Patch: A Hobby Horse or a Derby Contender?

May 8, 2011

I found “Tim Armstrong’s Rambling Explanation Of What He’s Getting For Plowing $40 Million Into Patch” darned interesting. The magnetic pull of going local continues to exert a pull over former Googler Tim Armstrong. The write up features a long segment transcribed from an analyst’ phone call. I have read a few of these transcripts, and there are typographical errors. My hunch is that over time the revisionists will explain the comments. In that spirit, I want to highlight one segment and offer a couple of observations from the perspective of search and retrieval:

And job one is getting consumer traffic going. Job two is on the advertising front. And Patch is basically being monetized right now almost 100% by local zip code level advertisers or people.

The only hitch in the git along is that I don’t run across Patch in Harrod’s Creek. The local ad market is tough to reach, lacking in know how and resources, and generally interested in paper coupons to putting big mobile signs in front of the fish joint on the creek’s side. Local news, well. There’s not much. My hunch is that other services are serving the needs of the technically hip. Others in Harrod’s Creek are oblivious.

Searching for local information is tough, and I don’t see AOL becoming the go to way to find a pizza joint or a fried catfish sandwich.

Patch. Puzzling. More like a hobby horse than a derby contender. Just my opinion.

Stephen E Arnold, May 8, 2011

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Fwix Positions Itself Carefully in Location Information Market

May 4, 2011

Fwix Launches Read/Write Business Listings API,” announced ProgrammableWeb.com. Fwix’s aim is to incorporate businesses’ real-world location data into their application programming interface (API). By doing so, and doing so thoughtfully, Fwix hopes to claim the position of standard underlying geodata platform. The story said:

Fwix is committed to concentrating its efforts on three key aspects of its product. Having valuable content to offer based on location and a well-organized database of places are two of them. The third is a built-in monetization opportunity through an integrated location-based ad network. Shirazi says the major growth opportunities for Fwix are in the platform itself, so having a way to translate that growth into profitability is key. Rather than creating a barrier to adoption by charging for access in order to make money, Fwix is actually offering developers a share in revenue that its location network makes possible.

Smart, but Fwix isn’t the only company on this trail. Competitors such as CityGrid are pursuing similar tactics. Helping Fwix in its endeavor is database builder Factual, who is already building what they call “the definitive database of local businesses and points of interest from around the world.”

Is the future of local virtual consolidation of information and technical services? Perhaps the importance of the Fwix initiative is a Petri dish for achieving depth and breadth using multiple tie ups? One benefit we perceived is a sharp reduction in operational and other costs.

Cynthia Murrell, May 4, 2011

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Vertical Blog: A New Angle for Online

April 27, 2011

Our Overflight intelligence system tracks certain types of information. There are some basic Overflight services available from the ArnoldIT.com Web log. We have other systems running as well. One of these identified a new blog called Backnotch. Published by Jean Glaceau appears to cover one narrow segment of online information; namely, transactions related to Angola. What’s interesting about the publication is that the content appears to be summaries of publicly-accessible information. The Backnotch service is similar to a traditional abstracting service. The principal difference is that the contributors are offering some broad editorial comments. These comments, plus the collection of articles, comprise a useful resource for anyone looking at what types of open source information cover certain activities associated with Angola and related topics.

According to the About page of the blog:

In my first week of work, I decided to narrow my focus to a handful of issues which are covered in the open source literature. The information I located struck me as similar in some ways to a fictional story or a Hollywood film. Going forward, I want to continue to explore how the open source information follows a particular story and what entities surface in those stories.

The publisher is Jean Glaceau. When we did a couple of queries for him, we found a number of individuals in the hit list. We were not able to determine which Glaceau was running the research project behind the information service. We wrote the email address for the blog, but we had not received an answer as we queued this story for publication.

We checked out the search engine for the service, and it appears to have a backfile of about 60 articles. If Mr. Glaceau keeps up his current pace of content production, the service will generate about 50 to 60 stories each month. Our view is that online has moved from vertical search to vertical “finding” services.

We will check back with Backnotch in a couple of months. Worth a look.

Stephen E Arnold, April 27, 2011

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Linguamatics Takes to the Cloud

March 22, 2011

One of the leaders in enterprise text mining, Linguamatics, recently announced its newest software creation in “I2E OnDemand – Cloud (Online) Text Mining”.  The company’s flagship product, I2E, is an enterprise version of NLP-based text mining software, largely implemented in the medical and pharmaceutical industries.  Now Linguamatics adds I2E OnDemand to its offerings menu, matching the popular I2E capabilities with cloud computing for those companies with fewer resources stacked in their corners.

The write-up boasts:

“I2E OnDemand provides a cost-effective, accessible, high performance text mining capability to rapidly extract facts and relationships from the MEDLINE biomedical literature database, supporting business-critical decision making within your projects. MEDLINE is one of the most commonly accessed resources for research by the pharmaceutical and biotech industries.”

Of course in the event that search of additional data sources is required, it is possible to move to the enterprise version of I2E.  There is a trial version for evaluation, available by request from the website. Linguamatics has been diversifying in the last 12 months. In 2009, I characterized Linguamatics as a vendor with a product tailored to the needs of the pharma and medical sectors. Now Linguamatics appears to be making moves outside of these vertical sectors.

