Rich Barton (Zillow): “Transparency of Information is Power”

May 7th, 2008 by Sebastien Provencher

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).

Rich Barton Zillow CEO

(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)

Posted in Conferences, Expedia, Glassdoor.com, Kelsey Group, Local, Local Search, Microsoft, Realself.com, Travel, User-generated content, Vertical Search, Verticalization, Zillow, avvo.com | 4 Comments »

Farecast Cracks the Hotel Reservation “Black Box”

August 29th, 2007 by Sebastien Provencher

(via TechCrunch)

Seattle-based Farecast, a startup that launched about 18 months ago to focus on predicting flight prices and guaranteeing users against increases, just expanded to help people find deals on hotel rooms as well.

The hotels area of the site helps users see prices based on a number of travel search engines (Orbitz, CheapTickets and ReserveTravel). All the results are shown on a map along with price and other basic information.

But the service also looks at each of the hotels to let you know if it’s priced attractively or not. For most hotels, the star rating isn’t enough to tell if the price is too high or low v. local competition. Over the long run market forces even the playing field, but a traveler unfamiliar with a specific hotel can (and often is) overcharged occasionally. Farecast will help you understand if you are getting a deal or not on that specific hotel.

What it means: I love these services that crack open what I call “black-box” industries and give the power back to the users. Farecast does it for flights and hotels. Zillow does it for real estate. I can think of at least a dozen other industries that could be disrupted that way.

Posted in CheapTickets, Farecast, Orbitz, ReserveTravel, Travel, Zillow | 1 Comment »

Can Local Search Get Bigger Than Google? Is Google Local Dying?

February 21st, 2007 by Sebastien Provencher

Yesterday, the local blogosphere was full of catchy titles like “Can local, vertical search get bigger than Google? ” and “Google Velocity: Froogle and Local are dying while Video and Blog are surging What were those all about?

First, the Ars Technica article (can local get bigger than Google):

Every few months, someone wonders aloud whether local and vertical search providers will one day kill off Google. These companies offer specialized searches within specific locations or industries; if targeted search results are what you seek, these may provide better answers than a general query. The most recent proponent of this theory is Jason Prescott, who argued last week that “specialty search engines could one day become more important than Google.”

Prescott’s main point is that general search doesn’t always work very well. Using other data, he claims that only four out of ten business professionals are satisfied with the results they get from places like Google and Yahoo. This creates a niche that can be exploited by more targeted search engines that index only specific businesses, for instance, or that concentrate solely on local search.

Then, the Compete’s blog article (Google Local is dying):

Google has been criticized for being unable to succeed beyond its core Web Search offering. Last year Forbes “graded Google” and didn’t give the internet superstar high marks beyond the core web search products. Just last week Forbes “re-graded Google” on
the past year’s performance. At Compete we tend to look at things a bit myopically. We’re all about the data. (…)

Despite just about everyone in the search world chiming in on the shift to a more local web, Google Local took the biggest hit over the past year. To be fair this is mainly due to merger of Local and Maps. The growth in Maps more than offsets the decline in Local.

What it means: First the Compete article. As “Alex” says in the comments, “Don’t read so much into the drop off in ‘local’. It is simply the old name for maps and still remains up for legacy reasons as a cname. Inbound links are almost entirely to maps now, so the traffic was simply redirected. So local isn’t dying, as your title says.” My friend Greg
agrees
: .The Compete blog headline “Local Dying” misleads somewhat because Google renamed Local “Maps” last year. Essentially there is no more “Google Local;” local.google.com yields the same site as Google Maps. And, according to Compete, Google Maps makes the strongest showing in its middle category, so-called “performers””. I complete agree with both assessments. Although the “local” portion of Google Maps is not very good, the maps themselves are excellent.

Then, the Ars Technica article. I don’t believe that, individually, local and vertical search tools will become bigger than Google. Although I am a big proponent of verticalization (see my second 2007 prediction), these will remain smaller sized than the Google mastodon. That’s usually the concept of niches. You’re smaller but you’re better (Zillow is
mentioned as a perfect example). But I agree that vertical and local search sites are chipping away at Google’s current supremacy in many verticals. I think most experts agree that in local search, there’s no clear winner as well.

Posted in Google, Google Maps, Local, Local Search, Vertical Search, Verticalization, Zillow | No Comments »