Heard from Stephen Taylor, [praized subtype=”small” pid=”e05a4250d652484974e47fda5bd84b6b” type=”badge” dynamic=”true”]’s CEO, this morning in a presentation titled “Competition from new business models”. As most of you know, Qype is a social local site in Europe (we could say it’s the equivalent of Yelp there).
Here are some interesting data points about them:
- The largest local review site in Europe (also present in Brazil) – 6 languages
- Reviews in 140 countries (I think they allow anyone to add listings from any country)
- 9M+ unique users in May 2009 (+350% in 12 months)
- 1m+ reviews
- They monetize using display advertising, Google AdWords, eCom and transaction revenues and premium business listings
As Taylor said, their business leverages the fact that anyone with a keyboard is now an author, that anyone with a browser is a publisher. With the rise of social media, presentation of facts/data is not enough to sustain an audience. It’s now about sharing, community, connecting with other people. I think he described it perfectly when he said “people + algorithm is better than algorithm”. Today, we’re in the fourth phase of the evolution of search (he calls it social search) which includes editorial, automation and topology.
As for future developments, Taylor offered the following advice: recognize where audiences are and he mentioned the long tail of the Web (smaller sites, blogs, forums, etc.). He said that’s where people are connecting. Qype is ready for those new opportunities via their open API currently in v1 (which exposes geo content). v2 will allow content to be written.
What it means: I think Qype is a very interesting company. They’ve been able to corral the voice of the European consumers. I agree with the future direction, of trying to embed yourself in smaller web sites. I was a bit disappointed by their monetization strategy. I was hoping they would have been further ahead in terms of sources of revenues.