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March 19, 2010

Avvo Gets $10 Million in New Round

Avvo, the free legal ratings and review site that has taken on the giant legal publishers that have long dominated the business, announced that it has raised $10 million in Series C funding. The new round adds to $13 million previously raised. The round was led by DAG Ventures, which joins existing investors Benchmark Capital and Ignition Partners.

The company’s business model relies on advertising and enhanced legal profiles. Avvo says it now covers 90 percent of U.S. lawyers. Legal is a $225 billion industry in the U.S. The industry spends about $4.5 billion annually on marketing.

CEO Mark Britton says that the company has grown rapidly, and now has 38 employees, including 18 sales people. The key to winning the new funding was the company’s success  in selling advertising to lawyers. Advertising  launched in early 2009, with a wide range of offerings “from $25 to thousands of dollars” a month .

Lawyers are always very busy, but can be sold if you understand their specific needs as a divorce specialist, or a real estate lawyer, says Britton. They also want to do more than by advertising, wanting to discuss ways to improve their profile on the site, etc.  “Lawyers need a lot of help.”

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Blog: Funding, Verticals
Posted by: Peter Krasilovsky at 9:17 am - Comments (0)




March 17, 2010

AppointmentCity Aims for Local Medical Specialties

Online scheduling appears to be one of the break-out features in the marketplaces space this year. Nineteen percent of respondents to BIA/Kelsey’s most recent User View say they made a non-restaurant online appointment in the past six months.

Major appointment sites include BookFresh, Full Slate, ZocDoc, Agendize and MaxiPage. Each hopes to be the OpenTable of the services world. While they each have different focus points, they tend to provide an online scheduling platform, with additional services, such as enhanced profiles, pricing, etc.

The latest entrant we’ve become aware of is Atlanta-based AppointmentCity. The site launched last September with an effort initially aimed at dentists.

Founder Sherwin Krug, a former CPA, says he is targeting a market in which more than 7 million searches a month are performed for dentists. An online appointment is a more definitive source of leads since you know where and when consumers want to go. The enhanced profile that the site provides makes it more of a Yellow Pages-style considered purchase.

The original model had a monthly fee of $100 and a success fee of $50 per job. But Krug says the monthly fees were eliminated after three months and refunds were provided since the site really wants to build its volume. Looking forward, the site will expand to other media specialities, such as Lasik, Podiatrists, Chiropractors and Plastic Surgeons.

Other verticals are also being eyed by the site. Since they each have different pricing characteristics, AppointmentCity is likely to vary its fee structure for different verticals. Podiatrists, for instance, assign high lifetime values to each account, but individual job fees should be smaller since jobs tend to be lower value.

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Blog: Verticals
Posted by: Peter Krasilovsky at 3:27 pm - Comments (0)




March 16, 2010

CBS Local Launches Auto Portal With High Gear Media

CBS Local has launched an auto shopping guide on the Web site of WCCO-TV Minneapolis, using vertical content and services from High Gear Media, a Palo Alto, California-based auto specialist publisher launched two years ago by Daily Shopper founder Hesky Kutscher.

The CBS Local deal marks the first local effort for High Gear, which has 90 vertical auto-related car sites of its own. It also has distribution on site such as NASCAR.com, Yahoo Autos and Huffington Post. Its own vertical sites include TheCarConnection.com, MotorAuthority.com, GreenCarReports.com, AllCarsElectric.com and FamilyCarGuide.com.

VP of Product Management Jeff Birkeland tells us the CBS Local site will launch with 1.2 million pages of “very curated” content including content from a six-person full-time staff and freelance auto writers, as well as 200 community sources. He believes the level of specific, high-level auto writing is much higher from general content creators such as Associated Content and Demand Media.

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Blog: Television, Local, Verticals
Posted by: Peter Krasilovsky at 8:13 am - Comments (0)




March 15, 2010

Goby.com: Search Engine Focuses on Local Events + Travel

Events are a vertical that cuts across many segments: travel, retail, sports, entertainment, education, dining, culture and others. Major players include specialists such as Zvents, Eventful, Americantowns.com and Center’d. City sites such as Citysearch and Yelp are active in the space as well.

A new one for us is Goby.com, a venture-backed firm that comes out of Mike Stonebraker’s relational database studies at MIT. The site, which launched in September 2009, has already had 250,000 visitors. It reviews 300 categories of things to do, from camping to opera. It can be embedded into other sites via Facebook Connect. An iPhone app is coming out “soon.”

