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City guides web 2.0

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As the web is increasingly becoming participative, more and more websites are being developed on the Web 2.0 platform and the existing ones are transtioning themselves to include the Web 2.0 features. …

As the web is increasingly becoming participative, more and more websites are being developed on the Web 2.0 platform and the existing ones are transtioning themselves to include the Web 2.0 features. One of the domains where the Web 2.0 features have been successfully leveraged is that of City Guides.
When someone wants to have some information about a particular city or a particular product/place in a particular city, he can ask his friends, read books/yellow pages on the particular city or he can browse the net for the information. The Web 2.0 platform gives him the benefits of a place/product being reviewed by a large number of users so that he can take an informed decision. This sector was pioneered by two gentleman from US namely Craig Newmark and Bill Gross in the year 1995.
The three top players in this sector are craigslist.org, citysearch.com and yelp.com. Both craislist.org and citysearch.com started as Web 1.0 sites and gradually trasitioned to Web 2.0, while yelp.com started in 2004 completely as a Web 2.0 initiative. All the three sites are US based and include mostly the cities of US. The users of these sites also show a similar demographic profile but the differtiating factor with Craigslist which enjoys the maximum traffic among the three lies in the fact that it provides a platform for dating and job-search which is unique to Craigslist. Citysearch and Yelp have a similar revenue model comprising banner ads and classified ads while the sole revenue for Craigslist is the paid job-ads in select cities.
As the internet penetration has incresed in India over the years, so has the use of local city guides. Some of the prevelant players in the Indian market include sulekha.com, justdial.com and whereincity.com. Among these, Sulekha has the highest ranking. Sulekha also started as a Web 1.0 site and currently it has almost all the features of Web 2.0. Its revenue model is similar to Citysearch and Yelp.
As the online ad-industry is growing very rapidly, the revenue model of these sites is pretty sustainable. The future trends in this industry include virtual tours, the use of 3G and GPS on mobile for directions and the increasing use of video ads. Also in the developing countries like India where we have city guides for particular cities and not a single point, the industry may see a consolidation where the small players from each cities would integrate their databases.

