Online Marketing

Leapfish Launches Another Meta Search Engine No One Will Ever Use

TechCrunch - Thu, 2008-11-20 20:02

Last I heard about Leapfish (this was a couple of years ago), they ran a useless but fun tool that provided you with a free appraisal for your domain name based on a variety of ratings and criteria. Now they’re back with an equally useless tool, this time without the fun part.

The company just revamped itself under the ownership of California-based DotNext, morphing into what they refer to as a “multi-dimensional information aggregator,” which is actually nothing more than yet another meta search engine. You know the kind: sites that pull together search results from real engines like Google, MSN, and Yahoo and attempt to differentiate themselves by adding tabs for meta-searching images, videos, Q&A, blogs, and so on. Leapfish also displays a number of static, non-customizable widgets on their homepage for the latest news, weather reports, and a stock market summary, which is a kind of step backwards from all the start page personalization efforts we’ve seen over the years.

The company is actively contacting potential advertisers to buy keywords for top positions in their search result listings for a flat fee—typical registration fees are reportedly around $1000 and there’s a yearly renewal fee of 5% of the amount spent —which would give them a “lifetime” guarantee for a top slot for that keyword, but they also get the opportunity to resell it later to another advertiser. Of course, this is only beneficial if Leapfish becomes big, and the chances for that are slim.

The premise of meta search engines is that the aggregation process digs up the most relevant results across different sites and technology platforms, all on a single page. What I want to know: if these meta search engines (and boy, are there many) deliver significantly better results or a greater experience than a Google’s or Yahoo’s core search technology can on its own, then why doesn’t everyone flock to them instead?

The answer: people don’t want to get as many search results as possible and they don’t care about how large the unindexed part of the internet is, let alone what they might find on this so-called “invisible deep web.” All they want is a quick, convenient way of obtaining decent information from a source they know and trust. Or do you honestly visit Search.com, Dogpile, Zuula, Fazzle, Clusty or Mamma.com to get what you need? (I can go on with this list forever, but ask Mark Cuban about how much that last one is worth).

Don’t get me wrong: I see the value of startups trying to improve search and driving innovation both on a technology and a business level, and I’m sure some will be able to compete and carve out their piece of the market. In fact, I hope some of them will. Because no matter what your opinion is on human-powered search, semantic search, vertical search, or social search engines, you have to admit several companies in that space are trying to push the envelope, often drawing attention from the big guys or keeping them honest at least (see yesterday’s announcement about Yahoo Glue, for example).

For me, though, wanna-be search engines like Leapfish don’t clear that hurdle.

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Live Current Media In Trouble, Raising Cash

TechCrunch - Thu, 2008-11-20 19:15

Live Current Media, a Canadian company which is in the business of developing, operating and monetizing premium domain names, has raised a little over $1 million through a private placement. The money comes from Live Current’s own management team and a couple of outside investors, and is expected to be the first part of a private funding which could total up to $2 million in the next 15 days.

Live Current, which changed its name from Communicate.com earlier this year, is a publicly traded company (OTCbb:LIVC). The investors paid 65 cents per unit, a premium of 38% to yesterday’s closing price of 40 cents.

The company acquired YCombinator startup Auctomatic in March 2008. A month after, it was time for a far bigger deal: it signed a $50 million deal to obtain the exclusive online rights to official content from the Indian Premier Cricket League. (Live Current owns Cricket.com and operates IPLT20.com, the official site for the league). When we reported on the deal, we wrote:

It is a pretty big commitment for Live Current Media, a domain-name company with revenues of $9 million last year and a net loss of $2 million. The Canadian company is basically betting its entire $51 million over-the-counter market cap on this deal.

And that was before the economic meltdown. Now, Live Current is being forced to sell up to six of its premium domain names, including Communicate.com, Brazil.com, Vietnam.com, Indonesia.com, Malaysia.com, Canadian.com and GreatBritain.com, hoping to fetch a combined total of $6 million to $10 million. It could turn into a fire sale or worse, deadpool tag for the company, unless they can convince some outside investors that they’re able to turn the ship around.

Most of Live Current’s revenue, which was nearly $2 million for the quarter ended September 30, comes from its Perfume.com operation. But with a gross profit of $352,435 and expenses of $2,343,285, those numbers aren’t going to do the trick.