The site breaks things up three ways: What would you like to do? Where? and When? It makes a special effort to go beyond “cities with airports next to them.” For instance, the most thorough listing of events in Carlsbad, CA 92009 that I’ve seen.

CEO Mark Watkins, a veteran of vertical search at Endeca, says the site is task- centric and created to be a “search engine for things to do in your free time. It does equally well for people planning a trip or sitting around the dinner table on Friday, wondering what they are going to do this weekend.”

It also approaches events in a way that Google may not. “Google gives answers for general purposes. But it understands keywords, not structured data. Plane tickets and other semantic information are not on Google,” he says. “We’re getting very focused results. We can sort Web data by price,” among other things.

The general model for search engines is to have a keyword and give back a URL, says Watkins. But Goby seeks to convert those Web pages to real world entities people can make decisions about. “We’ve cross-referenced photography from across the Web, and integrated more video types, and MP3 from concerts,” he says.

Another focus is to figure out how people decide to go to events. “We want to know: How did you decide to be at that restaurant?” says Watkins. It is the interaction of the search and gaming worlds, building off location-based sites like Foursquare and Gowalla.

Indeed, Watkins emphasizes that Goby.com is not just about events. “Events are really important. But they are one dimension of how we spend free time.” Travel is another aspect. “We’re coming at it like a search engine, as opposed to TripAdvisor,” he says. Travel is surprisingly local oriented and is more complementary to local than is generally realized, notes Watkins. More than half of queries — 55 percent — are typically near users.

As for revenues, the site expects to initially receive the lion’s share from affiliate and lead generation fees. It anticipates revenues from sites such as Priceline, and tour providers if it can recommend an Alcatraz tour in San Francisco, for instance. Or its personalization and recommendation engines can promote an Opera performance. When the site gets bigger, it will be more interesting to advertisers, says Watkins.

The site will also have a white label “pro” model for sites that might be licensed by media publishers, or travel suppliers.

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Blog: Google, Social Search, Verticals
Posted by: Peter Krasilovsky at 7:43 am - Comments (0)




March 10, 2010

Redbeacon Teams With BigTent, Adds ‘Friendly Advice’

Redbeacon, one of the new breed of social/local leads providers for SMBs, said it is now available throughout the entire Bay Area and teaming up with BigTent, a mega-moms network in the Bay Area with more than 100 local cells. BigTent will receive a revenue share carved from Redbeacon’s 10 percent commission.

The deal between BigTent and Redbeacon positions the company not only against Yellow Pages and other newbreed leads providers (i.e.m ServiceMagic, AlikeList, HelpHive, ThumbTack and Sears’ ServiceLive) but also against other sites that specifically tailor to moms (and women generally). These include sites such as Angie’s List and Center’d. It plays on the theory that some women are intimidated by home and trade professionals and may be more likely to seek out a social network for advice and recommendations.

For BigTent, the partnership marks the first time it has partnered with an organization to promote local businesses. It had previously worked deals with a number of national brands.

The BigTent news caps off a campaign to land associations and other organizations as partners. The results of the effort means that the site now boasts listings of 16,000 service pros with the badges of their organizations — a major trust factor. One of the key prizes has been the local branch of the Better Business Bureau, which previously hadn’t loaned out its list.

In other site developments, Redbeacon, which won the top prize as best new idea at TechCrunch 50 six months ago, is adding “Friendly Advice.” The feature lets friends comment on job bids (and the bidders). This complements the company’s matching engine, and reviews and ratings found on other parts of the site — including both positive and negative reviews.

“We’re crowd-sourcing recommendations and sharing,” says CEO Ethan Anderson. One added benefit is the viral element and the added exposure for Redbeacon: 500 views may become 2,500, he says.

Anderson notes that the company has been in a constant state of “iteration” since launching, and will only begin the process of raising money when it is satisfied with the end product. So far, the site has added several features, such as enabling private communications between consumers and providers in the middle of a bid and allowing providers to additional information upon request. “Consumers need lots of information to make a decision,” he says. The site has also syndicated reviews from Yelp, Google and Yahoo to complement its own.

One milestone reached by the site is that it can now successfully furnish a quote for every job that is bid. In fact, it had more than 1,000 service providers almost immediately after launch, and continues to rapidly grow its base. “We don’t have a chicken or egg problem,” says Anderson. “Signing up (service providers) has been easy.”

Redbeacon CEO Ethan Anderson will join AlikeList CEO Jim Delli Santi and Reply.com COO Sean Fox on the “SMB Marketplaces” panel at Marketplaces 2010. ServiceMagic CEO Craig Smith is a keynoter at the conference.

