Tag - yelp

Local heats up, starts to get ugly

Everyone who follows tech and web news today knows that local is the hottest battleground right now. It’s one that I’m intimately engaged in as part of Canpages, one of the leading local search sites in Canada.

The battle just turned up a few degrees.

Today Yahoo! announced their new local focus “neighborhood mix”, now in beta … a combination of local news, events, and – you guessed it – deals. That’s following hot on the heels of Groupon, the poster child for local commerce deals, which recently turned down a $6B takeover deal from Google. And Google of course just announced Hotpot recently, a recommendation engine to add to Places, Google’s hyper-local search/commerce engine.

I haven’t even mentioned Yelp, or Facebook Places, or the entire location-based networks such as FourSquare and Gowalla, or Bing Local. But that’s not what made the battle hotter.

TripAdvisor is the company that turned up the temperature.

TripAdvisor, of course, is the company you turn to in order to find out if the hotel or restaurant you’re going to is any good. They have hundreds of thousands of reviews, most from ordinary people who have gone to the location and reported their findings. I never pick a hotel without checking TripAdvisor first.

Befitting its status as a search engine, Google has always provided easy access to TripAdvisor reviews, ranking them high in search engine result pages (SERPs). But as a local destination and review engine in its own right, Google is not neutral anymore. It’s not even, really, a frenemy. The coopetition is now pretty much competition. And TripAdvisor has decided to stop feeding the troll.

Google Places works by aggregating web content about a location in order to present a searcher as complete a picture as possible (with some restrictions, as they don’t work with Facebook or – now – with TripAdvisor). They’ve had problems before as content providers and creators such as Yelp have felt they are getting cheated as Google essentially uses their content for free. That’s always been the case, of course, but now with Google Places, users may not ever feel the need to click through to any of the other sites to get a fuller picture. Places, in other words, pushes Google over the line from partner and source to direct competition.

And so TripAdvisor has blocked Google Places from showing full reviews. Greg Sterling at Search Engine Land has a great post showing the exact implications of this blocking.

This is a devil’s deal, of course: you’re protecting your interests but also harming them. While protecting their content, TripAdvisor is risking their traffic. They can probably do it – their brand is strong, and their direct-in traffic and repeat traffic is probably also strong.

The question is: will more content providers start doing this as well?

Connecting buyers and sellers: beyond Google, Facebook, Groupon, etc. (part 1)

Note: this post is part of a series … Part one | Part two | Part three

There are three ways to make money:

  1. make stuff
  2. provide services
  3. connect buyers and sellers

Apple is a maker. Microsoft is a maker (in spite of some attempts to move to subscription services). Samsung is a maker. But just about everyone else that is a big name on the web today is a connector. Google, Facebook, Yelp, Groupon, and any other ad-supported website, blog, application … they’re all connectors.

A precious few provide services, like 37signals, the WSJ, and so on, but in technology, most are makers or connectors.

The connectors connect in different ways. Google connects through search as well as discovery based on context in cloud-based apps … the intentional graph. Facebook connects based on context also, but growingly via increasingly detailed and predictive information about you and your friends … the social graph. Twitter is the interest graph. Yelp is a town hall or community centre, Groupon is the buying club.

The value of a connector is dependent primarily on two things:

  1. how … connected … the connector is to both buyer and seller
  2. how close in time and space the connector is to the actual point of purchase

That’s why Google, with intent to purchase a key basis of a segment of search activity, and Facebook, with its intimate knowledge of buyers, are incredibly valuable companies. That’s also why deal companies like Groupon have come from nowhere to potentially $3 billion valuations in nothing flat. And it’s a major factor in why the local/social/mobile solution space is white-hot right now.

So that’s today … and, partly, tomorrow. But as Gretzky said … you gotta go where the puck is headed, not where it’s been. So where’s the puck going the day after?

I think we can take as a given that …

  • Location awareness is only going to grow
  • Social connectivity is not going to decrease
  • Mobile devices are going to get smarter/better/faster

What does that mean for the connectors of the future? There’s a bunch of things to think about …