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October 31, 2007

ILM:07 Update: Facebook, LA Times, Microsoft, ShopLocal ++++

The numbers are looking very, very good for the Interactive Local Media:07 conference in L.A. Nov. 28-30. Internally, we think this one is a record breaker. Register and book the hotel while you can. The latter tends to sell out.

In recent weeks, we’ve been putting the final touches on the program. For instance, we’ve added Facebook’s Chamath Palihapitiya, who is VP of product marketing. Here’s a snippet about Chamath from Fast Company’s cover story this month:

“Palihapitiya, 31, is tall and whippet thin, with elegant manners and a ready smile. A former electrical engineer, born in Sri Lanka and raised in Canada, he ran AOL’s instant-message group, then jumped to the venture fund Mayfield. He is part Sand Hill Roadster and part freethinker.”

Other notable adds include ShopLocal CMO Bob Armour, Scott Ferris from Microsoft’s Atlas division, LA Times.com’s Robertson Barrett, and City Voter’s Josh Walker. There is also a brand-new Local Mobile panel, featuring Gary Roshak, who has migrated from Marchex to Yahoo!, Jeff Torgerson at InfoSpace, and Collin Holmes at V-Enable.

Also, take a look at the SES side of the show. Google Local head Eric Stein, Zorik Gordon from Reach Local, and Topix head Chris Tolles are just some of the great execs SES is bringing in. Kevin Heisler and Kevin Newcomb are moderating the SES panels.

The Kelsey Group also has its LinkedIn networking set up for the show. We’ve got dozens participating already. Once you register, you should sign in for that, too (even if you haven’t used LinkedIn for a while). See you in L.A.?

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Here Comes the Gphone, Part III

There is a lot of buzz today around a Wall Street Journal article (sub req.) that reveals the latest in Google’s impending entrance into the mobile world. As reported in a recent New York Times article and supported in a previous blog post, this will likely involve a mobile operating system rather than an actual phone.

The newest information from The Journal is that Google has been talking to a few mobile carriers in the U.S. about carrying a potential Google operating system on their devices. This would be a far cry from the traditional carrier model that exerts a great deal of control over the functionality and Web accessibility of the devices that run on their networks.

A Google operating system would conversely provide an open platform on which third-party developers can build all kinds of applications. Though this is a considerable departure for such a conservative industry, promise of shared profits from Google delivered mobile ads would be the enticement to play ball. At least that is the implication from speculations made by The Journal (and consistent with our past speculation).

Also notable is this indication (as expected) that Google’s mobile OS will be made open for third-party developers to build compatible applications. Like Apple’s recent announcement that it will make the iPhone software development kit available to third-party developers early next year, this will really open up the market for mobile search and applications.

This open standard will lead to a level of innovation and product development that we have seen flourish on the Web, and mobile local search will certainly see some of this effect. Meanwhile, the overall competition that this open environment enables will be good for consumers, product developers and the health of the mobile product market.

Leave it to outsiders like Google and Apple to finally step in and change the way things are done in this industry. As I’ve said before, there will be no going back.

_________

If you don’t have a WSJ subscription, there is good follow-up coverage and comments from Google and mobile carriers in the San Jose Mercury News.

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Blog: Local Media Blog, Google, Mobile Local Search
Posted by: Mike Boland at 2:26 pm - Comments (0)




Yodle, Ambassador Rev Up Local Online Sales

When it comes to third-party local ad sales, apparently, more is the merrier – especially with the powerful incentive of ReachLocal’s $300 million valuation. Yodle and Ambassador Internet are two of the more recent names to consider, on top of ReachLocal, WebVisible, Weblistic, Cornerstone, RHD’s LocalLaunch and Idearc’s Inceptor.

I met with the heads of Yodle (“Get Found!”) and Ambassador Internet Media last week in New York. Yodle, formerly known as NatPal, has 600 customers, and is selling itself as a branded destination. Ambassador Internet, a spinoff of Ambassador Yellow Pages, has 4,500 customers and focuses on consultative sales rather than a branded site. Both companies feature dedicated call tracking and measurement, and day parting “pause” capabilities.