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Blog: SMBs, Social Networking, Social Search, Techcrunch50, User-Generated Content, Verticals
Posted by: Peter Krasilovsky at 4:36 pm - Comments (0)




February 23, 2010

SuperMedia Goes Vertical With Guarantee Program

ScreenHunter_01 Feb. 23 11.39

SuperMedia has announced a new program that extends its SuperGuarantee idea into the autos vertical. The SuperGuarantee Autos program gives anyone who buys a car on SuperMedia’s EveryCarListed.com automotive vertical a free limited powertrain warranty good for up to $3,000.

SuperMedia acquired EveryCarListed last February and has since made its comprehensive video inventory a key point of difference from other car sites.

SuperMedia seems to be making a huge bet that it can clearly differentiate its brands by making its SuperGuarantee concept central to everything it does. The SuperGuarantee was introduced last year originally as a program that stands behind the work of contractors sourced through the SuperMedia (previously Idearc) Yellow Pages. The idea behind the guarantee is to instill consumer confidence in the SuperPages brand.

ScreenHunter_02 Feb. 23 15.53

In an interview with BIA/Kelsey at the end of 2009, SuperMedia CEO Scott Klein made it very clear that the guarantee will be at the heart of SuperMedia efforts to revive itself in 2010. The company went into bankruptcy in March 2009 as Idearc Media, and exited court protection on New Year’s Eve with $7 billion in debt gone from its balance sheet.

In that conversation, Klein said the SuperGuarantee provides SuperMedia with a much needed point of differentiation.That insight appears to be guiding SuperMedia’s initiatives in 2010.

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Blog: Local Media Blog, Verticals, Yellow Pages, Internet
Posted by: Charles Laughlin at 1:53 pm - Comments (2)




February 22, 2010

HuffPo’s Eric Hippeau at IAB: ‘I Didn’t Kill Newspapers’

Huffington Post CEO Eric Hippeau defended the role of the site in journalism and said it is helping to herald in “a golden age of journalism” that has more content and audience participation than ever before.

Speaking at IAB’s Annual Leadership Meeting in Carlsbad, California, Hippeau noted that HuffPo is publishing 500 pieces of content a day, compared with the 100 pieces published by The New York Times. Each piece is curated constantly with the help of the site’s “hyper-efficient editor.” And it publishes 2 million comments a month.

Much of the content comes from newspapers and other media. But Hippeau argues, “I did not kill newspapers,” echoing the five-word acceptance speech of a Webbie award by site founder Arianna Huffington last fall. Rather, he says the site brings new users to newspaper sites by links, like Google.

In fact, he contends that newspaper sites are actually doing pretty well. It is the traditional print business that is hurting. Basically, it is a coincidence that “our business is soaring while circulation at newspapers is declining.”

“If I was starting a news business today, the last thing I’d do is hire a team of traditional journalists and buy a printing press,” he says.

Hippeau also contends that the site’s success in boosting usage is based largely on successful verticalization. While the site boomed during the Hillary Clinton vs. Barack Obama campaign, it is now only dependent on politics for 20 percent to 25 percent of its traffic. The site, in fact, has just launched its 13th vertical section: colleges. The section enables students to contribute campus-by-campus news for 50+ colleges.

The site also has four local editions (Chicago, New York, Los Angeles and Denver) and has also recently launched a sports site, which now accounts for 10 percent of its traffic. The timing was fortuitous as the launch occurred around the Tiger Woods scandals three months ago. “It is the gift that keeps on giving,” he says.

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Blog: Conferences, Google, User-Generated Content, Verticals
Posted by: Peter Krasilovsky at 12:14 pm - Comments (0)




February 16, 2010

Offline Conversion Tracking: A Conversation With Mongoose Metrics

MOngoose

I had the opportunity to speak with Brad Reynolds, CEO of Mongoose Metrics, a Cleveland, Ohio-based call measurement and conversion analytics company. Reynolds was quick to point out that it is not simply a call tracking company, but rather it is dedicated to linking online and offline conversion so clients can better understand what leads to sales conversions. According to Reynolds, “Our business is based around illuminating the sales funnel related to offline conversions. Our goal is to make it easy to track online and offline conversions side-by-side. We want to drive actions like tweaking marketing spend and efforts with a full basket of information.”

