Yearly Archives: 2007

More on the Apocalypse, aka Start-Up Acquisition Fever

Posted on Friday, October 19, 2007 by No comments yet

A couple interesting  pieces  this week about the booming  dot.com investment arena…

First, Robert A. Guth at the Wall Street Journal Online reports that Steve Balmer predicts that he (aka Microsoft) will buy about 20 start-ups per year for five years for between $50M and $1B each.

And before that, Brad Stone and Matt Richtel wrote in the New York Times about a growing dot.com investment swell that may become bubble 2.0.

Local… the fifth horseman?

Posted on Wednesday, October 17, 2007 by No comments yet

Russell C. Horowitz offers today that the Internet has…

seen four major consumer- and/or merchant-focused movements that have created or transferred hundreds of billions of dollars of value.

They are…

  1. Communications. Businesses that primarily focused on the consumer, navigating online, email and messaging.
  2. Commerce, which massively impacted both consumer and merchant-driven markets.
  3. Search, … exponentially expanded merchants’ ability to acquire customers more efficiently.
  4. Social networking. While we have yet to see how the model evolves, it is obvious that these businesses are impacting online consumer behavior.

Local will be the fifth – and it will impact consumers and merchants alike.

Each of these movements has created hundreds of billions of dollars of company value and Local will be at least as transforming. Local will not be winner take all and will be realized through the collaboration of many companies.

e-Neighbors Research: email lists build community

Posted on Wednesday, October 17, 2007 by No comments yet

A new academic paper has just been published in Information Communication & Society (iCS) that’s really fascinating…

Neighborhoods in the Network Society: The e-Neighbors Study
Keith N Hampton, Annenberg School for Communication, University of Pennsylvania
October 2007

Professor Hampton has worked in the “e-neighborhood” arena for the past several years and some of his research is available on his website.

This new paper presents findings from a study that provided neighborhood-level online social networking opportunities for four Boston-area neighborhoods… one apartment complex, one gated condo development, and two suburban neighborhoods. Each was provided a neighborhood email list, and a neighborhood website with a bevy of bells and whistles.

The short of it (and I’m condensing and skimming, so likely missing some key points!):

  1. The suburban neighborhoods made better use of the offer, then the condo development, and the apartments were dead last.
  2. The email list became popular in the active neighborhoods and grew from year one to year two of the study, while the web tools got almost no traction
  3. Different issues got different play… “Studies of community email lists have consistently found that their use is primarily for information seeking and household aid, but they are occasionally used to express opinions and discuss politics, civic duties, and collective action (Hampton, 2003, Mesch and Levanon, 2003).”
  4. Neighborhood organizer types love this kind of tool… “Neighborhoods that already have an interest in building community, with the neighborhood context to back it up, are most likely to profit from a neighborhood email list.”
  5. New neighbors and others outside of the inside crowd more readily jump onto this more democratic grapevine… “Within neighborhoods, those who have smaller networks on average, and consequently are the most likely to have a deficit of power and access to information, are the most likely to participate.”
  6. While non-posting lurkers get the information, they don’t get the social boost… “the benefits of an email list are only available to those who actively participate, by sending messages to the neighborhood list. Lurkers experience no change in their network size as a result of observing.”
  7. Active participants see their neighborhood social network grow.
  8. Folks left out of neighborhood social networks due to poverty and other issues will be even worse off if they aren’t able to participate online; they need support… “For those of lower socioeconomic status, residential mobility is a reduced option as they undergo changes in life-cycle and family status, and when mobility does occur, it is less likely to provide access to a neighborhood context that supports the formation of local social ties –with or without the advent of new media. Unless traditional community networking initiatives, those that provide a neighborhood email list, a technology infrastructure, and training, continue and expand the work they have done in less privileged neighborhoods, the “social network gap” between rich and poor, inner city and suburb, will continue to grow.”

Overall, much of what I read jibes with our experience running Front Porch Forum in our pilot area since fall 2006, and our flagship neighborhood forum since 2000. It’s great to get some confirmation from a respected researcher. Also, lots of details and insights that may guide FPF’s development. Thank you Professor Hampton and colleagues!

Yodle selling ads to small businesses

Posted on Tuesday, October 16, 2007 by No comments yet

Greg Sterling writes today

I had an interesting conversation this morning with Court Cunningham, CEO of Yodle (formerly NatPal), a local SEM firm. Yodle is in the hunt for SMB online advertising dollars and says its growing ranks of advertisers are spending roughly $1K per month — a figure that I’ve heard from others.

This translates to an average annual spend of roughly $12K, which compares with an approximate annual spend in print yellow pages of $4.5K or so…

The company is driving clicks but selling calls. It doesn’t guarantee clicks or calls but uses predictive modeling to set expectations (e.g., for that spend you can expect to receive X calls, based on Y clicks). Cunningham said that his sales team offers what amount to small, medium and large packages that are budget based and very simple to sell and buy.

LifeAt – Social Networking in Residential Buildings

Posted on Tuesday, October 16, 2007 by 1 comment

TechCrunch reported today

New York-based LifeAt wants to create a social network around your residential building. Do you need one? Nope. But maybe you’ll use it anyway. And perhaps you’ll even get to know some of your neighbors. The building managers control the network and post information about the building itself. Residents sign up to get news about the building, interact with other users, etc.