Live Current CEO and Chairman, Geoffrey Hampson, said in a statement:

“This financing, in addition to the expected proceeds of the previously announced sale of up to six non-core domain names, is consistent with management’s strategy to ensure that sufficient cash resources are available to meet our obligations through the end of 2009 while minimizing dilution for existing investors.”

Only time will tell if the cash resources are sufficient enough to keep the company afloat.

(Hat tip to DomainNameWire)

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Google’s Mobile App Uses Undisclosed Proximity Sensing System and Why You Should Care

TechCrunch - Thu, 2008-11-20 17:43
Senor Gruber has uncovered a trick inside Google's Mobile app that uses an undocumented method to access the iPhones proximity sensor. In normal situations, the iPhone proximity sensor - the little thing in the top of the iPhone that knows when you have it up to your face - can be turned on or off. When it's on and you place the phone up to your ear the screen stops responding. When it's off, the sensor does nothing. This is key because no information is passed during this on or off toggle. There is no way to tell if the proximity sensor has been triggered.

FanIQ Keeps Fans In The Game, Membership Jumps 2000% This Year

TechCrunch - Thu, 2008-11-20 17:00

FanIQ, a sports site that focuses more on entertaining its users than bogging them down with the stats and opinion pieces found on the likes of ESPN, has had a landmark year. The site launched in 2006, but hasn’t really hit its stride until now: since January, the site has grown by over 2000%, recently hitting as many as 2.4 million unique users and 1.5 million registered members. These figures pale in comparison to the larger sports sites and popular fantasy leagues, but the rate of growth is very impressive nonetheless.

FanIQ differentiates itself from other sports sites by offering a set of casual games and community features alongside more traditional sports headlines. To encourage participation, the site has a points system that rewards users who write blog posts and play the site’s integrated trivia game. These points are just for show (though CEO Ty Shay says that many users are still intensely competitive about them), but in the future the site will offer virtual goods and other rewards in exchange for points.

The site has raised around $3-5 million in funding (the exact amount was not disclosed), with investors including Vantage Point Ventures, Peter Thiel, Paul Martino, Keith Rabois, and Jeff Fluhr. Other startups in this space include Open Sports (which has a similar web portal) and Watercooler and Citizen Sports, both of which design sports oriented applications for social networks.


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Real Girls Media Picks Up Strategic Funding From Meredith

TechCrunch - Thu, 2008-11-20 16:46

Real Girls Media, a San Francisco-based online publishing company specializes in—you guessed it—social communities for women, has raised an undisclosed amount in funding led by Meredith Corporation, which took a minority stake in the company. RGM, which was founded in 2006, had previously raised $6 million in Series A funding from 3i and WaldenVC.

The agreement adds Real Girls Media Network’s traffic (which comes primarily from flagship community site DivineCaroline) to Meredith’s network, which the company claims increases Meredith’s unique visitors to an admirable 15 million uniques each month. Meredith and Real Girls Media will combine their ad inventory and sales forces, Meredith has a new way to distribute relevant content to their target audience, plus they get to use RGM’s proprietary technology platform for advertising.

Sounds like a mother-daughter thing to us.

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IAB Reports U.S. Online Advertising Almost $5.9 Billion In The Third Quarter

TechCrunch - Thu, 2008-11-20 16:35

The Interactive Advertising Bureau and PricewaterhouseCoopers just released their quarterly report on U.S. online advertising revenues. For the quarter, they estimate online advertising revenues were almost $5.9 billion ($5.865 billion, to be exact), which is an 11 percent increase from the same quarter a year ago and a 2 percent increase from the second quarter of 2008.

If you look at the graph above, you can see that online advertising revenues have been pretty much flat all year long. And the annual growth rate is less than half of what it was a year ago when it was 25.6 percent. To get a sense of the slowdown, look at the annual growth rates for each of the past five quarters:

3Q07: 25.8%
4Q07: 24.3%
1Q08: 17.7%
2Q08: 12.8%
3Q08: 11.4%

And remember, these numbers are just or the U.S. The global online advertising picture might be worse. Just tallying up the worldwide online advertising revenues of Google, Yahoo, Microsoft, and AOL—as I did a few days ago—suggests that annual growth in the third quarter was higher at 18 percent, but the sequential growth was slowing down faster (see chart below) at only 0.6 percent over the second quarter of 2008.