Yodle was launched in 2005 by Nathaniel Stevens, a student at the University of Pennsylvania. It was developed in Wharton’s small-business incubator, quickly learning to stay away from the oversaturated restaurant marketplace and focus instead on services. “Caterers, yes; full-service restaurants, no,” says Stevens. This April, the company recruited Community Connect head Court Cunningham to be its CEO.

The company has developed a media planning tool based on machine learning, boosting click conversion rates and enabling businesses, among other things, to pause advertising campaigns (i.e., Jewish locksmiths can take Saturdays off). Stevens says 80 percent of the process is automated.

Yodle sells tiered SEM services as $500, $1,000 and $1,500 and provides advertisers with call-to-action “AdverSites” that include templated formats to make their information/copy points more searchable. The AdverSites include live chat, and also boast myriad “customer touchpoints,” such as appointment pages and special offers. In the future, it plans to launch click-to-call and coupons. The average buy is around $900.

It’s very early in the game, but the company’s top markets are currently Washington, D.C., Atlanta, Boston and New York, and it sells its services via a combination of inside and outside sales. The company had just three salespeople three months ago, but now it has 15. By the end of 2007, it hopes to have 20 to 24 salespeople.

Stevens stresses that a key differentiator is that the company plans to build the Yodle brand. “We want to be the OEM of local search,” he says. The company has raised $3.5 million from Bessemer Ventures and others, and hopes to raise up to $10 million more.

Ambassador, meanwhile, is feeding off a large independent Yellow Pages operation serving the New York metro area. It had previously worked with ReachLocal, but in fall 2005 opted to go its own way. It provides its customers with a five- or six-page Web site and typically takes out 20 to 30 keywords on their behalf, although it has the capability to manage up to 1,000 keywords. The average spend of its 4,500 customers is more than $2,000 per month.

“We get about $5,000 a year for print, and $25,000 for Internet,” says President and CEO Kathy Hipple, emphasizing why the Internet is where the action is for the company. The company also believes that the Internet allows it to better serve narrow, vertical categories (i.e., “mold resuscitation”).

While some companies are pushing a combination of SEO and SEM, VP of Internet Strategy Rich Hargrave says Ambassador is mostly pushing its SEM solutions. The problem with SEO – organic search results — is you can’t stay on top, he says. He adds that Ambassador sends it customers e-mail reports every day. “After a month, they are comfortable with them,” he says.

Currently, Ambassador has 40 people on the Internet side in New York, but it is also branching out with sales operations launched in Philadelphia, Tampa and Texas. There is also a national sales operation.

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October 30, 2007

Yellowpages.com Launches Mobile Local Search Site for the iPhone

Yellowpages.com today announced the release of a mobile local search site specifically designed to work on the iPhone and iPod Touch. This will be a mobile web based local search site accessible from the devices’ Safari web browser, and will include Yellowpages.com local listings, reviews and maps.

This speed to market will help it gain early traction and user loyalty which could prove invaluable in the soon to be crowded mobile local search product environment. This will start to happen in early ‘08 when Apple releases its software development kit to third party mobile application developers.

When this happens, expect a full fledged YellowPages.com downloadable application that users can plant directly on the device’s home screen. AT&T owned Yellowpages.com could also utilize its parent company’s relationship with Apple to push such a local search application (although this would compete with the Google Maps application that is already built into the iPhone’s home screen).

The beauty of directory and mobile local search products on the iPhone is that any number that shows up in Safari, the SMS module, or in Google Maps is hyperlinked so if you tap on it, the phone starts dialing. This built in click-to-call functionality will be a nice foundation on which to build lots of compelling and user friendly mobile local apps for the device (and the copycat devices that will invariably flood the mobile device market).

Overall, this is a smart move for Yellowpages.com, and its mobile product development could continue to accelerate as mobile search usage increases and mobile advertising revenues follow the growth curve outlined in TKG’s U.S. Mobile Advertising Forecast. As this happens Yellowpages.com will likely add mobile to its growing cross platform sales bundle.

I plan to talk to the company to find out more about this opportunity, and also check out the site to see how it “plays” on the iPhone. It’s design sensitivities, built specifically for the iPhone interface suggest that it could have a user friendly look and feel. But I’ll give it a good field test to be sure. Stay tuned.