While some companies focus entirely on online conversions, the reality, according to Mongoose Metrics, is that a large majority of transactions occur offline via the phone. In most cases there is a chain of events that lead to an offline conversion. By better understanding how online and offline media influence the conversion path, marketers have a better sense of what media and messages they should be using to maximize their effectiveness. With good offline and online conversion data in hand, brands can personalize their messages across media to create a conversation and a stronger relationship.

Mongoose Metrics has also been busy putting together an effective international local number tracking network and recently put together deals in Canada and the U.K. to deliver true local exchange numbers across both countries. Rather than relying on VoIP numbers or toll-free numbers, Mongoose is now able to offer local telephone numbers better linking businesses to their local area. “Until recently, it had been nearly impossible for Canadian and U.K. companies to use local phone numbers to follow visitors from Web-to-phone to understand how their Web sites drive phone calls and ultimately sales,” according to Reynolds. Mongoose Metrics’ move into the U.K. and Canada is a first step in expanding internationally.

When asked where call measurement is headed in the near term, Reynolds quickly pointed to mobile. “While many feel there will be transactions handled on the handset, the current reality is that most sites are not fully enabled for mobile screens, requiring too many clicks and too much scrolling. People want to get a quick answer to their question and often will revert to contacting the store or company since it is easier — and they have a phone in their hand to expedite the need for information. Click-to-call features makes sense on the mobile Web and will offer yet another layer in understanding where offline conversions are initiated.”

When asked about other developments, Reynolds replied, “Mongoose is currently working on a few proprietary products to provide deeper analytics of incoming calls and hopes to create a way to trigger specific actions tied to a recognized set of keywords. This is yet another step Mongoose is taking to help drive conversions and personalize the communication between consumers and advertisers.”

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February 9, 2010

ServiceMagic Sees 21% Growth in Providers


IAC’s ServiceMagic reported today that it saw a 51 percent boost in 4Q revenues, growing from $25.3 million in 2008 to $38.2 million in 2009. The boost was accompanied by 21 percent growth in the number of home and trade providers that pay for its leads and a 46 percent gain in service requests. The addition of revenues from two new units — ServiceMagic International and Market Hardware, a search and Web site provider for verticals — also increased the pot.

Profits, however, were low at $1.2 million. They were held down by increased marketing efforts, including an expanded sales force and a major advertising campaign. Losses caused by the rapid expansion of the company’s international unit also held profits down.

ServiceMagic CEO Craig Smith is keynoting at Marketplaces 2010, March 22-24 in San Diego.

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Blog: Financial Results, Local Media Blog, SMBs, Verticals
Posted by: Peter Krasilovsky at 7:57 pm - Comments (0)




February 5, 2010

Yelp Reaching Out to Apartment Managers

Yelp has been on a roll, and is now reporting that it gets 29 million unique visitors a month. Given that, the company’s immediate challenge is to move beyond its core base of restaurant and shopping reviews and dive deep for Yellow Pages-arena services reviews, as well as reviews for classified categories, such as autos and real estate/apartments.

Restaurants currently make up 29 percent of reviews, while shopping constitutes 23 percent. Other major categories include beauty and fitness (9 percent), arts & entertainment (8 percent), home and local services (7 percent), entertainment (5 percent), and nightlife (4 percent).

Apartments are certainly a good place for Yelp to concentrate on, especially given the youthful target sought by apartment managers. Almost half of Yelp’s users (46 percent) are between 18 and 34 years old, while 36 percent are between 35 and 49.

So it was no surprise that Yelp COO Geoff Donaker was out evangelizing the cause this morning on a webinar conducted by NCI’s Apartment Finder, a leading publication for managers of mega-apartment complexes.

The evangelism effort’s a good idea. In a survey before the call, just 35 percent of the webinar audience said they were already familiar with Yelp, and just 5 percent said they were already engaged with Yelp as a business owner. Sixty-one percent, however, said they had never heard of it.

Donaker told the webinar attendees that while he hoped they eventually advertised on Yelp, he was mostly interested in getting them tuned into Yelp as a marketing resource and to get them to access their business owner accounts and improve their pages. He noted that most reviews on Yelp were actually positive ones and they shouldn’t be afraid of the community feedback.

Many apartment managers, however, have cold feet vis-a-vis reviews due to what Apartment Finder VP of Operations Judy Bellack suggested was “extremely negative” experience with one site in particular: Internet Brands’ ApartmentRatings.com.

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Blog: Social Networking, User-Generated Content, Verticals
Posted by: Peter Krasilovsky at 5:00 pm - Comments (0)




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