picture and links to a page about Madonna and a link to the alliterative "more music results for Madonna." (Click that link and note the "search music" button.) My colleagues will read this and wonder, "Why the @#$! is he writing about this?" Well, beyond this being an interesting "content" play and a way for Google to serve more of its users' needs (and get some more ad revenues down the line), the move starts to clarify some things about what might be called Google's "vertical strategy."

      In addition to the new music feature, and with the introduction of "tools" such as "Google Travel" (see SFO to JFK) and Google Base, which many are convinced is a surrogate for Google classifieds (it's more complex than that), there is a growing question about how Google will manage and present all this "vertical" information. As I've argued before, Google is "ambivalent" about verticals -- the company wants to push out as much as it can through Google.com results. It created "News," "Local," "Shopping," "Blog Search," "Video" and some other arguable "verticals" because it felt it needed to do so to offer the optimal user experience. But the company doesn't want to keep doing this for every possible content area: Finance, Health, Cars, Jobs, Real Estate and so on. Google would really start fragmenting its audience, which is a big problem with local generally. So what does it do as it expands its "content" offerings and introduces richer data for each new area? It does what the company is starting to do in music and doing in weather. But an even better example is what it's doing with movie showtimes. Google is offering what we might call "Page 2." You get a tease or a set of links on top of the search results page (similar to Local now), and then you'll be taken into a specialized content area. This is how Google will keep users going to Google.com (where most go anyway) and also offer a competitive "vertical" experience (Page 2), where the features and content can be tailored to the specific topic: Cars, Jobs, Real Estate, Movies, Finance, Music, etc. Google also starts to create very valuable ad inventory on these pages -- inventory arguably much more valuable than that on Google.com. This is, I believe, how Google solves and resolves the problem of maintaining its almost religious devotion to "one box" and Google.com while offering richer/deeper content and specific navigation -- a vertical user experience -- in particular areas, which it needs to do to maintain market share and, ultimately, deliver more value to marketers over the long term. _____________ Here's Google's official blog statement about the new service. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Widget Wars]]> http://206.106.174.250/blog/blog_comment.asp?bi=644 2005-12-16T16:23:53-05:00 2005-12-16T16:23:53-05:00 2005-12-16T16:23:53-05:00 Yahoo! Widgets, and it has greatly expanded the widget gallery (it seems). I love these widgets. They're fun. Strategic value: They give the company a presence on the desktop, beyond the browser -- blah, blah, blah. Now, Google has offered an API for its personalized homepage -- essentially a widget-making tool. This doesn't put "modules” (as Google calls them) on your desktop (that's for Sidebar). Rather it puts them on your Google personalized homepage. There are plenty of these that have a local dimension (maps, weather, transit schedules, etc.).

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Top Searches Roundup]]> http://206.106.174.250/blog/blog_comment.asp?bi=645 2005-12-16T16:13:54-05:00 2005-12-16T16:13:54-05:00 2005-12-16T16:13:54-05:00 A9, AOL (here's its ongoing list), Ask Jeeves IQ, CNet's Search.com, InfoSpace's Dogpile, Lycos, MSN (needs to be updated), Google's Zeitgeist, Yahoo!; and here's the Buzz Index, more generally.

      Here's the Google Zeitgeist for 2004 (includes local -- scroll). You'll notice that these are all brands and stores without geographic modifiers. I don't know whether they originally included them. For example, how did Google determine they were local? Did they originally contain geo modifiers or was it that fulfillment largely happens offline? That would be what we refer to as an "implicit local search." If one takes an expanded (arguably more accurate) look at local in terms of implicit local intent (e.g., any searches falling in the top YP or classifieds headings), then user intent starts to open up and we see that the Internet and much of what users want from it is really local information: where to go, what to do, where to buy it. Even product and retail searches (see the Zeitgeist for 2004) are in some large measure local. For example, if only 2.5% of U.S. retail is happening online (2005), then people are searching online and buying offline (see the comScore/Overture study) -- and some large number of product searches ultimately have a local intent. Interesting, no? ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Brightcove CEO Predicts Future of IPTV]]> http://206.106.174.250/blog/blog_comment.asp?bi=646 2005-12-16T16:07:01-05:00 2005-12-16T16:07:01-05:00 2005-12-16T16:07:01-05:00 according to Jeremy Allaire, founder and president of online video distribution service Brightcove (which recently raised $16.2 million from AOL, IAC/InterActiveCorp and others). Allaire spoke at the Syndicate conference in San Francisco this week about the advertising and distribution environment that Internet-delivered video will bring. His thoughts mirrored many of the points raised in The Kelsey Group’s recent White Paper on IPTV. Allaire outlined the costs and challenges involved in airing video content with current cable and broadcast models. A new program, for example, costs about $100 million to create, distribute and market in a cable broadcast environment. Even after these costs, a channel can be buried within a 500-channel lineup.

      He contrasted this with Web video distribution, which will leverage the medium’s already existing standards such as search engines and RSS (content could still be buried on the Web to use the above example, but it will be easier to find by the right people, i.e. those who are interested in finding it and whose explicit interest is valuable for ad targeting). There will also be cheaper and more attainable production technologies in the hands of independent producers and lower distribution costs when inventory is no longer scarce. “Today, the global video industry is by far the richest, most powerful cultural force of all media, and far larger than any other segment. But it's a business based on scarcity: There's a limited number of movie theaters, a limited amount of broadcast spectrum, a limited number of devices attached to the broadcast stream," said Allaire. He compared this with Web-delivered video, which will be “an open publishing and distribution model, where no content owner needs to get carriage to be available globally." In the meantime, many existing media companies are beginning to create Web channels to feed the demand for online, on-demand video. The combination of high production value news, entertainment and sports and the user-generated and "long tail" content made available by Brightcove and other content aggregators including AOL, Yahoo! and Google, will increase the available video ad inventory. The increased supply will not only decrease its cost -- bringing it in reach of local and SME advertisers -- but the inventory can also be highly targeted, given that it is being pulled in by users. Aggregate behavioral tracking will also create valuable opportunities for local and national advertisers, akin to the search marketing opportunities available to them on the Web. There are, of course, many moving parts to the above equation, including hardware, software, content aggregation, service providers and ad provisioning. When and how they will coalesce is the big question, which we’ll attempt to sort through in the coming months and years. Stay tuned.]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Sensis Exports a Strategy to Europe, Beyond]]> http://206.106.174.250/blog/blog_comment.asp?bi=647 2005-12-16T15:49:51-05:00 2005-12-16T15:49:51-05:00 2005-12-16T15:49:51-05:00
      What Sensis is arguing is that publishers should not hand over the billing relationship with the customer -- ever. And no publisher should train users to go elsewhere to find local businesses. Yet building the index and PFP engine are not core to the value publishers bring, nor are they assets that any publisher wants to be over-dependent on to a potential long-term competitor. Platefood is offered as a chance to retain control without making a prohibitive investment. It is an enabling platform for those who wish to follow a strategy similar to the one Sensis follows in Australia.
      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Tellier Talks About Trader Deal]]> http://206.106.174.250/blog/blog_comment.asp?bi=648 2005-12-16T15:46:17-05:00 2005-12-16T15:46:17-05:00 2005-12-16T15:46:17-05:00
      We will cover the whole idea of directories and classifieds in greater detail within the TKR program, but we'll share a few highlights here.

      Tellier sees the deal as very closely tied to Yellow Pages, since classifieds shares many characteristics. And he sees the deal as building on the assets he cares about, the YPG brand, content and customer relationships. All other things, he says only half jokingly, can be outsourced.
      Here are some highlights of what we heard from Mr. Tellier:
      * The Trader deal has a lot to do with YPG's upcoming plans to launch keyword search, and in particular how it can enable brand search.
      * YPG has a lot of ideas on how to merge directory and classifieds content into local vertical hybrids. Imagine a Trader publication with a vertical directory of related headings in the back pages.
      * The deal gets YPG into the C2C business, something directory publishers have not been very successful at to date.]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Yellow Book Reveals Online Revenues]]> http://206.106.174.250/blog/blog_comment.asp?bi=649 2005-12-16T15:44:48-05:00 2005-12-16T15:44:48-05:00 2005-12-16T15:44:48-05:00
      For the financial year 2005 (ended March 31), Yellow Book generated Internet revenues of US$22.2 million, up more than 73 percent over the previous year. With total revenues of US$1.52 bilion in fiscal 2005, online revenues represent less than 2 percent of Yellow Book's total revenues. Through the first half of its 2006 financial year, Yellow Book has generated US$17.9 million in online revenues, including US$2.7 million ported over from the TransWestern acquisition.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Wi-Fi Phones May Challenge Traditional Wireless]]> http://206.106.174.250/blog/blog_comment.asp?bi=650 2005-12-16T15:36:17-05:00 2005-12-16T15:36:17-05:00 2005-12-16T15:36:17-05:00 a post about the inexorable spread of Wi-Fi and how "21st-century" businesses (i.e., ISPs and wireless) are going to be challenged and that currently fat revenues may dry up sooner than anyone expected.

      Now Vonage has announced a Wi-Fi phone that will enable calls from any Wi-Fi hotspot. There will be more such phones soon. So, eventually when we have nearly universal Wi-Fi, there will be unlimited calling for an extremely low cost at home and at hotspots (which can be as broad as a municipality or a giant rural area). But into the foreseeable future, Wi-Fi won't work when you're in the car. So wireless carriers will still have a role for some time. But, as a practical matter, traditional telcos and their wireless subs will feel more and more competitive pressure and downward pressure on pricing. However, bundling may protect subscriptions (voice, data, Internet) for a while. Recall Meg Whitman predicted that basic calling would be "free" in just a few years. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Gmail Mobile]]> http://206.106.174.250/blog/blog_comment.asp?bi=651 2005-12-16T15:24:30-05:00 2005-12-16T15:24:30-05:00 2005-12-16T15:24:30-05:00 Gmail access via mobile phones.

      Here are the details about the service from Google: Because every mobile device is different, Gmail Mobile automatically optimizes the interface based on the phone. Users can also view attached photos and documents from their phone, and reply-by-call to people whose phone number is stored in their Gmail account. Gmail messages are automatically synchronized, regardless of whether Gmail is accessed from Gmail Mobile or the web. Gmail Mobile is currently available for free for mobile phone users in the U.S. The service works with most web-enabled mobile phones. Of course, users have long been able to access Gmail from a Web browser (only those with "smartphones" or larger screens are having a reasonable experience, however). This is mobile e-mail "for the rest of us," who have normal/tiny screens. Just in time for the holidays, Google has also released a bunch of new Gmail features more generally:
      • Quick links that identify addresses and package tracking numbers in e-mails and displays them to the right of users' inbox so they can more easily access maps, directions or tracking information with a single click.
      • Gmail Web Clips, which appear at the top of the Gmail inbox and enable users to read Google News, a friend's blog, or any RSS or Atom feed from their Gmail account.
      • Anti-virus protection that automatically scans messages with attachments.
      • The ability to view attachments in HTML instead of downloading to the desktop or mobile phone.
      • A vacation auto-responder, which enables users to automatically notify people when they're away from e-mail or unable to respond.
      • The option to create contact groups (one of the most highly requested Gmail features)
      Gmail Mobile is of course about serving user demand for mobile e-mail access. But it's also about increasing wireless usage (the next frontier in Local) and growing the e-mail user base for Google more generally (by offering a more comprehensive and useful service). Gmail is now a kind of hub for Google. Google Talk and a range of personalized services (homepage, search) are all tied together through Google registration, for which e-mail is the motivating factor. The more registration data collected by Google, the more relevant search results (and ads) can potentially be. Here's general comScore data (U.S., August) on e-mail marketshare: Yahoo! -- 30% Hotmail/MSN -- 25% AOL -- 23.4% Gmail -- 1.8% ____________ Related: Here's a piece in USAToday about e-mail and online software trends. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Ingenio Fine-Tunes PPCall Features]]> http://206.106.174.250/blog/blog_comment.asp?bi=652 2005-12-16T15:17:27-05:00 2005-12-16T15:17:27-05:00 2005-12-16T15:17:27-05:00
      Ingenio explains:
      • Auto-bidding: Similar to the proxy bidding features popularized by Google and eBay, Ingenio Auto-Bidding allows advertisers to set a "max" price per call and will automatically update an advertiser's bid by $.01 until it reaches the max price point. This feature had been a top request from Ingenio advertisers.
      • Conversion Management: This process does two things (1) optimizes the relevancy of Ingenio ads to help distribution partners maximize revenue from Pay Per Call listings (2) helps advertisers fine-tune their Pay Per Call campaigns to produce better quality leads. It provides advertisers with continuous updates on ad performance and suggestions on how to modify their ads to improve call-through rates.
      In 2006 we should see Yahoo! and Google (as well as a host of new verticals) adopt PPCall officially. The Kelsey Group has forecasted that PPCall could be a US$1.4 billion market (or more) by 2009. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Classifieds Bits]]> http://206.106.174.250/blog/blog_comment.asp?bi=653 2005-12-16T15:15:59-05:00 2005-12-16T15:15:59-05:00 2005-12-16T15:15:59-05:00 apparently decided to no longer offer direct classifieds advertising and will instead become a distributor or aggregator of classified ads from other sources. Also the San Diego Union Tribune is apparently having good success with free classifieds (the program may be a model for other newspapers going forward). From the Poynter.org blog: The San Diego Union-Tribune is reporting that its free-classifieds program, in place since late August, is a "success." It allows private parties to place up to 12 free ads per year which go in the print edition and on the website. Free ads are permitted in the categories of merchandise, automotive, boats, jobs wanted, found pets, and found items; goods for sale cannot be valued at more than $5,000.

      The Tribune did not report on the financial success of its upsell efforts or whether there had been any secondary financial benefit to the free listings. Craigslist and, more recently, LiveDeal (which is partnering with newspapers, offering its platform) have de-facto established that basic online listings will need to be free to be viable. The revenue game then is about professional sellers and upsell opportunities. In addition to all the verticals, the major search engines have classifieds marketplaces or are in various stages of their development. Currently online classifieds in the major categories is approximately a US$2 billion market, whereas traditional print classifieds were worth almost US$17 billion (U.S. market) last year. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google (Local) Lab at Heathrow]]> http://206.106.174.250/blog/blog_comment.asp?bi=654 2005-12-16T15:11:51-05:00 2005-12-16T15:11:51-05:00 2005-12-16T15:11:51-05:00 Google Blog. Some time ago Google created Google Space (a physical place in Terminal 1) where users can access the Internet for free while waiting to board flights, etc. Smartly, Google has used Google Space as a kind of ongoing focus group for Local (and Google Earth), it appears.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Eniro Closes Door on Eastern Europe]]> http://206.106.174.250/blog/blog_comment.asp?bi=655 2005-12-16T15:09:02-05:00 2005-12-16T15:09:02-05:00 2005-12-16T15:09:02-05:00
      The dollars (or krona) matter less than the fact that this represents the end of Eniro’s foray into Eastern Europe (if you exclude Poland, where it does pretty well). Eniro’s lesson from all this was that the costs of pursuing opportunities in underdeveloped markets far outweigh the benefits. The opportunity costs include management attention diverted from a highly competitive situation in the Nordic markets, where Eniro does most of its business.


      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[New Zealand YP Jumps Into Mapping]]> http://206.106.174.250/blog/blog_comment.asp?bi=656 2005-12-16T15:03:01-05:00 2005-12-16T15:03:01-05:00 2005-12-16T15:03:01-05:00 Here is an article with more detail.


      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yellow Pages Group Buys Trader Media]]> http://206.106.174.250/blog/blog_comment.asp?bi=631 2005-12-14T17:07:14-05:00 2005-12-14T17:07:14-05:00 2005-12-14T17:07:14-05:00 buying Canadian classifieds publisher Trader Media Corp. for C$436 million in cash and equity. This puts YPG on similar footing as Australia's Sensis, which owns classifieds publisher Trading Post. Classifieds and Yellow Pages content are complementary and together form the bulk of the commercial content of a comprehensive local offering.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Opera: The Rumored Google Browser?]]> http://206.106.174.250/blog/blog_comment.asp?bi=641 2005-12-14T16:39:46-05:00 2005-12-14T16:39:46-05:00 2005-12-14T16:39:46-05:00 Search Engine Watch blog (Gary Price), which points to Dirson, about Google possibly buying Oslo-based Opera. (Opera has an approximately 1 percent market share.) There's also lots of discussion in Gary Price's post about the history of the rumored Google Browser.

      Here's Om Malik's earlier post on the Google-Opera relationship and deal that made Opera free. Google's toolbar and desktop search apps (including Sidebar) are moving in on offering browser-like tools and functionality without being a browser per se. If this rumor proves to be true, it would allow Google more control over the "virtual desktop" (since that's what browsers are increasingly becoming) and more access to users/user behavior. There are both ad revenue and market-share implications if the company actually does this. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google's Inaugural TV Spot]]> http://206.106.174.250/blog/blog_comment.asp?bi=639 2005-12-14T16:05:32-05:00 2005-12-14T16:05:32-05:00 2005-12-14T16:05:32-05:00 here's Google's first mainstream marketing effort (PBS TV commercial).

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[A Bullish Take on Yellow Pages]]> http://206.106.174.250/blog/blog_comment.asp?bi=640 2005-12-14T14:39:02-05:00 2005-12-14T14:39:02-05:00 2005-12-14T14:39:02-05:00 here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Another Municipality Goes Wireless]]> http://206.106.174.250/blog/blog_comment.asp?bi=629 2005-12-13T16:28:41-05:00 2005-12-13T16:28:41-05:00 2005-12-13T16:28:41-05:00 Pew report), there were skeptics arguing that broadband penetration will stall in the U.S. Not only is it not going to stall, it's going to eventually be free. (Consumers know this and are less and less willing to pay.) Anecdotal case in point: When I met with MSN's Erik Jorgensen, we met at Cafe de la Presse in SF. There were numerous Wi-Fi options, at least two of which were free. The choice was obvious. This article discusses another free municipal Wi-Fi initiative, this time in Arizona (Tempe).

      There is growing momentum around free Wi-Fi, making ISP incumbents upset, nervous and very angry in some cases. There will be a concerted legislative effort (Washington lobbyists at the ready) by vested interests to prevent municipalities from offering free Wi-Fi as it gains steam. What's astounding about all this is that the multibillion-dollar Internet access business has been around only for about 15 years and it's being disrupted (or will be shortly). Sure, "old media" models are being distrupted, but so are relatively new ones. In addition to the ISP business, think about how the wireless carriers may have business cut out from under them by Wi-Fi-enabled phones in just a couple of years. Indeed, even as Verizon seeks to shed its directory business, it's the "21st century" businesses (wireless, ISP, etc.) that ultimately may be much more vulnerable -- so ironically. Along those same lines, MySpace is king of the "social networks" now but what about tomorrow? Could that Rupert Murdoch US$580 million acquisition be worth a fraction of that two years from now? It happened to Friendster. And while MySpace is a different case, for the scadenfreude crowd it's tantalizing to think so. The larger point is -- even as I've argued that "inertia" applies to user behavior online -- there's tremendous economic instability being introduced by the Internet. I'm not an economist and I'm way out of my league in suggesting this, but it seems to me there's a much longer conversation to be had about how technological development, the Internet and related trends are being driven by traditional, structural incentives in the U.S. economy and how that very same economy is becoming more and more unstable as a result. There's something paradoxical, strange and fascinating going on and it's so big and so fast, it's very challenging to get one's brain entirely around it. _____________________ And now New York? ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA['Click-to-Call' vs. 'Pay-per-Phone-Call'—What's the Difference?]]> http://206.106.174.250/blog/blog_comment.asp?bi=603 2005-12-13T12:04:41-05:00 2005-12-13T12:04:41-05:00 2005-12-13T12:04:41-05:00
      Pay-per-phone-call (PPCall) is a business model -- the monetization of phone calls driven by the Internet. PPCall can be supported by an auction marketplace or sold on a flat-fee basis (same as clicks). Ingenio does the former; InsiderPages and Judy's Book do the latter. All are examples of PPCall. Click-to-call is a type of call-connection functionality wherein a user typically clicks an icon (here on YellowPages.com [the phone]), which launches a module. Then she can input her phone number, and a call between that consumer and a merchant or professional is connected (both phones ring simultaneously). Click-to-call can support a PPCall billing model, but the two terms are not synonymous. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Offline Inventory Suddenly Hot—Online]]> http://206.106.174.250/blog/blog_comment.asp?bi=626 2005-12-13T12:04:12-05:00 2005-12-13T12:04:12-05:00 2005-12-13T12:04:12-05:00 The N.Y. Times (reg. req'd) about some of the new initiatives (i.e., Froogle Local and CNet) to provide offline inventory information to online shoppers. The central problem is infrastructure and accuracy. StepUp was the first to try and round up SMEs and do this (it's one of Google's partners). Others are now working on the challenge. (From a consumer standpoint, there are now several services that provide offline shopping information -- e.g., Froogle, CNet, ShopLocal, Cairo and Yokel.)

      Ultimately the data and infrastructure problems will be solved and it will become a necessity for comparison engines to have this information -- to be "agnostic" about where consumers buy. Amazon has been working on this online/offline issue for a while. In the near term, the site that can provide both online and offline information in the context of the best user experience will have a competitive advantage. An indication of consumer demand for local shopping information is ShopLocal's rising traffic (U.S. rankings, August 2005, comScore): 1. Shopping.com sites (eBay) 2. Shopzilla/BizRate sites (E.W. Scripps) 3. Yahoo! Shopping 4. NexTag sites 5. inStore (AOL) 6. PriceGrabber 7. ShopLocal (Gannett, Knight Ridder and Tribune) 8. Froogle (Google) 9. CNET Reviews 10. Monster Marketplace.com]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[City.com Sites Threaten Newspapers—Maybe]]> http://206.106.174.250/blog/blog_comment.asp?bi=596 2005-12-13T12:03:43-05:00 2005-12-13T12:03:43-05:00 2005-12-13T12:03:43-05:00 MediaPost (reg req'd) writes about a new Borrell report about the potential rise of "independent local sites" as another threat to the newspaper industry (just add them to the list, right?). Well yes and no. T'he MediaPost piece focuses on the assertion that their "intuitive" appeal and URLs such as "Arizona.com," "SanFrancisco.com" or "Houston.com" may eventually trump local sites operated by newspapers. Because our ILM conference starts today, I don't have much time to go into this. I'll just say that the reality is somewhat more complicated.

      Many of these so-called "independent local sites" are not in fact going to offer meaningful competition for online metro dailies (or Google or Yahoo! for that matter) in the long run. But they have the as-yet-undemonstrated potential to do so. It's going to depend in the end on the user experience, the content and whether they're ultimately part of some larger network. And, in fact, many of the "cityname.com" sites (e.g., SanFrancisco.com) are owned or operated by Boulevards New Media, which is itself a weekly/community newspaper initiative. Our last "UserView" survey of online consumer behavior indicated there was a statistically significant decrease in traffic to city guides, while there was a comparable rise in the use of search engines for local lookups. So the whole category of city sites is losing -- not gaining -- traction. But let's take the Boulevards sites -- again a newspaper initiative -- for example. Their UIs are pretty nice and they are part of a network. This means that over time, if the user experience and content continue to improve, the general Borrell prediction could have merit. If that comes to pass, however, they wouldn't just be a potential treat to the metro daily sites but also to Google Local and Yahoo! Local to a similar, hypothetical degree. At the moment, local is not a zero-sum game; in fact, just the opposite -- it's more and more fragmented. The Boulevards sites are right now positioned chiefly as travel sites (where I'm going rather than where I am) -- although they do have classifieds listings. They're less likely to be used by "locals" in their own city. Again, if this network, which is more like the old areaguides.net affiliate network before it was acquired by Local Matters, than Citysearch, creates a good user experience with good content people will use them. (They also become an acquisition target.) Local metro daily newspapers have traffic and brand equity, but they face loads of competition from a whole range of sites focused on local. Indeed, local metro dailies have many challenges in competing online (mostly internal), but right now these city.com sites are just another -- and not particularly significant -- among them. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Comparison Shopping Engines Outpace Online Retailers]]> http://206.106.174.250/blog/blog_comment.asp?bi=620 2005-12-13T11:57:53-05:00 2005-12-13T11:57:53-05:00 2005-12-13T11:57:53-05:00 reported that traffic rose 61 percent at online comparison shopping sites in the week ended Nov. 27, compared with the week ended Oct. 30. Regular online retailers by comparison saw a 35 percent rise in traffic during the same period. Top comparison shopping sites, including Shopping.com, BizRate.com and Shopzilla, accounted for 0.3 percent of all Internet traffic -- a 24 percent increase over the same period last year, according to Hitwise. These three comparison engines were also ranked 12th, 13th and 14th, respectively, by Hitwise in the category of most-visited shopping and classified Web sites last week (EBay, Amazon.com and Walmart.com took the top three rankings in that order). Comparison shopping sites have traditionally received most of their traffic from search engines. The growth so far this holiday season suggests that they are either marketing more effectively with search engines, or they are gaining loyalty and exposure among some users who are navigating directly to them.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[GoCityKids Finds a Buyer]]> http://206.106.174.250/blog/blog_comment.asp?bi=622 2005-12-13T11:57:26-05:00 2005-12-13T11:57:26-05:00 2005-12-13T11:57:26-05:00 GoCityKids.com had been acquired by Viacom-owned cable channel Nickelodeon. I met with founder Clare Ellis years ago when the network of sites had just launched (in 2000). Her concept was great -- a Citysearch for families -- but her timing, through no fault of her own, was lousy. The bottom fell out of the economy shortly after the site was founded. GoCityKids survived largely on good will and through a network of volunteer editors who believed in the concept and valued the content, which was highly unique (at a network level). Among the really valuable elments of the site was its user-generated content (parent reviews), long before this was in vogue, and its local events guides, which were almost unique online. In my conversations with Internet companies in the local arena, I often pointed to GoCityKids in the context of discussing local events as a missing element. I'm glad to see the site will now get the resources it needs to deliver on its original promise.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[WLL: 'Bird's Eye' Impressive, Basic Maps Need Work]]> http://206.106.174.250/blog/blog_comment.asp?bi=619 2005-12-13T11:54:47-05:00 2005-12-13T11:54:47-05:00 2005-12-13T11:54:47-05:00 stunning (I can't wait for more coverage beyond the current 12 U.S. metro areas). The personalization features (Scratch Pad, etc.), layered proximity searches and, generally speaking, the navigation are also very nice. But the basic maps functionality has some kinks that need to be worked out. It's a beta product and so that's to be expected. I won't catalog those things here, but certain searches were not as easy to execute or as accurate as on Yahoo! and Google Maps. There was also inconsistency when using Firefox and IE. I'm sure the folks at MSN will be collecting feedback and addressing the problems so that when WLL comes out of beta, they'll get the basic mapping features right, in addition to the advanced functionality.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Inform to Simplify and Diversify]]> http://206.106.174.250/blog/blog_comment.asp?bi=621 2005-12-13T11:52:17-05:00 2005-12-13T11:52:17-05:00 2005-12-13T11:52:17-05:00 Inform.com. These guys launched several months ago with a host of super-charged features that proved well beyond what most users want from a news site. Product manager Julian Steinberg acknowledged this in our conversation even as he demonstrated the new audio and video content on the site. (Inform now says it's got more video content than any other news site.)