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    • 1. Web 2.0 Content Aggregation Guides and Reviews “ City Guides” Enayath Sheikh Kartiksinh Sarvaiya Shikha Gupta
    • 2. Agenda Products / Services Participants Web 2.0 Tools and Technology Players Demographics Web 2.0 tools Differentiation Indian Scenario Future Trends
    • 3. Products / Services
    • 4. Participants
    • 5. Transition
    • 6. Web 2.0 Tools and Technology
    • 7. Players
    • 8.  
    • 9. Craigslist.org
      • Founder: Craig Newmark
      • Year of inception: 1995
      • Presence: 500 cities in 50 countries
      • Operating expenses for 2008: $7.5 Million
      • Value of the company:$2.4B
      • eBay owns 25% stake in Craigslist
      An online community service featuring classified ads and forums. Source: Alleyinsider.com
    • 10. Revenue Source
      • Paid Job posting ads in select cities
        • 75$ per ad for the SFBA
        • $25 per ad NY, LA, San Diego, Washington D.C, Boston, Seattle, Chicago, Portland and Oregon.
      • Apartment listing only in New York City
        • $10 per ad
    • 11. Growth Source: Alleyinsider.com
    • 12. Demographics Source: quantcast.com
    • 13.  
    • 14. Citysearch.com
      • An online city guide which taps community voice and reveals honest and current insights on local businesses and services on everything from martinis to mechanics.
      • Founder: Bill Gross
      • Year of inception: 1995
      • Revenue model:
        • Pay per click on add
        • Pay for Performance
        • Other sources
      • Owned by – Interactive Corp
    • 15. Demographics Source: quantcast.com
    • 16.  
    • 17. Yelp.com
      • Yelp is an online urban city guide that helps people find cool places to eat, shop, drink, relax and play, based on the informed opinions of a vibrant and active community of locals in the know
      • Ownership : Privately held
      • Co-founders : Jeremy Stoppelman(CEO) and Russel Simmons(CTO)
      • Founded in : July, 2004
      • Current funding : $ 31 M
      • Current Value : $ 200 M
      • Revenue Model
        • Advertisements
        • Yelp store (Apparels)
      Source: Alleyinsider.com
    • 18. Demographics Source: quantcast.com
    • 19. Demographics Craigslist Citysearch Yelp Traffic Rank 11 87 79 Traffic Count 1.13 Bn 9.9 Mn (US only) 11.3 Mn Major visitors US US US Gender Male-Female (Both) More Female Male-Female (Both) Age 18-49 18+ 18-49 Education College Grads College Grads College Grads Economic Strata More Affluent Affluent More Affluent
    • 20. Web 2.0 tools Chats Blogs Communities Forums Mobile RSS Rating
    • 21. Comparison Source: trends.google.com No. of employees 25 Around 75 Around 50 Revenue $ 81 M $ 88 M $ 10 M Ranking 39 754 666
    • 22.
      • The Daily Ad Budget is the amount that we estimate a domain spends on Google Adwords in an average day. We express the Ad Budget as a range to express our margin of error. The lower number is the bottom of the range and the larger number is top of the range.
      • If you take all the ads that link to a given domain, and you add up all the clicks that those keywords get in a day, you get Total Clicks Per Day. Total Clicks Per Day is calculated separately from Daily Ad Budget, but in a similar way. We express the Total Clicks Per Day as a range to express our margin of error. The lower number is the bottom of the range and the larger number is top of the range.
      • If you take the Average Cost per Click of every keyword that a domain advertises on, add them all up, and divide by the total number of keywords, you will have the Avg Cost/Click for a domain. For example, if a domain advertises on 3 keywords with Avg Cost/Clicks of $1, $2, and $3, respectively then the Avg Cost per Click for the domain would be $2.
      • If you take all the keywords on which a domain advertises, add up each of the Avg. Clicks/Day and then divide by the total number of keywords you get this number. For example, if a domain advertises on “cat food”, “dog food”, and “bird seed” and those keywords have an Avg. Clicks/Day value of 30,40, and 20, respectively. The Avg. Clicks/Day for the domain would be 30.
    • 23.
      • An ad’s position is the order it appears on the result page. Google has up to 3 ads at the top of the page, and up to 8 ads on the side. If there are 3 ads at the top of the page, then the position of the second ad in the side results is 5. If there are no ads at the top of the page, the ad at the second position on the side is 2. Ads that appear under the More Results section start counting at either 12, 11, 10, or 9 depending on how many ads there were at the top of the page.
      • Average Ad Competitors is the average number of other domains that advertise on the domain’s keywords. For example, if a domain buys the keywords “fork”, “spoon”, and “knife”, and there are 6, 18, and 21 ads on each keyword respectively, then the Avg. Ad Competitors is (6+18+21)/3 = 15.67. So, for any given keyword that a domain advertises on, it is reasonable to assume that there will be about 15 other domains also advertising.
      • Average Ad Percentile is a measure of Ad Position taking into account a domain’s average ad competitors. Also, whereas Avg. Ad Position gets larger as the actual ad positions decrease in cost and traffic, Average Ad Percentile approaches 100% as a domain gets closer to dominating the first ad position. Avg. Ad Percentile is calculated by dividing Avg. Ad Position into Avg. Ad Competitors . That number is then subtracted from 100%. So, for example, if a domain has an Average Ad Position of 4, and an Average of 10 Ad Competitors, then their Average Ad Percentile is 100% - 4/10 = 60%. So, regardless of the number of competitors the domain’s ads typically show up in the top 60th percentile.
    • 24. Yelp.com Source: spyfu.com
    • 25. Citysearch.com Source: spyfu.com
    • 26. Craigslist.org Source: spyfu.com
    • 27. Differentiation
      • Presence across different geographies
      • Simple (Less graphics)
      • Does not have the traditional ad-revenue model
      • Focused player for US
      • Leverages on its experience over the years and trusted editorial reviews
      • Relies solely on the user reviews and not editorial
      • Uses more Web 2.0 tools than most of its competitors
    • 28.
      • Spamming and selling of user information to third parties.
      • Impersonation
      • Illegal and inappropriate ads
      • Information collected and used
      • Transfer of information
      • Links
      • Email and opt-outs
      • Dispute resolution
      Privacy Policy
    • 29.  
    • 30. Sulekha.com
      • Online Indian community with classifieds for 60 cities worldwide,
        • Matrimonial for Indian professionals
        • Tickets
        • Weblogs
        • News.
      • Sulekha.com has a traffic rank of:  913
        • tie up with yellow pages
        • classifieds and local search
        • wap version available
    • 31.
      • Network (Communities)
      • Forums
      • Blogs
      • Photos
      • Reviews & Rating
      • Classifieds
        • SMS query
      • Yellow pages
      • Mobile
      • QnA
    • 32. Demographics Source: quantcast.com
    • 33. Sulekha.com Source: spyfu.com
    • 34. Future Trends
      • Virtual Tours
      • 3G and GPS on Mobiles
      • Video Ads
      • Consolidation in the developing countries
    • 35. www.praxis.ac.in

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