Sarah Rogers, March 22, 2011

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Are Google Rules Made to Be Broken?

March 9, 2011

I am not into financial comparisons in the UK or in the US for that matter. Too many opportunities to fiddle the data exist. Your view of these types of online services may be different from mine. After all, I am 66 and have worked in the commercial online sector for 30 plus years. Yep, lots of looseness exists. Anyone remember the ratings of certain financial instruments coincident with the financial meltdown in 2008?

The story that caught my attention was “Google Buys BeatThatQuote, a UK Comparison Site Violating Google’s Guidelines.” The main idea was that Google acquired a semi-hot company for pocket change; that is, $60 million or so. The SEOBook article asserted:

What is screwed up about this is that Google is engaging in *major* channel conflict. Not only is there some gray area background stuff:

BeatThatQuote.com’s ad prompted 101 complaints to the Advertising Standards Authority, with 65 objecting that the commercial “trivialized, condoned or encouraged bullying in the workplace”.”

But now they have to consider SEO as well. I highlighted how it was a bit unjust when Google arbitrarily chose to whack one site while letting another get away with worse just because the founder was good at public relations, but how can Google police Google’s guidelines when Google is the one breaking them?

Now this is quite interesting. Are Google’s rules made to be broken? Heck, when you are a really big outfit operating in post crash America with a great deal of cash, rules are mostly “suggestions” or “hints”.

I think that as consolidation continues in the online space, the spirit of AT&T before Judge Green will influence a number of firms’ acquisition activities. Google is not doing anything much different from some other firms in similar positions. The free market encourages rules that work much like suggestions or hints.

Adaptation is an important attribute.

Stephen E Arnold, March 9, 2011

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Is 97 Percent of a Market a Monopoly?

March 9, 2011

Quite a question which I have not seen anyone ask. I did read the startling spider food headline “Google Controls 97 Percent Of Mobile Paid Search: Report.” I wonder if any eagle eyed regulators paid attention. Now the data come from a source that may not be familiar to some—an analyst report from a financial outfit. Most of these data are carefully screened and often support a position that the analyst wants to take with regard to a particular firm or market sector.

image

Notice that the rotini noodles are 98 percent the same. Is this consistency or a monopoly among the rotinis?

Google is the outfit the possible monopoly position. I suppose that someone at Google was surprised to be given such a accolade. Google has worked hard to present itself as just another friendly competition. Now an analyst firm asserts that the data from Efficient Frontier “proves” Google is the big dog in mobile paid search.

Now I am not sure what “mobile paid search” is. When I looked for a Pizza Hut last night, I had to resort to calling someone to look up the phone number. I then called the Pizza Hut, ordered the rotini my 89 year old father wanted, and drove to the aforementioned Pizza Hut. I want to note that my trust BlackBerry map did not get me to the Pizza Hut. I drove around until I spotted the building tucked next to a $5 haircut outfit.

Here’s the key passage from the write up which is probably going to be cited a number of times in the next 24 hours:

Just as Google dominates mobile search share in the US (with roughly 98 percent), the report said that 97 percent of mobile search spend (for Efficient Frontier clients) now goes to Google, while 3.2 percent spend goes to Bing/Yahoo.

Not too many qualifiers in this write up. Check out the charts. The pie chart is a keeper and will probably surface at some Congressional hearing later this year.

Stephen E Arnold, March 9, 2011

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Is eBay Changing Direction?

March 8, 2011

Exorbyte just released some interesting news on its blog, “eBay is Magento’s Secret Investor – Internet Retailer”.  It appears the leader of online marketplaces is finally catching on to its smaller merchants’ complaints.  So much so that eBay had acquired a 49 percent stake in Magento, the open source ecommerce Web application.  Exotbyte Commerce Search is available as a plug-in for Magento.

Here’s one snippet from the Exorbyte write up:

“This is confirmation that there will be an ongoing market of small online retailers who do not want to operate within the restrictive and expensive platforms of eBay.com or Amazon.com; where fees are high and they have no or little control of the customers relationships. This market of small online retailers using installed or hosted ecommerce platforms is where Exorbyte Commerce operates.”

The question in Harrod’s Creek is if eBay’s obvious need to appeal to its lower volume patrons foreshadows some version of a buyout on the horizon.  We shall see. eBay has become dependent for sizzle on PayPal. eBay’s original service seems a trifle dowdy. Magneto is a fresh name at least.

Sarah Rogers, March 8, 2011

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Google in the Kitchen: A Recipe for Disappointment?

March 8, 2011

With an estimated one percent of queries submitted to Google pertaining to food preparation, the multifaceted program is now adding a feature meant to sate user hunger for just such an implement. According to “Google Gives Us a Recipe Search Engine”, the proposed modification will return results compiled using a mixture of relevant ingredients, cooking times, as well as nutritional statistics. Following the French culinary refrain, Mise en place (which translates to everything in its place), access to this addition will be found in the vertical search menu on the left side of the home-screen.