      Indeed, the volume of multimedia content is impressive as are the personalization and contextual search capabilities (although these are now more limited for simplification purposes) -- one can create highly customized news searches and feeds and even export those to alternative news readers. Most interesting to me was our discussion of Inform as a news aggregation "platform" for third-party sites (i.e., newspapers). The idea here is that Inform would enable all news sites to become aggregators in addition to offering their own content. NewsGator and Pluck offer a similar proposition. Online newspapers will ultimately need to do some version of third-party news aggregation to remain competitive over time. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Microsoft YP Patent Application]]> http://206.106.174.250/blog/blog_comment.asp?bi=623 2005-12-13T11:48:54-05:00 2005-12-13T11:48:54-05:00 2005-12-13T11:48:54-05:00 Gary Price over at Search Engine Watch has found a Microsoft patent application covering "electronic Yellow Pages."

      Gary posts the abstract: Abstract: A method and system for allowing a regional service merchant that is outside of a given geographical boundary, but services inside the geographical boundary, to be included in a result set of a search directed to a location inside the geographical boundary. Text and/or glyphs are returned along with the regional service merchant's business listing so as to explain to a user why a business not physically residing in the search area has been included in the result set. An application programming interface ensures that, if a business is listed as a regional service merchant, then the text and/or glyph is stored in association with the business listing.]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Devours del.icio.us]]> http://206.106.174.250/blog/blog_comment.asp?bi=624 2005-12-13T11:45:11-05:00 2005-12-13T11:45:11-05:00 2005-12-13T11:45:11-05:00 more and more and yet more. ______________ More analysis from the Internet Stock Blog.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yellow Book Launches New Site]]> http://206.106.174.250/blog/blog_comment.asp?bi=625 2005-12-13T11:43:07-05:00 2005-12-13T11:43:07-05:00 2005-12-13T11:43:07-05:00 Yellow Book site. Without having tested the data thoroughly, I can't report on that side of things. (Several quick category searches in my area seemed to have accurate information and there were no failed searches.) The interface is much better and the site is fast. A welcome change from the folks who, until recently, were focused pretty exclusively on the print side.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Online-Offline Venture Down Under]]> http://206.106.174.250/blog/blog_comment.asp?bi=627 2005-12-13T11:34:58-05:00 2005-12-13T11:34:58-05:00 2005-12-13T11:34:58-05:00 ClickZ (and covered also in SEW blog). Yahoo! has entered a joint venture with Seven Network in Australia and New Zealand. The largest TV company in Oz, Seven has online and magazine assets as well.

      Here's the relevant paragraph in the ClickZ piece: Yahoo! plans to combine its global content, products and technology with Seven-owned content to create localized online media, entertainment, and ad opportunities online. Advertisers will be able to purchase combined offline and online sponsorships across Yahoo! Australia & NZ, the Seven Network and Pacific Magazines. This move reflects two things: 1) Yahoo!'s desire to be a powerful offline brand and 2) to offer a centralized media buy for both online and offline placements. (We might also say something about Yahoo!'s content aspirations being accelerated with this relationship.) With its TiVo relationship and its recent VoIP moves, Yahoo! is doing something vaguely similar in the U.S. Expect to see more such arrangements in the U.S. and Europe, through joint ventures or mergers/acquisitions. This sort of model is the future. Traditional media companies know they have to offer effective online ad opportunities (think News Corp.) and Internet companies (esp. Google, Yahoo! and MSN) know they need to -- eventually -- be able to offer a unified ad buy that includes both online and offline inventory. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Prelude to Another Acquisition?]]> http://206.106.174.250/blog/blog_comment.asp?bi=628 2005-12-13T11:29:58-05:00 2005-12-13T11:29:58-05:00 2005-12-13T11:29:58-05:00 piece from CNet saying that Yahoo! and blogging software provider Six Apart are today launching a product that allows Yahoo! small business customers/users the ability to create blogs on Six Apart's Movable Type software and then have them hosted by Yahoo! for $11.95 per month.

      Yahoo!'s 360 publishing platform appears to be having limited success (correct me if I'm wrong). At least in contrast to Google's Blogger it's enjoyed only limited success (Blogger is free). Yahoo!'s 360 is a blogging platform but also a way for the company to collect user-generated content and push it out to various points in its network. Conceptually, it's a brilliant strategy. But it may not be working well or fast enough for Yahoo! (Although this deal is aimed at small businesses, I suspect there is a consumer side to this.) Evidence of the company's' impatience may be its very recent acquisition of social search/bookmarking site del.icio.us. Yahoo! has a very similar service in MyWeb (which I use and love). But there was considerable speculation that what Yahoo! was after was not necessarily the technology or functionality but the 300,000 loyal del.icio.us users and possibly the brand. Blogging is by the day becoming more mainstream and more and more an important source of content. Yahoo! has been on an acquisition tear lately, adding what it perceives to be strategic assets. So, I'm wondering whether this relationship then is a test drive for something else in the not-too-distant future. Hmm ...]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Drilling Down 2.0]]> http://206.106.174.250/blog/blog_comment.asp?bi=630 2005-12-12T13:21:35-05:00 2005-12-12T13:21:35-05:00 2005-12-12T13:21:35-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Transit Trip Planner]]> http://206.106.174.250/blog/blog_comment.asp?bi=617 2005-12-09T20:36:09-05:00 2005-12-09T20:36:09-05:00 2005-12-09T20:36:09-05:00 Live Local launch (say that 10 times fast), Google releases Transit Trip Planner. More from Search Engine Watch and the Official Google Blog. Wasn't December supposed to be a slow month?

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Taking a Break from Blogging for Baby]]> http://206.106.174.250/blog/blog_comment.asp?bi=384 2005-12-09T04:17:51-05:00 2005-12-09T04:17:51-05:00 2005-12-09T04:17:51-05:00 Just kidding! (Sorry eBay.) I'm not kidding about the baby part, however. So I'll be taking a break from blogging -- and sleep for a little while. I'll be blogging about the baby somewhere else of course. During my absence, my colleagues will continue their coverage of local media comings and goings.

      There were a lot of things I would have blogged yesterday (i.e., Jeteye CEO interview [really fascinating stuff], rise of AOL News, PlanetDiscover's recent wins, Viacom-Yahoo! and SmugMaps) and would be blogging more today. But it's literally off to the hospital. As California's now reviled Governor Schwarzenegger once famously said: "I'll be back." ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Verizon Deal Raising Qs About YP Future]]> http://206.106.174.250/blog/blog_comment.asp?bi=618 2005-12-08T17:08:50-05:00 2005-12-08T17:08:50-05:00 2005-12-08T17:08:50-05:00
      We are currently working on an advisory that will offer our take on Verizon, the decision to sell, who the buyers might be and how the deal might change the industry.



      Our essential view of Yellow Pages isn't changed much by the announcement that Verizon plans to sell Verizon Information Services, its YP unit. Verizon has made a rational decision, in our view. Clearly, directories are not a core strategic asset. And when Ivan Seidenberg talks about "unlocking value," what he really seems to be suggesting is: Let's sell now while we can get a lot of money for this asset. The logical extension of this reasoning is that the asset could be worth less in a few years.

      This is the point the press has seized on, suggesting Verizon must know something the rest of us do not. Maybe so. However, I think the rationale for selling is pretty simple and straightforward. And while it is not a ringing endorsement of the future of Yellow Pages, nor is it as damning as some would suggest. Print Yellow Pages has a future, but a limited one. A blended directional media product set (directories, classifieds, print, Internet, voice and mobile) offers a very good opportunity to those able to execute. There is still time to get it right, but, to state the obvious, not as much time as there used to be. VIS has a better shot at getting it right as an independent company. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Users Ask, Yahoo! Answers]]> http://206.106.174.250/blog/blog_comment.asp?bi=615 2005-12-08T12:36:25-05:00 2005-12-08T12:36:25-05:00 2005-12-08T12:36:25-05:00 SiliconBeat and Battelle both cover "Yahoo! Answers," an interesting new social media/community initiative from Yahoo!. The idea is that I can ask the community any question and, probably, get an answer. Google Answers is a similar service, but it's not free. (On some level the different approaches to "Answers" capture the cultural differences between Yahoo! and Google.) Questions can range from "Looking for a good spa in the SF Bay Area?" to "Can you recommend a book for a 70-something conservative man?"

      So there are both local and non-local angles. To use Hollywood speak, it's a bit of MyWeb meets Wikipedia meets About.com meets the Berkeley Parents Network. The immediate question that arises is the Wikipedia question about quality control. Yahoo! has attempted to solve that by getting the community to rate the best answers (and by creating a system of points), assuming that once there's enough participation the correct answers will always or generally win -- except in matters of subjective opinion (e.g., books for 70-year-old conservatives). But what about "technical" questions such as health and law? This is another very interesting deployment of what now might be called Yahoo!'s "social media platform." Whether and how Yahoo! intends to integrate any of this content into other areas of the site is uncertain -- clearly there will be valuable local recommendations coming from this. Yahoo! 360 local reviews get associated with local businesses and appear in Yahoo! Local results. I would imagine the company will try something similar here. The SiliconBeat post alludes to tagging (a la Flickr, MyWeb) as a way for users to organize and share content. That's interesting but less interesting to me than the question I just mentioned: How will Yahoo! leverage relevant answers in other areas of the site? And here's a related question: With so many verticals, apps and services, how will Yahoo! expose these things to people and drive usage -- especially where "critical mass" is a critical component of the application? In some sense, we're seeing the "long tail" emerge within Yahoo! in some of these new applications and "verticals." As with the community layer on Yahoo! Shopping, Trip Planner and Yahoo! Autos Custom, the possibilities are starting to become endless, in terms of combining social content with structured content. (Think about all the potential maps mashups that could emerge from Answers eventually.) Now, having created a platform and a social media strategy, Yahoo! could create more and more of these tools/applications and "verticals." But each time it does, it faces the problem of exposing or promoting the tools and fragmenting the audience. What if Answers becomes a better source of local recommendations than Yahoo! Local? (It probably won't and I'm sure Yahoo! has an answer for me.) If the "back end" is sophisticated enough to cross-pollinate and integrate relevant content across applications and the Yahoo! network, then I say, go for it. Create more of these applications and see where the traction is. But if Yahoo! is just creating more silos and not leveraging that content in other areas of the site, then there's a potential concern, from a "strategic" perspective, that the company is creating something like a shoe store with too many shoes to choose from. So that was an awkward analogy, I'll admit, but you get the idea: potential consumer confusion. What's amazing and "cool" (there's that word I keep using lately) is the creativity that all the "Web 2.0" thinking and tools have unleashed. And among the Internet incumbents, Yahoo!'s at the forefront. We'll have to see where it all goes. ______________________ Here's more from the Yahoo! Search Blog. Update: Just spoke with Pete Barlas at Investors Business Daily and he pushed me to look at the advertising side of this. I suspect Yahoo! has no immediate plans to monetize, but a) this is a way to acquire new registered users and b) offers some very targeted (behavioral/contextual) ad opportunities down the line. Here's a case-in-point: think about weddings -- "Any recommendations for a florist for my wedding in Boston?" What florist (or caterer or photographer) wouldn't want access to that consumer? Or what about, "What's the best laptop for under $1,000?" Wouldn't Dell and HP want to get access to that consumer? Update 2: Forgot to mention that this is a version of sites like Wondir. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Yahoo! vs. Skype]]> http://206.106.174.250/blog/blog_comment.asp?bi=613 2005-12-08T09:14:29-05:00 2005-12-08T09:14:29-05:00 2005-12-08T09:14:29-05:00 this story today about Yahoo! planning to launch a VoIP platform that will allow users to make PC-to-PSTN (landline) calls and receive calls from any telephone line around the world for a fee. Its previous free voice service, by comparison, was integrated with Yahoo! Messenger and allowed users to make PC-to-PC calls only. This puts Yahoo! in competition with Google Talk as well as Skype, as the service will be similar to the latter’s SkypeOut and SkypeIn paid services. Yahoo!'s service will reportedly undercut Skype on price, given the size of its user base and its ability to negotiate low rates for minutes with phone companies. Most notably, the ability to call PSTN lines from a PC gets Yahoo! a step closer to a pay-per-phone-call model, which it is known to be testing. A more in-depth analysis will follow in the next Local Media Journal.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Bullish on PPCall?]]> http://206.106.174.250/blog/blog_comment.asp?bi=616 2005-12-08T09:05:26-05:00 2005-12-08T09:05:26-05:00 2005-12-08T09:05:26-05:00 John Battelle picked up a PaidContent post about Google product VP Jonathan Rosenberg's comments to a conference crowd. Among the statements summarized by PaidContent was one on PPCall: Pay per call: "Interesting model. ... Our general experience has been the more we show advertisers specifically the results we're delivering the more they spend. ... I think we will see cost per call increasingly more successful."

      This remark is out of context for me, so I'm going to draw inferences based purely on the post. But what's interesting is that Rosenberg appears to be saying two things: 1) Google likes PPCall and 2) something more interesting about analytics and SEM. Google's push into analytics is in part an effort to prove value to the advertiser. For most advertisers there's a chasm between the impression and click ratio and the ultimate lead or sale. Paid search marketing, despite being so measurable, still suffers a bit from the Wanamaker "I don't know which half" axiom of advertising. Call tracking, which PPCall offers as part of its service, closes that gap and really proves to advertisers (especially SMEs) that the Internet is driving real leads. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Windows Live Local Going Live]]> http://206.106.174.250/blog/blog_comment.asp?bi=614 2005-12-07T19:00:06-05:00 2005-12-07T19:00:06-05:00 2005-12-07T19:00:06-05:00 press release and more from Search Engine Watch.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Ingenio Adds Two More to Distribution Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=610 2005-12-07T16:35:15-05:00 2005-12-07T16:35:15-05:00 2005-12-07T16:35:15-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[E-Tail Reality Check]]> http://206.106.174.250/blog/blog_comment.asp?bi=609 2005-12-07T14:43:05-05:00 2005-12-07T14:43:05-05:00 2005-12-07T14:43:05-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA['Sophisticated' Searchers Favor Google?]]> http://206.106.174.250/blog/blog_comment.asp?bi=611 2005-12-07T14:30:11-05:00 2005-12-07T14:30:11-05:00 2005-12-07T14:30:11-05:00 John Battelle made reference to a search engine usage survey conducted by investment firm SG Cowen & Co. Today MediaPost (reg. req'd) reports on the same survey: People who have been online seven years or longer are far more likely to use Google for search than Yahoo!, MSN, or AOL, according to a new report by investment bank SG Cowen & Co. The study, based on a survey of 1,000 online users, found that 60 percent of those who used Google as their primary search engine had been online since at least 1997 ...

      Among the survey's top-level findings/conclusions are the following:
      • The longer a consumer has been online, the more likely he or she is to use Google as a primary search engine.
      • Google users are much more likely to have an annual household income of more than $60,000 than users of Yahoo!, MSN or AOL.
      The survey report also argues that Google and Yahoo! will increase market share going forward. The central conclusion of the report -- that the more sophisticated Internet users become, the more they're likely to use Google -- is, of course, an empirical question. The answer will be revealed in time. But it is a fascinating supposition and warrants a tracking survey. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Nice Work if You Can Get It]]> http://206.106.174.250/blog/blog_comment.asp?bi=612 2005-12-07T14:27:19-05:00 2005-12-07T14:27:19-05:00 2005-12-07T14:27:19-05:00
      Riklin is a respected executive, and my colleague Neal Polachek was very impressed by his presentation at the Yellow Pages Today conference last month in Vienna. But US$7 million for 11 months' work is an impressive payout, to say the least.

      Eniro, the leading directory publisher in neighboring Sweden, has named longtime Findexa executive Wenche Holen to the post of managing director of Eniro's Norway operations, which include the former Findexa plus Eniro's existing online-only properties. With her elevation, Holen becomes one of the most prominent female directory publishing executives in the world.
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Search Numbers and Windows Live Local]]> http://206.106.174.250/blog/blog_comment.asp?bi=598 2005-12-07T07:02:05-05:00 2005-12-07T07:02:05-05:00 2005-12-07T07:02:05-05:00
      We've estimated that Local Search is about 20 percent of overall search user behavior. Others have put out different numbers. comScore uses an admittedly "conservative" methodology in calculating Local Search -- the company counts searches that happen on local domains (e.g., Local.Yahoo.com, Mapquest) and searches that happen with geographic modifiers of one sort or another (e.g., ZIP, city name). By that methodology, Larrison said that local was about 13% of search now. But we have long believed there is a great deal more search that has a local intent but is hard to quantify because it's ambiguous (e.g., "probate attorney" w/o a geo-modifier) and not being captured by the "explicit" way of looking at local. Larrison generally agrees, and I asked him to do a deeper dive on the question. Briefly, in his excellent presentation, he said that when you look closely at the user behavior (he gave a number of concrete examples), the real number is much closer to 35 percent or even 40 percent of search that is really trying to capture information that is in one way or another local -- offline fulfillment/services, offline shopping, classifieds-oriented searches and so on. We'll write more about this later, and it obviously merits further discussion and investigation. The second thing is Windows Live Local. Erik Jorgensen, general manager for MSN search, gave a keynote speech yesterday in which he demo'd "Windows Live Local" (different from "Fremont" -- the classifieds site). Windows Live Local, which hasn't otherwise been announced (and goes live next week), is a mixing of local data, community features and Virtual Earth. But now they're launching the Pictometry aerial oblique imagery as a part of that. Erik referred to it generally as "immersive imagery" and discussed how Microsoft is putting it at the center of their local strategy. What this is is mapping with angled shots taken from low flying planes. Erik showed some of the shots and the resolution plus the integration of data and tools (annotation, personalization) on top of the imagery made the entire package truly impressive. To use the vernacular, it was REALLY COOL. There's going to be a great deal of coverage of this when it officially launches and it shows how the mapping space continues to be really really hot. In fact, mapping has been at the center of several discussions here at the show -- all of which have been very interesting. There's lots more to talk about regarding Erik's presentation, but what it showed (together with Fremont) is that Microsoft has arrived as a player in local search in a potentially big way. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Bubbler: Making Websites Blog-Simple?]]> http://206.106.174.250/blog/blog_comment.asp?bi=256 2005-12-07T06:26:32-05:00 2005-12-07T06:26:32-05:00 2005-12-07T06:26:32-05:00 John Battelle for pointing to a piece on SiliconValleyWatcher about Bubbler, an application that appears to make building sites (and blogs) pretty simple. The company and its platform are worth watching.

      Although Yahoo! has introduced free sites for small businesses, the tools/sites are not as full featured as would be ideal (of course Yahoo! wants to sell full featured sites, not give them away). The website building/hosting business is starting to become a commodity business and so providers (Interland, Affinity, Vista, Yahoo!) are trying to differentiate in many cases by offering value-added services such as Web marketing (guaranteed clicks, etc.). TKG data reflect that about 42% of small businesses have Web sites. But if Bubbler or services like it make building and maintaining (robust) Web sites as simple as setting up and updating blogs, they will really be onto something. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The AOL-MSN-Google Guessing Game]]> http://206.106.174.250/blog/blog_comment.asp?bi=606 2005-12-07T04:25:03-05:00 2005-12-07T04:25:03-05:00 2005-12-07T04:25:03-05:00 interviewed him on Friday, Jim Riesenbach, SVP of AOL's Search & Directional Media group, was not permitted to talk directly about what would be the outcome of the much covered negotiations for a stake in AOL. He turned the routine and expected question into a thoughtful answer about how AOL would not be sought after unless its new strategy were paying dividends -- so to speak. Today come two articles, one from The New York Times (reg. req'd) and one from The Wall Street Journal (subscription req'd). Both articles suggest that what will ultimately emerge from the negotiations is something far short of the ownership stake earlier envisioned.

      The WSJ piece says the following: Time Warner Inc. is closing in on an agreement with Microsoft Corp. to build an online-advertising service designed to compete with Google Inc., say people familiar with the negotiations. After months of on-again-off-again negotiations, the two companies are now focused on a deal that would combine advertising-related assets – with minimal, if any, money changing hands. An agreement is expected to be struck sometime before year-end, but it is still possible that AOL could choose instead to deepen its relationship with Google at Microsoft's expense. As of Monday, however, initial signs pointed to a Microsoft-AOL alliance, albeit one far less ambitious than many analysts and investors had expected. Here's what The N.Y. Times is saying: Time Warner is still in negotiations with Microsoft and Google over a variety of potential deals involving its AOL unit. But most of the possibilities under discussion do not involve either company's buying a stake in AOL, an executive briefed on the negotiations said yesterday. Rather, they would involve cooperation on Web search, advertising sales and possibly other areas, the executive said. If Google loses AOL distribution it will be a blow to the company (and to AOL revenues), and MSN will gain a powerful distribution partner and more credibility for its PPC engine. None of this will necessarily change or overthrow Google's search leadership position on the consumer side, however. If an actual sale does come to pass, it raises immediate questions about brands, products, culture and integration. That might be a bit more vexing for MSN-AOL than for Google-AOL. MSN and AOL both have strong positions in a number of overlapping markets (e.g., IM). Until any announcement, however, all this remains the stuff of pure speculation. ________________ More analysis from the Internet Stock Blog and Parsons says "AOL not for sale." ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[What Do Google and Craigslist Have in Common?]]> http://206.106.174.250/blog/blog_comment.asp?bi=604 2005-12-06T13:29:17-05:00 2005-12-06T13:29:17-05:00 2005-12-06T13:29:17-05:00 John Battelle's blog regarding MySpace Classifieds. I don't have any insight into classifieds usage there, but casual observation indicates the postings are pretty thin (and one Battelle commenter says "it's not used much"). Over time that might change perhaps if Murdoch focuses more attention and energy on it -- but does he want to "cannibalize" the traditional product (he owns newspapers, remember)?

      So what do Google and Craigslist have in common? Craigslist is the "Google of Classifieds" and Google is the "Craigslist of Search" (I'm kidding about that). (Here's a good article on Craigslist from Fortune.) Both sites grew organically over time because they offered something that users perceived was missing elsewhere. They're both dominant in their respective arenas, and everyone is eager to topple them from their respective perches. It harkens back to the boxing days of yore -- e.g., "The Thrilla in Manilla." I can hear the taunting now ... Everyone has now decided that they need a classifieds play, partly from observing how powerful Craigslist has become (from MSN to eBay to MySpace) and partly because it's a big market -- $2+ billion online, $16+ billion offline (US). Online classifieds are already competitive and fragmented. More sites will mean not only more fragmentation, but also a likely reinforcement of the market leaders' positions (as search has become more competitive, Google has remained in the top position). That's the paradox of increasing competition: inertia. As with many other areas online, there are likely to be a handful of highly successful sites: verticals (Jobs, Cars, Real Estate, Dating); "horizontal" classifieds sites and aggregators (e.g., CL, LiveDeal, maybe Oodle); and a number of sites -- MySpace is probably in this camp -- for which classifieds are a sideline (LinkedIn is another). With the entry of MSN ("Fremont" aka Windows Live Classifieds) into online classifieds, 2006 should be a year of increasing competition and some greater clarity on how classifieds will or won't be integrated into Local Search -- and, most importantly, whether the newspapers are going to be competitive with online classifieds. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Hidden Variable Behind Success or Failure]]> http://206.106.174.250/blog/blog_comment.asp?bi=605 2005-12-06T13:20:45-05:00 2005-12-06T13:20:45-05:00 2005-12-06T13:20:45-05:00 article on Google's culture (NYTimes.com, reg. req'd). Corporate cultures are sometimes covered in feature articles that don't get as much attention as the news analysis pieces that throw around hard numbers. But culture may be a bigger part of why a company (or an industry) succeeds or why it doesn't. Of course this all makes intuitive sense. But it's a bigger issue, in my opinion, than the occasional coverage suggests.

      Caroline Little, CEO of WPNI, in her ILM keynote Q/A acknowledged that one of the main challenges facing newspapers in competing successfully online was the legacy culture of print. And for years, the culture of the print Yellow Pages industry has not been oriented to succeeding online (that is quickly changing). One could argue that's why YellowPages.com is now a separate organization/joint venture, rather than a unit of AT&T or BellSouth -- it needs to create a new culture to truly compete successfully. A Bloomberg reporter once questioned me about why MSN hadn't beaten Google to the satellite mapping punch when it had all the technology assets -- the TerraServer -- for years. She suggested it wasn't technology, but the culture (and vision implied) at Microsoft. Indeed, the recent restructuring of Microsoft suggests an effort to shake up the culture and make it more nimble. Obviously now Microsoft is working overtime to make up for lost time online. There are many more examples of companies I could discuss. But the point I'm making is that culture is the independent variable in success that rarely gets the attention it deserves, largely because its influence is hard to quantify -- literally and figuratively. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[TrueLocal Making Its Move]]> http://206.106.174.250/blog/blog_comment.asp?bi=607 2005-12-06T13:03:18-05:00 2005-12-06T13:03:18-05:00 2005-12-06T13:03:18-05:00 write-up (plus one of mapping site Metrobot).

      Recently, TrueLocal acquired the data services business of its parent, Geosign. The business licenses data to many of the large search players. Geosign remains the majority shareholder in TrueLocal and is remarkably successful, which gives TrueLocal the capacity to take the long view. In addition, TrueLocal has launched an ad product called TrueTarget, which offers simplified bidding for SMEs and limits inventory to businesses with a physical presence. No 1-800-Flowers.com competing with local florists, for example. TrueLocal President Jake Baillie has a long history in search/SEO and with Geosign's backing has the luxury of being able to take a long-term, "organic" approach to building consumer and SME awareness. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Jupiter Analyst Launches Real Estate Site]]> http://206.106.174.250/blog/blog_comment.asp?bi=608 2005-12-06T12:57:13-05:00 2005-12-06T12:57:13-05:00 2005-12-06T12:57:13-05:00 Homethinking.com. Currently it offers only California real estate coverage, but eventually Scevak says it will have national scope.

      The superficial reaction is: This is a space getting seemingly more competitive by the day with new launches from Trulia, iGenHome, HomePages.com and so on, not to mention established real estate sites and classifieds providers such as Craigslist, LiveDeal and Oodle. But what differentiates Scevak's site is that it offers reviews of local Realtors and is focused on helping would-be sellers locate effective agents. It also offers access to agents' listing information, so it does have a consumer/buyer aspect. I joked with Scevak that being an analyst is a little like being a movie critic; it's probably more fun to be a filmmaker. We'll be following Scevak's efforts, and it will be interesting to see how the site evolves. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Verizon Info Services on Block]]> http://206.106.174.250/blog/blog_comment.asp?bi=600 2005-12-05T18:13:27-05:00 2005-12-05T18:13:27-05:00 2005-12-05T18:13:27-05:00 here.

      VIS had 2004 revenues of US$3.6 billion and EBITDA of US$1.7 billion. It also had a negative growth rate of 5.6 percent. VIS is reported to be commanding a price in the range of US$17 billion. This would be a blockbuster deal, and a challenging one for any single buyer to handle. All of which suggests a spin-off, which is one of the options Verizon presented in its announcement yesterday. TKG will provide more detailed coverage and analysis in the coming days, as more facts emerge.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Monday Roundup]]> http://206.106.174.250/blog/blog_comment.asp?bi=601 2005-12-05T15:57:16-05:00 2005-12-05T15:57:16-05:00 2005-12-05T15:57:16-05:00 iGenHome -- sort of a marriage between HomePages.com and Trulia. SiliconBeat has a lot more info. Late last week, AOL brough it's mobile search out of beta. Supported by technology from Israeli company Infogin, which automatically renders traditional Web pages for small mobile phone screens, the service includes shopping and local (and Mapquest), among other services. It's ad-supported (including PPCall distribution).

