Six Takeaways from Kelsey ILM 07

Last week, I was in Los Angeles for the latest Kelsey Conference (ILM 07). We heard presentations from many interesting speakers, most notably Jake Winebaum from RHD, Jay Herratti from Citysearch, Chamath Palihapitiya from Facebook, Stuart McKelvey from TMP, John Hanke from Google and the always interesting Jason Calacanis from Mahalo.

Kelsey ILM 07

Once again, I had the opportunity to meet and discuss with many of my local search and directory industry peers, making this conference a must-attend if you’re in the local search industry. It took me the a few days to come up with takeaways from the conference, not because there weren’t any, but because they were embedded deeply in the zeitgeist of the whole conference and needed to be extracted. After a “disappointing” 2006 (as reported in this post from SES Chicago), I think we’re at a new inflexion point for the local search industry. It was almost as if every stakeholder in the room had realized that things were not as they had seemed to be and that they were being more realistic and pragmatic about online local search.

Without further ado, here are my takeaways from Kelsey ILM 07:

  1. People are finally realizing that it is very difficult to “do” local. Both advertiser and user markets are very fragmented and local initiatives do not always scale. If you’re not “native” to the local search market, the learning curve is huge.
  2. Clearly, the online local market has not been cracked yet. There is no clear winner yet and we’re still many years away from glory days.
  3. Local is going to be huge online but the various stakeholders need to work together. Players have to identify where are their core strengths and weaknesses and partner to fill the gaps (either through aggregation of technologies, content or sales). M&A should be on everyone’s mind as well. Expect a very active 2008 on that front.
  4. We heard the second reality check coming from a directory publisher in a couple of months. Time is running out and it’s now time to execute.
  5. Verticalization is starting to happen. People are realizing that there are user & advertiser differences between yellow pages headings. We might finally see some real segmentation in the industry (headings-based pricing, vertical sites, specific ad products and content, etc.) .
  6. Call-tracking/pay-per-call is now a strategic pillar of local. To solve the media fragmentation issue, this offers a unified business model to aggregate various products together and simplify the sales process.
  7. Mobile is still the holy grail of local search, coming soon, but not in 2008. Maybe 2009.

Kelsey ILM 07 Conference: Next Week!

I am attending the Kelsey Group’s ILM 07 conference next week in Los Angeles (e-mail me at seb AT praized.com if you want to connect). Taking a look a the various speakers and presentations, here are the ones I’m most looking forward to:

Kelsey ILM 07

Wednesday November 28

1) Industry Overview by the Kelsey Group Analyst Team. Always interesting and insightful.

2) Jake Winebaum, President, RHDi, CEO, Business.com. I’m dying to know how RHD will leverage Business.com in their core strategy.

3) Jay Herratti, President, Citysearch. Will Citysearch’s strategy change with Herratti on board?

Thursday November 29

1) Chamath Palihapitiya, VP of Product Marketing & Operations, Facebook. Will we learn about Facebook’s local strategy?

2) The “Localized E-Commerce” panel. I’m a strong believer in the “last-mile of local search” (local product inventory, in-store navigation, tuangou, etc.) but it’s very difficult to execute.

3) The “Future of Local Mobile” panel. As local and mobile is on the verge of exploding, this will either be an incredible panel or will be very boring.

4) A Conversation With Webpreneur Jason Calacanis. Now, this should be fun!

Friday November 30

1) Marchex and The Vertical Opportunity in Local. Marchex has some amazing local assets (localized URLs, VoiceStar, SEM platform, etc.). I’m always interested in learning more about their local strategy and how these assets work together.

2) Injecting ‘Social’ into Local Media. It’s the theme of the Praized blog…

For people attending, see you all next week!

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?