LifeAt is in the ballpark. Front Porch Forum knows all about the demand for neighborhood-level online service. Time will tell if they’ve got it right.

Topix Local Forums Pass Milestone

Posted on Tuesday, October 16, 2007 by No comments yet

Newspaper-owned Topix.com reported today that their…

number of daily, active(1) local forums on its site now exceeds the total number of daily newspapers(2) in the United States for the first time. Topix local forums were first launched in December 2005 as part of the Topix’s broader user-generated forum functionality. Since that time, Topix local forums have grown at a rapid pace, reflecting Topix’s ability to meet pent-up demand for local news and to successfully generate local engagement and online participation.

Ranked a top 20 news site(3) since June 2007, Topix draws more than 12 million unique visitors every month and 70,000 forum posts per day. Topix local forums, which span all 32,500 U.S. zip codes, give local residents, especially those located in rural areas that are underserved by major media outlets, an opportunity to discuss and share the news that matters to them. Beyond daily local forum activity, Topix has generated user activity across 20,000 local forums with 16 million forum posts and 3 million users across the site.

(1) “Active” defines user forums with at least one post per day
(2) 1,437 Editor & Publisher (http://web.naa.org/thesource/14.asp )
(3) ComScore, -June, 2007

So… 32,000 or so local forums? And 1,500 of them have at least one post/day? About 5% of them are active? Do most of those 70,000 posts/day fit into the 1,500 active local forums… 40-50 posts/local forum/day?

About 30 of Front Porch Forum‘s 130 neighborhood forums have at least one posting/day… that’s in metro Burlington, VT, population 150,000. Our average neighborhood forum averages one posting every two days.

Where2GetIt getting it right?

Posted on Monday, October 15, 2007 by No comments yet

Greg Sterling writes today

Where2GetIt has been around for a decade and is impressively self funded (VCs take note). Based in Southern California it’s a company that more people in the local space should know about. However the company has been relatively quiet about what it’s doing and where it’s going.

Where2GetIt started as a dealer locator service for retailers and manufacturers, hosting maps and directions that appear on their those third-party sites. But in the process of building out its services over time the company has developed a rich database of product inventory information in addition to business locations. In other words, it has a tremendously valuable body of information about where consumers can find products today in local stores. Among its customers are a host of “marquee” brands such as Office Depot…

But what caught my attention was Greg’s closing…

One of the other interesting things about this company is that it has built a business rather than the appearance of a business for the purpose of an acquisition, which is characteristic of so many “Web 2.0” companies of late.

Sounds good to me.

Smalltown buys Local2Me

Posted on Monday, October 15, 2007 by No comments yet

Smalltown announced today that it just bought Local2Me.  Here are some of the reports about it…

As I’ve written in the past, I admire Smalltown’s narrow and deep focus on their initial five California towns.  Local2Me is in the same geographic area as Smalltown.  From Local2Me founder Michael Olivier…

The Local2Me service launched in 2000, and over the last seven years community members have posted over 31,000 neighborhood messages in 90 towns about wide-ranging topics, from great pediatric dentists to Halloween costumes for sale, trustworthy appliance repair, neighborhood crime issues, anti-raccoon measures, and more!

Each of these services has some similarities to Front Porch Forum.  Although it’s probably more apples to oranges than anything, FPF had about 15,000 messages in its first year operating in one small metro area (including 19 towns).

Good time to go into sales?

Posted on Sunday, October 14, 2007 by No comments yet

Michael Taylor writes about “local online” start ups with lofty advertising sales ambitions…

In a recent post on Venturebeat.com, Dan Kaplan reveals ReachLocal is aiming to dramatically increase the size of its online sales force. “Local search marketing company ReachLocal will use its massive $55.2 million infusion to build a gigantic sales force that it hopes will dislodge the Yellow Pages as the de-facto place local businesses spend their promotional dollars.”  Kaplan makes a good points on the grand goal set out by ReachLocal “To add some perspective, ReachLocal has around 300 salespeople; the global Yellow Page market employs more than 41,000 in sales alone. Zorik Gordon, ReachLocal’s chief executive, doesn’t balk at that figure, and suggests that a sales force of 10,000 or more might be in the cards. This is an unprecedented goal for an Internet-focused company, and a risky one. It comes at a time when the market for talented salespeople is extremely tight.”

Theater troupe engages audience in word-of-mouth

Posted on Saturday, October 13, 2007 by No comments yet

Mark Nash of the Vermont Stage Company wrote the following in his recent e-newsletter to theater supporters…

Spread the word!
We depend on those who have seen and loved our shows to tell their friends and families about their experience. One way you can do this s through Front Porch Forum,which connects neighbors through the Internet. Though commonly used to share news about good babysitters, lost cats, and annoying potholes that never get fixed, it’s also a place for people to share knowledge of local cultural events. Check out Front Porch Forum, join, and let your neighbors know about Vermont Stage!

We’re seeing more and more of this kind of thing as FPF becomes integrated into its pilot community.