      Sensis launched "click to call" last week in partnership with eStara. The release indicates that the functionality will be used to provide call connection and call tracking. There's a distinction between "click to call" and "pay per call." There's some confusion in the marketplace about the difference. The release mentions PPCall but doesn't say that Sensis is rolling that functionality in the initial release. LocalLaunch issued a release announcing its RegisterLocal site and "master business profile." We wrote about the product and its implications in the November 3 edition of the Local Media Journal. Here's an excerpt: RegisterLocal captures a set of local business data in a “master business profile," which is fairly extensive and can be distributed in whole or in part anywhere online. It could become the landing page of a pay-per-click or cost-per-call campaign, it could be the basis of a profile page in a directory site, or it could help populate a newspaper directory of local businesses. It could feed a local merchant database — or entirely replace one. There’s also a self-registration component and, for those businesses willing to do so, it becomes a direct channel too — search engines like that aspect of the product. RegisterLocal is a platform for delivering content to a range of distribution points online. Right now those include both search engines and directory sites. Eventually, newspapers and vertical sites could become part of a broader local network with multiple entry points.]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Verizon to Sell Directories]]> http://206.106.174.250/blog/blog_comment.asp?bi=599 2005-12-05T13:17:38-05:00 2005-12-05T13:17:38-05:00 2005-12-05T13:17:38-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Thank You to ILM Speakers and Attendees]]> http://206.106.174.250/blog/blog_comment.asp?bi=602 2005-12-05T13:11:30-05:00 2005-12-05T13:11:30-05:00 2005-12-05T13:11:30-05:00 keynotes. Thanks again to the almost 100 speakers and the 450 attendees for coming, enthusiastically participating and helping to make this one of the strongest Kelsey Group events to date. We'll do it again in March (yikes!). If you have any critiques, suggestions or kudos you want to communicate, feel free to drop me an email: gsterling@kelseygroup.com.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Trademark Tango Redux]]> http://206.106.174.250/blog/blog_comment.asp?bi=371 2005-12-04T21:42:25-05:00 2005-12-04T21:42:25-05:00 2005-12-04T21:42:25-05:00 Global Yellow Pages Report -- a massive piece of work on the industry from my colleagues Charles Laughlin and Bobbi Luster -- and our ad uses the phrase "Yellow Pages." I was told by our marketing person that Google had pulled the ad because it used a trademarked term (in this case "Yellow Pages"). Problem is: Yellow Pages can't be trademarked in the U.S. (that is not the case elsewhere in the world). My understanding, based on the communication we received, is that someone saw the ad and complained (the purported trademark owner).

      Google and Yahoo! have put themselves in the position of being trademark police. I'm told by SEM firms that Yahoo! has historically been relatively strict and diapproved ads using trademarks. Google had previously washed its hands of the issue by saying it was a matter exclusively for private resolution. However Google, as my anecdotal example suggests, has recently injected itself into the role of trademark enforcer. I spent some time in an SEM/SEO discussion group asking about other people's experiences with trademark enforcement in an SEM context. There was a fair amount of confusion about what the exact policies were and how to respond. While this is a role that I believe Google is being forced (or eventually would have been forced) to play by all the litigation, my example illustrates the challenges and practical problems of assessment and enforcement on a day-to-day basis. Ours is a perfectly legal use; however, someone else -- whether mistakenly or maliciously -- has effectively blocked our legal use of the term Yellow Pages in the ad. For companies that rely heavily on search engine marketing, this kind of thing has potential financial consequences. Google, apparently, did not conduct its own internal investigation about the claim of an infringement (or if it did, it wasn't very thorough). A quick search on the term "Yellow Pages" reveals its use by all manner of companies. This would and should have been an indication of the potential illegitimacy of the claimant's assertion of ownership. Google is caught in a kind of double bind. The company must do something, but in undertaking to police improper trademark usage, a new set of problems (suggested above) is created. It is extremely difficult do this in a balanced way -- give trademark owners the ability to prevent improper use of their marks, while allowing others the ability to legitimately use them (e.g., brands) in ads where appropriate. That fine level of analysis is a judgment call that can't really be automated and requires human intervention -- and costs money accordingly. For the time being, at least, the company should publish policies and guidelines (as well as redress procedures) that are very clear. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Thoughts on Google Base]]> http://206.106.174.250/blog/blog_comment.asp?bi=554 2005-12-03T10:14:55-05:00 2005-12-03T10:14:55-05:00 2005-12-03T10:14:55-05:00
      Google gets all its content from crawling, and the company does that brilliantly. But what do throngs of consumers really want? Local information. Sure, more and more say they'll opt for the convenience and crowd avoidance of online shopping. But 95% (or more) of transactions still happen in the real world. Consumers increasingly use the Internet for research before they buy, but they still make purchases largely offline. And more broadly, what consumers are hungry for online is local news, events, services, restaurants and retail information. Where can I buy that stove or that camera -- today? Or if I buy it online can I pick it up locally today? Google Base becomes a way for Google to directly acquire a great deal more of that local content that the company cannot get through crawling. It's one of several strategies to get local information into the database (direct feeds from Citysearch and SuperPages are another). On Froogle I can buy online or, in the not too distant future, I'm likely to be presented with information about where I can buy something locally too (courtesy of Google Base). More generally, Google can take that local content (jobs, cars, real estate, products, etc.) and send it to whatever "distribution point" it considers appropriate (Froogle, Local, etc.). It becomes a way for Google to start providing comprehensive information to users, not just about online but also much more about the real world in which they spend most of their time. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Social, Local Search: Everybody's Doing It]]> http://206.106.174.250/blog/blog_comment.asp?bi=584 2005-12-02T18:18:50-05:00 2005-12-02T18:18:50-05:00 2005-12-02T18:18:50-05:00 Zipingo has been live since August, but generally under the radar. Intuit is trying to leverage its huge QuickBooks' SME user base to help generate reviews for Zipingo. The site says that users should: "Think of it as the yellow pages with customer ratings." (Sound familiar?)

      I first learned about this site from StepUp CEO Kendall Fargo (who was originally using a QuickBooks integration to provide real-time retailer inventory information -- now feeding Froogle Local), but was reminded of it today by Loren Baker at Search Engine Journal. Getting small business users to rate other local businesses through a Quicken/QuickBooks' integration is a good idea -- on paper -- but may be a problem in practice. The site is free (no advertising, at least for now), so the question has to be why? Is it a marketing vehicle for Intuit, or does Intuit conceive of it as a marketing vehicle (eventually) for some of the small businesses that use its accounting software? It doesn't seem to be about generating community among QuickBooks users (although there is some discussion to that effect on the site). So why is Intuit doing this? The answer probably is: "because we can." (In a certain way it makes sense for Intuit to try to do this given its massive user base.) It's also still somewhat novel to combine directory listings with user reviews. And there's still limited consumer awareness of local search sites. But with Kudzu, Backfence, Yelp, Judy's Book, InsiderPages and mainstream Yellow Pages sites like SuperPages adding user reviews (not to mention Yahoo! and Google), the "space" is starting to get pretty crowded. And InsiderPages and Judy's Book are starting to syndicate reviews to other sites, so we've got a kind of "review ecosystem" emerging. As I look into my crystal ball for 2006, I see some of these sites gaining more momentum but recognizing that they can't all be national players without being acquired or merging. Traditional Yellow Pages publishers or newspapers (or maybe other "traditional" media like the News Corp.'s of the world) will take a serious look at buying the sites that develop brands and enough review critical mass to have a meaningful user experience on a broad, multistate level. If the Zipingo folks are patient and take a long-term view -- and try very consciously to differentiate their product -- they might have something. But right now, it's a nice-looking me-too site that doesn't have a ton to offer. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Google Fatigued?]]> http://206.106.174.250/blog/blog_comment.asp?bi=592 2005-12-02T16:40:26-05:00 2005-12-02T16:40:26-05:00 2005-12-02T16:40:26-05:00 nice chart that summarizes its many products and (public) initiatives under way. Meanwhile, John Heilemann writes in his New York magazine column about the concept of Googlephobia: the growing fear and perception that Google is becoming a “tool of U.S. cultural imperialism.”

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Centro an Agency, Not a Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=597 2005-12-01T09:37:29-05:00 2005-12-01T09:37:29-05:00 2005-12-01T09:37:29-05:00
      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Sensis Seen as Telstra Growth Engine]]> http://206.106.174.250/blog/blog_comment.asp?bi=558 2005-11-30T14:53:55-05:00 2005-11-30T14:53:55-05:00 2005-11-30T14:53:55-05:00 here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Coming Soon: Windows Live Classifieds]]> http://206.106.174.250/blog/blog_comment.asp?bi=579 2005-11-29T20:50:34-05:00 2005-11-29T20:50:34-05:00 2005-11-29T20:50:34-05:00 argued that it's about much more than classifieds. But I can tell you with confidence that MSN is soon to enter the online classifieds market. The company has been working some time on a classifieds site that it will offer through the Windows Live portal. It's in "internal beta" right now. I got a quick demo a couple of weeks ago. The site sweeps pretty broadly and has traditional classifieds categories, as well as services. It also seeks to leverage community features so that it's not just a listings database but much more dynamic. I didn't see the live site in operation; I saw several screenshots (sorry I don't have any to share). The interface I saw was very nice and should give MSN/Microsoft an immediate presence in the now much more competitive online classifieds space. I expect we'll hear (and, we hope, see) more at ILM:05.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Way We Search Now]]> http://206.106.174.250/blog/blog_comment.asp?bi=583 2005-11-29T20:47:43-05:00 2005-11-29T20:47:43-05:00 2005-11-29T20:47:43-05:00
      So it's significant that real estate vertical HomeGain (owned now by Classified Ventures) has developed what it is referring to informally as "neighborhood maps." I spoke to Dan Martin at HomeGain recently, and he explained that the company had "mapped" 200 cities with more than 11,000 neighborhoods (I believe this is now U.S. only). This is what Dan said in an e-mail to me: We can now enable local searches for things like "Russian Hill apartments" or "sushi in Bernal Heights" [San Francisco neighborhoods]. To date nobody else we've encountered has developed good neighborhood maps on a national level. I think this could have immense value to folks in travel (think hotels), local search, real estate, yellow pages, etc. Analyzing data at the neighborhood level may also reveal insights that are not apparent when using zip code boundaries. For instance, Starbucks may want to put its shops in the center of a neighborhood or at the neighborhood junction points. HomeGain is clearly going to use this, but Dan also said he is interested in licensing this data/technology to others. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Canada Lets YPG's Golden Goose Continue Laying Eggs]]> http://206.106.174.250/blog/blog_comment.asp?bi=585 2005-11-29T20:43:52-05:00 2005-11-29T20:43:52-05:00 2005-11-29T20:43:52-05:00 here.

      The trusts were once seen as a highly specialized asset class but are now increasingly popular, with many prominent Canadian companies looking for ways to convert to tax-advantaged income trusts. One of the trust model's main popularizers has been YPG. The company has shown it can both grow and invest in the business within the trust structure, which essentially delivers all free cash back to trust unit-holders. Had the government made a different decision, YPG might have been left scrambling. And while business would have continued regardless, its valuation would likely have suffered.

      Here is a comment from Tellier: "We believe the decision to cut the taxation on dividends will make Canada more competitive. The threat to productivity is not the income trust structure but the relatively high levels of taxation on corporations and individuals, and we are satisfied that the government understands this concern. Clearly they have responded to the input of Canadians from across Canada as part of this consultation process."]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[Not Your Father’s YellowPages.com]]> http://206.106.174.250/blog/blog_comment.asp?bi=586 2005-11-29T20:39:02-05:00 2005-11-29T20:39:02-05:00 2005-11-29T20:39:02-05:00
      This approach has some risks, but it is clearly a way for the sales force to gain advertising in a world where the consumer is way ahead of the SMB in adapting the concept of local search. Obviously the name describes the product, but they reinforce that strongly by introducing a new brand design that incorporates the walking fingers in the ‘a’ of Yellow Pages. This had to have been an incredibly complex challenge for CEO Charles Stubbs and his team. Each of the three previous products had advertisers, and they all had to be integrated into the new Web site. In addition, the three Web businesses had relationships with suppliers and their own traffic deals. BellSouth and SBC management obviously had their opinions, which couldn’t be ignored. You can bet that sales management wanted to sure that their ox wasn’t gored. Perhaps most challenging of all are the back-office issues, which is the plumbing that the consumer and advertiser only cares about if there’s a problem. All in all it is amazing what the YellowPages.com team has accomplished in the past year. Anyone going to YellowPages.com is likely to have an opinion about how well they have done, but I would recommend you give this site time. It is not quite ready for prime time yet, but no one said that what is in essence a new product had to be perfect from day one. This business continues to change very quickly, and YellowPages.com appears to be positioned to build on a very strong foundation. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Craig the King of Classifieds]]> http://206.106.174.250/blog/blog_comment.asp?bi=587 2005-11-29T20:28:42-05:00 2005-11-29T20:28:42-05:00 2005-11-29T20:28:42-05:00 Pew, using comScore data, traffic to classifieds-oriented Web sites has grown 80% in the past year (much greater than the 7% growth of the total U.S. Internet population). Craigslist in particular had almost 9 million uniques in September.

      The top online classifieds sites (traffic volume) in September 2005 were the following:
      • Craigslist.org
      • Trader Publishing Co.
      • Cars.com
      • Apartments.com
      • Abracat Property
      • Homescape.com
      • PuppyDogWeb.com
      • LiveDeal.com
      • Tribe Networks
      • RegionalHelpWanted.com Sites
      • Yahoo! Classifieds
      • USCity.net
      • BackPage.com
      • MySpace Classifieds
      • Hoobly.com
      Trader Publishing had nearly as many uniques as Craigslist. But after Trader, Cars.com and Apartments.com had less than half the traffic of Craigslist, and the numbers drop off considerably from there. The Pew report also found that about one in six online users in the U.S. had sold something online. Here are a couple of quick thoughts. Tribe is doing better than I thought, and look at PuppyDogWeb (who had ever heard of that site?-- obviously lots of people). And now the almost perfunctory statement: There aren't any newspapers represented here (although Tribe is partly newspaper owned, and Cars.com and Apartments.com are owned by Classified Ventures). Print newspaper classified advertising was a $16.6 billion industry in 2004. What's going to happen to that revenue as more consumers (per the Pew/comScore data) shop for cars, jobs and real estate online? ILM:05 has a panel on classifieds, "The Future of Classifieds in a World of Free," featuring Steve Harmon, VP, Business Development, LiveDeal.com; Leif Welch, VP, Business Development, AdMission Corp.; and Peter Zollman, Founder, Classified Intelligence. It should be quite interesting. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[TiVo to Permit Ad Searching (Not Just Skipping)]]> http://206.106.174.250/blog/blog_comment.asp?bi=588 2005-11-29T20:19:22-05:00 2005-11-29T20:19:22-05:00 2005-11-29T20:19:22-05:00 transformation of TV (from reach to targeting) ... per the WSJ, TiVo is working with Comcast and others to enable users to "search" for ads that are more relevant to them: TiVo users will be able to set up a profile of products on their television screens by clicking on categories such as automotive or travel or typing in keywords such as "BMW" or "cruises." On a regular basis, TiVo will then download relevant commercials to TiVo recorders over the Internet or, for those users who don't have broadband, send the video via traditional broadcast signals. The commercials will appear on-screen in a folder next to the list of television shows TiVo users record.

      Advertisers will associate their ads, according to the Journal, with keywords and categories (a la Google AdWords/AdSense). Some version of this idea will ultimately be adopted by all DVR providers (unless TiVo rushes out and gets a "method" patent). And consumers -- who don't skip ads as much as conventionally thought -- will go for this. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Online Mapping Outpaces Overall Internet Growth]]> http://206.106.174.250/blog/blog_comment.asp?bi=589 2005-11-29T20:17:02-05:00 2005-11-29T20:17:02-05:00 2005-11-29T20:17:02-05:00 reported that, while Internet use grew 7 percent overall in 2004, online map site traffic increased 33 percent to 51.3 million. Mapquest held a 71 percent share of the market in September, according to comScore, while Yahoo! Maps followed with 32 percent, and Google Maps with 25 percent. The overlap in use across these sites accounts for the numbers not adding up to 100 percent. Google Maps has the most interactivity with the map itself and has recently fused the product with Google Local for more local and directory information. But it trails Yahoo! Maps, which has more local features and tie-ins with other products, and Mapquest simply because it has been around much longer. Mapping, like search, is a highly habitual online activity with which early entrants can have a signifigant edge. And, like search, gaining market share is a key part of the online mapping game because revenue potential is so closely tied to traffic. This explains the acceleration in feature development and integration over the past year.

      But how to leverage these user bases in forming creative ways to monetize maps is also a key question for mapping providers. In the meantime, they want to have a solid base of users to hit the ground running when revenue models come to fruition -- both online and with wireless mapping and mobile directory applications, of which mapping will be a central component. These and other topics in mapping will be explored during the second day of ILM:05 (Thursday) in a panel titled "Maps, ‘Mashups’ and Monetization." ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Ingenio Adds Marchex to Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=590 2005-11-29T20:09:39-05:00 2005-11-29T20:09:39-05:00 2005-11-29T20:09:39-05:00 building out a proprietary network of local and vertical destination sites, announced that Ingenio PPCall advertisers would appear on Marchex's network of sites. Marchex subsidiary TrafficLeader is a "simplified search" vendor to YellowPages.com (SBC, BellSouth) and the Houston Chronicle, managing search distribution to local advertisers (and fulfillment) through their own sites and search engines. Read more in the release.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Local Ad Placement Firm Launches]]> http://206.106.174.250/blog/blog_comment.asp?bi=591 2005-11-29T20:07:52-05:00 2005-11-29T20:07:52-05:00 2005-11-29T20:07:52-05:00 told Clickz News: "Search had SEM agencies that made search easy. We're trying to do for local what Overture did for search years ago."

      The company has close to $10 million in advertising commitments for 2006, according to Clickz, from blue-chip national advertisers such as Allstate, American Airlines, Ford, Mercedes-Benz and State Farm. Competition for local advertising continues to heat up, making this a difficult field to enter. Centro will have competition from search giants as well as IYPs. The company hopes to differentiate itself by focusing on Web sites for local media, including newspapers, television and radio stations -- thus capturing a segment of the advertising market with a primary interest in these channels. The company’s success will hinge largely upon how this segment of advertisers values its service model in brokering local ad space. The good news for Centro is that online newspaper readership is on the rise, but competition from paid search won’t make it easy for the company -- or any other company that attempts to compete for local ad dollars. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local.com Adds Local Shopping Content]]> http://206.106.174.250/blog/blog_comment.asp?bi=593 2005-11-29T19:54:06-05:00 2005-11-29T19:54:06-05:00 2005-11-29T19:54:06-05:00 providing ShopLocal’s newspaper circular/FSI data to consumers through Local.com. Local.com is fast and clean, but thin. Interchange recognizes the need to fill out Local.com's content to be truly competitive. This deal adds valuable offline retail/shopping data to the search engine. Local.com is the latest in a growing number of partnerships -- including Google -- for the newspaper-owed ShopLocal.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Centro Take Two]]> http://206.106.174.250/blog/blog_comment.asp?bi=594 2005-11-29T19:50:02-05:00 2005-11-29T19:50:02-05:00 2005-11-29T19:50:02-05:00 Integrent's new geo-targeted network Centro, below. When I spoke, now some time ago, to Integrent CEO Shawn Riegsecker (who's on a newspaper panel at ILM:05) he told me he wanted to build a newspaper-based local network that had the same quality and reach as a Google or a Yahoo!. With 1,300 local sites (including radio and TV), Riegsecker is well on his way. But others are building local networks too ...

      Simplified and centralized buying is what local needs to enable dollars to shift, commensurate with consumer behavior. Integrent is trying to make it simple for national advertisers to buy local outside Google and Yahoo!. However, when the dust settles, what will be needed is a meta-network to knit together all the disparate networks. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Dex Claims Regional Leadership for 7th Straight Quarter]]> http://206.106.174.250/blog/blog_comment.asp?bi=595 2005-11-29T19:47:00-05:00 2005-11-29T19:47:00-05:00 2005-11-29T19:47:00-05:00 here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Testing PPCall]]> http://206.106.174.250/blog/blog_comment.asp?bi=581 2005-11-28T09:23:18-05:00 2005-11-28T09:23:18-05:00 2005-11-28T09:23:18-05:00 Yahoo!'s testing of PPCall, Google is testing "Click to Call." No phone numbers are exposed; the service connects advertisers and would-be buyers by clicking an icon. I was unable to find any of the ads live on Google, but Search Engine Journal (link below) has some examples in the mortgage category. This is obviously big news and has lots of implications. I don't have time to explore those (as we have in reports and various blog posts in the past) at the moment. We have projected that PPCall could be a $1.4 billion market by 2009.

      One of the problems with paid search (especially with less sophisticated advertisers) is that there's incomplete tracking. People see impressions and clicks, but they ultimately don't know how many of those clicks actually turned into real leads. This is less of an issue for e-commerce businesses. But for local businesses and others, it's a problem. Call tracking and PPCall help "close the loop." As we've said in the past, calls and clicks will be widely available as separate but complementary products going forward. More from Search Engine Journal. ______________ Update: Google has issued the following statement: Google is always considering new ways to provide value to its advertisers and we frequently run tests of potential new features and products. We are currently conducting a limited test of a pay-per-call model, but we don't have any additional information to share at this time (emphasis mine). So it is apparently a PPCall test. Still don't have any sense of who the vendor is. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Ask Goes Fishing for Video Content]]> http://206.106.174.250/blog/blog_comment.asp?bi=582 2005-11-23T13:51:51-05:00 2005-11-23T13:51:51-05:00 2005-11-23T13:51:51-05:00 GoFish.

      ]]>
      Greg Sterling gsterling@kelseygropup.com <![CDATA[RHD Reported in Pursuit of Dex]]> http://206.106.174.250/blog/blog_comment.asp?bi=7 2005-11-23T10:50:32-05:00 2005-11-23T10:50:32-05:00 2005-11-23T10:50:32-05:00
      The Kelsey Report will issue an Advisory that explores the possibilities this deal represents, including the broader implications for the Yellow Pages industry. It is important to note that the deal is far from a certainty, based on the reporting out today. Dex Media CEO George Burnett will speak at a Goldman Sachs investor conference this afternoon, and we will listen in to hear what he has to say.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Digging Deeper Into the Data: Local Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=574 2005-11-23T10:39:02-05:00 2005-11-23T10:39:02-05:00 2005-11-23T10:39:02-05:00
      In terms of the overall share of local searches (total volume was 447,829,790 local searches in 8/05), the comScore data reflect the following market share distribution: Google Sites -- 43.7% Yahoo! Sites -- 28.2% MSN-Microsoft Sites -- 13.7% Time Warner Network -- 7.5% Ask Jeeves -- 5.5% InfoSpace Network -- 0.9% Lycos -- 0.3% comScore separately breaks out IYP usage (231,678,352 lookups in 8/05). Here's the percentage breakdown of the data: Yahoo! Sites -- 27.6% Verizon Communications Corporation -- 25.5% Google Sites -- 11.6% YellowPages.com -- 7.7% Time Warner Network -- 7.6% InfoSpace Network -- 7.0% DexOnline.com -- 5.0% SBC Communications -- 2.4% Citysearch -- 2.4% Yell -- 1.6% BellSouth -- 1.4% Ask Jeeves -- 0.2% (The combined share of SBC, BellSouth and YellowPages.com is 11.5%, 0.1% point below the "Google Sites.") There is some ambiguity here. Are the Google, Yahoo! and TimeWarner "local search" data, for example, the superset and IYP the subset? Or are these categories distinct? It's not entirely clear. In addition, comScore has traditionally been quite conservative in estimating local search volume (because of the inherent challenges in disambiguating queries -- is "probate attorney" a local search, for example?) Regardless, the quick takeaway from these data is that local search/IYP traffic is clearly growing. I'll be following up with comScore SVP Jim Larrison. He and I will be presenting data during the opening session of ILM:05, seeking to answer the question: How Much Search Is Really Local? ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[More Newspaper Doom and Gloom]]> http://206.106.174.250/blog/blog_comment.asp?bi=573 2005-11-23T10:37:58-05:00 2005-11-23T10:37:58-05:00 2005-11-23T10:37:58-05:00 here.

      Knight Ridder announced last week that it is putting itself up for sale because of poor stock performance and the bleak outlook for the newspaper publishing model in today’s media environment. Meanwhile, New York Times shares have declined 32 percent this year, while the Washington Post Co. stock has gone down 27 percent. Gannett and Tribune Co. stock have each declined 23 percent, and Belo Corp. is down 17 percent this year. Circulation, at the root of these valuation declines, has fallen 2.6 percent overall in the past six months, one of the biggest drops in 20 years. The good news for newspaper publishers is that newspaper-owned Web site traffic is growing 11 percent annually, according to Nielsen. That’s a faster pace than overall Internet growth. The takeaway for newspapers is that online is where the growth is. The advertising online may not yet scale to the degree of print publishing, but the traffic growth online can’t be ignored in light of record losses for print.]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More on 'Froogle Local']]> http://206.106.174.250/blog/blog_comment.asp?bi=578 2005-11-23T10:32:04-05:00 2005-11-23T10:32:04-05:00 2005-11-23T10:32:04-05:00 digital camera, San Francisco" -- just in time for Black Friday/Cyber Monday. Here's Google's statement: Thanks to a new feature in Froogle, Google’s shopping search engine, shoppers can now find that must-have gift at a store in their neighborhood without running all over town. Today Google announced the addition of local merchants’ content to Froogle http://froogle.google.com. By entering the item you’re looking for and your location information, Froogle will show locations nearby that offer the product and pinpoint the stores on a map. So, whether a user wants to order it online or run out and grab it for a holiday party the same evening, Froogle can help.

      Here's how local merchants, using Google Base, can upload inventory information. This is a way for Google to "carry" their inventory online without them needing to have a Web site (Google Base as a substitute/alternative Web presence). As StepUp.com CEO Kendall Fargo said to me recently about small retailers, "Their inventory is their Web site." Consumers clearly want local, offline shopping information (even though more will be avoiding crowds and lines this year). And everyone -- Yahoo!, Shopzilla, eBay's Shopping.com, etc. -- that wants to be competitive in the online shopping arena will eventually have both online and offline inventory information. Then the question becomes: How do the engines monetize those offline leads (or how do they get "credit" for them)? PPCall, call tracking, coupons? ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[CNET Gets Into Local Shopping (Google Too)]]> http://206.106.174.250/blog/blog_comment.asp?bi=575 2005-11-23T10:30:35-05:00 2005-11-23T10:30:35-05:00 2005-11-23T10:30:35-05:00 announced that it is now helping consumers find tech gadgets in local, offline stores: CNET's innovative local shopping capability goes beyond today's standard local shopping services, which typically provide stock availability for a retailer, but not for a specific store. Product availability information, which is provided by Channel Intelligence (www.channelintelligence.com), is available for more than 1,600 of this year's hottest products, as determined by popularity on CNET, as well as availability at participating retailers, which include Best Buy, Circuit City, CompUSA, and OfficeMax. CNET also provides shoppers with total price of the product, including tax according to zip code, as well as links to reputable online retailers. ... And Google gets into the act as well (with a little help and a little additional help), offering local inventory information. But eventually Google hopes to obtain more of this local/offline information directly from local merchants via Google Base as well.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Late Night, Early Morning Fun]]> http://206.106.174.250/blog/blog_comment.asp?bi=577 2005-11-23T10:26:21-05:00 2005-11-23T10:26:21-05:00 2005-11-23T10:26:21-05:00 logo analysis. AT&T Wireless was acquired by Cingular, which then rebranded the service and will now, ironically, lose its identity in favor of ... at&t. If it weren't true, it would be worthy of a "Saturday Night Live" skit. Speaking of which, Om Malik points to a video of a funny "Saturday Night Live" parody of Steve Jobs and the perhaps too-rapid rollout of new iPods.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Search via Camera Phone]]> http://206.106.174.250/blog/blog_comment.asp?bi=580 2005-11-23T10:18:53-05:00 2005-11-23T10:18:53-05:00 2005-11-23T10:18:53-05:00 this story about the advent of mobile visual search, a technology that lets consumers with camera phones use snapshots of products to receive various freebies as well as promotions and directional advertising. It is based on image recognition software that identifies specific patterns in images and has heretofore been used mostly in facial recognition applications for law enforcement and security. Now it has also found a home with mobile search, with cameras providing an extra tool for mobile phone users who are woefully trying to simulate Web search with 12 tiny buttons.

