Tag Archive for 'advertising'

Some thoughts on Color with a capital C

colorballmanFirst, I wanted to set this up with a couple of assertions, that location is a signal, as John Battelle defined it, and that this signal will be extremely useful when wrapped around social objects, in the way that Jyri Engestrom intended the term way back in 2005, and it’s every bit as true today.

This is a slightly more structured way of just saying that location becomes meaningful in context.

I think we can all agree that Color flopped its launch. It chose proximity-oriented photos as the social object upon which to base the serendipitous creation of affinity groups. The hope was that this activity would be so engaging that people would be motivated to invite more people to use the app, they’d use it very frequently in many locations and Color would thus have access to a hyperlocalized two-way channel into the lives of their users.

The idea is that they would then use this so-called anonymous data to create user profiles and a rich database from which to launch advertising, local promotions and news-oriented feeds. I say so-called because they neglected to understand just how identifiable photographs of faces are! (Yes, I’m looking at you Facebook.)

Another surprising oversight given the data-driven nature of the founders is that “for the average person, knowing their approximate home and work locations — to a block level — identifies them uniquely.”

Isn’t it amazing how fast anonymity breaks down?

As if this wasn’t enough, Color’s original user interface was unintuitive in the extreme and absolutely required that you use the the application with at least one other person. So, it flopped big time.

Now that Color has quietly withdrawn from the scene, it’s back to the drawing board to roll out a different application that will feed their hungry proximity algorithms champing at the hyperlocal bit, not to mention their investors looking for gorgeous pivot. How will they deal with privacy and can they find the secret sauce to make me want to share my location with nearby strangers?

My prediction is that they will not. Their approach is all wrong; it’s backwards. You cannot define yourself “much more of a research company and a data mining company than a photo sharing site,” as Bill Nguyen did and expect to have the wild imagination and fire in your belly to create an amazingly compelling social application that lots of people will love. He has some interesting ideas about the social stickiness of proximity, but it’s all wrapped around how much data he’s going to collect and sell to advertisers.

My next post will explore another proximity application…

Update: Well this seems to support my guess… “Confirmed: Co-founder Peter Pham Leaves Color” and “Troubled Startup Color Loses Cofounder Peter Pham“. Trojan horses are not lovable.

Been there, done that.

The Mayor of

I'm the mayor of this blog. So? Now what?

Location, location, location

If you haven’t heard about Foursquare, Gowalla, Latitude, Scvngr, MyTown, Loopt, Geodelic, Brightkite, WhereCheck.in, and could care less about other location based services, just enjoy the Pongo illustration and don’t bother reading any further! (I want to mention Layar here, even if it is not strictly in this category of applications. If you haven’t seen this yet, you really should check it out. It’s described as an augmented reality browser. Using the geo-location, compass and camera functions of your mobile device, it displays information about the stuff around you as you aim your camera from place to place.)

This guy with the crown has checked in here lots of times, using an application on his mobile phone. In order to keep him coming back here, I let him earn a crown and the title of mayor. That may be enough for the honeymoon period, but I’ll probably need to start offering him free drinks as long as he keeps coming back and keeps on broadcasting his presence to his friends.

What is the business model that will emerge from this scenario? I’m just going to wait and see, quite a few come to mind…

Hyperlocal, not hype-local

But there are three startups that are coming at the issue from a different perspective and I wanted to mention them here, Lasso, PaperG and BlockChalk. They all are focusing on the hyperlocal experience, the places where we spend most of our time and, not incidentally, most of our money.

Lasso and PaperG are quite interesting from a business point of view because they are sitting at the crossroads of a very real problem — local newspaper advertising revenues are shrinking, yet local media still have a sales force to sell advertising (and other promotional services) to small local businesses that a digital pure-play would have a hard time reaching due to the high overhead of selling to small advertisers.

First up, Lasso, who are building a kind of self-help hyperlocal ad server with a dash of Google AdWords:

Lasso is a platform positioned to enable local media companies to reach small and medium-sized businesses with attractive new offerings: integration with social networks like Facebook and Twitter, and distribution through customizable widgets throughout a media company’s website…

“We [Lasso] have combined internet marketing expertise plus newspaper DNA. An effective product has to have the right metrics, and in terms of landing it appropriately, it has to be done in terms that newspaper ad sales people understand,” Treadaway said. “If people don’t feel like they’re getting value, the churn will be very high. The product demos very well, looks very slick by newspaper standards. Most of the response has been: ‘when will you come train our people.’ (from LostRemote)

PaperG takes a different approach:

PaperG is testing a software system called PlaceLocal that automatically generates ads for local businesses by crawling the Web. The system scrapes the Web for basic information about a business such as its address, phone number, and opening hours. Even if the business doesn’t have its own Web page, data can often be pulled from third-party services such as Yelp or Google Maps. The system then uses semantic analysis to find and extract photos and positive reviews, and it builds an ad automatically using Adobe’s Flash software. The business owner or newspaper ad sales representative can customize the ad, so if PlaceLocal didn’t choose the best photo or review, it’s easy to select another.

Lee expects PlaceLocal to help representatives sell ads in the first place. “The sales rep can have a beautiful ad designed for every lead sheet,” Lee says, “which makes a real difference in the conversation.” (from MIT’s Technology Review) (The NYT writes about it here.)

BlockChalk is taking a much different approach, the social media classic — build traffic and figure out how to make money once they get traction. The only reason I’m putting them in this post is because of their unique usage model. You don’t have to sign up to the service to use it, and you remain anonymous until such time as you decide to share your identity on a case-by-case basis with other users of the service.

Since anonymity opens the service up to spam and all sorts of abuses, and denies the service a registered user base and profiled social graph, I am really interested to see what kinds of checks and balances they build into the system. But the really cool part to watch will be to see what kind of behavior users will adapt on their own in this wild west of a service. What will be the equivalent of the Twitter hashtag, what cultural norms will people develop and adopt?

That is if it lasts long enough for a culture to develop…