Shared Link: "Google CEO Eric Schmidt to newspapers: Innovate your way out of it"

“Google CEO Eric Schmidt to newspapers: Innovate your way out of it” via the  Los Angeles Times

In order to move themselves forward, he said, newspapers will have to get used to the idea that they are not just generators of trusted, professional content, but also aggregators of the new kinds of information the Web has enabled — the collectively edited knowledge structures like Wikipedia, and user-generated information like blogs, images and online video.

“In that model, newspapers become platforms for the technology to use their services,” Schmidt said, “to build businesses on top of them, and also to interlink — hyperlink — all of the different information sources that end-users will take.”

(…)

“One of the fundamental problems with the Internet is that it doesn’t respect traditional scarcity structures. It’s very hard to hold information back.” In order to create value from content that can be difficult to control, he said, “We think the answer is advertising.”

Update: Greg Sterling, over at SearchEngineLand, has the verbatim of all questions that were asked by the audience.

Mini-what it means: newspapers have to become curator of content, they have a trusted consumer brand they can use to keep readership. Newspapers have also the opportunity to become news “platform”. Many newspaper groups are playing with the concept of APIs but it needs to become central to their strategy.  Finally, as Schmidt said, because of the lack of scarcity online, advertising will probably be the best way to monetize news.

Quote of the Day: Eric Schmidt on Mobile Advertising

“We can make more in mobile than desktop eventually.”

Eric Schmidt, Google’s CEO, quoted on Silicon Alley Insider.

What it means: a couple of thoughts on this quote. First, I truly believe mobile local search usage will be big, given my knowledge of how local search works. Second, as more internet devices become untethered, the relative share of local search usage happening on “mobile” will grow, possibly to become the #1 source of reference share in local search.

But is this new revenue? The revenue pie will certainly grow with the introduction of new ways to do “mobile” local searches but I suspect some of it (more than 50%?) will be revenues displaced from i) traditional media advertising and ii) current online advertising (search, directional, etc.).

Will Google get it all? It’s far from done. As I’ve stated before, I believe “mobile” is much more social than what we see on the Web currently and Google, even though they own some interesting assets like Orkut and Blogger, has not been very successful with the social web so far.

Social Search Stronger than Google in South Korea

I’ve been reading many articles about social search in the press in the last few months. Jimmy Wales’ Wikia (and to a lesser extent Jason Calacanis’ Mahalo) has been getting a lot of buzz and I’m not sure I saw the big potential until I read this article in today’s New York Times. Naver.com isthe leading search engine in South Korea with 77% of all web searches (vs. 1.7% for Google) and it’s leveraging social search.

Highlights:

When NHN, an online gaming company, set up the search portal in 1999, the site looked like a grocery store where most of the shelves were empty. Like Google, Naver found there simply was not enough Korean text in cyberspace to make a Korean search engine a viable business. “So we began creating Korean-language text,” said Lee Kyung Ryul, an NHN spokesman. “At Google, users basically look for data that already exists on the Internet. In South Korea, if you want to be a search engine, you have to create your own database.” The strategy was right on the money. In this country, where more than 70 percent of a population of 48 million use the Internet, most of them with high-speed connections, people do not just want information when they log on; they want a sense of community and the kind of human interaction provided by Naver’s “Knowledge iN” real-time question-and-answer platform. (…)

Each day, on average, 16 million people visit Naver — the name comes from the English words neighbor and navigator — keying 110 million queries into its standard Google-like search function. But Naver users also post an average of 44,000 questions a day through Knowledge iN, the interactive Q.&A. database. These receive about 110,000 answers, ranging from one-sentence replies to academic essays complete with footnotes. The format, which Naver introduced in 2002, has become a must-have feature for Korean search portals. The portals maintain the questions and answers in proprietary databases not shared with other portals or with search engines like Google. When a visitor to a portal does a Web search, its search engine yields relevant items from its own Q.&A. database along with traditional search results from news sites and Web pages. Naver has so far accumulated a user-generated database of 70 million entries. (…)

Google, which started its search service in the Korean language in 2000, introduced an upgraded Korean-language service in May. The new version deviates from Google’s celebrated bare-bones style. In South Korea, people prefer portal sites that resemble department stores, filled with eye-catching animation and multiple features. “It’s obvious to me that Korea is a great laboratory of the digital age,” Eric E. Schmidt, the chairman of Google, said in Seoul at the introduction of the new search service.

What it means: I’m starting to think social search has a great future but I also think it’s difficult to start from scratch like Wikia and Mahalo. I also think there might be an amazing opportunity out there for directory publishers (and anyone operating a local search site with a good amount of traffic) to launch a social search application to complement their current database of content. Who will be the first large-scale local social search site?

Social Search Stronger than Google in South Korea

I’ve been reading many articles about social search in the press in the last few months. Jimmy Wales’ Wikia (and to a lesser extent Jason Calacanis’ Mahalo) has been getting a lot of buzz and I’m not sure I saw the big potential until I read this article in today’s New York Times. Naver.com isthe leading search engine in South Korea with 77% of all web searches (vs. 1.7% for Google) and it’s leveraging social search.