      Like its facial recognition software forbearer, the mobile visual search application will be able to match object patterns with those scanned into a remote Internet-connected database and, in this case, send data back to the user who made a query, including music, videos, maps, etc. For example, the technology will allow a camera phone user to snap a shot of a movie billboard, which after it is sent to a database returns not only the film trailer but also locations of nearby theaters and promotions. The user can also buy movie tickets on the spot. This will have an adoption curve similar to any new technology, especially those associated with mobile directory applications and location-based services. But the application alleviates one of the problems foreseen with location-based services: users’ concerns of privacy and unsolicited advertising. Many models projected of location-based services involve sending users ads and promotions when they are near certain businesses in which they’ve either previously indicated an interest (opted in) or to which algorithmic behavioral tracking has targeted them. Both come with a degree of uncertainty. Mobile visual search on the other hand will serve up advertising (in conjunction with freebies such as movie trailers, ringtones, mp3s, etc.) to users who have indicated an explicit and immediate need that is more likely to result in a transaction. Such a transaction could be online or off, which will bring in different tracking metrics; but those will be figured out in time. The ubiquity of camera phones (expected to reach 90 percent penetration in the U.S. in the next three years, according to CNET) and imbedded GPS receivers will also affect the adoption curve. But this could be a powerful application in the mobile search and location-based services space, given that objects throughout the physical world can be used as links to directional advertising. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Google of Internet TV?]]> http://206.106.174.250/blog/blog_comment.asp?bi=576 2005-11-22T00:19:58-05:00 2005-11-22T00:19:58-05:00 2005-11-22T00:19:58-05:00 reported, BrightCove has received a $16.2 million investment from IAC, Hearst and AOL (and has a distribution deal with the latter). These guys want to do for video online what Google has done for PPClick advertising -- be at the center of a very powerful model.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Search Gains]]> http://206.106.174.250/blog/blog_comment.asp?bi=570 2005-11-21T12:18:30-05:00 2005-11-21T12:18:30-05:00 2005-11-21T12:18:30-05:00 most recent survey that the daily use of search engines had grown to 41 percent of the online population (59 million users). That's up from 30 percent in June 2004. The Pew data are drawn from telephone surveys, while the comScore data are from online panels.

      This most recent set of comScore search market-share data reflect the following:
      • Google -- 89.8 million uniques
      • Yahoo! Search -- 68 million uniques
      • MSN Search -- 49.7 million uniques
      • Ask Jeeves -- 43.7 million uniques
      • AOL Search -- 36.1 million uniques
      According to Pew, e-mail is still the most used online application -- with daily use at 77 percent. But search is gaining. Here's an interesting data point: comScore says users spend an average of 24 minutes per day with e-mail vs. about four minutes for search. (Yahoo! Mail and Gmail are thus important ad inventory.) Another striking thing is how Ask is not far off MSN in the comScore data. This increasing usage of search engines will mean increased PPClick revenues among the major engines. It also shows that search has become a kind of universal consumer doorway and distribution mechanism that all online advertisers -- whether directly or by proxy -- must reach. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Wi-Fi Now a Reality]]> http://206.106.174.250/blog/blog_comment.asp?bi=559 2005-11-21T10:14:59-05:00 2005-11-21T10:14:59-05:00 2005-11-21T10:14:59-05:00 hometown of Mountain View, California. Next up, San Francisco?

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Now There Are Swickis]]> http://206.106.174.250/blog/blog_comment.asp?bi=560 2005-11-21T10:06:28-05:00 2005-11-21T10:06:28-05:00 2005-11-21T10:06:28-05:00 publishers, however. Along those same lines, the company has now launched swickis, which is a search box for small publisher sites and blogs.

      Publishers and bloggers can set up swickis on their sites for free. They first answer questions regarding the content of their sites, which then become a kind of contextual filter for search results. Readers can then use the search boxes to conduct related searches (tags appear identifying popular searches), which are customized to the site's content (and presumably the site community's interests). Here's an example of how it appears, on the Eurekster blog itself (also read the posts to gain insight into the company's thinking and rationale for the product). A contextual ad network is being built on top of this. Unlike the original consumer engine, this product probably has some "legs." Here's more from DMNews and Susan Mernit. Here's the company's release. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Base Part III]]> http://206.106.174.250/blog/blog_comment.asp?bi=561 2005-11-21T10:03:31-05:00 2005-11-21T10:03:31-05:00 2005-11-21T10:03:31-05:00 may ultimately have an impact on those sites. However, the company has a much larger and somewhat different vision for Google Base. (I've discussed this in my earlier posts.) People have also been saying how Google Base is a limited or comparatively poor user experience (I made some earlier comments along these lines).

      After chatting with Google about it, I think the company is not that focused on the Google Base user experience (although there undoubtedly will be refinements). Google isn't going to create hundreds of competitive vertical experiences around the data it collects. My belief is that Google is profoundly ambivalent about verticals and wants to avoid them if it can. Google really wants to funnel or channel the data it collects from Base to existing Google sites. (That's not to say that Google won't face UI and other challenges in presenting this data.) This is a big deal but content that might otherwise appear in classified listings on Craigslist or elsewhere is just a piece of the larger vision. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[eBay the New YP Competitor?]]> http://206.106.174.250/blog/blog_comment.asp?bi=563 2005-11-21T10:00:50-05:00 2005-11-21T10:00:50-05:00 2005-11-21T10:00:50-05:00 Yellow Pages Today in Austria, where he heard someone talking today about how eBay is a burgeoning Yellow Pages competitor. Quite coincidentally, in today's Wall Street Journal, there's an article about eBay and Google Base. Specifically the article discusses how eBay may become a directory alternative as the company seeks new sources of growth. (Recall what eBay said about how Skype/VoIP would enable the company to pursue "entirely new lines of business" and help facilitate communication with offline businesses).

      From the article: EBay is aiming to take over the phone book's customary role as the first place people turn to find local services from housecleaners to accountants. While eBay Inc.'s focus for now is on auto services like oil changes and brake jobs, its goal may be to connect consumers with local businesses of all kinds. This could signal a major shift in the way consumers shop for such services and greatly affect pricing and competition among local shops. Recall that eBay also owns Web building and online marketing services provider ProStores. So eBay would appear to be angling for a soup-to-nuts hosting and marketing "solution" for SMEs, be they product sellers or, now, local service businesses. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[BellSouth Plans New Ad Campaign]]> http://206.106.174.250/blog/blog_comment.asp?bi=565 2005-11-21T09:56:37-05:00 2005-11-21T09:56:37-05:00 2005-11-21T09:56:37-05:00 Atlanta Journal Constitution.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Short Takes for Friday]]> http://206.106.174.250/blog/blog_comment.asp?bi=562 2005-11-21T09:53:43-05:00 2005-11-21T09:53:43-05:00 2005-11-21T09:53:43-05:00
    • Judy's Book grabs US$8 million in series B funding from Mobius Venture Capital, with contributions from Ignition Partners and Ackerley Partners.
    • Google 10Q facts (sliced and diced by PaidContent): "'AOL is responsible for roughly 10 percent of all [Google] revenue. That's down from 12 percent in 2004 but still real money -- and a real reason to both to Keep AOL and keep it away from the competition." Also, International is almost 40 percent of Google revenues, up from 35 percent a year ago. Google-owned sites were responsible for 56 percent of revenues, while Google's partners (AdSense) contributed 43 percent.
    • Cingular is using InfoSpace's wireless platform for its new MEdia Net service, a personalized content portal. Billed as a "next generation mobile services platform," here's the release.


    • WAND Inc. announced the development of a new "local search taxonomy," consisting of roughly 750,000 terms.
    • I received a correction from Marc Hayes, founder of ContactAtOnce!, who wanted me to point out that the company offers "presence management" marking, using IM as one of many modalities. A skyscraper ad integrating their technology can be seen here (car dealer, scroll right).
    • According to measurement firm Hitwise, local search in the U.K. grew by 13 percent vs. last year. Yell.com (which is behind Google Local in the U.K.) was the most popular local site, with a 64 percent market share. Local.co.uk and ThomsonLocal.com each had 5 percent. According to Hitwise, Google Local search has not made a significant dent in the market, but its popularity is growing in part because of Google Maps integration.
    • According to SiliconBeat venture capital firm Greylock Partners invests more in local shopping aggregator Cairo, a competitor to ShopLocal (both will be at ILM:05).
    • The US$100 laptop is unveiled. I wrote about it here previously.
    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Judy's Book Adopts PPCall]]> http://206.106.174.250/blog/blog_comment.asp?bi=568 2005-11-21T09:44:20-05:00 2005-11-21T09:44:20-05:00 2005-11-21T09:44:20-05:00 ZiffLeads.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[CNET Japan Innovation Coverage]]> http://206.106.174.250/blog/blog_comment.asp?bi=566 2005-11-21T09:43:13-05:00 2005-11-21T09:43:13-05:00 2005-11-21T09:43:13-05:00 CNET Japan Innovation conference.

    Search Engine Journal's Loren Baker is covering most of the sessions:
    • Google Local and Google Base discussed
    • Yahoo! and social search
    • Mobile & Local search
    • Blogging
    • Ask's view of the world and next-generation Internet (aka "Web 2.0") developments
        ]]> Charles Laughlin claughlin@kelseygroup.com <![CDATA[RHD, DEX Clear Hurdle]]> http://206.106.174.250/blog/blog_comment.asp?bi=567 2005-11-21T09:40:44-05:00 2005-11-21T09:40:44-05:00 2005-11-21T09:40:44-05:00 here.

        ]]>
        John Kelsey jkelsey@kelseygroup.com <![CDATA[Buying Ink by the Barrel]]> http://206.106.174.250/blog/blog_comment.asp?bi=569 2005-11-21T09:37:50-05:00 2005-11-21T09:37:50-05:00 2005-11-21T09:37:50-05:00
        Ten years ago, when The Kelsey Group more closely covered the newspaper industry, we conducted annual research among both dailies and weeklies to judge their overall opinion of or interest in electronic services. Every year daily newspapers said that their primary reason for introducing electronic services of all kinds was to “remain the No.1 information source in their community.” On the other hand, weekly newspapers told us that their primary objective was to “create new revenues and profit sources.” Since electronic services didn’t generate much in the way of sales, weeklies didn’t pay much attention and focused instead on enhancing their print products. I would say that this thinking is pervasive among all the traditional media. That is, the largest players see themselves as having a “public trust,” while the upstart smaller media outlets are focused on survival and taking market share of eyeballs, eardrums and greenbacks from their competitors. In the movie “Good Night and Good Luck,” Edward R. Murrow is willing to risk CBS’ largest advertiser in order to get a significant story. He saw this as an obligation that he had to his constituents. On the same page as the article questioning the future of newspapers is a piece about Google now being worth $400 a share, giving the company a total market capitalization approximately the size of California. A major reason that I read newspapers or watch TV news is because of context. Broadcasters and publishers have the opportunity to determine which stories are the most important and give them priority billing. They also control editorials. That incredible opportunity to influence people’s thinking is not likely to be replaced on the Internet no matter what electronic device we are using to access the news. As long as publishers don't lose the public trust, there will be readers and, therefore, advertisers. Will the business change? Yes, of course. Does anybody want to buy a newspaper? Absolutely. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Onsite AdSense]]> http://206.106.174.250/blog/blog_comment.asp?bi=572 2005-11-21T09:19:02-05:00 2005-11-21T09:19:02-05:00 2005-11-21T09:19:02-05:00 the ability to bid for inventory directly on particular network sites. This capability is one of the ways that competing contextual ad providers Kanoodle and Quigo have been selling against Google -- more control, more transparency.

        This move follows on the heels of ongoing refinements for AdSense and specifically Google's willingness to separate bidding for AdSense and AdWords. Contextual ads traditionally haven't performed as well as paid search ads. John Battelle believes this will create controversy with many publishers. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[TiVo via iPod, Skype via RadioShack]]> http://206.106.174.250/blog/blog_comment.asp?bi=571 2005-11-21T09:15:25-05:00 2005-11-21T09:15:25-05:00 2005-11-21T09:15:25-05:00 TiVoToGo, a service that will put TV on iPods or Sony PSP devices. Also, Skype announced a deal with U.S. electronics retailer RadioShack to sell/distribute the broadband phone service in the chain's 3,000 U.S. stores. This is a smart move that will help raise awareness and demystify VoIP for many consumers. Even though VoIP phone service depends on broadband, if the deals are good enough it might motivate dial-up users to get high-speed Internet to obtain the phone service.

        Once consumers are satisfied that VoIP phone service is reliable and that the 911 problem is addressed, we're likely to see an exodus from traditional fixed-phone use (unless PSTN providers substantially lower prices to retain customers). ILM recently issued an Advisory on VoIP and its implications for the marketplace. Non-clients can read the summary here. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Video Gets Real]]> http://206.106.174.250/blog/blog_comment.asp?bi=279 2005-11-21T07:31:04-05:00 2005-11-21T07:31:04-05:00 2005-11-21T07:31:04-05:00 interesting discussion regarding the impending launch of genuine video on Google, what it might mean for third parties, and how it might integrate with Google's new payments system. Google has been inviting people/organizations to submit video for some time. We said before that this might be the Sundance Film Festival meets America’s (or the World’s) Funniest Home Videos. But it's probably ultimately a bigger deal.

        Competition in the realm of online video will be as fierce as it is in general search (and potentially fierce with TV for ad dollars). Case-in-point: AOL's Moviefone short film competition, sponsored by Ford's Mercury division. Lots more to say about IPTV, video search, etc . . . We just started touching on this in April. __________ More coverage on Google Video Playback from Chris Sherman at Search Engine Watch. Yet more from AP's Mike Liedtke. Google will have trouble getting people to pay for content unless the price threshold is low or there's a reasonable, all-you-can eat plan. ]]>
        Charles Laughlin claughlin@kelseygroup.com <![CDATA[Stover Back in the YP Game]]> http://206.106.174.250/blog/blog_comment.asp?bi=564 2005-11-18T09:19:36-05:00 2005-11-18T09:19:36-05:00 2005-11-18T09:19:36-05:00 here.

        According to The Kelsey Group's Global Yellow Pages 2005 report, ypOne has more than 50 directory titles in the U.S. and Canada, with revenues estimated at around US$30 million. Its largest directory is the Golden Triangle book in Texas, with distribution of 232,000 copies. The company is owned by the private equity firms Frontenac and BMO Halyard Partners. Hiring Stover, who has been on the company's board since 2004, as CEO might signal ypOne's desire to step up its efforts to grow through acquisitions and new product launches. It may also signal a greater commitment to developing a viable digital strategy. At NYNEX, Stover oversaw the launch of BigYellow, one of the early Internet Yellow Pages directories, which was later absorbed into SuperPages. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[The Missing Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=557 2005-11-17T13:06:11-05:00 2005-11-17T13:06:11-05:00 2005-11-17T13:06:11-05:00
        A case in point: I had a conversation with Gabriel Gross, CEO of RealBird, which provides maps and data to third-party real estate sites. He would like to provide advertisers access to his maps, but there's lots of pain in trying to reach the advertisers that might really want to be there. And there are plenty of advertisers that would indeed want to access the 2.5 million monthly, highly (geo)targeted consumers his mapping tools reach. What's the solution? A network that would allow advertisers access to inventory on or around his maps. But that network doesn't yet exist. Creating networks that bring together the millions of sites out there that might not themselves have lots of traffic but in the aggregate could offer both reach and quality is one answer to the inventory problem. But who will build that network and when? ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[The Best of Times and the Worst]]> http://206.106.174.250/blog/blog_comment.asp?bi=552 2005-11-16T17:31:29-05:00 2005-11-16T17:31:29-05:00 2005-11-16T17:31:29-05:00
      • NYTimes.com
      • USAToday.com
      • WashingtonPost.com
      • LATimes.com (Tribune Co.)
      • SFGate.com (Hearst, SF Chronicle) Meanwhile, Knight Ridder has put itself up for sale, the LA Times is going to lay off a bunch of staffers and pretty grim projections continue to swirl around the traditional print publication.

        The dilemma of newspapers is reflected in the paradox of younger readers, who value the news but don't find a need to subscribe to newspapers, and perfectly recapitulated in the surge of the online product combined with the decline of traditional subscribers. I have a journalist friend who was formerly a higher-up at ZDTV/TechTV (where I used to work) and Wired News. Notwithstanding generational trends toward online/digital media, he argues that content -- and quality content in particular -- is a key differentiator for newspapers. But the trends are away from quality because it costs money. I have argued that news has almost become a commodity (with the exception of local news/features). Quality content is something of an antidote to that problem. However, the corporate parents of newspapers don't generally want to make the investments needed to reverse the overall quality slide. Going forward, newspapers will need to bundle online and offline ad offerings, leverage their local sales channel and radically rethink their Web sites -- editorial is a hook and differentiator. But what consumers want and need from local Web sites is much broader and more dynamic than what newspapers are currently offering. ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Online Inventory Problems]]> http://206.106.174.250/blog/blog_comment.asp?bi=556 2005-11-16T17:27:47-05:00 2005-11-16T17:27:47-05:00 2005-11-16T17:27:47-05:00 PaidContent write-up of a WSJ story about the rising cost and scarcity of quality online inventory. Here's a post from earlier this year about the inventory conundrum. For multiple reasons (inventory is a big one), even if all users abandoned traditional media, the advertisers couldn't shift all their spending online.

        So what are the implications for local? Let's put aside Home Depot, Whole Foods and Target trying to reach me, the Northern California consumer, for the moment. Small businesses aren’t likely to be able to compete with larger brands and national advertisers for limited inventory (this is Did-it's Kevin Lee’s point). But SMEs will compete through proxies such as online Yellow Pages, newspapers and verticals. These and other “aggregators” will find ways to buy traffic on behalf of these local businesses—which don’t want to deal with the complexities of search marketing anyway. That's the "Local Search Ecosystem." I spoke to StepUp's CEO Kendall Fargo this morning, who's got a deal with Google (Google Base) to do just that -- deliver local product sellers to Google and deliver search traffic to those local retailers. Perfect marriage. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[U.S. Democrats Pushing Universal Broadband]]> http://206.106.174.250/blog/blog_comment.asp?bi=555 2005-11-16T14:06:31-05:00 2005-11-16T14:06:31-05:00 2005-11-16T14:06:31-05:00 will continue its march. In accordance with that notion, U.S. House Democrats (according to an article in Ad Age [reg req'd]) have proposed: "affordable broadband access in every home within five years." Not to be outdone, Republicans embraced the concept (so there's unanimity). Here are a couple of thoughts:
        • If the government makes good on this, the initiative pits it against the ISPs of the world that want to boost, not reduce, margins.
        • All the broadband consumer behaviors (more time online, more page views, etc.) will continue to gain.
        • VoIP telephony will benefit from this too (because it relies on broadband).


        ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Amazon Patents Consumer Reviews? Absurd!]]> http://206.106.174.250/blog/blog_comment.asp?bi=537 2005-11-16T14:00:10-05:00 2005-11-16T14:00:10-05:00 2005-11-16T14:00:10-05:00 InternetNews article, Amazon was recently awarded a patent covering the collection of user reviews. Huh? Come again? Apparently, yes ...

        Here's how the article describes the patent: The third patent is the real kicker. It covers methods for encouraging consumers to write reviews of items they've purchased by determining the optimal times to send them e-mails or reminders. In one embodiment of the patent, the system sends consumers a message inviting them to write a review in a predetermined amount of time after the purchase. It's a method widely used by online retailers, including Yahoo (Quote, Chart) Shopping. The patent also covers the method of tracking who returns to rate products by asking them to click on a unique link in an e-mail. But the patent even covers collecting reviews by letting visitors to a Web site fill out a form. This patent is both absurd and a sure-fire recipe for litigation. It's also just wrong, wrong, wrong! It rises to the level of being morally wrong. And this aspect of the patent should never have been granted. It comes very close to granting a patent on an idea, which is legally impossible under U.S. law. Amazon should not be permitted to prevent others from collecting the opinions of their users and the community (or be allowed to profit from that). The implications are significant for a range of companies, including (as the article mentions) Google, Yahoo!, eBay and a host of others. It makes me, as a private citizen (as opposed to a responsible analyst), angry. Did I mention I thought it was a bad idea? ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Targets Verticals As Selling Tool]]> http://206.106.174.250/blog/blog_comment.asp?bi=538 2005-11-16T13:54:48-05:00 2005-11-16T13:54:48-05:00 2005-11-16T13:54:48-05:00 by vertical) to show advertisers by industry how consumers are looking for their goods or services online. Local metrics and Google's local targeting capabilities are featured in several of the vertical pages (i.e., Automotive, Real Estate, Tech Commerce [offline sales]). Beyond the general metrics about search engine usage, many of which have been collected on these pages, Google is seeking to make the value proposition of SEM concrete by industry. And this presentation of data makes a strong and specific case.

        ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[AOLTV, TW and 'The Tail']]> http://206.106.174.250/blog/blog_comment.asp?bi=539 2005-11-16T13:53:52-05:00 2005-11-16T13:53:52-05:00 2005-11-16T13:53:52-05:00 ILM White Paper about the future of TV (IPTV and video search). One of the strongest of the Internet incumbents in this category is AOL, with its broadband portal and video assets. Here's a deal that leverages those assets and brings the long-awaited promise of Time Warner's content to the portal. AOL will launch a " new broadband network," In2TV, in 2006. It will offer what the company is calling "vintage TV" but will also include original interactive content.

        According to the public statements of the companies, content will be organized by "channels" according to show genres, comedy, sci-fi, drama, etc. None of this content will be available through conventional TV. Opening up hundreds and hundreds of shows for online viewing will certainly draw some additional viewers (will they be baby boomers or new audiences?) away from the mediocrity of broadcast TV to the Internet and create a new ad inventory for marketers. Cable has already done this to a degree, but not with complete "on-demand" capability for users nor with the targeting (context, geo, behavioral) that the Internet provides to marketers. It's not entirely clear how audiences will react and how successful something like this will be. But this offering is a clear manifestation of "The Tail" -- I can watch that one episode of that one show that I loved (or heard about) from the past. The economics are obviously totally different online than they are on conventional TV. The fact that TW's video library is being offered is an attempt to avoid dilution of the value of TW's current productions and cable assets (TW owns HBO and Turner, for example). Let's hope that the effect of all this audience fragmentation and competition will be a net gain in quality to lure audiences to programming. Alas, however, that may be a pipe dream. I hope not. The transformation of TV is starting to accelerate, with the video IPod, video for phones and broadband video/video search. Beyond audience fragmentation, nobody can be quite sure how all this will play out yet. But Pandora is now clearly out of the box. ________________ Here's Om Malik's "riff" -- the "archive monetization principle." And more from The N.Y. Times. ]]>
        Charles Laughlin claughlin@kelseygroup.com <![CDATA[Major Market Meltdown?]]> http://206.106.174.250/blog/blog_comment.asp?bi=540 2005-11-16T13:47:20-05:00 2005-11-16T13:47:20-05:00 2005-11-16T13:47:20-05:00




        Notably, Eniro, Seat and TPI each revealed that one way or another they are having trouble generating growth in top markets. In fact, most of their biggest markets are in the red, and one of the key culprits is higher churn rates among large accounts.

        Our question is: Is this the canary in the coal mine? Or can publishers address these issues through product tweaks and adjustments to how sales are segmented, etc.? My sense is that with a lot of work, publishers can soften the blow and minimize the declines. But major markets all over the world are now battlegrounds for so many competitive media, digital and traditional, that publishers need to develop a realistic set of expectations going forward.

        We will offer some details of this topic later this week in Local Media Journal.]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[comScore: Top 20 Sites by Traffic]]> http://206.106.174.250/blog/blog_comment.asp?bi=541 2005-11-16T13:44:11-05:00 2005-11-16T13:44:11-05:00 2005-11-16T13:44:11-05:00 Internet Stock Blog: 1. Yahoo!: 9% 2. Time Warner Network: 4% 3. MSN-Microsoft: 3% 4. Google: 32% 5. eBay: 15% 6. Amazon: 19% 7. Ask Jeeves: 11% 8. New York Times Digital: 247% (note: includes About.com acquisition) 9. Viacom Online: 11% 10. Verizon Communications Corp.: 23%

        11. Vendare Media: 0% 12.Walt Disney Internet Group: 7% 13. Expedia Inc: 60% (note: includes Hotels.com acquisition) 14. CNET Networks: 6% 15. United Online Inc: 139% (note: includes Classmates.com acquisition) 16 Weather Channel: 14% 17. Lycos Inc.: -14% 18. Monster Worldwide: -8% 19. Myspace.com: 0% 20. Wal-Mart: 24% What's striking here is Google's growth and The N.Y. Times' movement into the top 10. Also Myspace is flat, and Verizon has 23% growth (SuperPages role is unclear here -- but according to TNS Media Intelligence, SuperPages is the No. 4 online advertising spender [non-search] at $6.7 million in September). ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Enter the 'Shoposphere']]> http://206.106.174.250/blog/blog_comment.asp?bi=542 2005-11-16T11:38:37-05:00 2005-11-16T11:38:37-05:00 2005-11-16T11:38:37-05:00 personalization and community features. There's a heavy emphasis here on community reviews as a way to "filter" information. There are also degrees of trust built into the system (i.e., my community, friends of friends). What Yahoo! has done with Shopping is similar to what it did with travel in its Trip Planner product.

        There are some nice additional features, such as the ability to see deals and rebates on the product pages. There's also a multi-platform push (as well as an affiliate push). The site offers integration with 360 -- as with Local, product reviews from 360 will show up, in this case on Shopping. And the community features offer intriguing possibilities to take the site way beyond traditional comparison engines (i.e., the "Pick Lists"). At a "meta" level, there's an effort here to "rationalize" or structure the entire purchase cycle and provide resources at each step of the way (Yahoo! has tried something similar with Mindset). There are a lot of interesting elements in this upgrade. But the personalization and social/community components are the primary differentiators from the many other comparison engines. It will take time, however, for consumers to discover and adopt all the functionality that is being offered. The phrase that Yahoo! is using is "from e-commerce to me-commerce." This is consistent with the larger theme the company has been stressing: "from mass media to my media." Here are the traffic rankings of U.S.-based shopping engines, according to comScore, for August 2005:
        1. Shopping.com sites (eBay)
        2. Shopzilla/BizRate sites (E.W. Scripps)
        3. Yahoo! Shopping
        4. NextTag sites
        5. inStore (AOL)
        6. PriceGrabber
        7. ShopLocal (Gannett, Knight Ridder and Tribune)
        8. Froogle (Google)
        9. CNET Reviews
        10. Monster Marketplace.com
        _______ More from Search Engine Watch and the Yahoo! Search Blog.]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[TrueLocal Goes Live]]> http://206.106.174.250/blog/blog_comment.asp?bi=543 2005-11-16T11:34:04-05:00 2005-11-16T11:34:04-05:00 2005-11-16T11:34:04-05:00 TrueLocal is a consumer-facing local search engine that has been operating "under the radar" (except for appearances at SES) for a while. Run by search engine veteran Jake Baillie, the company is owned by database provider Geosign, which delivers local data to many of the marquee search and portal providers. That's the company's "secret sauce" -- better data. The site also has a huge database of local franchisee information.

