Category Archives: Local Search
Marchex Marching through Local Online
An interesting article in the Business 2.0 finale this month about Marchex.
Marchex CEO Russell Horowitz is launching websites for thousands of cities, big and small. The play? To beat Microsoft, Google, and Yahoo to the punch in connecting businesses to nearby customers.
With smart people, powerful tools, and hundreds of millions of dollars behind it, I’m sure that this effort will produce something of value… in fact it already has. But I wonder about “soul”…
Marchex is having a hard time selling its vision. Since so many of its sites sat idle for so long, packed with nothing but ads, Marchex looked like a giant domain play except with much higher overhead. But the company has been developing new technologies. And in June, Marchex lit up 100,000 of its sites – with another 150,000 or so to go – changing them into destinations with a smattering of content and reviews. The goal is to create sites that, as Horowitz puts it, “have a soul.”
In May 2006, for example, Marchex bought a review site called OpenList, a local guide that pulls together reviews for restaurants, hotels, and local attractions. The company then developed software that crawls the Web, sorts out duplicate content, and then generates a review. Look up San Francisco’s Hotel Triton on BayAreaHotels.com, for instance, and the software-generated write-up reads like a Zagat guide: “What travelers said they loved: ‘The location,’ ‘the staff,’ and ‘the room.’ Guests can enjoy yoga and other local activities.” Users add their own reviews too.
Hmm…
Ask your Community vs. Find it Yourself
Greg Sterling writes today about social networks as a way to cut through the tangle of information on the web…
Community is something of an antidote to these phenomena. Community has definite limitations and flaws but it also offers a way to navigate the sea of too many choices online.
We’ve been talking about this with Front Porch Forum for some time. Seems like there are two kinds of people in the world… those who think there are two kinds of people and those who don’t. 😉 Whoops…
Another two kinds… people who live and breathe online and those who use it as a tool when needed. Advanced users jump all over the growing mass of online services to find whatever, whenever. The rest of us would just as soon ask some real and familiar/trusted people… “does anybody know where I can get X?”
Reminds me of the old male-female stereotype about asking for driving directions.
Local… the fifth horseman?
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…
- Communications. Businesses that primarily focused on the consumer, navigating online, email and messaging.
- Commerce, which massively impacted both consumer and merchant-driven markets.
- Search, … exponentially expanded merchants’ ability to acquire customers more efficiently.
- 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.
Where2GetIt getting it right?
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
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).
“Neighborhoods Online” gets a Look by MediaPost
Kathleen Burge writes in OMMA this week about several neighborhood-level online efforts. She includes FatDoor, BackFence, eNeighbors, MeetTheNeighbors, and Front Porch Forum. The conclusion… full of potential, but two big problems… (1) generating sufficient revenue, and (2) scaling and adjusting the formula that works in San Francisco so that it plays in Peoria. Worth a read.
$1.5M more invested in Outside.in
Greg Sterling highlights today that Outside.in recently received another round of investment: $1.5 million.
The company is trying to scale “hyper-local” and has improved the look and functioning of the site since its launch. As founder Steven Berlin Johnson told MediaPost:
“The development of our partner program and targeted regional and national advertising will be two major initiatives for the coming year,” said Outside.in co-founder Steven Berlin Johnson. “We’ve spent our first year building out a state-of-the-art platform for organizing the Web geographically, and now we’ve got a fantastic opportunity to build a business on top of that platform.”
Smalltown is also in this category, although taking a more incremental approach to building out its sites. The challenge of course is direct advertiser acquisition. Backfence (now gone), Judy’s Book (now evolved) and InsiderPages (now acquired) have all faltered along this path to monetization. Yelp has had success in certain markets doing direct sales because of its brand recognition and consumer traffic.
Most Trusted Source? The Envelope Please…
Greg Sterling summarizes recent studies that ask about the most trust source of information…
Front Porch Forum deals with lots of word-of-mouth. I differentiate between word-of-mouth from anonymous strangers (most review sites) and word-of-mouth from a clearly identified person with whom you have a connection. With FPF, the recommendations come from clearly identified nearby neighbors.
And from the eMarketer Newsletter…
Local Online Growing, Growing, Growing
Seems like the word is getting out about “local online.” Some recently reported developments…
Greg Sterling takes a look at “mommy sites”… lots of them popping up all over. Some of these are similar to Front Porch Forum… very local and talk about whatever (not just reviews or just classifieds).
Marketers and local businesses should consider some of these mom sites in their thinking about targeting local audiences and in terms of “online word of mouth.” While it’s considerably more challenging to market within online communities, a little time and attention to some of these sites could pay off in a meaningful way. Regardless of whether marketers pay attention to them, these mom networks are in fact driving lots of recommendations and business referrals all over the US. It’s very much an untold story in local.
Bill Day writes for Marchex a post titled “Building relevant and useful sites for neighborhoods.”
How do you cover a landscape as fragmented and targeted as the 42,000+ neighborhoods/ZIP codes that exist in the U.S.? And what needs to be done locally versus done centrally to ensure a solid consumer experience? As a company that owns ZIP Code Web sites covering most of the U.S., we are dealing directly with the challenges and opportunities that come with building highly relevant and useful local sites covering each of the ZIPs.
Hmm… a ZIP Code is interesting, but too crude of a cut. Just in my own experience I’ve lived in ZIPs that feel like home, others that feel disjointed and jerrymandered. And they change. Does that mean the “neighborhood” changes too? Perhaps a techie’s solution to a human challenge. Who knows?
ReachLocal, a provider of local online marketing solutions for SMBs, has raised $55.2 million in new financing. This comes on top of the $12.7 million it has raised since its founding in 2004. The new funds give ReachLocal an estimated valuation of $305 million, since it was previously valued at $250 million.
That’s a lot of money. Reminds me of Big Tent… social networking for soccer moms. And Ning… DIY social networking. Both of which I believe have huge sums of investment.
Finally, Cameron Ferroni on the Marchex blog seems to agree with my assessment that the local online space is getting both broad and deep…
There is so much data out there that some set of consumers will love, and others will think is irrelevant. Deciding how to bring it all together and get consumers excited – now that is the challenge.
About Blog
Ghost of Midnight is an online journal about fostering community within neighborhoods, with a special focus on Front Porch Forum (FPF). My wife, Valerie, and I founded FPF in 2006... read more
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