If these trends continue, the fourth quarter could see an actual decline in both U.S. and global growth.

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Mufin Opens Automated Music Recommendation Engine To The Public

TechCrunch - Thu, 2008-11-20 16:00

Mufin, a powerful music recommendation engine that actually works, has launched to the public. We last covered the site in early October, when it opened in a restricted private beta.

The site, which uses technology created by the same organization that developed the now-ubiquitous MP3 file format, uses an advanced algorithm to ‘listen to’ songs and identify similar sounding tracks based on over 40 characteristics. Such automated systems are very hard to pull off (which is why Pandora, another music recommendation engine, uses human experts), but in my testing Mufin had fared surprisingly well.

Since we last wrote about it, Mufin has introduced a Facebook widget that allows users to get song recommendations from within their friends’ Facebook profiles. The site has also relased a plugin for iTunes, which generates playlists based on tracks in a user’s library (iTunes Genius does exactly the same thing, but it relies on metadata rather than an analysis of the music file itself).

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eMusic: 250 Million Songs Downloaded. iTunes: 5 Billion+

TechCrunch - Thu, 2008-11-20 15:52

Will the music subscription business ever grow beyond its current niche? It looks increasingly doubtful. Today, eMusic announced that since it launched its current music subscription service in 2003, customers have downloaded 250 million songs. Apple’s iTunes, by comparison, has sold more than 5 billion songs since it opened the iTunes Store in April, 2003. That makes eMusic one twentieth the size of iTunes.

The way eMusic works is you pay a subscription of between $12 and $20 a month and then you can download 30 to 75 songs a month and keep them. You can also purchase songs above those limits, starting at $0.25 a track. eMusic has a catalog of 4.5 million songs, and is particularly strong in independent music. It currently has 400,000 subscribers, and the company expects to make $70 million in revenues this year.

That implies the vast majority of subscribers opt in for the basic $12 a month plan, which would net $57.6 million a year if that is what everyone paid. The difference can be accounted for by those people who opt for the more expensive land and additional downloads. And the best part of the business is that eMusic gets paid a guaranteed minimum no mater how few songs a customer actually downloads only pays the labels for the songs its customers download. So if someone doesn’t use up their allotment and only downloads 5 songs during a given month, eMusic pockets the money that would have gone to the and the labels pocket the money for the other 25 songs they could have downloaded. [Correction: The labels are not paid on a per song basis, rather they receive 60 percent of eMusic's total subscription and download revenues]

It’s a nice business because eMusic gets rewarded for customer laziness. And iTunes certainly needs competition, so I hope it keeps chugging along. But these numbers don’t bode well for the subscription music business ever rising up to challenge iTunes in any meaningful way.

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It’s Time For The Crunchies!

TechCrunch - Thu, 2008-11-20 04:59

It’s hard to believe that nearly a year has gone by since we gave out those crazy gorilla awards to the best startup and product successes in Silicon Valley and around the world. Some of the photos from last year are here.

The Crunchies are back. We are once again partnering with some of our favorite blogs - thank you to co-hosts GigaOm, Silicon Alley Insider and VentureBeat (click the links for their announcements). Thanks as well to 1938 Media, our video production partner (see their first video below in the comments).

The Awards Ceremony will be held on Jan. 9, 2009, 7:30 pm at the Herbst Theater across the street from City Hall in San Francisco. The reception will follow and tickets will be released in December.

What we need from you right now: please nominate your favorite startups and products in fifteen categories. And remember, you’re judging them based on their 2008 performance. Nominations may be made until December 10, 2008 Midnight PST.

On December 15 we’ll begin the final voting process for the winners.

If you are a startup and want to encourage your users to vote for you, you can create a customized badge here.

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Lonely Wrestlers Create Their Own Social Network

TechCrunch - Thu, 2008-11-20 04:36

It’s not easy being a wrestler. Inside the ring your pounding an opponent’s head against the corner post, but outside the ring it’s hard to meet people. Nobody really wants to be your friend. Not even on MySpace. They say their your friends, but they are not really your friends.

