March 31, 2005
Ask Me Then, Ask Me Now
The acquisition of Ask Jeeves by Barry Diller's InterActiveCorp (IAC) two weeks ago got me thinking about the question and answer model that the company originally tried to use to differentiated itself. That approach really never took off, and the company eventually shifted its attention to other aspects of the business (which yielded them a consolation prize of $1.8B, not bad when compared to say About.com’s recent $410M sale).
But it got me thinking. Is the “question and answer” paradigm really dead? It looks like a number of start-ups are trying it again. This time one of the spins is on having users generate “microcontent” responses, as opposed to having search results or experts/guides respond to you. At first glance, it sounds like the social networking sites have rubbed off on search.
But, I think that there is could be a new diamond in the old rough here. My belief is that the timing is right for a microcontent producing Q&A sites (in investments in them) to flourish now, whereas it couldn’t in the past, for a number of reasons:
1. Publishers’ eagerness in seeking additional quality content to increase their available advertising inventory. Since the bottoming out of online advertising market after the bubble, the past few years have produced renewed fundamental advertiser demand for online media. This situation has driven up media prices, inducing publishers to actively seek new content to sell under their brand umbrella.
2. Google’s AdSense and other contextual networks facilitating monetization. With the presence of AdSense and other contextual advertising networks, microcontent publishers now have a genuine ability to monetize their information pieces in a way that wasn’t available during the late 1990’s.
3. Improved search engine algorithms facilitating increased sophistication of consumer information searches. As search results have greatly improved in the past five years, consumers are more comfortable and likely to search for specific, detailed (i.e. microcontent) information – rather than just general topics.
4. Adoption of new content syndication technologies like RSS. With expectations of full RSS embracement, there will be an accepted protocol which facilitates the syndication of microcontent that wasn’t available just a few years ago.
5. Renewed interest by major portals in social input engines. Signaled by both acquisitions and in-house developments, the major portals (namely Yahoo), have recently devoted significant attention to online models that leverage a collective social input aspect in generating content (dating sites, Yahoo360, Flickr).
I’ll keep ruminating on this one and see if I can find other opinions on the blogosphere that agree or disagree. I haven’t seen much discussion about it in the blogs that I regularly read.
March 30, 2005
My New Favorite Vertical Search Site - EVDB
There’s been a lot of hype surrounding Vertical Search Lately. Search engine marketing guru Danny Sullivan claimed at the SES, “I can't say it enough. Vertical search is going to take over." Visionary Tom Evslin first disagreed saying that “’Vertical search engine’ is an oxymoron” and then hedged his comments a bit.
The right answer is somewhere in between these strong opinions. In a future blog, I will comment on what I think vertical search means, its importance/relevance, and where it is going.
But for now, I want to highlight my new favorite vertical search site - EVDB, a search engine for local events and venues. After signing up in the past for notification when the site went live, I received an e-mail yesterday announcing the beta launch.
Has the company bitten off more than they can chew? It is a tall order to database a set of local events and venues with the a critical mass that’s beneficial for the user. As opposed to other vertical engines with a handful, or even dozens, of sites needed to draw information, EVDB has to aggregate events from thousands of disparate sources. But, if it can be done, it will be a truly powerful proposition. It’s an interesting angle to the “local” play, in contrast to most local content/search sites centered around the location of businesses. I am looking forward to the day when I can set up an RSS feed of my favorite independent-label musicians, and have EVDB notify me when they are coming to town at a small local venue. Very powerful.
So when EVDB does place themselves on A9’s Open Search?
March 29, 2005
Web Analytics ARE Relevant, at Least Google Thinks So
It seems that every day, there is one media story that’s all the buzz in the blogs and e-mail newsletters that I read regularily. What was today’s?
I’d note that I think that the investment by BV Capital in Fotolog, on the heals of the announcement of Flickr’s acquisition by Yahoo, was of significance. However, I think that the true story of the day is Google’s acquisition of Urchin. Rumor has it that the price was about $30M.
Google is starting to move down a path of offering additional services for their marketing customers. Expect to see more of this activity in the future, especially on the acquisition front. As a former professional internet marketing consultant myself, I know that there remains a lot to be desired in services for online (and especially search) marketers. There is a need for both analytics and tools to help create, refine, and test online marketing campaigns. Urchin fits in here nicely, but there are still empty holes to be filled (like bid management applications and landing page optimization). Google will continue to aggressively pursue acquisitions in this area.
And don’t believe the media hype about consumer privacy concerns with respect to online analytics. It’s just reporters trying to stir up controversy. Mediapost goes even as far to say, “Until advertisers can convince the public that market research has a public benefit, Web analytics companies such as Urchin and WebTrends will be increasingly irrelevant.”
Nonsense. Privacy concerns are indeed valid, but companies are now deliberately addressing them. More importantly, these tools are increasingly helpful for marketers to better understand and address their customers.
Are web analytics relevant? Absolutely - Google thinks so, and so do I.
