I was doing more thinking about Rob Barrett’s Latimes.com presentation I heard at the Kelsey conference last week. The decision to re-center their online strategy around hyperlocal is one of the sanest, most courageous and possibly most difficult strategic decisions I’ve heard come out of a traditional media group in a long long time.
Why? I was re-reading this blog post conclusion I wrote 15 months ago, “In a few years, you might find only authoritative international newspaper brands (New York Times, Le Monde, The Guardian, La Stampa, The Globe & Mail, etc.) and strong hyperlocal newspapers. All the ones in the middle will either have evolved or died.”
I suspect that building one of those big international newspaper brands is perceived as the holy grail of the newspaper industry and you can easily imagine that, for many years, the Los Angeles Times management team believed they would be one of those. Moving their online strategy to hyperlocal wasn’t a very sexy and exciting decision but it’s exactly what is needed to make the LA Times brand succeed online.
In light of the latest Kelsey Conference in Seattle last week whose theme was “vertical marketplaces”, I read with great interest this eMarketer article about online communities. Analyzing a portion of the “2008 Digital Future Project“(.pdf) report produced by the USC Annenberg School Center for the Digital Future, eMarketer reports that “nearly half of US Internet users (…) said they belonged to a hobby-oriented online community, a full 41% of respondents belonged to an online social community, and one-third belonged to an online professional community.”
The following graph shows the types of communities users belong to:
eMarketer also quotes a recent The Economist article that said “… that the future of social networking will not be one big social graph but instead myriad small communities on the internet to replicate the millions that exist offline. No single company, therefore, can capture the social graph. Ning, a fast-growing company with offices directly across the street from Facebook in Palo Alto, is built around this idea. It lets users build their own social networks for each circle of friends.”
What it means: I’ve often mentioned how much I like this Wired article about meganiches. I’ve often said that I’m a strong proponent of media “verticalization”. I therefore believe Ning is onto something really big as the social Web becomes more distributed.
On the second day of the Kelsey Drilling Down 2008 Conference, we heard from Rich Barton, Chairman and CEO, Zillow. He exposed us to his thesis that lead to the various projects he’s been involved in in the last 10 years. Before founding Zillow, Barton founded Expedia when he was at Microsoft. His basic thesis is that transparency of information is power. This leads to a consumer revolution in various verticals, releasing things that were locked-up, especially around big financial decisions. He mentioned stockbroking, travel and real estate as three verticals that were forever altered by the arrival of the Web. He also mentioned three other companies he’s involved with in the following verticals: Legal (Avvo.com), Healthcare (Realself.com), and Employment (Glassdoor.com).
(picture: zillow.com)
He finished his presentation with a “Power to the people” manifesto that’s very telling in this user-generated content age:
- Consumer crave information and power
- If it can be known, it will be known by all (the web causes transparency)
- If it can be rated, it will be rated
- If it can be free, it will be free
- Professionals who are active players in the new vertical marketplaces win
- There can be no vertical marketplace without community
- The digital media model rules (local is giant)
Remember my January blog post where I came to the conclusion that Facebook was just a big game? It has been officially confirmed by a report from Flowing Data.
According to Techcrunch, “About half of the 23, 160 applications on Facebook fall into the “Just for Fun” or “Gaming” categories. “Dating” and “Chat” are also high up the list.”
Pat Marshall has been in the online directory industry basically since it was created. In fact, when introducing him, John Kelsey and Charles Laughlin (both from the Kelsey Group) called him “the father of Internet Yellow Pages”. According to the press release announcing his Yellow Book nomination, “ Marshall has spent more than 28 years in marketing leadership positions, including as a senior executive with Verizon, Frontier Corporation and R. H. Donnelley. At Verizon, Marshall led the launch and management of SuperPages.com.” So, it was with great pleasure I sat down to listen to this conversation between the Kelsey Group folks and Pat Marshall.
Q: Why did you get back into the Internet yellow pages (IYP) business?
A: I did not want to get back in IYP, I wanted to get back into local search. I also wanted to get back into action (as opposed to the consulting I had been doing in the last few years)
Q: So, is Yellow Book in the local s