Highlights:

When NHN, an online gaming company, set up the search portal in 1999, the site looked like a grocery store where most of the shelves were empty. Like Google, Naver found there simply was not enough Korean text in cyberspace to make a Korean search engine a viable business. “So we began creating Korean-language text,” said Lee Kyung Ryul, an NHN spokesman. “At Google, users basically look for data that already exists on the Internet. In South Korea, if you want to be a search engine, you have to create your own database.” The strategy was right on the money. In this country, where more than 70 percent of a population of 48 million use the Internet, most of them with high-speed connections, people do not just want information when they log on; they want a sense of community and the kind of human interaction provided by Naver’s “Knowledge iN” real-time question-and-answer platform. (…)

Each day, on average, 16 million people visit Naver — the name comes from the English words neighbor and navigator — keying 110 million queries into its standard Google-like search function. But Naver users also post an average of 44,000 questions a day through Knowledge iN, the interactive Q.&A. database. These receive about 110,000 answers, ranging from one-sentence replies to academic essays complete with footnotes. The format, which Naver introduced in 2002, has become a must-have feature for Korean search portals. The portals maintain the questions and answers in proprietary databases not shared with other portals or with search engines like Google. When a visitor to a portal does a Web search, its search engine yields relevant items from its own Q.&A. database along with traditional search results from news sites and Web pages. Naver has so far accumulated a user-generated database of 70 million entries. (…)

Google, which started its search service in the Korean language in 2000, introduced an upgraded Korean-language service in May. The new version deviates from Google’s celebrated bare-bones style. In South Korea, people prefer portal sites that resemble department stores, filled with eye-catching animation and multiple features. “It’s obvious to me that Korea is a great laboratory of the digital age,” Eric E. Schmidt, the chairman of Google, said in Seoul at the introduction of the new search service.

What it means: I’m starting to think social search has a great future but I also think it’s difficult to start from scratch like Wikia and Mahalo. I also think there might be an amazing opportunity out there for directory publishers (and anyone operating a local search site with a good amount of traffic) to launch a social search application to complement their current database of content. Who will be the first large-scale local social search site?

Google Maps Gets Caught in Political Crossfire

CNN.com has a story this morning that puts Google in the spotlight for alleged modifications to New Orleans images in Google Maps. According to the report, Google has reverted the New Orleans pictures shown on Google Maps with pre-Katrina ones, “airbrushing history”. Highlights from the CNN article:

The House Committee on Science and Technology’s subcommittee on investigations and oversight on Friday asked Google Inc. Chairman and CEO Eric Schmidt to explain why his company is using the outdated imagery. “Google’s use of old imagery appears to be doing the victims of Hurricane Katrina a great injustice by airbrushing history,” subcommittee chairman Brad Miller, D-North Carolina, wrote in a letter to Schmidt. (…)

After Katrina, Google’s satellite images were in high demand among exiles and hurricane victims anxious to see whether their homes were damaged. Now, though, a virtual trip through New Orleans via Google Maps is a surreal experience of scrolling across an unscathed landscape of packed parking lots and marinas full of boats. Reality, of course, is very different: Entire neighborhoods are now slab mosaics where houses once stood and shopping malls, churches and marinas are empty of life, many gone altogether.
(…)

Edith Holleman, staff counsel for the House subcommittee, said it would be useful to understand how Google acquires and manages its imagery because “people see Google and other Internet engines and it’s almost like the official word.” (…)

John Hanke from the Google Earth team had this answer on the Google blog this morning:

“In 2005, shortly after Hurricane Katrina hit New Orleans and the Gulf Coast, a very motivated group of volunteers at Google worked with NOAA, NASA, and others to post updated imagery of the affected areas in Google Maps and Google Earth as quickly as possible.” (…)

Several months later, in September 2006, the storm imagery was replaced with pre-Katrina aerial photography of much higher resolution as part of a regular series of global data enhancements. We continued to make available the Katrina imagery, and associated overlays such as damage assessments and Red Cross shelters, on a dedicated site. Our goal throughout has been to produce a global earth database of the best quality — accounting for timeliness, resolution, cloud cover, light conditions, and color balancing.

(…) we recognize the increasingly important role that imagery is coming to play in the public discourse, and so we’re happy to say that we have been able to expedite the processing of recent (2006) aerial photography for the Gulf Coast area (already in process for an upcoming release) that is equal in resolution to the data it is replacing. That new data was published in Google Earth and Google Maps on
Sunday evening. (…)

What it means: in what is in my opinion a tempest in a teapot, Google has met a bunch of very cynical people who think companies conspire behind their back all the time. Having met the Google folks many times, negotiated and had many discussions with them, they truly follow their “don’t be evil” motto. They are very smart and don’t play political games. But the fact that they don’t play political games might make them forget that politics (and politicians) have become an important stakeholder in their decision-making process given their important size. When they make a technology move like this one, they do it to improve their end product, not to hide reality. I’m convinced they were truly surprised (and hurt!) by the reaction. For everyone else out there, if you run an important service, used by a large percentage of the population, people will start thinking it’s an official service and that it represents the absolute truth. You need to be aware of that fact.