While the above is as satisfying as removing your soufflé from the oven without it deflating, taking every ounce of enthusiasm you had for the endeavor with it, what makes this noteworthy? Like the ability to execute a recipe to perfection, it can be reduced to the technique used. In this case, the method involves the code applied to construct the target folios. Laced within are what is known as rich snippets (short explanatory notes) which recapitulate a page’s content.

The real issue remains the relatively small number of pages that contain structured metadata. Google has invested more than hope into the idea that more sites will follow the path cut by the Food Network and those owned by Condé Nast. Not to be overlooked is the potential for the generation of revenue. Three years ago there was speculation over the agreeability of advertisers to release a bit more coin for elevated status in category listings or under the definition returns associated with hot links. Could a similar arrangement be applied here? Google is a business.

As someone who both knows a few chefs and cooks frequently himself, I can attest to the attraction of a virtual reference library. Any professional chef who claims they do not use the internet for acquiring new recipes or verifying one when their frenzied minds cease recalling those in storage is … well let us just say those vegetables are not as fresh as advertised either.

Micheal Cory, March 8, 2011

Travel Search: Are Google and Microsoft Confused?

March 8, 2011

I read “Ex-Microsoft Employee: 5 Things The Kayak Deal Tells Us About Bing” and took a moment to think about travel search. My personal view of travel search is that it is not very good. Services that promise discount travel play more tricks than a mid tier consulting firm reporting an objective, independent study of search systems. One example is the magic of taxes and fees. Another is the time out trick. Wait too long to click and the search goes dead. Rerunning the search yields a flight listing with the trip one was thinking about gone missing from the list. Clever? Yes, clever indeed.

I think the background for thinking about travel is Google’s effort to acquire a big travel aggregator. That deal is making headlines with its  effort to buy ITA Software. You can read Google’s statement at “Facts about Google’s Acquisitions of ITA Software” and then check out the pros and cons on many, many Web posts. I have ignored this type of deal because airlines are starting to play hard ball with aggregators and middle people. Airlines are finally starting to figure out that if they emulate Southwest, they can make some extra money. Now airlines and giant outfits like Google are going to be engaging in a love-hate relationship. Apple has already figured out that its monopoly position allows it, not the content providers, to make the rules.

Nevertheless, I spent a few minutes pondering the Microsoft Kayak deal. Here’s a key snippet from that write up:

Forget vertical. It’s more fun being horizontal. A few years ago, Microsoft thought that they could compete with Google by chipping away one vertical at a time. For example, they bought Farecast to do travel, they did the awful cash back promotion to chip away on shopping search, and then they made a lot of noise in the marketplace about how their maps and pictures were delivering better results then Google.  Now it looks like Microsoft is going to focus again on general search.

In my opinion, this passage makes clear that Microsoft is flip flopping and reacting to a number of real and perceived threats. Nothing new, of course. But the statement “Microsoft is going to focus again on general search” caught my attention. Here’s why:

First, I think few people realize that the depth of the Microsoft and Google indexes are not well understood. The action is in the information that gets clicks. This means that when one looks for health care testimony before the US Congress, there will be less information than information about Lady Gaga’s meat dress. The perception that the indexes are deep, wide, and current is one thing. The reality is quite another. The big search services are now little more than collections of vertical content.

Second, the notion that travel search is going to remain objective is off base as well. Airlines will pay to get traffic. Airlines will then try to exclude any other outfit in the food chain from getting a piece of the action. So finding and buying tickets is going to remain a cat and mouse game for quite a while. Who will lose? Probably the ticket buyer like me.

Third, individual brands like Kayak get traction and then get sucked into the maw of a larger outfit. Then the brand magnetism dissipates and whatever benefits were perceived at the time of the deal. Two things happen. Entrepreneurs move into the same space and the acquired outfit begins to decline in potency. You may disagree, but I am comfortable with my generalization. Hey, it happened to our Point (Top 5% of the Internet) and it has happened to other outfits as well. Anyone remember Dodgeball?

Now why confusion?

The companies are taking a tactical approach to this market. One hypothetical strategic view is that Microsoft and Google may have to buy airline companies to get control of ticket sales. Without direct ownership of search, some of the other types of deals are going to be subject to tectonic pressures that will shatter the tie ups. Short of becoming airlines, the air ticket segment of travel will remain a geologically active area for a while. A collection of tactics may yield a victory, but I think tactics will keep the sector unstable which is typical of today’s business machinations in my view.

Stephen E Arnold, March 8, 2011

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Expert System and Esri Tie Up

February 7, 2011

On their site’s news page, Expert System Announces Its Partnership with Esri Italia. The partnership combines semantic technology with geospatial analysis to effectively support richer, improved decision making.

Expert System, a leader in semantic software, and Esri, at the forefront of worldwide geospatial intelligence, should make for a good team:

“The integration of Esri geo-analysis technology and Expert System’s knowledge management and text mining solutions renders geographic search and analysis activities more efficient. As a result, search results discovered through semantic analysis can be visualized in geographic maps derived from the geo-analysis, providing analysts with a deeper level of detail.”

Read more about Expert System here. If you can read Italian, learn about Esri Italia here.

Cynthia Murrell February 7, 2011

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