        The site is fast and clean, and a majority of the listed sites have URLs. On the advertisers side, the company provides 800 numbers for call tracking, and bidding is quite inexpensive compared with the major engines. As I mentioned, the data are also syndicated to other sites. Unfazed by larger competitors, Baillie seems content to let usage grow organicially and showed me some of the company's "guerilla marketing" strategies (very humorous) at the last SES show in San Jose. Here's more from the company's release. ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Search Survey Cont'd]]> http://206.106.174.250/blog/blog_comment.asp?bi=544 2005-11-16T11:30:33-05:00 2005-11-16T11:30:33-05:00 2005-11-16T11:30:33-05:00 Local Search Survey. We'll present the results before the "Building the Ideal Local Destination" panel at ILM:05 (end of Day 2). I'd like a few more responses to push the number above 100. So far "basic maps," "local retailer information" and "the ability for businesses to enter or update their own information" are the top three responses in the category of features/content that are "extremely critical" for local search sites. And the majority of respondents rate the quality of the listings data available in the marketplace as "poor." If you haven't yet taken the survey, you can here.

        ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[ContactAtOnce! and IM Marketing]]> http://206.106.174.250/blog/blog_comment.asp?bi=545 2005-11-16T11:23:51-05:00 2005-11-16T11:23:51-05:00 2005-11-16T11:23:51-05:00 ContactAtOnce! has been running trials with automotive verticals adding IM and presence management to dealer Web sites. The results of the trial, according to the company, were quite successful. Local dealers saw a "20% lift" in the number of live leads they received. E-mail suffered by contrast. ContactAtOnce! enables local merchants to display an icon, in this case on a dealer Web site (at the listings level). When a user clicks the icon, a branded window pops up, enabling a real-time IM conversation: "is the car is still available," etc. A full transcript of that IM conversation is also captured by the system for later review.

        According to new findings from AOL’s third “Instant Messaging Trends Survey,” 38 percent of the 4,000 survey respondents (age 13 and older) reported that they sent an equal or greater number of IMs vs. e-mail. The Pew Internet & American Life Project this year also found that 75 percent of teens online use instant messaging and generally prefer it to e-mail. What may be most interesting about ContactAtOnce!'s technology is the way it can sit "behind" or "on top of" an SEM campaign. It turns a click into something more immediate -- a real-time contact. It's somewhat like PPCall in this regard. However, there are circumstances where consumers may want more information (e.g., the cars example above) and may be, for one reason or another, inhibited about making a call. Automotive is a great case in point. As a consumer I don't want to get hooked into a call with a pesky used car salesperson, for example. This tool seems to sit between the anonymity of an e-mail contact (which small businesses are slow to respond to) and the immediacy of a phone call. I find it very interesting. It clearly won't be applicable across all verticals, but this sort of thing could be extremely valuable in certain categories. If you're coming to ILM:05, Marc F. Hayes Jr., Founder and EVP of Strategy, ContactAtOnce! will be on a panel (VoIP and IM: New Communication Technologies and Local). ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Friendster Finally For Sale]]> http://206.106.174.250/blog/blog_comment.asp?bi=546 2005-11-16T11:15:32-05:00 2005-11-16T11:15:32-05:00 2005-11-16T11:15:32-05:00 SiliconBeat.

        ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[ILM:05 Update]]> http://206.106.174.250/blog/blog_comment.asp?bi=547 2005-11-16T11:14:12-05:00 2005-11-16T11:14:12-05:00 2005-11-16T11:14:12-05:00 block of conference hotel rooms is full. So, if you're thinking about attending, you should probably make arrangements to do so.

        ]]>
        Greg Sterling gsterling@kelseygroup.com <![CDATA[Paid Search Already at $7B?]]> http://206.106.174.250/blog/blog_comment.asp?bi=548 2005-11-16T11:12:38-05:00 2005-11-16T11:12:38-05:00 2005-11-16T11:12:38-05:00
      • Merrill Lynch: $5.1 billion
      • Goldman Sachs: $12.3 billion (online total, search expected to be "more than 50%" of that figure)
      • eMarketer: $5.4 billion
      • Forrester: $5.7 billion (via MediaPost)


      ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[VoIP: Price vs. Privacy?]]> http://206.106.174.250/blog/blog_comment.asp?bi=549 2005-11-16T11:11:13-05:00 2005-11-16T11:11:13-05:00 2005-11-16T11:11:13-05:00 authority to tap more VoIP calls at its discretion. VoIP calling is typically cheaper than traditional PSTN calling. In the third quarter, according to research firm TeleGeography, VoIP subscriptions had reached 3.6 million in the U.S. In contemplating cheaper VoIP services, consumers have been concerned about things such as 911 access and the quality of call transmission. Will they similarly be concerned about privacy and "Big Brother" listening in on them as a matter of routine? We'll see.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[SBC CFO on Yellow Pages and IPTV]]> http://206.106.174.250/blog/blog_comment.asp?bi=550 2005-11-16T11:09:12-05:00 2005-11-16T11:09:12-05:00 2005-11-16T11:09:12-05:00 here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Base Is Live]]> http://206.106.174.250/blog/blog_comment.asp?bi=551 2005-11-16T11:08:31-05:00 2005-11-16T11:08:31-05:00 2005-11-16T11:08:31-05:00 Here it is and it is in fact a separate area of the site. While one can search for anything, results are organized in content-specific areas on Google Base (e.g., Cars, Jobs, Real Estate, Recipes, etc.). But depending on what the items are they may also appear in other Google sites: i.e., Google.com results, Froogle and Local. Here are "cars" for sale. Here are "digital cameras" (interestingly with data provided by StepUp). Here are "'jobs" (with some listings from CareerBuilder). There are also some real estate listings from the NY Times.

      Right now there's not a lot of content in Google Base (Recipes was the most complete of the categories I examined), but that could change fairly quickly. This is a very interesting but currently undeveloped product. Right now, it's not going to trump Craigslist or eBay or Shopping.com or vertical sites. And it may never; it will depend on how the user experience evolves over time. The consumer experience and the content offered will be critical. If the content isn't there (especially local/offline content in many of these categories) then consumers won't use it. I continue to believe that a structured user experience that creates and fulfills expectations regarding what content is present and how to access it is crucial to the user side of the equation here. But, then again, is it a consumer destination or a content acquistion strategy or both? It's really both -- maybe with emphasis on the latter, which is primarily why it's free to use. And, in fact, that's where the site's long-term value may reside for Google if it becomes a direct channel or content/listings acquisition tool for distribution to other Google sites. Finally, content "labeling" (as Google calls it) or tagging as others label it opens the door to a community layer (a la Yahoo!'s strategy). We'll see if that ever develops. Here are the Google Base FAQs. _______ More from the Google Blog (note the quote from Kendall Fargo, CEO of StepUp [scroll]). Here's Battelle. Here's the NY Times' article. Here's Search Engine Watch's extensive write-up and interview with Google. Here's Charlene Li's take. Here's SiliconBeat. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Return of Metrobot]]> http://206.106.174.250/blog/blog_comment.asp?bi=553 2005-11-16T10:57:37-05:00 2005-11-16T10:57:37-05:00 2005-11-16T10:57:37-05:00 Metrobot, run by Geoff Campbell, was doing some very different things with maps. The tool provided something like a graphical version of what A9 has done with its block view. One could take a virtual stroll around a neighborhood and see where businesses were situated in relation to one another on the street. I believe that Metrobot had some meetings with the folks at Google and Yahoo!, which later developed their own different and very feature-rich mapping tools. I hadn't heard from Metrobot in a long time, and suddenly the company resurfaced last week with a press release.

      Metrobot has now done a relaunch of sorts with expanded coverage, Google maps (as an adjunct to Metrobot's own maps) and contextual advertising. It's still quite different from other things out there and worth a look. The wireless arena, in fact, might be the best application of this approach to mapping. ]]>
      Neal Polachek npolachek@kelseygroup.com <![CDATA[More Free Weekly Classifieds]]> http://206.106.174.250/blog/blog_comment.asp?bi=243 2005-11-15T14:06:34-05:00 2005-11-15T14:06:34-05:00 2005-11-15T14:06:34-05:00
      So’s not to make this just a classified paper, Marketplace Weekly will be “supplemented by articles culled from The Times's Job Market, Real Estate, Automotive, Business and Dining Out sections, among others” according to the press release. We wonder how many of the 1.9 percent of commuters will fold up Marketplace and carry it home unless it is loaded with listings and reviews of upcoming weekend entertainment, cultural and recreational activities. If we’re right – and it would be hard to imagine any other scenario – we're watching one of the world’s elite newspaper companies launch what amounts to (dare we say) a weekly alternative newspaper. Sounds to us a lot like a new Village Voice has sprung on the streets of New York. Only time will tell if this is a flash in the pan or a trend to expect across America. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Real Estate and the Future of Dynamic Mapping]]> http://206.106.174.250/blog/blog_comment.asp?bi=190 2005-11-15T03:37:54-05:00 2005-11-15T03:37:54-05:00 2005-11-15T03:37:54-05:00 Housingmaps to the 10 people who haven't already heard or read about it. This site uses the Google Maps UI and Craiglist data and was put together by a third-party developer with no relationship to either company.

      At Drillilng Down on Local, we discussed how maps might evolve and various monetization scenarios. Real estate is an obvious one. Beyond serving geotargeted ads on the same page, Yahoo has monetized its mapping product to some degree with sponsorships -- buttons (with a corporate icon) below the map that allow users to find Washington Mutual branches, Hertz Rental locations or Holiday Inns. In the real estate context, Housingmaps offers real utility to consumers because it allows them to see where listings are and allows them to sort by price or see only those listings in a certain price category. By clicking the icon, you get a pop-up with photos of the property (if photos exist). Unfortunately, the Craigslist data aren't comprenhensive. So this tool isn't a "one stop shop" for home buyers or apartment hunters. Speakers on the Drillling Down mapping panel wisely cautioned that to over-monetize maps would be to destroy the user experience. However, one could easily see -- again in the real estate context -- how brokers/agents could pay to feature their logos or links to their other properties (on the pop-up windows themselves). Some would pay to be featured at the margins of a map (e.g., a top performer in a particular area). In short, there would be a good deal of lucrative, highly targeted inventory that could be sold directly to local advertisers -- and there would be contextually relevant (think moving companies) opportunties too. Calls could potentially be monetized as part of this offering as well. Housingmaps is a novelty that points the way to something much richer and more interesting. Now who's going to build a vertical around it? ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Local, Maps on Phones]]> http://206.106.174.250/blog/blog_comment.asp?bi=521 2005-11-13T11:32:12-05:00 2005-11-13T11:32:12-05:00 2005-11-13T11:32:12-05:00 Google Local for phones. Maps are the centerpiece. It currently works on "Java-enabled (J2ME) mobile phones, especially those purchased within the past year; this includes phones offered by Cingular, Sprint and T-Mobile. At this time, Local for mobile doesn't support BREW-enabled phones (e.g. Verizon, Alltel, U.S. Cellular), Nextel phones, Blackberry devices or Palm devices." I haven't tried it myself, so I cannot comment on its usability.

      While all the stakeholders are rolling out services now, it will be some time before we see mainstream usage of these mobile applications. There are many moving parts (so to speak) that have to line up -- carriers, apps, devices, network speeds, pricing models -- to drive widespread use. The day will come, but not in the immediate future. We've got a wireless report coming out this week, which makes the same point, albeit with more words and data. Of course, for all the reasons one might imagine, mobile local search is a natural and will come to pass. It will just take a bit longer than everyone would like to get all the parts to work together and for the business model to emerge. In my view, the most effective and popular user experience will determine what the business model will be and whether it will be a viable medium for advertising. Here's more from Search Engine Watch. And here's an actual song written to promote Google Local on phones on the Google Blog: Take Google Local on the go, get listings, maps and aerial views. Call directly from your search results and even keep search history too. Download from Google today. ______ Here's the Forrester review of Google Local for phones. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Faster and Faster]]> http://206.106.174.250/blog/blog_comment.asp?bi=535 2005-11-11T10:02:14-05:00 2005-11-11T10:02:14-05:00 2005-11-11T10:02:14-05:00 Faster," which describes how our world is becoming, well, faster, and our relationship with time is changing as everything around us speeds up. Technology is one of the chief culprits here. The pace of things is getting really absurd as is the notion of "grokking" (as people now say) or having coherent opinions and views about all these developments. Especially with blogs, we now live in a world of "instant analysis." I don't know how others feel, but I can no longer physically keep up with all that's happening. OK, end of therapy session. On to more developments: Free classifieds site/platform provider LiveDeal announced the launch of its AdShare private label program for newspapers and other local media sites that want to offer classifieds to their users. LiveDeal is moving aggressively to be a big player in the online classifieds space and, with programs such as AdShare, aligning itself with newspapers (especially community and independent local newspapers) in the increasingly competitive online classifieds marketplace.

      Google seeks to expand its free Wi-Fi offering beyond its SF bid to its hometown of Mountain View, CA. According to a company statement Google denied that it has plans to offer free Wi-Fi beyond the Bay Area. More here. ShopLocal relaunched its site with more e-commerce. The site is seeking to be a comprehensive local shopping resource, with local offers (FSIs/circulars) from major retailers, local retailer information as well as e-commerce. The site looks more like a shopping search engine than it did before. Google pushes personalized search out of Google Labs. InsiderPages' Andrew Shotland indicated that InsiderPages hit a 400K review milestone across its network. The N.Y. Times indicates it has 270,000 subscribers for TimesSelect (135K online only, which is the more meaningful number). At $49.95 (the full annual price), that represents about $6.7 million (PaidContent breaks down the numbers and finds much less actual revenue). We'll wait and see if those are die-hard fans or whether the Times can keep those numbers growing. I'm skeptical. But I hope for the paper's sake that it can. It's only 8:30 in the Pacific time zone. There's still time for 10 or 20 more things to happen before the end of the day. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[A Different Sort of Google Print: Part Deux]]> http://206.106.174.250/blog/blog_comment.asp?bi=536 2005-11-11T09:50:21-05:00 2005-11-11T09:50:21-05:00 2005-11-11T09:50:21-05:00 print buying. This program has been going on for a number of months at least, but it's now getting a bit more visibility. A new twist appears to be potential newspaper involvement. According to Danny Sullivan at SEW, Google is going to try this with a Chicago newspaper. Danny goes on to speculate whether such ads might appear in classifieds. If so, wouldn't that be strange/ironic -- Google buying classifieds ad space even as Google Base/Automat appears to be a classifieds play (in part)? Curiouser and curiouser.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Automat: Not Just About Classifieds]]> http://206.106.174.250/blog/blog_comment.asp?bi=532 2005-11-10T21:57:04-05:00 2005-11-10T21:57:04-05:00 2005-11-10T21:57:04-05:00 patent application for "Google Automat." As an aside, an "Automat" is: "a trademark used for automated restaurant services in which food is dispensed from vending machines." The metaphor is self-service. Automat is the apparent content entry point for "sellers" as a corollary to the broader Google Base, into which one can apparently enter anything and everything, including commercial/classifieds listings.

      This shot on Flickr (presumably from the patent application), indicates that Google owns "classifieds.google.com." This suggests a few things to me. I had previously said that if Google simply integrates listings from Google Base into search results, whether paid or organic, the company won't generate a user experience that creates an effective classifieds marketplace. Google would do better to create a distinct "marketplace," which could be browsed and searched and which would create a user expectation about what was there to be purchased, etc. The separate domain suggests to me that there will be a "vertical" classifieds experience somewhere on Google. I think that's the right approach for the company to take (notwithstanding its ambivalence about verticals). In addition, the image shows that the listing appears in the paid results. That indicates the following hypothetical user experience: I search for something, say a digital camera as in the example, and I see a link to Google classifieds. I might then be sent directly to the listing itself or perhaps to a page of camera listings, etc. The implications for the newspapers are obvious (but Google is a latecomer to this business). But there are also potential implications for eBay that are also fairly obvious. Depending on how disgruntled eBay sellers are, they may elect to test and then switch to Google Classifieds (or whatever it will be called) instead. The decision will be based on how effective Google is in generating traffic/sales for these businesses and what the associated fees are. Automat is apparently a very simplified way to get your "items for sale" into Google Paid search results and, reportedly, doesn't require the traditional AdWords campaign setup, keyword selection, bidding or ongoing management. (My understanding is that the campaign is substantially automated [hence the name?] and can manage to a monthly budget -- essentially then a flat fee.) Again, I have to caution that most of this is speculation, and we know very little about all the moving parts here. At AD:TECH two days ago, I was talking about the inevitable development of a simplified, direct channel for search engine marketing into the SME market. And while classifieds are commonly associated with garage sales, it's also about local real estate, auto dealers and other small-business categories, including selected categories of services. On the Internet, the distinctions between traditional classifieds and Yellow Pages listings are no longer meaningful. That's why I told Shankar Gupta of Mediapost that I thought this sounded like a product that would potentially enable the millions of local businesses that have used search as consumers and heard about SEM to potentially adopt it in a simplified way. Immediately the question arises: How much of the small-business marketplace is going to self-provision a campaign on Google, however simplified? There are many in the directory publishing industry who would answer, "never." While that has been true, if the right degree of pricing and product simplification comes along, within a couple of years we could see self-provisioning become a viable sales strategy for Google into the broader SME market. There are several contingencies here, clearly, and many things must come together. But Google Base/Automat would appear to not just be about classifieds, but also about building a simplified platform for SMEs to adopt some form of paid-search advertising on the Google network. Another thought: Google could ultimately create an uber-marketplace, combining listings from Froogle, Google Local and various classifieds. No one at Google has hinted at or suggested this to me, but I believe that this is what consumers ultimately will want -- something simple, yet comprehensive that combines local listings with online shopping. For example, where can I buy the camera online and where can I buy it in a local store if I want it today? (eBay is trying to add local with its suggested uses of Skype to drive calls/leads to local offline businesses.) I'm eager to see how this unfolds. _____________ More from Jeff Jarvis here and SEW and SiliconBeat.]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[What Is Dex’s Approach to Monetizing Search?]]> http://206.106.174.250/blog/blog_comment.asp?bi=533 2005-11-10T11:10:02-05:00 2005-11-10T11:10:02-05:00 2005-11-10T11:10:02-05:00
      His response:

      “We are looking at a few different monetization strategies. ‌ One is to charge for the incremental usage we get from Google Local, Yahoo! Local and Yahoo! Yellow Pages in the aggregate pricing of our bundle. The 1A version of that is to not really charge directly within the bundle but to improve the value proposition and therefore incremental revenue from retention. Another option we are testing is to charge specifically incrementally for the preferred placement where we are paying cash.”

      Burnett says all three models are being tested. He promised to share results once they have them. We will provide more details of Dex's year-to-date results in Local Media Journal and in an upcoming Advisory summarizing the year to date in the global Yellow Pages industry.


      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[TPI Buys Argentine Publisher]]> http://206.106.174.250/blog/blog_comment.asp?bi=534 2005-11-10T10:18:52-05:00 2005-11-10T10:18:52-05:00 2005-11-10T10:18:52-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Travel?]]> http://206.106.174.250/blog/blog_comment.asp?bi=529 2005-11-09T14:45:48-05:00 2005-11-09T14:45:48-05:00 2005-11-09T14:45:48-05:00 write-up. I'm on a break from a private equity conference and on a PAINFULLY slow connection, so I can't check it out right now. Per Search Engine Watch, here's an example of a search re flights from Seattle to Boston. Here's JFK to Oakland (my flight tomorrow).

      It's a kind of meta-travel/flight search that makes it relatively easy to check multiple aggregators and travel sites for the same flight. As a "travel vertical," it's obviously incomplete. But because of its relative ease-of-use -- it's quicker to enter two city names rather than engage in the structured searches on the travel sites/aggregators -- it would likely gain quick adoption. Whom it most directly affects is not clear at this point. Does it dilute or reinforce the Orbitz brand, for example? Too early to tell. The lesser-known travel meta-search sites such as Sidestep and Kayak are likely the most vulnerable, however. ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[More on the Yahoo!–TiVo Deal: The Local Angle]]> http://206.106.174.250/blog/blog_comment.asp?bi=530 2005-11-09T14:40:49-05:00 2005-11-09T14:40:49-05:00 2005-11-09T14:40:49-05:00 partnership between Yahoo! and TiVo will allow the latter's users to record programs from their PCs. This not only gives TiVo users an easier search and browse interface than their remote control offers, but it will also bring more users into the Yahoo! universe of offerings by introducing TiVo users to Yahoo!'s TV listings. The company hopes this will serve as a gateway to its other properties, as the name of the game for search portals these days is to attract users. Features are the carrot. TiVo already has a similar deal with AOL, so this isn’t anything groundbreaking. But a second part of the deal got my attention because of its implications for local: The partnership will be expanded in the next few months to have TiVo boxes store photos and other content from Yahoo! and call up local traffic and weather information through the television interface.

      Traffic and weather aren’t the most easily monetized content, but it is a good first step to get users accustomed to using their televisions to search for local information. Yahoo! knows this and wants to get into the game early. Monetizable directional advertising could follow -- a point that is explored more in depth in the recent TKG White Paper, "From Reach to Targeting: The Transformation of TV in the Internet Age.” TiVo currently has a feature where some ads for upcoming shows include an icon in the corner of the screen that signals users to push a button if they’d like to schedule a recording of that show. It’s not too much of a stretch to imagine this feature in the context of product ads, where a button is pressed to research or purchase a product. Furthermore, the expanded channel choices of television’s next generation (IPTV) is expected to open up vast advertising inventory. This will have a long-tail effect, which will give local and SME advertisers affordable and targeted advertising opportunities on television -- much like search engine marketing has given them on the Web. IPTV isn’t here yet, but TiVo is. Yahoo will be the first to migrate local search across the living room to TiVo box, and Microsoft has a television division hard at work developing the software that will run IPTV systems and search interfaces. Others will follow. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Apparently IS Testing PPCall]]> http://206.106.174.250/blog/blog_comment.asp?bi=531 2005-11-08T23:33:11-05:00 2005-11-08T23:33:11-05:00 2005-11-08T23:33:11-05:00
      We went through all the usual stuff about the value proposition of PPCall and the contrast with PPClick. Anyway, I told him that this would give the medium an additional boost of legitimacy and open it up to a wider base of advertisers almost immediately (depending on whether/when Yahoo! adopts and rolls out). This is getting way ahead of things and I wouldn't have commented again on this, except I think there's going to be a piece on it. He said he couldn't decide whether he was going to file the story. But I'm assuming he will. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Display Spending Boosted for Local Sites]]> http://206.106.174.250/blog/blog_comment.asp?bi=480 2005-11-08T12:02:34-05:00 2005-11-08T12:02:34-05:00 2005-11-08T12:02:34-05:00 MediaPost about their clients' third-quarter media spending. The survey indicated that some display ad budgets are shifting more dollars to locally targeted online media: Media buyers and planners reported spending 18 percent of their clients' online display ad budgets on local media, including Web sites of local TV stations, radio stations, and newspapers. In the first two quarters, executives said they spent just 13 percent of display budgets at local sites.

      In terms of the distribution of the spending, here's how it went: Among the portals, the largest share of display spending -- 12 percent -- went to Yahoo!, while MSN captured 8 percent and AOL accounted for 5 percent. Targeted content sites garnered 34 percent of online display ad dollars. Google again captured the bulk of paid search spending, accounting for 51 percent of respondents' search budgets. Yahoo! Search Marketing -- formerly Overture -- accounted for 29 percent, while MSN took in 6 percent. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[MSN Bringing VoIP, IM and Maps Together]]> http://206.106.174.250/blog/blog_comment.asp?bi=511 2005-11-08T10:09:16-05:00 2005-11-08T10:09:16-05:00 2005-11-08T10:09:16-05:00 Om Malik on a Windows Live/Messenger demo (yesterday) that integrates VoIP click-to-call into MSN mapping so users can see, select and then contact a local merchant. I haven't been briefed on this, but my head is spinning at the convergence of these tools. More when I learn more.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Knight Ridder's Largest Shareholder Wants a Sale]]> http://206.106.174.250/blog/blog_comment.asp?bi=512 2005-11-08T10:08:17-05:00 2005-11-08T10:08:17-05:00 2005-11-08T10:08:17-05:00 poor outlook for traditional newspaper publishing, Knight Ridder's largest single shareholder, Private Capital Management, a Florida investment firm that owns 19 percent of the company, has asked the board to put the company up for sale. That might make PCM happy, but it's ultimately counterproductive in solving the problem of how to deal with reader/usage migration from traditional print to the Internet.

      Knight Ridder is the second-largest newspaper publisher in the U.S., after Gannett, and one of the most progressive. Newspapers are in a relatively strong position online and simply need to leverage that to create a broader, more compelling online product. Of course, that's much easier said than done given some of the "cultural" obstacles newspapers must surmount. However, new ad products such as PaperBoy should help the industry with advertisers and create more valuable inventory on newspaper sites. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AskMeNow: A Cheaper, Hipper DA]]> http://206.106.174.250/blog/blog_comment.asp?bi=513 2005-11-08T10:05:00-05:00 2005-11-08T10:05:00-05:00 2005-11-08T10:05:00-05:00 PocketThis (voice/DA in, SMS/Wap out) AskMeNow is a new, more useful version of current directory assistance. The fully automated service is free (like 1-800-Free411), and the "AskMeAnything" service costs US$.49 per call: Within seconds you can get 411 listings and driving directions, check traffic, read your horoscope, see what time a movie is playing, get your local weather forecast, check out the latest news and sports scores, find a hotel and much more . . . Questions are entered verbally and then answers are delivered via text message.

      Others have tried and failed with similar "enhanced DA" offerings in the past. (According to the Pierz Group, directory assistance in the U.S. will be worth US$8.1 billion this year, and 35% of the market is mobile users.) I'm so resentful of having to pay Sprint US$1.25 for every 411 call; I'll never do that again. I'm using 1-800-Free411, and it works as well or better, in my experience, than Sprint's outsourced operators. One of the issues with such services is training users to try a broader range of lookups than "what city, what listing?" AskMeNow has a real shot at that given its model and marketing. These kinds of services, however, are really a bridge to a mobile local search future in which the devices are better, faster and able to do more. When will that be? Maybe we should ask AskMeNow. _______________ But wait . . . here are the hamsters on the wheel or the man (people) behind the curtain, whichever metaphor you prefer: The caller won't be talking to a person. Instead, communication is with voice recognition software. But behind the automation are people at a Philippines call center transcribing calls, in case the software fails to capture every word, and looking up answers, which are delivered as a text message or email in about a minute, on average, according to the company. So I'm disappointed to say that this appears to be all-but-identical to current DA offerings (down to the outsourcing), except that you can ask a broader range of questions. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[New and Improved Yahoo! Maps]]> http://206.106.174.250/blog/blog_comment.asp?bi=514 2005-11-08T09:58:54-05:00 2005-11-08T09:58:54-05:00 2005-11-08T09:58:54-05:00 new Yahoo! Maps upgrade: It's nicer to look at and easier to manipulate. There are a great many features here. There's no more need to enter an address first to get a map. Now you can do a category search starting from a map interface. This was one feature that Google Maps really had over Yahoo! -- until now. Yahoo! has also made it possible to host its maps on third-party sites. This will also make Yahoo! Maps more competitive. Check out local events on a map -- an especially interesting marriage of mapping and local search.