Posted by at 5:27 PM | Permalink | Comments (0) | TrackBacks (0)March 28, 2005
Resurrection: The Internet Rises from the Dead
Five years ago this month, the Nasdaq hit an all-time high. Then, the bubble burst. Out went the capital markets. Out went the media spending. Out went the unsustainable businesses.
But, also out went the baby with the bathwater. For a number of years, the word “internet” was a dirty word. It was the punchline of jokes. I was embarrassed to tell people that I founded an internet company.
I am happy to officially state that the Internet is now raised from the dead. No, this shouldn’t be news to anybody who is in the industry. And, in fact, anyone who has ever purchased media from Google’s Adwords in the past few years knows that the Internet really never perished.
Sure, it’s broad category. “The Internet.” It’s content, it’s e-commerce, it’s advertising networks, etc. – it’s so many things. But generally-speaking, it’s back.
Google’s IPO last year didn’t open the floodgates for other initial public offerings. But it did help facilitate the mergers and acquisitions market, albiet a few months later. Yes, online mergers are hot again. The New York Times $410M purchase of About.com from Primedia, one of my former employers. Then, last week’s IAC/InterActiveCorp's agreement to pay $1.85 billion for Ask Jeeves. Flickr. Snapfish.
But it’s not just a “Google effect,” as some would argue. It runs much deeper than that. Yes, Adsense and Adwords have provided a technology platform for monetizing “free” content and search on the web. However, other models are flourishing – subscription-based content on dating sites, a la carte pricing for mp3’s on iTunes, and downloadable try-before-you-buy executable games on gaming and general portals – just to name a few. And new technologies and applications are just emerging, like RSS, social tagging, and vertical search.
Yes, the Internet is back. And I am happy to be here.
March 25, 2005
The Incremental Web is Here
There are many dramatic shifts in the way that technology-enabled services are changing the online world. However, I think of one of the most important meta-trends is the paradigm shift that the CEO of Topix.net, CEO and co-founder Rich Skrenta, iterated in a recent post. In fact, when I first heard him make this argument at the NYC Search Engine Strategies conference earlier this month, a light-bulb went off in my head.
Plainly put, we are in the midst of a paradigm shift from the “Reference Web” to the “Incremental Web.” Currently the web is transforming from a reference medium to an incremental medium.
For the past ten years, the web has been filled with static content using the HTTP protocol. Search engine relevance from for the past five years was derived from link analysis – how many pages have linked to a particular page. The offline model equivalent of this structure is a yellow pages or encyclopedia.
Now, the web is becoming dynamic and ever changing. RSS is a more appropriate protocol to deliver this information. Relevance of content isn’t just about how popular it is – it’s about timeliness. So traditional search relevance is turned upside-down. The offline model equivalent is a newspaper.
(Too?) many called 2004 the “Year of the Blog,” but the opportunity is so much greater than just blogging-related – RSS and the Incremental Web will transform the way that all information is created, aggregated, and delivered. Individuals and corporations alike are now able to “RSS” anything. The key question: what does this mean for the creation of new content and the new enterprise value associated with that content? It’s very exciting.
From a VC perspective, investment opportunities are presenting themselves in all aspects of this content value chain – not just the with much-hyped readers – places like creation, publishing, aggregation, search, contextualizing, advertising, personalization, etc. It’s in this area that I am spending a lot of my time thinking these days.
March 24, 2005
Why Genuine VC?
I mentioned in my last post that, I am a venture capitalist. I have been an entrepreneur, and hope to return to wearing an entrepreneur’s hat again in the future. But for now, I am a VC. And I love it – it’s a great job to have.
But what about “genuine?” Why include that word in the title of this blog?
There are different three levels to the meaning of genuine that pertain to this site:
1. Valid & True: One a fundamental level, the facts about my own background and the topics I write about will be entirely correct to the best of my knowledge.
2. Applicable & Relevant: The thoughts conveyed will relate to venture capital, entrepreneurship, and technology-enabled change. My hope is that they will be applicable to others and relevant to present scene.
3. Open & Authentic: Most importantly, my expressions will be an authentic and faithful reflection of my own real beliefs and opinions. They may not necessarily prove out to be correct – in fact many will not – but they will be an accurate reflection of my current thinking. I’m going to call it like I see it, without any sugarcoating. More on this important subject in future, but the bottom line is that I try both here and in my life to be sincere and open without any undue outside influences or motives.
My thoughts here will be genuine. I myself strive to be genuine. I like working with and for other people that are genuine. I’ve only ever tried to hire people that are genuine. And I want to help find and build companies with other genuine entrepreneurs.
March 23, 2005
Introduction
Last year, I started working as a venture capitalist. And after reading many VC’s blogs over the past few months, I became eager to engage in the active dialog online. So I am started my own weblog: GenuineVC – Beisel’s Perspective on Digital Change.
My intention is to provide my own commentary on the how digital technology is currently transforming both businesses and our own lives. My hope is to provide a unique perspective through the lens of a young venture capitalist, trying to find and help build new companies that will further shape and change the way we work and play.