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Blog: Local Media Blog, Mobile Local Search
Posted by: Mike Boland at 12:59 pm - Comments (0)




Zillow Integrates Ads to Home Searches

Zillow announced this morning that it will integrate a new ad targeting feature known as HomeDirect, which will serve geographically, demographically and contextually relevant ads within individual home listings. This will come in three flavors; targeting individual homes that its algorithms determine to be near the point of sale, targeting homes that are of a certain value, targeting based on geographical significance to advertisers.

All three of these measures will allow advertisers to better target users down to the home level. Ads will target those who view homes, as well as the home owners themselves, who generate 60 percent of hits to individual home listings, according to VP of Sales Greg Schwartz.

Zillow also claims to have a growing audience that will be attractive to different forms of national and local advertisers. Some of the attributes of this user base are:

  • 4.4 million unique visitors in August 2007.
  • 90 percent of Zillow users own a home, and 71 percent indicate that they plan to buy or sell a home in the next 24 months.
  • Zillow’s audience has an average household income of $90,000/year.
  • Zillow’s audience is demonstrably “house proud” and engaged and active on the site. In the past year, 1 million home owners have claimed their homes and updated facts about their home (such a number of bedrooms and the results of recent remodeling), which indicates that they are interested in goods and services related to enhancing the value of their homes.

The third point is behind the feature of the new HomeDirect Ads product that lets advertisers target ads to individual income levels and listings that correspond to different levels of home value.

Bringing in New Advertisers

HomeDirect Ads could also appeal to different kinds of advertisers that Zillow hopes to tap into such as cable and telecom providers that want to target people who are moving or buying new homes. There is also, interestingly, an opportunity to tap into automotive advertising because of the correlation between auto purchases and life events such as home purchases.

“A little known fact is that moving correlates highly with buying a new car. You tend to move when you’re getting out of school or having a kid, and each of those steps requires something different in your transport,” says Schwartz. “This is going to light up our 2008 automotive efforts. There are a lot of tier 2 automotive dollars of regional dealer associations and lease offers that have jumped all over the new mover targeting and the cleaner geotargeting that we have.”

The product will also augment the larger effort to increase sales through a growing physical sales force — something we’re seeing many online pure plays increasingly build out to varying degrees (most recently in yesterday’s announcement from Yodle).

“We’ve got 20 folks on the team right now across the country,” says Schwartz. “We’ve just finished staffing that team in our first wave of hiring and the 2008 ad planning process is going on right now. We’ll do some more hiring to attract some top sales talent.”

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Blog: Local Media Blog, Verticals
Posted by: Mike Boland at 11:02 am - Comments (0)




Curbed Gets $1.5 Million

Curbed.com, the fun, well-written and insightful Web site about local real estate culture and deals, has gotten $1.5 million in new financing from Gawker Media, individuals associated with Gawker and others, such as Brad Inman. The site is the brainchild of publisher Lockhart Steele, who used to run editorial for Gawker, a blogger network.

According to an article in today’s New York Times, the money will be used to expand beyond its existing sites in New York, San Francisco and L.A., and add new staff members. The article quotes Steele as saying that traffic is growing 10 percent a month, and is attracting both local advertisers and national advertisers, such as American Express and Volkswagen. Steele indicates that the national advertisers are attracted mostly to the site’s urban context.

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Idearc Brings the World to Its Local Print Yellow Page Customers

When is a local Yellow Pages not a local Yellow Pages? When a global gift shopping catalog is part of the directory. Idearc Media has partnered with Shop Yellow, an online and print gift catalog company offering gift items for every occasion from around the world. Starting with editions in Virginia and Pennsylvania, Idearc plans to bind in the new catalog within 500,000 editions of its print Yellow Pages directories and to expand distribution in other markets. 

According to a press release from PR.com: “The print and online versions of the Shop Yellow catalog offer over 170 original gift ideas from around the world. ‘The most exciting thing about Shop Yellow is the extent and originality of our selection,’ says Matt Jackson, President of Shop Yellow. ‘There are products covering all occasions and tastes, from stylish designer bags to gourmet baked goods – delivered fresh, delicious and ready to eat.” 

