[praized subtype=”small” pid=”58d245fd7e8f20800dee0ecd3af21f08″ type=”badge” dynamic=”true”], the second-largest directory publisher in Canada, announced Sunday night the acquisition of GigPark, a self-funded social recommendation site from Toronto, Canada. For Canpages, it’s the second local/social acquisition in two months. The first was Ziplocal in June. This acquisition is the latest in a series of “local media” technology/people acquisitions in the last few months. I noted five other ones in a blog post I wrote two weeks ago.
Interestingly enough, this is the kind of white-label enterprise technology Praized Media is proposing to directory publishers and other local media publishers worldwide. Yellow Pages Group, Canada’s largest directory publisher, is using our Answers module at answers.yellowpages.ca. We’re also currently deploying our real-time activity stream and real-time search technology within a major local portal and our technology stack has generated interest from about a dozen players in Canada, in the US and in Europe. Because of that, as co-founder of Praized Media, I was asked by a few people yesterday what I thought of this acquisition.
1) I am very happy for Pema Hegan and Noah Godfrey for this acquisition. Good work guys! I know how much work goes into building a startup. You’ll see, it’s actually fun working in the directory industry!
2) As a crystal-ball gazer, I am delighted to see directory companies fully embracing social media, even though it’s not our technology they end up using. As I’ve been writing about in the last three years, social media is key to the future of traditional local media firms. The “social” trend in the directory space is not a fad.
3) Reviews and recommendations are just the tip of the iceberg in social/local. The next evolution is “real-time”. Google is thinking about it, Twitter announced last week that they would support geo-location in their API which will allow developers to add latitude and longitude to any tweet and Facebook is bound to announce something very soon.
4) The acquisition of technology assets & people by local media publishers validate our core business model of working as technology providers to local media publishers. There is a clear need out there for our product offer and the Praized team is a world-class product & development team in the local/social technology space.
So, what to expect in the next 6 to 12 months?
1) Definitely expect more acquisitions and possibly some mergers. As Kelsey Group analyst Matt Booth said last week during a Kelsey webinar, local media publishers should try to put their hands on interesting companies and assets this year before the economy picks up again next year. The idea is to be ready with new, groundbreaking revenue-generating opportunities when good times come rolling again.
2) Also expect more rapid innovation in the space. Robert Scoble is quickly cluing in to the business potential of local recommendations in a post yesterday where he compared Facebook, Google, Twitter and Yelp. He says:
How will Facebook collect the cash? Well, go to Google and let’s do that sushi search for Boulder, Colorado again. Did you see how that list works? Facebook needs that list. Twitter isn’t even close. But what’s missing? PEOPLE! Imagine if this list, when it’s brought to you by Facebook, shows that #1 has been liked by 14 of your friends? Businesses get that for free. But what don’t they get for free? Yelp’s “offers.” Businesses PAY to “offer” things to customers to try to move up the list. So, if you’re the #3 business on the list, you might say “bring your iPhone in and you’ll get free beer.” Doing that will cost you money, both in the free beer and the advertising you’ll pay Facebook or Google or Yelp to try to move up the list. Google has the list. It doesn’t have the humans or the offers. Yelp has the offers but doesn’t have hundreds of millions of people. Facebook has hundreds of millions of people and the “like” system, but not the offers. So, who will get there first? Now you understand the battlefield. Who will win the war?
But he forgets that Yelp’s “offers” don’t scale. Yelp doesn’t have the “offers”. They don’t have a large enough sales force to make it a billion dollar business. It’s Yellow Pages, newspapers, coupon and other local media publishers that own the sales force. But then, like Google, local media publishers don’t have the social elements and interactions. It will be a natural one-two punch for any large company that assembles merchants (i.e. advertising) and consumers meshed in social interaction. I’m willing to bet this will come from directory companies if they move fast enough but I venture the window of opportunity is approximately 12 months before Facebook, Twitter or even Google crack the social local nut.
Update: Greg Sterling analyzes the transaction.
5 thoughts on “Canpages Acquires Social Recommendation Site GigPark.com, Validates Praized's Model”
Moving into social media is really important for the progression of the local directory publishers.
Businesses cast the wide net via print and IYP and the rifle shot of word of mouth via social networking.
The translation of all these sites to cash is going to be the challenging aspect to social media. Most big media companies run as far as they can from any potential criticism of their clients, so Gigpark has a nice model where it’s just a ‘thumbs up’ as opposed to us (Homestars) and companies like Yelp, where you can give a clear thumbs down to those you don’t like.
It also requires enough content to make it valuable. Yelp is just reaching that point in Canada, and has definitely reached it in San Fran, and to some extent NYC. But monetizing a restaurant or salon is a tough game. I like a restaurant review, but it’s not a make or break deal on whether I go there. Other services are much more make or break.
Nice one Seb ! Probably your best after “I saw the future …”
I see a place where a merchant would have a simple dashboard to monitor (with sentiment analysis and theme analysis) on-going conversation around his store (and competitors) and can react by joining the conversation directly, semi-automatic update of his offer on his website, digital signage network, mobile coupons.
There is clear rise in buzz around sentiment analysis and I think there will be clear value to add it to real-time search.
@PhilGo20 Thank you! You’re right on sentiment analysis. A few articles have been written about the topic in the last couple of days. First, in the New York Times with “Mining the Web for Feelings, Not Facts “, http://www.nytimes.com/2009/08/24/technology/internet/24emotion.html?_r=1&partner=rss&emc=rss and in Read/Write Web with “5 Ways Sentiment Analysis is Ramping Up in 2009”, http://www.readwriteweb.com/archives/sentiment_analysis_is_ramping_up_in_2009.php
There was also a great article a few weeks ago on how companies need to work with these new tools in the NY times: