A Look Back At 2008’s Most Important News and Trends in Local Search and Social Media

As the year ends, here are, in my humble opinion, the most important news and trends of the year in local search and social media (in no specific order):

  • The major challenges of the newspaper industry. Declining print readership, challenges with monetizing the Web, user fragmentation, lay-offs, stock value decline, etc. 2008 was a very difficult year for the newspaper industry and I don’t think 2009 will be easier with the slowdown in ad spending.
  • Mobile, iPhone & the app store. The launch of the iPhone 3G and the arrival of new “iPhone-killers” devices signaled the beginning of a real tipping point in mobile local search and social media usage. The launch of the iPhone app store also created a new ecosystem leveraging the iPhone’s installed base. At the end of 2008, building an iPhone application is as “hot” as building a Facebook app was a year ago.
  • Social Media (Facebook, Twitter, Friendfeed, LinkedIn). Continued usage/buzz growth in social media especially around these four Web properties. Social and user-centric functionalities are a must-have today. Some difficulties around monetization of social media inventory though.
  • Identity (Facebook Connect, OpenID, Google Friend Connect). With the rise of social media come major challenges around personal identity on the Web. Large social properties want to become that official provider of identity. Will explode in 2009.
  • Local video. This was the hottest new ad product at directory publishers everywhere. I’m convinced that the technology is now a commodity but I’m wondering if the product itself will also become a commodity in the near future (i.e. you need videos in your local search site like you need maps, URLs and click-to-talk buttons)
  • Sobering presentations from directory publisher executives at each Kelsey conference in 2008. More realistic, a clearer view of opportunities and challenges in the industry (great assets, local search industry is booming but erosion in major metro areas, etc.). What used to be said behind closed doors is now mentioned openly.
  • Drastic drop in directory publishers stock prices. Deadly combo of credit crunch, slowdown of the economy, too much debt and market perception. Idearc is delisted after losing 99% of its value. RHD also loses 99% of its value. Similar (although less drastic) situations in Europe and Canada.
  • Microsoft’s failed Yahoo takeover (a proposed buy-out at $31 a share) occupied a good portion of tech news early in the year. This would have a created a very interesting company to compete against Google (desktop technology + social media + search). Jerry Yang, Yahoo!’s co-founder, made sure the deal wouldn’t go through. Yahoo!’s share is now hovering around $12.00.
  • AOL buys into the social-networking game with Bebo. A cool $850 million…
  • Geolocation in browser (geode, loki, Google Gears). We’ve seen the first elements of this in 2008 but this is a potential game changer, transforming every web site into a local destionation
  • Facebook replaces their own classifieds with the Oodle platform. In a move I found very surprising, Facebook outsourced local classifieds clearly showing that they don’t realize they’re in the local search space.
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A Look Back At 2008's Most Important News and Trends in Local Search and Social Media

As the year ends, here are, in my humble opinion, the most important news and trends of the year in local search and social media (in no specific order):

  • The major challenges of the newspaper industry. Declining print readership, challenges with monetizing the Web, user fragmentation, lay-offs, stock value decline, etc. 2008 was a very difficult year for the newspaper industry and I don’t think 2009 will be easier with the slowdown in ad spending.
  • Mobile, iPhone & the app store. The launch of the iPhone 3G and the arrival of new “iPhone-killers” devices signaled the beginning of a real tipping point in mobile local search and social media usage. The launch of the iPhone app store also created a new ecosystem leveraging the iPhone’s installed base. At the end of 2008, building an iPhone application is as “hot” as building a Facebook app was a year ago.
  • Social Media (Facebook, Twitter, Friendfeed, LinkedIn). Continued usage/buzz growth in social media especially around these four Web properties. Social and user-centric functionalities are a must-have today. Some difficulties around monetization of social media inventory though.
  • Identity (Facebook Connect, OpenID, Google Friend Connect). With the rise of social media come major challenges around personal identity on the Web. Large social properties want to become that official provider of identity. Will explode in 2009.
  • Local video. This was the hottest new ad product at directory publishers everywhere. I’m convinced that the technology is now a commodity but I’m wondering if the product itself will also become a commodity in the near future (i.e. you need videos in your local search site like you need maps, URLs and click-to-talk buttons)
  • Sobering presentations from directory publisher executives at each Kelsey conference in 2008. More realistic, a clearer view of opportunities and challenges in the industry (great assets, local search industry is booming but erosion in major metro areas, etc.). What used to be said behind closed doors is now mentioned openly.
  • Drastic drop in directory publishers stock prices. Deadly combo of credit crunch, slowdown of the economy, too much debt and market perception. Idearc is delisted after losing 99% of its value. RHD also loses 99% of its value. Similar (although less drastic) situations in Europe and Canada.
  • Microsoft’s failed Yahoo takeover (a proposed buy-out at $31 a share) occupied a good portion of tech news early in the year. This would have a created a very interesting company to compete against Google (desktop technology + social media + search). Jerry Yang, Yahoo!’s co-founder, made sure the deal wouldn’t go through. Yahoo!’s share is now hovering around $12.00.
  • AOL buys into the social-networking game with Bebo. A cool $850 million…
  • Geolocation in browser (geode, loki, Google Gears). We’ve seen the first elements of this in 2008 but this is a potential game changer, transforming every web site into a local destionation
  • Facebook replaces their own classifieds with the Oodle platform. In a move I found very surprising, Facebook outsourced local classifieds clearly showing that they don’t realize they’re in the local search space.

A Look Back At 2008's Most Important News and Trends in Local Search and Social Media

As the year ends, here are, in my humble opinion, the most important news and trends of the year in local search and social media (in no specific order):

  • The major challenges of the newspaper industry. Declining print readership, challenges with monetizing the Web, user fragmentation, lay-offs, stock value decline, etc. 2008 was a very difficult year for the newspaper industry and I don’t think 2009 will be easier with the slowdown in ad spending.
  • Mobile, iPhone & the app store. The launch of the iPhone 3G and the arrival of new “iPhone-killers” devices signaled the beginning of a real tipping point in mobile local search and social media usage. The launch of the iPhone app store also created a new ecosystem leveraging the iPhone’s installed base. At the end of 2008, building an iPhone application is as “hot” as building a Facebook app was a year ago.
  • Social Media (Facebook, Twitter, Friendfeed, LinkedIn). Continued usage/buzz growth in social media especially around these four Web properties. Social and user-centric functionalities are a must-have today. Some difficulties around monetization of social media inventory though.
  • Identity (Facebook Connect, OpenID, Google Friend Connect). With the rise of social media come major challenges around personal identity on the Web. Large social properties want to become that official provider of identity. Will explode in 2009.
  • Local video. This was the hottest new ad product at directory publishers everywhere. I’m convinced that the technology is now a commodity but I’m wondering if the product itself will also become a commodity in the near future (i.e. you need videos in your local search site like you need maps, URLs and click-to-talk buttons)
  • Sobering presentations from directory publisher executives at each Kelsey conference in 2008. More realistic, a clearer view of opportunities and challenges in the industry (great assets, local search industry is booming but erosion in major metro areas, etc.). What used to be said behind closed doors is now mentioned openly.
  • Drastic drop in directory publishers stock prices. Deadly combo of credit crunch, slowdown of the economy, too much debt and market perception. Idearc is delisted after losing 99% of its value. RHD also loses 99% of its value. Similar (although less drastic) situations in Europe and Canada.
  • Microsoft’s failed Yahoo takeover (a proposed buy-out at $31 a share) occupied a good portion of tech news early in the year. This would have a created a very interesting company to compete against Google (desktop technology + social media + search). Jerry Yang, Yahoo!’s co-founder, made sure the deal wouldn’t go through. Yahoo!’s share is now hovering around $12.00.
  • AOL buys into the social-networking game with Bebo. A cool $850 million…
  • Geolocation in browser (geode, loki, Google Gears). We’ve seen the first elements of this in 2008 but this is a potential game changer, transforming every web site into a local destionation
  • Facebook replaces their own classifieds with the Oodle platform. In a move I found very surprising, Facebook outsourced local classifieds clearly showing that they don’t realize they’re in the local search space.

Facebook to OpenSocial: “Of Course You Realize This Means War”

According to the AllFacebook blog, Facebook just announced that they’re taking on the OpenSocial movement by allowing other players to use their platform architecture to build social media sites.

“Now we also want to share the benefits of our work by enabling other social sites to use our platform architecture as a model. In fact, we’ll even license the Facebook Platform methods and tags to other platforms. Of course, Facebook Platform will continue to evolve, but by enabling other social sites to use what we’ve learned, everyone wins — users get a better experience around the web, developers get access to new audiences, and social sites get more applications.

This is just another step toward the vision of easy, open sharing of information. We look forward to supporting other social sites as they release their own platforms, and look forward most of all to the added benefit for developers and users.

You can find more information here and additional technical details here.

What it means: With that move, Facebook hopes their architecture will become the defacto standard for social media. It’s Beta vs. VHS all over again! As OpenSocial is still in its infancy (even though many large players have embraced the standard), this could be a disruptive move by Facebook. Smaller social sites who had not yet joined the movement might reconsider. It will be interesting to see who will use Facebook’s architecture.

Update: it looks like Bebo will be using the Facebook architecture!

Member Overlap at Various Social Networks

With the rise of Facebook and the arrival of the OpenSocial ecosystem, web site operators are left wondering about prioritization. Which social network(s) should I embrace, where should I invest my time, what site(s) offer the biggest bang for the buck if I build an application?

The folks at Compete have analyzed member overlap at various social networks and explain their findings in this blog post. The graph below shows those interactions.

Compete Social Network Member Overlap

Here are some of the highlights:

  • 20% of MySpace members are also Facebook members.
  • 64% of Facebook members are also on MySpace.
  • Bebo, Hi5 and Friendster all share more than 49% of their members with MySpace.
  • LinkedIn shares 42% of its members with Facebook and 32% with MySpace.

What it means: From a sheer size point of view, Facebook and MySpace are interesting but operators should not underestimate the reach of Bebo, Friendster, Hi5 and LinkedIn. Some of these social networks are very strong in different parts of the globe and, depending where your user base is located, could make interesting platforms for your applications. In addition, LinkedIn and Viadeo reach a business-oriented user base.

Google is Spearheading the Launch of an Open Social Web API

Following this blog post yesterday about my speculation that Google is building a mobile development platform, the whole blogosphere announced this morning that Google is leading an initiative called OpenSocial that will see the launch an open social web API. This new API will allow social networks and application developers to work together using a set of standardized instructions. Partners currently include Google’s Orkut, LinkedIn, Hi5, Friendster, Salesforce.com, Oracle, iLike, Flixster, RockYou, and Slide.

Opening the Social Graph Barcamp

Flickr photo by magerleagues.

As Marc Andreessen said this morning on his blog,

This is the exact same concept as the Facebook platform, with two huge differences:

  • With the Facebook platform, only Facebook itself can be a “container” — “apps” can only run within Facebook itself. In contrast, with Open Social, any social network can be an Open Social container and allow Open Social apps to run within it.
  • With the Facebook platform, app developers build to Facebook-proprietary languages and APIs such as FBML (Facebook Markup Language) and FQL (Facebook Query Language) — those languages and APIs don’t work anywhere other than Facebook — and then the apps can only run within Facebook. In contrast, with Open Social, app developers can build to standard HTML and Javascript, and their apps can then run in any Open Social container.

TechCrunch explains in more details:

OpenSocial is a set of three common APIs, defined by Google with input from partners, that allow developers to access core functions and information at social networks:

  • Profile Information (user data)
  • Friends Information (social graph)
  • Activities (things that happen, News Feed type stuff)

Hosts agree to accept the API calls and return appropriate data. Google won’t try to provide universal API coverage for special use cases, instead focusing on the most common uses. Specialized functions/data can be accessed from the hosts directly via their own APIs.

What it means: this is a major announcement, maybe the biggest announcement of the year. Standardizing the social web will go a long way towards the explosion of social as a key element of the Web operating system and one more step towards the web becoming a gigantic word of mouth machine. You’ll want to embrace these standards.

Update: According to AlleyInsider, MySpace will announce today that they join the OpenSocial “alliance”

Update2: Techcrunch reports that blog software publisher SixApart is also joining. Bebo also.

Google Opening Its Social Graph?

TechCrunch reports on a secret meeting that happened at Google in the last few days. It looks like Google is about to “out open” Facebook by allowing developers to leverage Google’s social graph information.

The short version: Google will announce a new set of APIs on November 5 that will allow developers to leverage Google’s social graph data. They’ll start with Orkut and iGoogle (Google’s personalized home page), and expand from there to include Gmail, Google Talk and other Google services over time.

On November 5 we’ll likely see third party iGoogle gadgets that leverage Orkut’s social graph information – the most basic implementation of what Google is planning. From there we may see a lot more – such as the ability to pull Orkut data outside of Google and into third party applications via the APIs. And Google is also considering allowing third parties to join the party at the other end of the platform – meaning other social networks (think Bebo, Friendster, Twitter, Digg and thousands of others) to give access to their user data to developers through those same APIs.

And that is a potentially killer strategy. Facebook has a platform to allow third parties to build applications on Facebook itself. But what Google may be planning is significantly more open – allowing third parties to both push and pull data, into and out of Google and non-Google applications.

That big rumor comes on the heels of another big announcement from Six Apart about open sourcing the Web’s social graph (a la OpenID). If you thought the Web was fragmented, wait until you can start building application on top of Google, Yahoo or MSN’s social graphs…