      Journalists typically ask what part of this mapping craze is novelty and what part is utility. I say that novelty becomes utility as maps get better and consumers discover they can use them for more things. And they will. Here's more from the Yahoo! Search Blog and SiliconBeat. _____ Here's a nice overview from Chris Sherman at Search Engine Watch. Here's the Yahoo! press release. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[News They Like, Not the Newspaper]]> http://206.106.174.250/blog/blog_comment.asp?bi=515 2005-11-08T09:51:46-05:00 2005-11-08T09:51:46-05:00 2005-11-08T09:51:46-05:00 life events buyers." Lots of interesting stuff came out of the session (to be presented at ILM:05), some of it predictable, some of it not. One thing that was interesting ... Of the "favorite Web sites" identified, the majority of them had to do, in one way or another, with news or local (sites like SFGate and Craigslist). These people liked and read the news, just not in the newspaper -- although they read newspapers when they were around. They just didn't buy them or subscribe. Interestingly, they did say that they read the newspaper for local events and music because "there's no good place to go" online for that information.

      There was a striking amount of print Yellow Pages usage (one person used it "twice a week"), but the consensus prognosis was not good for printed directories: "Not much better than newspapers," said one woman (23), who added that she thought newspapers "were kind of screwed." These people were also eager for more and richer local information. "These [local] businesses are behind the times," said one U.C. Berkeley grad of the lack of results in response to certain local searches. They also didn't see any reason to pay attention to ads (on any medium) unless they were very narrowly tailored to their interests. What's the ideal local Web site? "A Google for local that would have everything local in it ... kind of like Craigslist," said a woman who was working on a home remodel. While Google Local, specifically, never came up, "Local.Yahoo.com" was mentioned a few times. These people saw themselves as a "transitional generation" from print directories, print newspapers and traditional TV to a totally digital orientation among people younger than them. "We grew up with these things," said one woman (24), "so we still use them." ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[PPCall Rumors and Other Stuff]]> http://206.106.174.250/blog/blog_comment.asp?bi=528 2005-11-08T09:43:26-05:00 2005-11-08T09:43:26-05:00 2005-11-08T09:43:26-05:00 Yahoo! testing Ingenio PPCall ads rumor. People are treating this as something of a novelty/surprise. It shouldn't be.

      Whether or not it's true (and I don't know), Yahoo! and Google (and MSN) will offer either call tracking or PPCall at some point in the next 12 to 24 months. The idea that Yahoo! would formally do this, I suppose, marks a new level of legitimacy for the product (after the Miva and AOL adoptions). Call tracking has been around for a long, long time, even online in the vertical context. And there are lots of companies now actively using or implementing some version of call tracking in Local (Leads.com, ReachLocal, Local Launch) and/or full-blown PPCall (Ingenio, InsiderPages, JudysBook, Verizon, etc.). This product will just live side-by-side with clicks in the very near future. No one should really be surprised. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local.com Adds Ingenio's PPCall Ads]]> http://206.106.174.250/blog/blog_comment.asp?bi=525 2005-11-08T07:24:54-05:00 2005-11-08T07:24:54-05:00 2005-11-08T07:24:54-05:00 Local.com destination. Local.com is impressively fast and clean but needs to beef up its content to really be competitive over the long term. However, Interchange recognizes this and says it is working on the issue even as we speak. Ingenio is busy building out its network to gain maximum exposure for advertisers and additional inventory. Apparently the company has some advertisers who are very, very pleased with the product and are hungry for more inventory. Here's the joint press release. And this is interesting.

      ]]>
      Mike Boland mboland@kelseygroup.com <![CDATA[Making VoIP a Household Name]]> http://206.106.174.250/blog/blog_comment.asp?bi=517 2005-11-07T20:56:02-05:00 2005-11-07T20:56:02-05:00 2005-11-07T20:56:02-05:00 poll by Harris Interactive. Overall, 80 percent of respondents got the answer wrong. Enter the latest industry consortium with lots of money earmarked to spread the message.

      VoIP companies (or those with their hands in the VoIP pot in some way), including Skype, Earthlink, Level 3 and Google, announced earlier today the formation of a marketing campaign to bring VoIP to the masses. A suggestion to this industry group: Try to convey the benefits and cost savings of VoIP ‌ but don’t mention VoIP. Mainstream consumers are naturally averse to technology acronyms, as shown by the Harris poll, and other technologies such as RSS. Eighty-three percent of RSS users are unaware that they are using it, according to an August study by Nielsen/NetRatings. We can mostly thank MyYahoo!, which has gained a leading (32 percent) share of the RSS readership market without mentioning the term RSS. Look at VoIP provider Vonage (not involved in today's announcement), which has assembled the largest individual VoIP subscriber base in the U.S., with a multi-platform advertising blitz that, you guessed it, never mentions VoIP. Vonage’s tagline is “The Broadband Phone Company.” Google, Yahoo! and MSN have integrated VoIP into their IM products without using the term. IM is a logical point of entry for the technology to gain traction before it is integrated into Web search, where it can then be monetized using click-to-call for ads in search results. With PPC, SEO and SEM for SMEs, the last thing directories need when selling mulit-platform advertising to small businesses is another acronym. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Take the Local Search Survey]]> http://206.106.174.250/blog/blog_comment.asp?bi=505 2005-11-07T20:47:32-05:00 2005-11-07T20:47:32-05:00 2005-11-07T20:47:32-05:00 survey of industry professionals and those coming to ILM:05 to get a sense of how good you think "local search" (broadly defined) is today and what you believe the ideal local search product feature set should be. For example, does it need to include:
      • Dynamic mapping
      • Editorial content (such as news, expert reviews, “how-to” articles or buying guides)
      • Local and major retailer information
      • Extensive user-generated content and community features
      • “Click to call”
      • Comparison shopping engine
      • Personalization
      • General Web search
      What's important in your mind; what's not? Take the survey here (answering the eight questions will take about five minutes, literally). We'll present the results before the "Building the Ideal Local Destination" panel on Day 2 of ILM:05.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Will Success (and Rupert Murdoch) Spoil MySpace?]]> http://206.106.174.250/blog/blog_comment.asp?bi=518 2005-11-07T20:41:23-05:00 2005-11-07T20:41:23-05:00 2005-11-07T20:41:23-05:00 opportunities and the risks in those strategies.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Video-over-IP, Dominoes and Newspapers]]> http://206.106.174.250/blog/blog_comment.asp?bi=520 2005-11-07T20:37:12-05:00 2005-11-07T20:37:12-05:00 2005-11-07T20:37:12-05:00 Festoon will video-enable your VoIP conversations on Google Talk or Skype. (Catch: You've got to go out and buy the camera, and so does everyone else.) While this capability is interesting -- and eventually will be commonplace (on both "traditional" and mobile phones) -- we're probably years from any sort of mainstream adoption of IP-video-telephony. VoIP itself faces a bunch of obstacles. Speaking of VoIP, yet another company has entered the market: NetZero. The company has announced free PC-to-PC calling and low-cost plans that permit users to call traditional PSTN phones.

      To digress for a moment ... What's really interesting to me is how seemingly disparate technology developments are driving or affecting one another, directly and indirectly. For example, the success that cable companies have had in pushing high-speed Internet access -- cable broadband still has a greater U.S. market share than telco DSL -- has led to some consumers abandoning traditional telephone service for the so-called "triple play" (TV, Internet, phone) bundled offerings that cable companies provide. In terms of demand and market potential, online research firm InsightExpress found in June that 82% of broadband users were interested in triple-play services from a single source. That threat has motivated telcos to pour billions into IPTV to give them the same capability. High-speed Internet access, which the telcos are aggressively pushing (DSL) with price discounting to drive adoption vs. cable, will contribute to the erosion of both price and subscribers for their traditional telephone business (wireless is playing a significant role here too). In turn, VoIP adoption (assuming increasing growth), which relies on high-speed Internet, and wireless are going to adversely affect the quality of listings available to Yellow Pages publishers, most of which are still owned by telcos. And, overall, broadband Internet usage is having a negative impact on traditional media usage across the board, in particular Yellow Pages and newspapers. No one can control these dynamics, nor are they reversible -- nor are they truly predictable. But we can see that there's a relationship between these developments and that there’s a kind of domino effect going on, where one set of competitive market dynamics affects another. On the subject of newspapers, we're seeing some very interesting trends (or not so interesting if you're a traditional newspaper publisher). Nielsen//NetRatings reported earlier this month that newspaper Web sites have seen significant traffic growth, while their print parents are really suffering in terms of subscribers and circulation. News, one could quite successfully argue, is more popular than ever, but not newspapers. We observed this anecdotally in our most recent focus group. People want and value news content, but younger readers are increasingly unwilling to pay for it offline. That means cost cutting and consolidation, which isn't going to be good for the quality of newspaper coverage (or U.S. democracy) over the long run. I guess it's time for another cup of coffee and to get back to The N.Y. Times. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo!-TiVo Deal]]> http://206.106.174.250/blog/blog_comment.asp?bi=522 2005-11-07T20:23:01-05:00 2005-11-07T20:23:01-05:00 2005-11-07T20:23:01-05:00 The N.Y. Times reports on a pending announcement between Yahoo! and TiVo. Yahoo! moves off the desktop and into the living room. It's mostly about using Yahoo's TV listings to schedule TiVo, but there is a range of other Yahoo! content that will now be available on TiVo. It works well for TiVo (there had been earlier rumors of a TiVo-Google deal) and shows the way to a potential (potential) endgame for the company. It will also likely be good for Yahoo!'s pan-media strategy (podcasts, music, video). AOL apparently has a similar deal with TiVo already, according to PaidContent. Competitor Microsoft has significant "offline" TV-related partnerships, and its technology is behind many of the telco IPTV initiatives. More from AP and CNET.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yelp Gets a Shout From VCs]]> http://206.106.174.250/blog/blog_comment.asp?bi=523 2005-11-07T20:18:24-05:00 2005-11-07T20:18:24-05:00 2005-11-07T20:18:24-05:00 Yelp, a San Francisco Bay Area local community site with directory listings -- or local directory site with community and social networking -- got some VC money last week. The site, which has national aspirations, exists in an already crowded field. For that reason, when I first encountered Yelp early on, I dismissed it as an "also ran." But I must admit the site has traction in San Francisco and, after a redesign a few months ago, looks very good. It's managed to grow by word of mouth and seems to have a very engaged user base.

      As the folks at SiliconBeat point out, Yelp has lots of competition: InsiderPages, JudysBook, Backfence, all the YP publisher directory sites, Yahoo! Local, Google Local, Citysearch, etc. (not to mention newspapers). That can only mean consolidation at some point. This is an exciting time for local as the market starts to emerge -- as evidenced by the thrice weekly VC calls I'm doing. Among the "alternative" directories (meaning those not owned by YP publishers), the first one(s) to get to national scale will almost certainly be consolidated/acquired. But by whom? That's an interesting question to contemplate. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Man vs. Machine]]> http://206.106.174.250/blog/blog_comment.asp?bi=524 2005-11-07T20:14:18-05:00 2005-11-07T20:14:18-05:00 2005-11-07T20:14:18-05:00 Sunday's N.Y. Times about Yahoo! and its long-term search strategy. I was at Yahoo! on Friday talking to Local GM Paul Levine about his just-added keynote at ILM:05. He and I discussed a range of things, among them social search and community.

      One thing in the article that is consistent with my observation of the comparative strategies of Google and Yahoo! is that Yahoo! (as I've said before) has made a really big bet on "social search" -- using people and community to create a differentiated experience. Think MyWeb, 360, Local, etc. Google is certainly mindful of the importance of community and user-generated content (e.g., APIs, Blog Search, Orkut, etc.). But the company appears to be focused on developing tools and applications to aggregate that content from third-party sources rather than creating an environment in which its users generate the content themselves. There's a lot more to say about this, but one point of divergence between the two companies appears to be around this "social" or "community" issue. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Topix Adds Blogs to Crawl]]> http://206.106.174.250/blog/blog_comment.asp?bi=526 2005-11-07T20:03:53-05:00 2005-11-07T20:03:53-05:00 2005-11-07T20:03:53-05:00 Topix.net (majority owned by the newspapers) added 15,000 blogs to its crawl. The company also organizes that information by ZIP, so you can get blogs in your local feed as well. More discussion, including some very interesting charts and graphs [scroll] contrasting traditional media and blogs' content, on the Topix blog.

      ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[What's in a Name?]]> http://206.106.174.250/blog/blog_comment.asp?bi=527 2005-11-07T20:02:10-05:00 2005-11-07T20:02:10-05:00 2005-11-07T20:02:10-05:00
      In the past, RHD has described itself as “a leading Yellow Pages publisher and directional media company.” That was the term used in the press release for both Dex and RHD. However, the current earnings announcement describes RHD as “a leading Yellow Pages publisher and local online search company.” Curious about this change, I called COO Peter McDonald to ask him if it was deliberate and if it reflected a new emphasis by the company on online services. Peter emphasized that revenues are growing in RHD's markets without Internet revenue included. But he said RHD execs changed the descriptor because they wanted to “get the message out that we are in the online business.” He said that “local online search” is more relevant to what RHD does, and it is something both advertisers and consumers clearly understand. McDonald did state emphatically that RHD expects to continue to grow the core business but that online clearly represented a future opportunity. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Google the Agency, Google the Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=502 2005-11-05T12:12:25-05:00 2005-11-05T12:12:25-05:00 2005-11-05T12:12:25-05:00 The N.Y. Times' Saul Hansell, reviewing Google's model and history and speculating about its future: Google, the one-stop shop for all forms of advertising (TV, print, online, etc.). Traditional ad agencies don't generally like or get Google, in my limited observation. But it's Sunday night, so I won't go on. The article is worth a look. For those who read the entire piece, the "love-hate" reference is reminiscent of the role and position that Yellow Pages have historically occupied -- and the similar ambivalence they've engendered among advertisers.

      John Battelle has an interesting take: This piece in the NYT was clearly written with Google's open approval, and that means one thing: Google is using the Times to talk with the folks on Madison Ave -- and Wall St. Probably so. People question whether Google has a plan (I believe it does.) But whether or not the company has a plan, it has always had smart PR. __________ Related: Om Malik points to a blog that speculates about the integration of Google Talk everywhere (click to call/PPCall). It's SkypeBay but on a larger scale. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Craig and Wikipedia]]> http://206.106.174.250/blog/blog_comment.asp?bi=519 2005-11-04T16:10:40-05:00 2005-11-04T16:10:40-05:00 2005-11-04T16:10:40-05:00 This is interesting. (Going for blogging minimalism here.)

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Amid Mapping Frenzy, 'Personalized Maps' Come to Google]]> http://206.106.174.250/blog/blog_comment.asp?bi=516 2005-11-04T08:42:25-05:00 2005-11-04T08:42:25-05:00 2005-11-04T08:42:25-05:00 This new Sidebar panel rotates through maps relevant to the user’s location and interests. Like most features in the Sidebar, the panel is auto personalized and does not require input from the user unless they’d like to customize the display. In addition to maps based on the user’s activity and location, the map rotation also includes maps of popular locations around the world such as Paris, Hong Kong, and Cairo. Here's more from Google's Blog.

      Meanwhile over at Microsoft, they're encouraging developers to get involved with Virtual Earth. Here's the VE Gallery. So between the new Yahoo! Maps, Google Local/Maps and Virtual Earth (and all the developers) we should have a very interesting set of tools and map-based applications coming in the next few quarters. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Return of the 'Network Computer']]> http://206.106.174.250/blog/blog_comment.asp?bi=509 2005-11-04T07:22:03-05:00 2005-11-04T07:22:03-05:00 2005-11-04T07:22:03-05:00 Windows Live (a version of the pre-existing beta Start.com) confirms what we already know: the Larry Ellison vision of a "network computer" is here. (Further proof: the coming Wal-Mart US$398 laptop.) Whatever the relationship, ultimately, of these new, Web-based tools to MS Widows or Office it's clear that more and more of the heavy lifting is happening online and not on the desktop. The shift to Web-based e-mail is just the probable tip of that iceberg. ______ More from Ross Mayfield's blog and SiliconBeat. PaidContent speculates (along with others) that "Windows Live" might be the new Internet brand and supercede MSN. Here's Charlene Li's (very favorable) post on the new MS "Live" strategy and why she thinks it will succeed.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Yellow Pages Group's New Home Improvement Guides]]> http://206.106.174.250/blog/blog_comment.asp?bi=488 2005-11-04T07:20:26-05:00 2005-11-04T07:20:26-05:00 2005-11-04T07:20:26-05:00
      Transcontinental will provide the content and sell into the editorial piece, while YPG will handle directory sales through a subsidiary called Snap Guides. The idea is to offer advertisers in a key directory category a more targeted product. It's an interesting and creative example of a cross-media partnership.

      Here is a link to the press release.

      ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[Katrina and One Company]]> http://206.106.174.250/blog/blog_comment.asp?bi=398 2005-11-04T06:47:24-05:00 2005-11-04T06:47:24-05:00 2005-11-04T06:47:24-05:00
      It is not surprising that the Yellow Pages industry has stepped up to the plate to help their employees and their customers. Dan told me that, ironically, the White Pages for New Orleans are at the printer. He said, "I wish we could use them to help fill in the holes in the levy." The Berry Co. and BellSouth are already working hard to find available options to assist their employees and the communities in which they live and serve the public. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Developments in Euro Search & Directory]]> http://206.106.174.250/blog/blog_comment.asp?bi=489 2005-11-04T06:47:15-05:00 2005-11-04T06:47:15-05:00 2005-11-04T06:47:15-05:00 * Eniro has announced a partnership with Internet telephony player Skype to include Skype addresses in Eniro's online database of names and numbers. Skype is launching a toolbar that will allow direct connection to both Skype subscribers and conventional phone numbers.
      * The Spanish publisher TPI is said to be in the process of developing its own search service, called Noxtrum. The launch is supposed to take place in December, according to European press reports.
      * The German online directory www.goyellow.de has launched a free pay-per-call service using VoIP.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[A Different Sort of 'Google Print']]> http://206.106.174.250/blog/blog_comment.asp?bi=397 2005-11-04T06:47:08-05:00 2005-11-04T06:47:08-05:00 2005-11-04T06:47:08-05:00 offline on behalf of advertisers is radical. I had been quite skeptical of the Trader Classifieds rumor for several reasons. But this "test" makes such moves more likely for Google in the future. Coverage:

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL Bidding War: Coincidence or Calculation?]]> http://206.106.174.250/blog/blog_comment.asp?bi=472 2005-11-04T06:47:01-05:00 2005-11-04T06:47:01-05:00 2005-11-04T06:47:01-05:00 apparently gotten into the game of bidding for a piece of AOL. Whether AOL first approached MSN or vice-versa, I believe that AOL has very shrewdly played this whole minority stake investment. TimeWarner has billions and billions in debt and CEO Richard Parsons has activist shareholder Carl Icahn breathing down his neck to boost the TW stock price.

      Google gets huge amounts of traffic (and revenue) from its relationship with AOL. After the AOL-MSN talks rumors got out in the NY Post and then the Wall Street Journal, Google, reportedly with Comcast, put together a competing bid for a minority interest in AOL. And, as mentioned, now Yahoo! has joined the party of suitors. Any way you slice it, AOL wins. The reported amount of the Google-Comcast bid, which Parsons has dismissed as rumor, is $5 billion (Yikes!). Whatever the reality, MSN could afford to overpay, given that it has something like $50 or so billion in cash and needs to do something to boost traffic and would love to take that relationship away from Google. I can't help but believe that this has all been skillfully calculated by AOL to create a bidding war. But whether that's true or this series of events is merely serendipitious for the once beleagured portal, there appears in fact to be a bidding war and someone will ultimately buy a stake. Regardless of whom it is, it will be interesting to see how the relationship plays out. ________________ And now for the shameless plug: Google, AOL and MSN will be giving keynotes at ILM:05. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL Jumps on Blog Search Bandwagon]]> http://206.106.174.250/blog/blog_comment.asp?bi=473 2005-11-04T06:46:30-05:00 2005-11-04T06:46:30-05:00 2005-11-04T06:46:30-05:00 Google, Yahoo! and, apparently, now America Online will add blogs to its search tool kit (on the heels of its Weblogs purchase). Reportedly, the underlying engine will be Intelliseek's BlogPulse tool. BlogPulse hasn't received the attention of some of the larger Internet brands (or Bloglines or Technorati), but it's a terrific tool.

      User-generated content is becoming increasingly important (or at least preparing for a time when it is). And there's a real challenge in weighting/ranking/organizing that content and meaningfully integrating it into search results. ____________ Update this a.m. from the Intelliseek press release: Under the agreement, Cincinnati-based Intelliseek's blog data, statistics, trend charts and blog entries will be featured on the AOLÂŽ network. These daily blog reports will update Web users in real time about Internet activity and "buzz." Included in the daily feeds will be top blogs, top blog posts, top news stories and news sources being cited by bloggers, top website/blog links being shared by bloggers, as well as the top personalities and phrases being discussed by bloggers in their posts. AOL also will have access to BlogPulse's two blogs -- BlogPulse Newswire, a summary of blog activity, and the entertainment-focused BlogPulse Spotlight. This is not only about news coverage, it's also about community for AOL. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Autos Custom: Ads + Community]]> http://206.106.174.250/blog/blog_comment.asp?bi=507 2005-11-01T21:07:50-05:00 2005-11-01T21:07:50-05:00 2005-11-01T21:07:50-05:00 Yahoo! Autos Custom. It's an enthusiast site (hence the LT reference) but it also features classifieds and display advertising. This is an interesting marriage of content + community in a highly specialized vertical (for more content richness and more ad targeting). It's a cousin of the Yahoo! Trip Planner site. This is just one more interesting thing coming out of Yahoo! Here's' more from the Yahoo! Search Blog.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[SuperPages Adds Reviews]]> http://206.106.174.250/blog/blog_comment.asp?bi=510 2005-11-01T17:43:18-05:00 2005-11-01T17:43:18-05:00 2005-11-01T17:43:18-05:00 Chris Sherman for pointing this out . . . As they promised earlier in the year, Verizon has added reviews/ratings to its SuperPages directory. Kudos to SuperPages for taking yet another risk.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[The SBC-BellSouth Marriage that Never Was]]> http://206.106.174.250/blog/blog_comment.asp?bi=508 2005-11-01T16:04:15-05:00 2005-11-01T16:04:15-05:00 2005-11-01T16:04:15-05:00 article.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[IAC Si, Newspapers No]]> http://206.106.174.250/blog/blog_comment.asp?bi=506 2005-11-01T14:55:41-05:00 2005-11-01T14:55:41-05:00 2005-11-01T14:55:41-05:00 IAC beats analysts' expectations (wish I could do that), while newspapers are having a tough time, (reg. req'd) which analysts ( in this case Goldman Sachs) predict will continue: The weak ad environment for newspapers has caused Goldman to scale back its 2006 growth forecast to 3.5 percent from 4.0 percent . . . [N]ational ad growth would once again be weakest at 1.0 percent, followed by retail, 2.5 percent, and classifieds at 3.6 percent. The bright spot continues to be online newspaper revenues, which are projected to grow an impressive 25 percent in 2006. Despite this, online will still represent 5.0 percent of total newspaper revenues.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[PagesJaunes Continues Growth]]> http://206.106.174.250/blog/blog_comment.asp?bi=494 2005-11-01T10:40:51-05:00 2005-11-01T10:40:51-05:00 2005-11-01T10:40:51-05:00 here.

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      Greg Sterling gsterling@kelseygroup.com <![CDATA[Personalization, Privacy and Local]]> http://206.106.174.250/blog/blog_comment.asp?bi=495 2005-11-01T10:39:40-05:00 2005-11-01T10:39:40-05:00 2005-11-01T10:39:40-05:00 report about fear online: "Leap of Faith: Using the Internet Despite the Dangers." The report, based on a telephone survey of roughly 1,500 adult Americans, finds that fears of identify theft are causing people to withhold personal information and change their online behavior.

      The document reports that "four in five Internet users (80 percent) are at least somewhat concerned someone could steal their identity from personal information on the Internet. Nearly nine out of ten users (86 percent) have made at least one change in their behavior because of this fear":
      • 30 percent say they have reduced their overall use of the Internet.
      • A majority of Internet users (53 percent) say they have stopped giving out personal information on the Internet.
      • 25 percent say they have stopped buying things online.
      • 54 percent of those who shop online report they have become more likely to read a site’s privacy policy or user agreement before buying.
      • 29 percent of those who shop online say they have cut back on how often they buy on the Internet.
      These findings, at a high level, appear to echo those from a July online survey conducted by ChoiceStream, which found something of a paradox: Americans want personalized media and customized experiences online, but a majority are concerned about the security of their personal information. The ChoiceStream survey found that consumers are now more reluctant to provide personal and demographic information in exchange for personalized content. In 2005, 59% of respondents were willing to provide personal information, which was down from 64% in 2004. In addition, fewer people were willing to provide demographic data: 46% in 2005 vs. 56% in 2004. So what are we to make of all this? I could argue with some of the WebWatch data. But let's assume, because the ChoiceStream study also seems to confirm the trend, that it's accurate and an accurate reflection of a general mood among U.S. consumers of increasing wariness about providing personal data and online shopping (despite e-commerce's rapid growth). The immediate impact of all this could be to dampen, somewhat, the growth of e-commerce. Over the long term, however, e-commerce is unlikely to be dramatically affected. Either way, broader Internet growth and usage (notwithstanding the WebWatch report) will not suffer. Why? The dominant scenario -- as we and others have documented -- is that the Internet is used to find local merchants (whether big boxes or SMEs): shop online, buy offline. The fear of identity theft only continues to support that phenomenon. Absent spyware, I can do all the anonymous shopping and price comparisons I please and then buy locally, without ever divulging any personal information. To those among the traditional media set who would welcome the WebWatch findings as evidence that this whole Internet thing won't be that big a deal in the end, you need only look over your shoulder to those among the 18-to-24-year-old demographic. This is the next generation of "life events" purchasers -- those who are in the process of or soon will be buying cars, finding jobs and ultimately purchasing homes (and probably getting married). They have developmentally come of age with the Internet and aren't going to be as concerned about these issues. The Internet (and other devices such as wireless phones) are so deeply woven into their daily lives and routines that there's no question of going without. Offline, local buying will continue to be the way most people transact even as e-commerce continues to grow over time. Yet, whatever the fate and pace of e-commerce, the Internet will only continue its ascendancy as an influence on local consumer purchase behavior. The WebWatch findings are only a momentary pothole on what used to be called "the information superhighway." ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AT&T-Yahoo!?]]> http://206.106.174.250/blog/blog_comment.asp?bi=497 2005-11-01T09:43:29-05:00 2005-11-01T09:43:29-05:00 2005-11-01T09:43:29-05:00 The N.Y. Times that says SBC will take the venerable name AT&T once the acquisition is approved. One response: Will the AT&T brand support the kinds of Internet-age services that SBC is offering and wants to offer (i.e., IPTV)? One could argue it's really a 19th-century brand.

      Another response: It doesn't matter. No one knows that 3M originally stood for "Minnesota, Mining and Manufacturing." What does Google mean? What does Yahoo! mean? I'm certainly no branding consultant, but unless there's a truly negative consumer association with SBC (little evidence there is) it doesn't matter whether the company calls itself SBC, AT&T or Howard Stern (well, maybe not Howard Stern). Of course, it will cost millions and millions to do the rebranding (think about repainting all those trucks: AT&T-Yahoo! DSL). Ultimately, however, the perception of the consumer and the value of the brand is all about what's going on behind the brand. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[LookSmart Goes Deep]]> http://206.106.174.250/blog/blog_comment.asp?bi=498 2005-11-01T09:39:53-05:00 2005-11-01T09:39:53-05:00 2005-11-01T09:39:53-05:00 vertical sites on everything from sports to city guides (here's New York, for example). The content comes from Furl, Web crawling and LookSmart's Find Articles database. The company is hoping the vertical strategy will draw consumers -- initially from general Web search and then directly to the site -- and bring advertisers looking for higher-quality, more targeted ad inventory. The analogy LookSmart uses is to cable TV: "Like Cable was to television, vertical search is delivering to consumers relevant and essential content versus an exhaustive return on information."