Wrestlers aren’t stupid. They know everybody thinks they are just a bunch of clowns. That’s why the company that employs all the wrestlers you see on TV, World Wrestling Entertainment, created WWE Universe, a social network just for them and their fans. Okay, it’s not really a social network. It’s just a craptastic promotional vehicle. And some of those wrestlers aren’t so bright. But they are lonely.

Just because Mark Henry is the “world’s strongest man” doesn’t mean he doesn’t cry at night when all he has to keep him company is his pit bull, Theodore, and a can of beans. Or Zack Ryder. The poor guy might be a tag team champion, but when he goes home all he has to look forward to are watering his plants and watching reruns of Smackdown with his cat, Fluffy. Be friends with them. Don’t block them out of your life. They need you.

The only person who needs to be scared of these guys is Mark Zuckerberg. I sent Mark and Zack a message explaining that nobody is going to sign up to be their friends on the WWE Universe because everybody is over at Facebook. They didn’t respond so well to that news. Be scared Zuckerberg. Be very, very scared.

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Google Kills Lively

TechCrunch - Thu, 2008-11-20 02:36

Even Google is getting into the downsizing spirit. It just announced that it is killing Lively, its browser-based virtual worlds that could be embedded into other Websites. Lively launched just last July. The death notice on the site says it will shut down on December 31, so we are adding Lively to the deadpool.

Lively just never took off, and was extremely far afield for Google. A post on the Google Blog explains the decision:

. . . we want to ensure that we prioritize our resources and focus more on our core search, ads and apps business.

We should have known something was up when we noticed that it didn’t work with Google’s own browser, Chrome. It’s Google Website Trends chart says it all. After an initial spike, it flat-lined. Hype can only go so far.

Maybe Google didn’t kill Lively so much as mercifully pull the plug. This is a good sign actually that Google is willing to weed out non-performing products. What else is being cut at Google?

What else should be?

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Yahoo Brings Glue To U.S.: A Plethora of Aggregated Topical Third Party Content

TechCrunch - Thu, 2008-11-20 02:28

Yahoo Glue, a new search results page design that the company has been testing in India, is rolling out to the US market this evening. You can view it at glue.yahoo.com, although Yahoo says it is rolling out in stages, so sit tight if you don’t see it.

It’s also a little different than the Indian version, and includes a number of resources beyond what India’s version of Glue offers. On a typical query, content from Wikipedia, Yahoo Shopping, Yahoo Answers, blog search results (from Google) and YouTube videos are shown.

For the US, Yahoo is starting with a limited set of topics and using a two column instead of a three column design. They’ve also left out the search results altogether. In this example for Barack Obama, prominent links to Memorandum (a political blog aggregator) are also shown.

Yahoo says they won’t use Glue to replace search in the US. Instead it seems to be a useful content page that brings in data from lots of different sources on topics.

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Qik And Strands Each Trim 10 Percent Of Staff

TechCrunch - Thu, 2008-11-20 02:09

The cutbacks continue, even at seemingly healthy startups. Social recommendation engine Strands let exactly 10 percent, or 14 people go (7 in the U.S. and 7 in Spain), the company confirms. Strands has raised a total of $55 million, still employs 125 people, and is hiring for other positions. It also just announced a mobile version for Nokia S60 phones.

Qik, which lets you stream live video from your cell phone, also laid off about 10 percent of its employees, which in its case amounted to five people. We got a tip that the reason for the layoffs is because the startup could not raise a $10 to $15 million round, but a spokesperson says that is not true and that we should stay tuned. We hope its not true because we love Qik. The company so far has raised only $4 million, but its investors include Marc Benioff and Marc Andreessen.

Also this week, Akamai is laying off 110 people (7 percent), KLA-Tencor is cutting 900 (15 percent), four people lost their jobs at Engine Yard (66 percent), and 7 at PC Magazine, which is ceasing its print edition.

We’ve added all of these to the Layoff Tracker, which is now up to 77,151 layoffs across 225 technology companies big and small.

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CrunchGear Review: BlackBerry Storm for Verizon Wireless

TechCrunch - Thu, 2008-11-20 02:02

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Mozilla Add-Ons Hit One Billion Downloads

TechCrunch - Thu, 2008-11-20 01:02

In other Mozilla news, Firefox and other Mozilla products hit a major milestone today with the one billionth download of add-on software for the browser. That feat took three and half years.