What is curious about the offering is that in a truly local directory, the Shop Yellow catalog sends shoppers outside the local community to purchase gift items. The product, while unique to a print directory, seems a contradiction with the potential to upset local gift businesses not featured in the Shop Yellow catalog. I suppose this might in and of itself spur local businesses to contact Idearc to be part of the catalog — which might be the ultimate strategy of enticing more boutique retailers to become advertisers in the directory or local artists’ products to be featured in the catalog. 

The trend of creating unique local marketplace products both in print and online is one that The Kelsey Group’s Peter Krasilovsky continues to follow. As consumers wish to enhance their shopping experience, they are turning more and more to unique vertical products that address their specific shopping needs. While recent product launches by directory companies have focused on Home Improvement & Decorating, Restaurants, and Local Contractors, Idearc’s move into catalog shopping stands out as a new avenue for addressing the unique shopping needs of local buyers.   

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October 29, 2007

The Future of Local 3-D Mapping: A Conversation With Everyscape

3-D mapping company EveryScape today launched its product for Boston, Miami, Aspen and New York. We’ve written a great deal about the potential for 3-D mapping to become a centerpiece of the local search experience in published reports and blog posts.

Most of that coverage has focused on Microsoft’s Virtual Earth 3-D, which provides an immersive 3-D mapping experience that lets you fly in and out of cityscapes and search for addresses and business locations. Google’s Street View, meanwhile, provides a first-person street-level perspective to go up and down streets in a growing list of U.S. cities.

EveryScape basically combines these and also has its own angle, in providing 3-D renderings of the insides of some buildings for users to browse. This gets a step closer to the transactional implications for 3-D mapping that we’ve explored in the past. For EveryScape, this is also a key element to its current revenue model.

“The product includes a self-service portal where a business owner can say, that’s my store and I really want to allow people to walk inside and see what it’s like,” says EveryScape CEO Jim Schoonmaker. “This can include putting in a ticket booth and selling tickets, or do whatever you want to do that is relevant to the business.”

EveryScape Finds Fenway Park (click to expand)

screenhunter_26.jpg

The street-level 3-D mapping will integrate basic local listings data to have addresses and businesses that are searchable. But for interiors, the company will offer upsells (pricing here) that let advertisers show off the insides of their buildings or locations. This has clear opportunities and potential appeal for real estate and travel (think hotels), both of which EveryScape is targeting in bus dev efforts, according Schoonmaker.

“The three markets we’re most focused on are local search, real estate and travel,” he says. “The experience is suited to looking for restaurants in your neighborhood or restaurants in Miami where you are going to visit. Those markets weave together along with real estate, although real estate is the most distinct of the three.”

Schoonmaker took me on an interior walk-through of a two-bedroom suite of a Miami Hotel, which allowed me to walk around the room and out on the balcony with a user-friendly and graphically rich interface. This is basically what many of the 3-D walk-throughs introduced in online real estate search in the past have tried to be, but better.

Sweet Suite: An Inside Look at Miami Hotels (click to expand)

screenhunter_32.jpg

The interface includes a floor plan on the right side of the screen so you can also see where you are from an overhead perspective. There are also interesting user-centric features such as searches for nearby businesses, or the ability to go to other popular content sources to get more information on locations, such as reviews from Yelp, photos from Flickr, and videos from YouTube.

“Once you build the real world online, you have a photorealistic experience of interiors and exteriors. That is a platform upon which you can integrate all kinds of content,” says Schoonmaker. “For example, If you’re in a restaurant, you can add a link to OpenTable through an affiliated relationship with them.”

And with higher broadband deployments from telco delivered IPTV and bundled service packages, better imagery and functionality will be enabled, which will attract more users to 3-D mapping products like this.

“The quality of the photographs that we have are very detailed, but we have to downsample them pretty heavily to squeeze them through the pipes,” says Schoonmaker. “So just imagine how much better it could be with bigger viewers and more detailed pictures.”

Feet on the Street?

In order to make these interior 3-D renderings, the company sends photographers to the businesses that sign up for it. Similar to technologies employed by other 3-D mapping providers, it patches together these photo stills to form 3-D renderings to proper scale. Its exterior street-level maps are done in a similar fashion.