      The architecture of the vertical sites and subsidiary content pages is based on a concept of "find," "save" and "share," leveraging the Furl community and functionality (it's also a backdoor way to introduce Furl to users). Certainly, it creates more targeted ad opportunities, but will it raise the prominence of the LookSmart brand in the minds of consumers? That's unclear. When LookSmart had five verticals several months ago, I thought that was fairly unimpressive. Something on this scale is a different story. (It's not unlike About.com but with a twist.) CEO David Hills is being very thoughtful about strategy, given the position the company is in, and has mapped out a diversified plan that includes a mix of technology licensing and advertising products. As he said to me the other day, "At least now the company has a shot." I agree. __________ Here's the earnings release with the news. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Better Late Than Never]]> http://206.106.174.250/blog/blog_comment.asp?bi=500 2005-11-01T09:35:47-05:00 2005-11-01T09:35:47-05:00 2005-11-01T09:35:47-05:00 by state. The numbers are going to be larger now. But it's interesting to see the breakdown. More data here.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[The Anticipated 'Laptop in the Kitchen']]> http://206.106.174.250/blog/blog_comment.asp?bi=501 2005-11-01T09:34:09-05:00 2005-11-01T09:34:09-05:00 2005-11-01T09:34:09-05:00 phone (targeted toward the hotel industry) that would offer touch-screen local search (from Commoca). It's not yet widely available, but it's got a certain practical (and sex) appeal. Let your fingers do the . . . touch-screening?

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Cable Cos Preempt Telcos' IPTV '4-Play']]> http://206.106.174.250/blog/blog_comment.asp?bi=503 2005-11-01T09:26:23-05:00 2005-11-01T09:26:23-05:00 2005-11-01T09:26:23-05:00 reached a deal with Sprint Nextel to offer co-branded wireless services to cable customers. Why do we care at TKG about IPTV (and the evolution of TV generally)?

      The Kelsey Group believes on-demand cable, online video search and IPTV will accelerate the fragmentation of the TV viewing audience that began with the introduction of cable television. In one version of the future, which National Public Radio’s Bob Garfield has called “the chaos scenario,” the entire economic model of television is undermined. In another version, which we explore in a forthcoming report, the increased consumer choice and selection of of content by viewers offers enormously valuable targeting and contextual advertising opportunities for marketers and, potentially, new types and quantities of ad inventory. These and other factors will combine to create a tremendous opportunity for national — and potentially local — advertisers to produce geographically and demographically relevant campaigns that are potentially targeted down to the set-top box level. Indeed, on-demand programming and related interactivity make IPTV much more like a directional medium such as classifieds, search or Yellow Pages and thus a potential distribution platform for the content that now appears in those media. And when the Internet’s targeting capability is married to the emotional and dramatic power of video/ television, the result is much more powerful than either by itself. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Local Matters Buys AreaGuides]]> http://206.106.174.250/blog/blog_comment.asp?bi=504 2005-11-01T09:15:18-05:00 2005-11-01T09:15:18-05:00 2005-11-01T09:15:18-05:00 AreaGuides.net has been acquired by Denver-based Local Matters. This is the first consumer-facing property in the Local Matters portfolio, and CEO Perry Evans expects to substantially enhance the interface and user experience of the site over time. Evans also sees AreaGuides as an alternative way to deliver high-quality traffic to Local Matters' directory publisher partners in lieu of SEM or SEO efforts. He described it to me as a way to capture local shopping behavior that exists outside the directory context and to expose that audience to directory content.

      The site, though substantially under the radar for most people, has considerable traffic and offers quite a bit more than directory content. It will be interesting to see how the site grows and changes. Evans has lots of ideas on what the optimal local search user experience is, and this gives him a chance to showcase those ideas in an unmediated way. Evans will be discussing that subject at ILM:05 on a panel called "Building the Ideal Local Destination." Also on that panel will be:
      • Marc Canon -- VP, Technology Strategy, AOL
      • John DeVitis -- Product Unit Manager, MSN Search
      • Barnaby Dorfman -- VP of A9
      • Ryan Massie -- Product Manager, Local Search, Ask.com
      • Neg Norton -- President, Yellow Pages Association
      It should be interesting. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Tribune Paper Drops AdSense for Quigo]]> http://206.106.174.250/blog/blog_comment.asp?bi=258 2005-10-30T19:30:05-05:00 2005-10-30T19:30:05-05:00 2005-10-30T19:30:05-05:00 Editor & Publisher, Tribune Co.'s Newsday has abandoned AdSense in favor of an "in-house" contextual product powered by Quigo: As more and more newspapers are embracing Google AdSense and other third-party context-based advertising, Newsday Monday announced its in-house answer. The Newsday program, called Pay-Per-Click, allows advertisers to place ads on the Newsday Web site associated with specific sections, subject matter, or geographical areas. Unlike classic banner ads -- which are usually paid by "impression," or the number of times the ad is displayed -- Pay-Per-Click ads are free unless someone clicks on them.

      Right now, Quigo is probably touting and pitching this to every newspaper its phone sales staff can call. Google has historically been very generous with revenue sharing (most of the click) as a way to build out its content network. From Google's YE 10-K filing: The increase in our operating margin in 2004 compared to 2003 (before the charge related to the settlement of disputes with Yahoo) was partially offset by an increase in traffic acquisition costs as a percentage of revenues. This is because a greater portion of our revenues in 2004 compared to 2003 was from our Google Network members’ web sites rather than from our Google web sites. The operating margin we realize on revenues generated from our AdSense program is significantly lower than that generated from our web sites. This lower operating margin arises because most of the advertiser fees from our AdSense agreements are shared with our Google Network members, leaving only a portion of these fees for us. Despite Google's generosity, some newspapers have started to regard Google as a long-term competitive threat. Yahoo! offers Content Match, which is extensively used but not as deeply penetrated into the newspaper industry. Google recently enhanced AdSense by offering graphical ad capabilities and the ability to opt-out of certain content sites. So-called "content pages" vastly outnumber search traffic in terms of potential ad inventory, but monetizing them has been more challenging. Because of the nature of the product, content CTRs are not as high or generally as qualified as search clicks -- that's part of the reason behavioral targeting exists. Even though content targeting hasn't been quite as effective as paid search, it's a critical source of revenue and ad inventory. Revenues generated on the Google Network through AdSense contributed almost US$490 million, or 48% of total revenues in Q4 2004.]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA['Pay Per Call' World about to Become More Competitive]]> http://206.106.174.250/blog/blog_comment.asp?bi=110 2005-10-28T17:18:46-05:00 2005-10-28T17:18:46-05:00 2005-10-28T17:18:46-05:00 ZiffTalk. Another is Thinking Voice.

      Call measurement firms, such as MediaTraks and those who offer "push-to-talk" services, such as eStara, are also lining up behind the idea of "pay-per-call," which is widely perceived to be a big opportunity for search and directory companies to capture a revenue premium over clicks, as well as the online advertising business of SMEs. The market is also global and PPCall will soon be in Europe. Pay-per-call and its progress in the market to date is on the agenda at TKG's Drilling Down on Local conference, coming up in April. Also, as I promised yesterday, more coming on this subject soon. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[More Social Media and Maps]]> http://206.106.174.250/blog/blog_comment.asp?bi=499 2005-10-28T11:25:06-05:00 2005-10-28T11:25:06-05:00 2005-10-28T11:25:06-05:00 SiliconBeat for pointing out Social Media + Maps site Frappr. It's fun; take a look. Also John Battelle discusses a new button from Yahoo! intended to get more content into social search content repository MyWeb.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[IYP Is Dead, Long Live YellowPages.com]]> http://206.106.174.250/blog/blog_comment.asp?bi=496 2005-10-27T07:19:43-05:00 2005-10-27T07:19:43-05:00 2005-10-27T07:19:43-05:00 strongly critical of IYPs ("Internet Yellow Pages Are Dead") as destination sites. So it's very interesting that his most recent ClickZ column is extremely bullish on YellowPages.com. What does he think makes YellowPages.com different? Sanger says: "A winning strategy that includes sales, destination, and distribution." But you can read his thoughts for yourself.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA['Google Base': What Is It?]]> http://206.106.174.250/blog/blog_comment.asp?bi=486 2005-10-26T15:18:50-05:00 2005-10-26T15:18:50-05:00 2005-10-26T15:18:50-05:00 Google Base (now apparently down) is a content entry system for:
      • Description of your party planning service
      • Articles on current events from your Web site
      • Listing of your used car for sale
      • Database of protein structures
      This could be the entry point for the rumored Google Classifieds. It appears to be more than that, however -- a kind of universal direct content entry system (for local business listings and events, classifieds content or anything else you want to show up in search results).

      From Google PR: We are testing new ways for content owners to easily send their content to Google. Like our web crawl and the recently released Google Sitemaps program, we are working to provide content owners an easy way to give us access to their content. Think Craigslist + eBay + Upcoming.org + etc. Let's see. More on this in the Local Media Journal. ____ More from Google's official blog (not much meat here). Forrester's Charlene Li has some thoughtful comments. What is important ultimately is how Google presents all this data that it solicits directly from users. A general search experience is not going to be as rich as a specialized, vertical experience (or a specific classifieds marketplace). And to fully leverage Google Base, Google will ultimately have to start creating Google Locals or Froogles for content-specific areas. That will be interesting to see (if it does happen) because there's some tension there. Google doesn't want to take users off to 100 different specialized destinations -- the company wants to leverage Google.com as much as possible. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Free Metro Dailies Not Reaching New Audiences]]> http://206.106.174.250/blog/blog_comment.asp?bi=490 2005-10-26T14:01:31-05:00 2005-10-26T14:01:31-05:00 2005-10-26T14:01:31-05:00 bad bit of news (reg req'd) for the newspaper industry that had been using free metro dailies to reach new audiences -- in theory: While they are attracting some hard-to-reach readers, including younger and minority, they have been small gains that have had more to do with distribution strategies -- such as giving papers away free in mass transit areas -- than with the availability of alternative, free papers. The main effect has been that heavy newspaper readers simply read more, picking up the freebies in addition to their regular paid dailies.

      But see this new effort by The Washington Post (reg req'd) -- a very interesting move (video podcasts). One thing the major dailies (e.g., The Washington Post and The New York Times) realize is that the Internet is not print. Before you say something sarcastic, reflect that newspapers have to date largely reproduced their print editions online, albeit with some dynamic features. They will ultimately need to do much much much more to get where they need to go. And that may require all kinds of multimedia and dynamic functionality. (They don't need to become Google or Yahoo!, but they need to think and act very differently than they currently do.) The local market is the newspapers' to lose. Next year we will either see them making strong innovations and gains or falling terribly behind. I hope it's the former and not the latter. Caroline Little, CEO and publisher of Washingtonpost.Newsweek Interactive, will be one of the keynote speakers at ILM:05 and will address many of these issues. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo!: Help Us Help You Plan a Trip]]> http://206.106.174.250/blog/blog_comment.asp?bi=493 2005-10-26T13:54:39-05:00 2005-10-26T13:54:39-05:00 2005-10-26T13:54:39-05:00 Yahoo! Trip Planner seeks to leverage a number of Yahoo!'s locally oriented applications and information, including search, maps and user-generated content (ratings/reviews). The app also lets users share their trips with others (per Yahoo!'s overall FUSE/community strategy). That aspect of things is perhaps the most interesting. I can see, hypothetically, where others have gone before and discover places to stay, etc., that I might not otherwise have known about. Watch out TripAdvisor.

      This appears, in my cursory overview/instant analysis, to be a really nice packaging of existing tools on Yahoo! (sort of like an art museum presenting elements of its permanent collection in an interesting and fresh way). The Yahoo! blog has more. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[LiveDeal Steps Into Big Leagues]]> http://206.106.174.250/blog/blog_comment.asp?bi=484 2005-10-26T13:53:16-05:00 2005-10-26T13:53:16-05:00 2005-10-26T13:53:16-05:00 LiveDeal, which was initially dismissed by some as being unable to compete with Google, Craigslist and eBay, has scored a major coup by partnering with Canadian media giant Torstar Corp. to launch LiveDeal Canada (site not currently available). It immediately becomes Canada's largest online classifieds site. The company also raised additional financing. Apropos of my previous post (about companies and their end games), CEO Rajesh Navar has said that the company is in this game for the long haul.

      ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[Independents on Track to Parity: ADP Leader]]> http://206.106.174.250/blog/blog_comment.asp?bi=483 2005-10-26T13:50:43-05:00 2005-10-26T13:50:43-05:00 2005-10-26T13:50:43-05:00
      My question is,why is parity so important?

      I wonder whether independent publishers are better offer remaining the smaller of the two U.S. industry segments. In his remarks, Hail used underdog references, portraying independent publishers as Rocky Balboa to the incumbents' Apollo Creed (he also compared incumbents to "lumbering dinosaurs").

      Being an underdog is a motivational gift from above, not to mention a powerful unifying force. Once they achieve parity, what's the next goal? And if independent publishers surpass the incumbents in share of revenue, what meaningful distinction would then exist between the two categories? How can you position yourself as an underdog when you are just as tall and strong as the "bully" across the table.

      We think parity is possible but not a given. If independents continue to outgrow incumbents indefinitely, it becomes a question of how quickly they reach parity. However, we question whether any publisher based largely in print will be generating positive organic growth beyond 2010; and sooner or later expansion reaches a point of diminishing returns. So it is quite possible that share levels could stabilize at some point in the future. Will independents reach parity before this happens? Maybe, but I'm not sure why it matters.

      Ultimately, we see the parity goal mostly as a rallying cry for independent publishers to keep working, keep innovating, keep expanding and keep growing. Achieving the parity goal should not be as important as the true measures of success -- sustainable growth and improving margins. Parity is about bragging rights. Business is about making money.
      ]]>
      John Kelsey jkelsey@kelseygroup.com <![CDATA[A Senior Moment]]> http://206.106.174.250/blog/blog_comment.asp?bi=485 2005-10-26T13:45:09-05:00 2005-10-26T13:45:09-05:00 2005-10-26T13:45:09-05:00
      In a separate item by David Carr, titled “Why You Should Pay to Read This,” the author suggests that paid content is in real danger because youth expect information to be free. They are willing to pay for the distribution vehicles – cable, broadband Internet and cellphones – but not for the stuff that comes through them. One of the conclusions that can be drawn from these two news items is that there will always be a market for print and other traditional media, no matter how cool the latest gadget (like videopods) may be. In addition to the nearly one-quarter of adults who are “disconnected,” there are many others who are only semi-connected. Secondly, Yellow Pages, whether print or electronic, has always been free to the user. Directory assistance may be in danger but not classified advertising that brings buyers and sellers together. Local search is most certainly going to have an impact on the Yellow Pages industry. But look for this media to outlast those that require payment for information. ]]>
      Charles Laughlin claughlin@kelseygroup.com <![CDATA[More Consolidation in Hispanic Market]]> http://206.106.174.250/blog/blog_comment.asp?bi=487 2005-10-26T13:25:39-05:00 2005-10-26T13:25:39-05:00 2005-10-26T13:25:39-05:00
      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[You Say Kaboodle, I Say . . .]]> http://206.106.174.250/blog/blog_comment.asp?bi=491 2005-10-26T09:57:59-05:00 2005-10-26T09:57:59-05:00 2005-10-26T09:57:59-05:00 Eric Auchard (Reuters) profiles a new social search engine, Kaboodle (sort of like Jeteye but simpler). It looks very interesting, but what will be its fate? One has to ask the broader question (with all the new launches recently): What will happen to all these new engines and tools, and where will they ultimately wind up in a marketplace that is dominated by Google, Yahoo!, MSN and AOL? The needle isn't really moving.

      As A9's Udi Manber has said, "Search isn't a solved problem." Yes, that's true. But even he can't get much consumer traction at A9 (backed by Amazon), despite doing lots of innovative and interesting things. These many small companies aren't going to grow up to be Google or Yahoo! because Google and Yahoo! simply won't let that happen. And consumers have limited attention and capacity to use all these new tools, regardless of how cool, interesting or even effective they may be. Ironically, the more new tools that proliferate, the more that (in my view) reinforces usage of the incumbents. The more confused I am, the more I do what is familiar and tried and true. I notice this in the way I now consume news online. I used to go to tons of news sites. Now that more and more information and tools are available, I'm using fewer sites. It's kind of paradoxical. In verticals there is still opportunity (e.g., Healthline) and, I would argue, in local too. But the plan (and hope) for many of these novel applications in blog or general search can only be to be acquired by the incumbents. This town isn't big enough . . . ______________ Re Kaboodle, specifically, Om Malik has some extensive comments and sees it primarily as an online shopping aid. ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AIM a Key for AOL]]> http://206.106.174.250/blog/blog_comment.asp?bi=492 2005-10-26T09:18:45-05:00 2005-10-26T09:18:45-05:00 2005-10-26T09:18:45-05:00 marketing AIM to younger audiences, where it has brand and usage strength. Also, another area of AOL strength, the company beefs up Singingfish and AOL broadband video search with RSS feeds.

      ]]>
      Greg Sterling gsterling@kelseygroup.com <![CDATA[AOL Reportedly Buys Blog Network]]> http://206.106.174.250/blog/blog_comment.asp?bi=449 2005-10-25T08:05:55-05:00 2005-10-25T08:05:55-05:00 2005-10-25T08:05:55-05:00 PaidContent: Weblogs Inc, the blog media company founded by Jason Calacanis, is being bought by America Online . . .The company's blogs have had an exponential trajectory, with sites like Engadget, Autoblog, BloggingBaby and others. In total, the company has about 130 bloggers, with about 15 full-time employees . . . AOL intends to keep the company/blogs separate from its site . . . More from Reuters, including the estimated terms. AOL also recently added a number of new features and enhancements to its search functionality. Here's Chris Sherman's overview. In addition, business networking site LinkedIn is integrating AOL IM into its service to facilitate "real-time communications."

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      Greg Sterling gsterling@kelseygroup.com <![CDATA[Too Many Items, Too Little Time]]> http://206.106.174.250/blog/blog_comment.asp?bi=242 2005-10-24T15:39:50-05:00 2005-10-24T15:39:50-05:00 2005-10-24T15:39:50-05:00
    • MapQuest to Publish (Real) Books (taking online offline; they've got the brand to do it)
    • Yellow Pages Group Launches HelloYello Enhanced DA (automated, should be a big improvement on current, inept human operators. This is a real opportunity for directory publishers if the implementation is user-friendly and effective)
    • NY Times to Publish Free Weekly Classifieds Tabloid (free to readers, not advertisers apparently)
    • Vonage Will Hit 1M Subs by Year's End (VoIP has profound implications for directory publishers over time)
    • SBC-Yahoo! Reduce Price of DSL to $14.95 per Month (Broadband will be ubiquitious. This is a land grab. Makes me want to switch my service; I pay $61.90 with Comcast)
    • Newsweek Does TV, IPTV, Video Search (extensive converage)
    • Google Stock Inches toward $300 (Yikes! What about price to earnings?)
    Whew!

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Getting Into Real Estate?]]> http://206.106.174.250/blog/blog_comment.asp?bi=481 2005-10-24T08:38:53-05:00 2005-10-24T08:38:53-05:00 2005-10-24T08:38:53-05:00 HousingMaps, Yahoo! Apartments, HomePages, Trulia and now Google may be seeking to combine real estate listings and related data with Google Earth and/or Google Local. (Thanks to John Battelle for pointing to the article on the San Jose Mercury News site.): Commercial real estate's largest data provider is working with Google to integrate its vast stores of building information with the Google Earth interactive satellite mapping service. Newspapers must (MUST) get into this game (dynamic maps + real estate listings) in a bigger way. Some of this is novelty, but much of it is about true improvements in the user experience. HomeGain (owned by KRD, Gannett and Tribune Co.) will probably be the vehicle. But we'll see.

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[News Aggregation Supersite Launches]]> http://206.106.174.250/blog/blog_comment.asp?bi=474 2005-10-22T12:32:25-05:00 2005-10-22T12:32:25-05:00 2005-10-22T12:32:25-05:00 Inform unveiled itself. I spoke to CEO Neal Goldman a couple of weeks ago and got a demo of the site, which was very impressive. I don't have a great deal of time this morning to run through the site's features, but here's what makes it different:
    • Comprehensiveness: Algo + some human editorial selection of sources (especially for blogs).
    • Dynamic navigation and contextual search. The contextual search and refinement capabilities are extremely advanced and impressive. One can do much more exact and refined news-related searches than on general search engines.
    • Personalization: There's a lot now and more coming. You have to register for the personalization features, which include the ability to save articles and create a personalized directory of content or sources/feeds. There's no Furl/MyWeb capability, however, which would be a very nice feature.


    The blog content aggregation is much more limited than the news content right now. It's not a blog search engine per se. However, it does contain considerable blog content from top news-oriented blogs. And users can add any site/feed they want so it becomes, effectively, a substitute for a newsreader. Stories that span multiple pages are presented in their entirety in a single window (the site doesn't send readers back to the original source sites). Ads appearing on those sites also appear with the news content. (Subscription/registration required content is gated and presented as it would appear if one navigated directly to the content site.) How does this affect newspaper sites? Inform would argue that it is going to surface a great deal more newspaper content pages (and related ads) than would otherwise be the case and gives newspapers more distribution accordingly. But there's also the chance that this takes existing news agregation (i.e., Google News, Topix, etc.) to a new level, to the point where I never need to visit a newspaper site again. (That's true for national but not local news necessarily.) (There's a long digression here that I won't go into about the value of newspaper brands and how to maintain them over time.) Goldman disagrees with my "devil's advocate" position and believes this helps news sites and news content gain exposure (and page views) they might otherwise not get. It's another instance of the same debate that came up last week when Craigslist barred Oodle from scraping its listings (aggregation vs. destination). This is a very powerful tool and, in a way, the real fulfillment of the "personal newspaper" that was discussed hypothetically years and years ago, as the way people would be reading news in the future. What's the business model? There will be some premium services, and the site has its own advertisers for pages that it "owns" (as opposed to those where the news content and associated ads appear). There are critics who think it's too complex and confusing (paidContent.org, for example). I might agree that's there's a lot here and it's not fully intuitive for mainstream consumers. But I think these guys wil get that -- I had a discussion with them about duplicative personalization elements -- and simplify over time. The newspapers (or other news media) are going to ultimately be compelled to buy this site. It's just a question of how long do they wait. ]]>
    John Kelsey jkelsey@kelseygroup.com <![CDATA[Will an 'Information Service' Designation Lead to the Sale of YP Information Ser]]> http://206.106.174.250/blog/blog_comment.asp?bi=368 2005-10-22T07:05:06-05:00 2005-10-22T07:05:06-05:00 2005-10-22T07:05:06-05:00
    The recent earnings' results from BellSouth, SBC and Verizon all show that their growth is coming primarily from high-speed Internet and wireless. Accordingly, we believe that the FCC's recent decision will enourage more investment in DSL by the RBOCs. Since all three RBOCs have historically high debt levels, now would be a good time to consider spinning off their Yellow Pages subsidiaries to generate cash to facilitate their investment objectives. Our view is that the Yellow Pages businesses would be worth more in the private equity market if they were broken up into bite-sized contiguous chunks. There certainly is no lack of interest in the Yellow Pages business as an investment vehicle. And the success of Dex Media and R.H. Donnelley in managing incumbent Yellow Pages publishers suggests that a well-managed sale will be hugely successful.]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Destination-Aggregation Smackdown: Craig vs. Craig]]> http://206.106.174.250/blog/blog_comment.asp?bi=457 2005-10-21T16:44:26-05:00 2005-10-21T16:44:26-05:00 2005-10-21T16:44:26-05:00 John Battelle reported first yesterday, CL has apparently blocked Oodle CEO Craig Donato's classifieds aggregator from crawling and indexing CL's listings. Currently, the local marketplace accounts for a large percentage of Oodle's listings (haven't done the count, but it's significant). It's a bit of a surprise that CL, rather than Cars.com, for example, would do this. But, on the other hand, consumers need not visit CL if they can get CL + everything else from Oodle. This is the central dilemma for all "destination sites" that permit their content to be scraped and presented by aggregators. Indeed, this is the dilemma for directories and newspapers in pushing their content out to search engine results.

    Does it represent more traffic for the destination and its advertisers, or does it ultimately reinforce the value proposition of the aggregator/engine and thus "disintermediate" the underlying content/destination site? The answer is "yes" to both questions. It does deliver more traffic, but it also reinforces the aggregator's consumer value proposition, to some degree, at the expense of the underlying site. It's quite a dilemma, but it's one that must be negotiated by any site that doesn't have enough "organic" traffic to satisfy its advertisers or that needs to build awareness and usage (almost everyone). CL is in the enviable position of having an extremely strong brand and huge traffic in its major markets. In other words, it doesn't need Oodle. So it decided to make CL the only place users could access its listings (notwithstanding Housingmaps, which is more about fun than money). So this is a blow to Oodle but potentially not one that is insurmountable for the site. Travel site/aggregator Orbitz, for example, is widely used but doesn't include Southwest or JetBlue flights. So Oodle could well continue and succeed (ultimately, I believe it will be acquired by the newspapers)/ The larger issue here is openness versus the "walled garden." America Online abandoned the walled garden (and is in the midst of a big ad campaign telling the world). But a stealthy new version of that model and thinking -- what I call the "invisible walled garden" -- still widely exists at search/portal sites (i.e., comprehensive feature sets intended to keep users within the system). There's also the example of the Yahoo! and MSN IM agreement, but one could argue that was defensive. There's a philosophical debate and also a power struggle that are text and subtext here. Defining Web 2.0 (now something of a clichĂŠ), people argue that it's about openness and interoperability. But the real politic of the Internet is still about who's got the eyeballs and who needs them, who's got the advertisers and who wants them. The whole MSN-AOL-Google-Comcast courtship dance falls into this category as well. ____________________ More dialogue and debate from the Oodle blog. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google'$ Earning$]]> http://206.106.174.250/blog/blog_comment.asp?bi=482 2005-10-21T10:39:19-05:00 2005-10-21T10:39:19-05:00 2005-10-21T10:39:19-05:00 official release: Google reported record revenues of $1.578 billion for the quarter ended September 30, 2005, up 96% compared to the third quarter of 2004, and up 14% compared to last quarter. Google reports its revenues, consistent with GAAP, on a gross basis without deducting traffic acquisition costs, or TAC. This quarter, TAC totaled $530 million, or 34% percent of advertising revenues. Reactions:
    • This is about their market share
    • This can't continue can it?
    • Ohmigod!
    And this, this a.m.: (per Reuters): "First Albany and Lehman Brothers went further, upping their price targets to $450 a share."

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    John Kelsey jkelsey@kelseygroup.com <![CDATA[Rock Stars, Athletes and Yellow Pages Executives]]> http://206.106.174.250/blog/blog_comment.asp?bi=471 2005-10-19T14:59:17-05:00 2005-10-19T14:59:17-05:00 2005-10-19T14:59:17-05:00
    The confidentiality inherent in this closed industry kept jealousy at bay, and it no doubt encouraged many executives who were successful to stay with their current employers. You have to wonder if the large sums of money made by a few Dex executives may encourage some telco executives to consider opportunities in top management positions at independent publishers. This in turn could cause more turnover and further consolidation at all levels. Utility publishers have long resented their independent competitors, not only because of the potential of lost market share, but also because of the opportunity the independent executives have to operate in a non-bureaucratic environment and the chance to make big money. While Dex is classified as an incumbent, private equity firms Carlyle Group and Welsh, Carson, Anderson & Stowe were able to generate significant returns for themselves and Dex top management. This subject is not likely to be discussed from the podiums at any of the industry conferences, but it will certainly be a hot topic in the halls. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Earnings and Local Acquisition]]> http://206.106.174.250/blog/blog_comment.asp?bi=477 2005-10-19T13:34:14-05:00 2005-10-19T13:34:14-05:00 2005-10-19T13:34:14-05:00 Eric Auchard (Google is up next). Also Yahoo! acquired Whereonearth per John Battelle (and the Yahoo! search blog). More thoughts on this later. For now, see the Reuters general overview. As serious as the major search engines and portals are about Local, Yahoo! is putting a major effort behind it (it acquired local events/community site Upcoming.org just two weeks ago).