“One of the advantages of this process is that it’s very inexpensive to create,” says Schoonmaker. “It doesn’t require any video gear. It only requires a digital SLR camera to create this environment. Your Canon Digital Rebel is all you need.”

This differs from other 3-D mapping technologies in that it will also fill in some blanks in its 3-D cityscapes and building interiors by utilizing pictures that users (”scape artists“) will submit. It’s yet to be seen what the level of this participation will be, and if there will be varying quality of images submitted.

Nonetheless, the company has an interesting model and, what’s more, a compelling and functionally sound product in an area that will continue to receive increasing levels of interest from users and advertisers. For the time being, its biggest challenge could be reaching out to the fragmented small-business marketplace to communicate its sales message. Schoonmaker agrees that high touch sales channels are an advantage and he’s interested in talking to potential Yellow Pages channel partners, although the company will primarily rely on self provisioning and viral marketing.

“We tend to get a lot of viral momentum from the fact that we build your neighborhood online,” says Schoonmaker. “You can walk up and down your street and see your storefront and people naturally want to get connected to it. It’s not just about businesses in the abstract.”

EveryScape’s best strategy, given the real estate and travel opportunities, could be to reach out to more centralized sources of revenue such as national real estate agencies and hotel chains (strategy taken by Spot Runner). From there, it could get more bang for its promotional buck and more effectively put itself on the map. It will be interesting to see what kind of traction the company receives, and how the embryonic area of 3-D mapping continues to fuse together with local search.

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Blog: Local Media Blog, Mapping, Web 2.0
Posted by: Mike Boland at 11:01 pm - Comments (1)




Yahoo! Marketplace Head Jennifer Dulski Resigns

Jennifer Dulski, who in July took the reins of all Yahoo!’s Marketplace properties (Local, Yellow Pages, Travel, Shopping, Autos and Real Estate), has resigned to become the CEO of a new venture-backed startup in Silicon Valley. Dulski, an eight-year veteran of Yahoo!, previously ran Autos. Her resignation is effective Nov. 8.

Taking Dulski’s place on an interim basis is Jasper Malcolmson, who has been running Yahoo! Travel and Shopping and has been with the company for four years. Frazier Miller has become GM of Yahoo! Local.

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Blog: Local Media Blog
Posted by: Peter Krasilovsky at 11:33 am - Comments (7)




Breakfast at The (New) New York Times Building

dsc01325_edited-1.JPGIn New York City last week, I had breakfast at the new New York Times building at 41st and Eighth Avenue. The multi-hued Renzo Piano designed effort includes a 51-story, ecologically sensitive tower (28 floors for NYT), and on the ground floor, The Times Center, a “public amenity” that includes a 350-seat auditorium for lectures, concerts, etc.

NY Times interactive personnel were the first employees to occupy the space, and they have wonderful, wide-open spaces for meetings. Research head Michael Zimbalist and his team of futurists — presently occupied with a mobile project — occupy a totally different floor. They can all get together in the beautiful cafeteria with a high up view of burgeoning Eighth Avenue. The subsidized, creative and gourmet food has nods toward the Silicon Valley employee eateries. (I probably should have gotten the mulled apple cider with bits of apple in it.)

For me, the wide-open windows, and tangerine and green and red walls, and blonde wood floors are very pretty but kind of a culture shock for a company I literally think of as the “gray lady” – although there is plenty of gray in the building, mostly on supporting pillars that take on the changing colors of the sky throughout the day. The center of the lobby is dominated by a public art exhibit called “moveable type” that has hundreds of PSP-size screens, all showing ever-changing lines of text from The Times archives. It is something you could watch for a few minutes.

What is the anomaly is the old-fashioned, very gray sculpture of legendary publisher Adolph Ochs in the corner of the lobby. Eventually, maybe they will get rid of it.

I am not sure I totally felt like I was in the headquarters of The New York Times. It is more like the Pompidou Center in Paris and the JP Morgan Library, which is not surprising, since Renzo Piano did those buildings too. But it also made me feel like I would like to work in that building, and that The Times had a future, and that its future was not attached to printing presses, but to multimedia. It is a real success.

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Blog: Local Media Blog, Newspapers
Posted by: Peter Krasilovsky at 10:25 am - Comments (0)




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