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[Abierto vs. Cerrado]]> http://206.106.174.250/blog/blog_comment.asp?bi=478 2005-10-19T13:31:02-05:00 2005-10-19T13:31:02-05:00 2005-10-19T13:31:02-05:00 a fascinating post at SiliconBeat about the brewing debate, ignited in part by the Craigslist objection to Oodle's scraping. I had a conversation about the whole thing with Healthline's Tony Gentile the other day on why Indeed (jobs aggregator) is OK and Oodle is not from Craigslist's point of view. He thought it might be the feed (Indeed) vs. scraping (Oodle) method of content acquisition.

    And here's an entirely different and very interesting take on the issue from "Perry" (Evans?) in response to my earlier "Smackdown" post (scroll to 3): I’m not sure this is a simple just “what’s best for consumers”. The underlying “contract” with the consumer that supplies the content, and the publishing mission and model of the aggregators are very important, imho. CraigsList has won an admirable trusted position with the consumer, in part on the assumption of a community which is understood and proven to not violate some (mysterious!) “order of things” that has controbuted to their amazing success. Craig should rightly be careful to sort out its (implied or real) contract with its users, and it’s up to “him” to gauge the terms by which those community covenants are assimilated across the net . . . ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA['Contextualizing' a Local Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=479 2005-10-19T13:25:48-05:00 2005-10-19T13:25:48-05:00 2005-10-19T13:25:48-05:00 Hilton Hotel in downtown Atlanta -- and then perform category-based local searches in relation to that point. This is the main way I use Yahoo! Maps.

    Right now I need to find a place to eat, for example, and these are my options. At the moment, there's no one else I'm aware of that allows me to do this type of a local search. I wish this sort of "search within a search" or proximity search were more widely available because it's the way people actually think about local ("what's near here"). Wireless holds the promise of this kind of search, but mobile local search still has a long way to go. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Real Estate, Maps and Meta Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=437 2005-10-17T10:51:50-05:00 2005-10-17T10:51:50-05:00 2005-10-17T10:51:50-05:00 SiliconBeat has identified another interesting mapping/real estate "mashup" (Google Maps) + meta search. There's a lot happening with maps, and real estate is the leading edge of practical, monetizable apps. Check out Trulia (proving how hard it is to get good domains these days). And watch for HomePages.com (coming very soon). At last year's ILM:04 show we had a mapping panel, but all the panelists were fairly circumspect and cautious about mapping and monetization scenarios. Now that we're starting to see them, this year's panel at ILM:05 (scroll) should be quite interesting.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Healthline: Vertical Health Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=476 2005-10-17T10:51:48-05:00 2005-10-17T10:51:48-05:00 2005-10-17T10:51:48-05:00 SiliconBeat thoroughly covers the new launch of this health search engine/destination. Blogger and sometime Kelsey Group conference panelist Tony Gentile disappeared from the radar, and this is where he landed as VP of product. Vertical search is about niches generally. So is health a niche? Not really. According to the Pew folks, eight in 10 U.S. Internet users have looked for health-related information online. That's why there's more than US$30 million in venture funding behind it. ______ More specifics from Search Engine Watch

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[More on GoogleNet]]> http://206.106.174.250/blog/blog_comment.asp?bi=475 2005-10-17T09:58:05-05:00 2005-10-17T09:58:05-05:00 2005-10-17T09:58:05-05:00 Search Engine Watch blog on Google's bid to provide free Wi-Fi to San Francisco. We've discussed the implications of such a service before. It would allow for super precise location targeting, among other things (e.g., Wi-Fi ubiquity also would promote VoIP). More details here also.

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    Charles Laughlin claughlin@kelseygroup.com <![CDATA[YBR Group Buys TDC, Changes Name]]> http://206.106.174.250/blog/blog_comment.asp?bi=466 2005-10-14T15:31:35-05:00 2005-10-14T15:31:35-05:00 2005-10-14T15:31:35-05:00
    YBR, itself newly acquired by Australia's Macquarie Bank, has changed its name to European Directories SA.

    The Kelsey Group will provide some background and analysis on this deal in the next edition of Local Media Journal. In short, YBR and Eniro (following its purchase of Norway's Findexa) are now lined up as the two main competitors in the Nordic region.

    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Income Trust Under Fire in Canada]]> http://206.106.174.250/blog/blog_comment.asp?bi=467 2005-10-14T15:26:04-05:00 2005-10-14T15:26:04-05:00 2005-10-14T15:26:04-05:00 the story.

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    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Article Looks at Minibook Battle in Bay Area]]> http://206.106.174.250/blog/blog_comment.asp?bi=468 2005-10-14T15:22:50-05:00 2005-10-14T15:22:50-05:00 2005-10-14T15:22:50-05:00
    The companion issue is becoming a big one, at least in the U.S. market, as incumbent publishers roll them out aggressively as a direct challenge to independents. Here is the link.

    ]]>
    Charles Laughlin claughlin@kelseygroup.com <![CDATA[The Debate: Ads on Covers]]> http://206.106.174.250/blog/blog_comment.asp?bi=469 2005-10-14T15:10:46-05:00 2005-10-14T15:10:46-05:00 2005-10-14T15:10:46-05:00
    We plan to explore this issue in more depth in upcoming TKG coverage. We are curious, in the meantime, what your views are on the topic. Are front cover ads an abomination, or is this a silly fuss over "branding" a commodity product, so why not take the revenue? Submit your comments to let us know what you think.

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    Charles Laughlin claughlin@kelseygroup.com <![CDATA[Eniro Sweeping Away Noncore Assets]]> http://206.106.174.250/blog/blog_comment.asp?bi=470 2005-10-14T15:02:54-05:00 2005-10-14T15:02:54-05:00 2005-10-14T15:02:54-05:00

    The sale price indicates the problem Eniro faced. Management was spread thin trying to stay on top of operations in markets with revenues of only a few million euros with little hope the operations would gain any real scale anytime soon.

    In the meantime, Eniro faced an eroding core product in Sweden, looming competition from search engines and a brutal battle in Finland with its chief rival there. So no more Latvia, Estonia, Russia and the like. Now Eniro is doing deals like its recent acquisition of Findexa, which is right in the company's strategic wheelhouse. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Craig Blocks Oodle]]> http://206.106.174.250/blog/blog_comment.asp?bi=465 2005-10-14T14:07:50-05:00 2005-10-14T14:07:50-05:00 2005-10-14T14:07:50-05:00 Search Engine Watch. I'm in a meeting (secretly blogging) and will write more later.

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    Greg Sterling gsterling@kelseygroup.com <![CDATA[HomePages: The Next Level]]> http://206.106.174.250/blog/blog_comment.asp?bi=464 2005-10-13T11:18:19-05:00 2005-10-13T11:18:19-05:00 2005-10-13T11:18:19-05:00 HomePages.com. It's real-estate mapping and accompanying monetization taken to the "next level," with a great deal of local info built around the map. Unlike mashups such as HousingMaps.com, HomePages has complete MLS information. There were a couple of bugs for me, but it's a very rich product. We'll see a lot more like this soon. Waiting for newspaper-owned HomeGain to do this and then supply that functionality to newspaper sites.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Seasons News Search With Blogs]]> http://206.106.174.250/blog/blog_comment.asp?bi=458 2005-10-12T10:55:45-05:00 2005-10-12T10:55:45-05:00 2005-10-12T10:55:45-05:00 news search with a dash of blog search. (This is probably not a full-blown Yahoo! blog-search offering.) In this example for "local search," see the right column. Yahoo is also integrating Flickr content and audio/video results.

    While integrating all these different types of content into search results may prove challenging from both a technical (though I wouldn't know) and UI perspective, integrated search is ultimately better than what might be called "balkanized search" -- lots of different, segmented sites. I believe that most users want convenience and simplicity (and some comprehensiveness), and that argues for integration. In some not-too-distant future, from a user perspective, there will be no difference between blog content and traditional news sources. The publishers/content creators themselves are already starting to blur those lines. As a user, I just want information, and sometimes opinion, and so it makes sense to integrate blog search into other content results, which now superficially exists on the major engines. The specialized blog search engines are valuable for "power users," who may be looking for specialized content. But when it comes to local, as we've said before, there's more and more valuable user-generated content residing in blogs that needs to be captured and surfaced for consumers to benefit. This also argues for some sort of integration. In terms of new and improved news search, a company called Inform (recently mentioned on SiliconBeat) is doing some interesting and sophisticated things with news and blog search. I believe the official launch is next week. Here's more from Search Engine Watch and AP's Mike Liedtke about Yahoo! News Search. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Tagging Sneaks Into Google Search History]]> http://206.106.174.250/blog/blog_comment.asp?bi=461 2005-10-12T10:55:21-05:00 2005-10-12T10:55:21-05:00 2005-10-12T10:55:21-05:00 search history functionality, which can also now be added as a content module to the personalized home page (Fusion). This new tagging capability allows users to create a directory of sites, which can also be annotated.

    Google explains: When browsing your Search History, just click the star next to one of the search results listed to create a bookmark for that website. Once you've starred a site, you can click the "Edit" link to add labels and notes for the site. This makes search history much more useful, but still not as useful as Yahoo!'s MyWeb. See also, TimesSelect (based on Furl) and del.icio.us, which perform similar functions. Furl, del.icio.us and MyWeb all share a "social search" dimension -- users can see what others have saved (Jeteye takes this concept further in interesting but complicated ways). It will be intriguing to see if Google tries to move into this social search realm as well. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Slow Ad Shift Buys Newspapers Time]]> http://206.106.174.250/blog/blog_comment.asp?bi=459 2005-10-12T10:46:29-05:00 2005-10-12T10:46:29-05:00 2005-10-12T10:46:29-05:00 Editor and Publisher) reflects that national advertisers have not in fact abandoned newspapers and are shifting ad dollars to the Internet more slowly than widely perceived: The report found that, indeed, more than one-third of ad dollars flowing out of newspapers are moving to the Internet. The 48 advertisers spent roughly the same in 2004 as in 2003 on newspaper advertising; however, they upped their Internet spend by 29%. . . Yet, the shift is happening sporadically.

    Assuming the report is accurate, this buys newspapers some time to create truly compelling online offerings. (Though there is the problem of shifting offline revenues online where ad models and price points are different.) Still, there's a lot of pain to go around in the industry right now. Despite the belt tightening, there are lots of innovative things starting to happen online with newspaper sites. Just to point to one, the NY Times is using LookSmart's Furl to create a MyWeb-like content repository that can save content from anywhere online (if you download the toolbar). This is a service that has little or nothing to do with newspaper editorial content, and it helps justify the TimesSelect service. The irony is that all these third-party aggregation sites that are siphoning readers from traditional newspapers rely on those same newspapers as content providers. For these and other reasons -- newspapers play an important role in democracy -- I'm hoping the newspapers figure out all this local search stuff. At ILM:05, we'll have a panel (among other newspaper speakers) called Newspapers 2.0 (scroll) that will seek to expose and discuss some of the more interesting developments in the online newspaper space. Caroline Little, CEO of Washingtonpost.Newsweek Interactive, will also be a keynote speaker. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! and MSN in Reported IM Deal]]> http://206.106.174.250/blog/blog_comment.asp?bi=460 2005-10-12T10:39:50-05:00 2005-10-12T10:39:50-05:00 2005-10-12T10:39:50-05:00 others are reporting that Wednesday Yahoo! and MSN will announce consumer IM "interoperability." The conventional wisdom being widely repeated is: This now puts pressure on AOL, the IM leader, which has twice the market share of either Yahoo! (No. 2) or MSN (No. 3).

    I don't necessarily agree (unless you haven't yet adopted an IM platform or you're registered on multiple IM clients). But it does point to a time (coming soon) when there will be true interoperability among IM clients (Google Talk is based on the open Jabber protocol). With almost 49 million U.S. users (according to comScore), AIM has emerged as an important strategic asset that AOL is trying to leverage to introduce other services and AOL Search. Yahoo! is reportedly also trying to use IM to extend its reach. From our point of view, IM is most interesting as the front door or "foot-in-the-door" for mainstream VoIP adoption. That's the bigger picture, and more interesting longer-term implication, of the recent IM upgrades and flurry of activity. TKG clients can read more here. ________ More: Om Malik's take.]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Consumer Reports Is Dead; Long Live ConsumerReports.org]]> http://206.106.174.250/blog/blog_comment.asp?bi=462 2005-10-12T10:32:24-05:00 2005-10-12T10:32:24-05:00 2005-10-12T10:32:24-05:00 announced it had passed the 2 millionth subscriber milestone, which is quite impressive considering that consumers still resist paying for content online. CR's online success goes to the power of its trusted brand, its relatively unique content, and some skillful SEO and distribution deals. However, earlier today I got an email solicitation presenting me with a "deeply discounted" offer ($20 per year versus $26) to subscribe to Consumer Reports, the print magazine. No way.

    I previously got the magazine, and I naively assumed that by subscribing I'd also get access to the online articles and product reviews. Wrong. There was an additional subscription fee. When I found that out, I promptly subscribed to the site and let the magazine lapse -- never to renew. The site, which has all the content archived in browse and searchable form, is so much better than a pile of dusty magazines in the corner -- "Honey, where was that issue with the stoves?" There's no question about the relative value of the two products. Eventually, CR may figure out that, in order to keep the magazine going, it will need to bundle the two offerings for one "low, low price" -- as it should have done originally. That would have kept me subscribing to the print magazine . . . to get access to the site. But, to date, CR hasn't done it that way. I don't have any subscriber data to see if .org is cannibalizing print. I would imagine it is or will, if it hasn't yet, as happened with me. Reading magazines is generally more enjoyable than reading articles online (in my view). But CR is different; it's not entertainment. It's purely "utilitarian" content (product reviews). So I want to search for the desired information, find it and get on with my purchase process. The site is much better suited to that behavior than the magazine. CR may be somewhat unique because it doesn't rely on advertising. It may also, paradoxically, emerge as both something of an example and a cautionary tale for other traditional publishers. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Students, Parents and Search]]> http://206.106.174.250/blog/blog_comment.asp?bi=463 2005-10-12T09:57:33-05:00 2005-10-12T09:57:33-05:00 2005-10-12T09:57:33-05:00 MediaPost) about students' and parents' use of and attitudes toward traditional media and the Internet (specifically search engines). I haven't got lots of time to write about this, but here's the top level . . .

    College students rated search engines as the best source of information, friends and family were next, and traditional media was third. Parents were also heavy users and true believers in search: When the parents were asked where they go for information, 73 percent said they used keyword searches. That was more than the number who said they turned to retail stores (53 percent), TV ads (39 percent), and newspapers (15 percent), but less than those who turned to friends and family (94 percent), baby books (88 percent), baby Web sites (86 percent), baby magazines (82 percent), and doctors and hospitals (79 percent). These data may ultimately reflect that the Internet and search in particular put the consumer-user in "control" or at least provide a sense of control over the information and its delivery. So "credibility" in part might be a result of the fact that most traditional media (e.g., TV) "push" data and in this media-savvy culture are considered inherently less credible and, indeed, are greeted with increasing skepticism. One interesting contrast: The students trusted "friends and family" (word of mouth) less than search engines, while parents turned most to that category -- although they were heavy users of other information sources as well. ]]>
    John Kelsey jkelsey@kelseygroup.com <![CDATA[Did Verizon Demote SuperPages?]]> http://206.106.174.250/blog/blog_comment.asp?bi=156 2005-10-10T15:31:25-05:00 2005-10-10T15:31:25-05:00 2005-10-10T15:31:25-05:00
    In the first quarter of 2001, Verizon Information Services rolled out SuperPages as the new brand identity for its print directory products. At the time, the concept of applying an Internet brand name to an offline directory was unusual, and in an April 2001 Advisory, Kelsey Report Senior Analyst Charles Laughlin lauded the decision as "a logical move in progressing toward a single platform-independent brand." However, we also pointed out that "the migration involves some risk. Products that share a brand are only as strong as their weakest link." In order to succeed, SuperPages.com required significant marketing expenditures to create both a strong image and a relationship to Verizon. As it turns out, Verizon did not give the SuperPages brand the backing it needed and some said SuperPages.com wasn't seen as the incumbent Yellow Pages. To remedy this, the corporation made the decision to focus on the corporate name and to re-emphasize Yellow Pages. The lack of support behind the SuperPages brand will most certainly have a negative impact on both the Internet Yellow Pages product and future related local search. It seems that the decision was made to back the profitable old horse instead of the promising young colt. "Branding and the Future of Search Marketing" is a super session at the upcoming Kelsey Group Drilling Down on Local conference that will be held next week in Santa Clara. It will be interesting to hear what this group will think of Verizon's decision.
    ]]> John Kelsey jkelsey@kelseygroup.com <![CDATA[Are RBOC Yellow Pages the Big Game?]]> http://206.106.174.250/blog/blog_comment.asp?bi=132 2005-10-10T15:29:27-05:00 2005-10-10T15:29:27-05:00 2005-10-10T15:29:27-05:00
    The Journal goes on to predict that Carlyle won't be the largest buy-out fund for long. At least three other companies "are expected to be as big or larger." Michael Klein, head of global banking at Citigroup said, "the capital is there, the financing is there and the kinds of companies willing to consider it are there." Buy-out companies don't make money sitting on a pile of cash. That's why the headline of the story is "Carlyle's $10 Billion Puts Private Equity in Hunt for Big Game." Every major private equity firm and bank have called on the RBOCs' CFOs and strategic planners to talk to them about the benefits of a sale. Here's the back of the envelope math. The three RBOCs generate roughly $1 billion-$2 billion each in EBITDA. Let's take Verizon, whose EBITDA last year was approximately $1.7 billion. At a multiple of 8, that means it would cost something over $13 billion. Not too long ago that would not have seemed like too big a deal. In fact, it would be the second largest private equity deal in history. However, Verizon sold its Canadian operations to the second highest bidder in order to get the deal done quickly. Similarly, they moved fast in selling their other international directory businesses. Even after capital gains, this would give Verizon a sizable chunk of money to pay back debt (particularly if they do the MCI deal) and/or invest in fast-growing wireless and DSL businesses. BellSouth and SBC have similar fast-growing businesses and joint ownership of YellowPages.com, which is devoted to the fast-growing local search/IYP business. Carlyle and Goldman Sachs, among others, have had a taste of the money that can be made in the Yellow Pages business. It seems to me the stars are aligned. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[MSN AdCenter Wants SMEs for Beta]]> http://206.106.174.250/blog/blog_comment.asp?bi=455 2005-10-10T11:17:55-05:00 2005-10-10T11:17:55-05:00 2005-10-10T11:17:55-05:00 MSN's Search Blog: From: Yusuf Mehdi As you know, we launched MSN adCenter --our next generation advertising platform -- in France and Singapore last month. This was an important first step to delivering our global vision to connect advertisers to consumers in a more meaningful way. Now, as we prepare to launch the US pilot of MSN adCenter, we need your help in getting your friends and family to apply to participate in the self-service offering for small-to-medium businesses . . .

    This pilot represents a unique opportunity for small and medium businesses to be among the first to experience the more powerful tools and wide-ranging benefits of MSN adCenter . . .If you know a business-owner who would be interested in advertising their business on MSN Search, please forward this email to them and encourage them to apply to participate in the US Pilot by completing our online registration form at http://advertising.msn.com/adCenterPilot/89620.asp. Of course, it depends on how one defines "small business" -- the U.S. SBA goes up to 500 head count, which ultimately renders the definition meaningless. (Almost 90 percent of SMEs have fewer than four employees, and almost three-fourths have no employees.) But "self-service" and small business have so far been like oil and water. A day is coming when that won't be true. But the offerings need to be much simpler and more dynamic (something like this). It will be interesting to see what emerges from the pilot in terms of any innovations in self-provisioning. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Yahoo! Podcast Portal]]> http://206.106.174.250/blog/blog_comment.asp?bi=454 2005-10-10T11:15:34-05:00 2005-10-10T11:15:34-05:00 2005-10-10T11:15:34-05:00
  • Podcasts are another species of user-generated content (assuming they're created by individuals rather than traditional content publishers/creators).
  • They are part of the "long tail" phenomenon and further fragment the mainstream media audience.
  • Together with satellite radio, they have the potential to substantially disrupt commercial and local radio over time. Yahoo! launched a podcasting portal tonight, adding its weight to the gradually increasing awareness and momentum surrounding this phenomenon.

    ]]> Greg Sterling gsterling@kelseygroup.com <![CDATA[Google Reader Take Two]]> http://206.106.174.250/blog/blog_comment.asp?bi=456 2005-10-10T11:15:16-05:00 2005-10-10T11:15:16-05:00 2005-10-10T11:15:16-05:00 Google Reader for the past 72 hours, my initial "hands-on" reaction is very positive. (Critiques: "Labels" aren't working for me, and there's no way to search within the reader -- yet.) But overall it's very easy to use and provides a clean and intuitive way to add, read and manage feeds. The interface and, specifically, the easy and effective navigation -- whether moving between blogs/feeds or within them -- is very nice.

    I used to have eight or nine blogs on my Firefox toolbar, and now I've put them all into Google Reader. The conventional wisdom is that the public doesn't know what RSS is, and the number of users who read news and other information this way is very small. However, Michael Bazeley at SiliconBeat cited a Yahoo! study that contends up to 31 percent of those online are using or encountering feeds yet are unaware of that fact. The new Google Reader enters an already crowded field, including MyYahoo!, IAC's Bloglines, NewsGator, Pluck, the Firefox browser (and soon IE), among many others. Here's FeedBurner's data on RSS reader market share (as of January 2005): Aggregator Name (Market Share Percentage) 1. Bloglines (32.86%) 2. NetNewsWire (16.95%) 3. Firefox Live Bookmarks (7.78%) 4. Pluck (7.20%) 5. NewsGator Online(4.45%) 6. (not identified) (4.07%) 7. FeedDemon (3.83%) 8. SharpReader (3.27%) 9. My Yahoo (2.58%) 10. iPodder (2.42%) 11. NewsGator (2.23%) 12. Thunderbird (2.13%) 13. RSS Bandit (1.12%) 14. NewsFire (1.05%) 15. iPodderX (1.02%) 16. Sage (0.71%) 17. FeedReader (0.67%) 18. RssReader (0.54%) 19. LiveJournal (0.46%) 20. Opera RSS Reader (0.45%) The market for readers is young and still wide-open. (At a certain point of market development, however, people won't want to switch readers because they'll be too invested in one -- similar to email.) When IE7 incorporates an RSS reading capability (a la Firefox), we'll see what impact it has on these other products. And now back to Google . . . Google needs to find a way to better integrate and leverage some of its related but now separate products: i.e., News, Blog Search, Sidebar and its personalized home page. I'm not suggesting all these should be folded into one. But having too many "parallel" products will fragment the audience and weaken what might otherwise be a stronger, consolidated offering. Regardless, the new Google Reader is a nice addition to the tool set. _________________ Related: RSS and newspapers . . . I've argued that online news is being "commoditized" (except for local news) by news aggregators. To the extent that RSS readers catch on with mainstream audiences that will further accelerate the process and also minimize or eliminate the distinction between blogs and traditional news -- to an online reader it will all be information. And while sources are important (and will continue to be) in terms of credibility and trust, I might spend less and less time on news or other content sites and more time with my efficient reader that pulls together and helps me manage the information overload. ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[Google (RSS) Reader]]> http://206.106.174.250/blog/blog_comment.asp?bi=453 2005-10-07T16:55:46-05:00 2005-10-07T16:55:46-05:00 2005-10-07T16:55:46-05:00 Google Reader earlier today. It joins an already crowded field of RSS readers (and Google's personalized home page and sidebar apps have RSS/feed readers embedded in them; over time integration will be key). RSS readers have implications for newspapers as destination sites. Over the phone, and without having seen it until about 30 seconds ago, it sounds like it has a great many nice features. Google says it's easier to use and more intuitive than most of what's out there. It's search-driven and allows users to "search for new content" (MSN's Start.com has a similar feature) and subscribe to feeds without any understanding of RSS, Atom feeds or XML. I'll have more to say after I use it a bit. Here's what Google had to say officially. More explanation of how it works here, from Google.

    ]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[GoogleNet Inches Closer to Reality]]> http://206.106.174.250/blog/blog_comment.asp?bi=441 2005-10-07T15:59:46-05:00 2005-10-07T15:59:46-05:00 2005-10-07T15:59:46-05:00 rumor, then the Wi-Fi VPN, now confirmation of a bid to provide free Wi-Fi across the city of San Francisco (per Reuters): "Google has submitted a proposal to offer free, wireless Internet access (Wi-Fi) to the entire city of San Francisco," Google said in a statement. The Wi-Fi access could be funded through online advertising, a Google spokesman said.

    Om Malik did the original reporting on the GoogleNet story and has some more information on his blog: "Google officials say San Francisco residents (and visitors) will enjoy a free 300 kilobits per second, always on connection anywhere in the city. As part of its proposal, the company says it will be offering wholesale access to other service providers, who will offer higher throughput connections to their customers. Google says it plans to use its own authentication services." At least "officially," this then becomes more of an infrastructure play than a pure competitive offering, although one has to see it as competitive with other service providers, which currently have built lucrative business models around access. (Why would I pay Comcast or SBC, for example, when I can get it for free? -- unless there's something scary or obnoxious about the entire offering.) More from Malik: “San Francisco will be a true test bed for location based services and applications,” says Chris Sacca, principal of new business development at Google. While the initial use of location-based services might be limited to more-focused and targeted advertising, the potential of location-based services is immense, officials said. Sacca pointed out that the network bid was in line with Google’s thinking on delivering answers anytime anywhere to anyone, and looking beyond a desktop PC." On to the familiar bulleted list of some of the implications (I've written others here):
    • This shows that Google sees its growth depends to some degree on keeping broadband momentum going and wants to take that into its own hands
    • Location-based ad targeting/services go without saying (but Google has a range of things in mind beyond more location accuracy)
    • Potential revenues from wholesaling access to third parties
    • If GoogleTalk ever develped a PC-to-Phone capability (it's PC-to-PC now), this would make Google effectively a telco (a la Skype)
    Assuming this gets built out, it would be a lab for Google to test new products and services (as company spokespeople suggested). Clearly, if it worked, the effort would be to roll out the offering on a larger geographic scale (U.S. and beyond?). If the company is going to try to do this with municipalities, there will be lots of bureaucratic headaches and legislative barriers thrown up by entrenched telco competitors (as has been the case in Philadelphia). But Nitin J. Shah, CEO of Feeva, which has been associated with the GoogleNet rumors (Shah will be speaking at ILM:05), told me that working with municipalities across the country would potentially be much more challenging than just trying to build a network privately. (Feeva has two hotspots in SF.) Everyone will be watching this -- it goes without saying. ______________ More from SiliconBeat and read Om Malik's full post.]]>
    Greg Sterling gsterling@kelseygroup.com <![CDATA[WhitePages.com Quietly Building a Juggernaut]]> http://206.106.174.250/blog/blog_comment.asp?bi=445 2005-10-07T15:45:27-05:00 2005-10-07T15:45:27-05:00 2005-10-07T15:45:27-05:00