Many of those downloads are never used more than once or twice, of course. But there is no doubt about it that Firefox is major software platform. Just look at StumbleUpon, it was built on top of Firefox.

What is atop the current list of most popular add-ons? Adblock Plus, followed by a bunch of download tools. And let’s not forget Greasemonkey at No. 9, which is it’s own Web development platform.

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This Week on the Crunch Board

TechCrunch - Wed, 2008-11-19 23:45

Make sure to look at the latest job listing on CrunchBoard. While doing that take a look at our new Crunchboard Service and Sales Directories. They are a great way to connect with the start-up community. Here’s some of jobs posted in the past week:

TechCrunch is also still looking for a Ruby Developer to work on CrunchBase, as well as a fulltime writer to work on TechCrunchIT at our office in Atherton, CA.

International readers are encouraged to visit the British and French job boards as well.

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Google Makes Up 88 Percent Of Mozilla’s Revenues, Threatens Its Non-Profit Status

TechCrunch - Wed, 2008-11-19 23:33

Today, the (for-now) non-profit Mozilla Foundation released its financial statements for 2007 (embedded below). Revenues for the organization behind the open-source Firefox browser were up 12 percent to $75 million, with search-related royalties from Google accounting for 88 percent of the total, or $66 million. (Another $2 million or so came from other search engines). Those revenues come from Mozilla’s portion of the search advertising revenues generated by the default Google search box in the Firefox browser.

Google’s overall percentage of Mozilla’s revenues is even bigger than it was in 2006, when it accounted for 85 percent. And that proportion may continue to grow over the next three years, as Google just extended its contract with Mozilla.

But buried in the financial statements is the fact that the Mozilla Foundation is being audited by the IRS and its non-profit status is in question:

On the audit of the Foundation there has not been any formal notification of issues. There has been inquiry regarding its tax exemption. Management believes that it is conducting its operations in accordance with its original application for exemption and for which it received the advance ruling as a public benefit corporation.

The Foundation has an advance ruling as a public benefit corporation. The ruling period ended December 31, 2007. It submitted its public support test documentation as required by the advance ruling. While the Foundation did not automatically qualify as a public charity with public support at 33% of total support, it believes that it qualifies as a public charity under the facts and circumstances test with public support over 10%.

Mozilla argues that the search dollars should be treated as royalties, and thus not count as revenues under the tax code. There is little precedent for a non-profit generating so much of its “support” from what is, in effect, a commercial agreement. If the IRS rules against it, the Mozilla Foundation would lose its tax-exempt status. It would then be classified as a private foundation and have to pay an estimated $100,000 in excise tax for 2007 alone.

That’s peanuts, and wouldn’t change much at Mozilla—except for the fact that it is pretending to be a non-profit foundation when everyone knows it is a charitable arm of Google. What we still don’t know is how Google accounts for the $66 million it paid to Mozilla last year. Was it a charitable contribution, or lumped in with its regular traffic acquisition costs?

And here’s another conundrum: Why does it take the Mozilla Foundation more than year to issue its financial statements from 2007? After all, it is almost 2009.


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First Guns N’ Roses Album In 17 Years Debuts Tonight On MySpace Music

TechCrunch - Wed, 2008-11-19 23:32

Chinese Democracy, the first new Guns N’ Roses album since 1991, debuts tonight at 9 PM PST exclusively on MySpace Music, where fans can listen to it for free.

Well, actually it debuted on BitTorrent a while ago, but we’re not talking about that. Also, the band has previously released two songs, Chinese Democracy and Better, to radio stations and music sites in the past couple of weeks.

But tonight is the big debut, and for most people it will be the first time they hear the music. It will be available in 25 countries: US, Canada, Argentina, Mexico, Brazil, UK, Ireland, France, Germany, Austria, Italy, Spain, Portugal, Sweden, Norway, Finland, Denmark, Russia, Turkey, Poland, India, Australia, New Zealand, Korea and Japan.

Remember this ’cause it’s important: listening to music on BitTorrent for free is illegal. Listening to it for free on MySpace isn’t.

The physical album goes on sale November 23.

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How Can The Music Industry Be In Trouble With All This Free Promotion.

TechCrunch - Wed, 2008-11-19 22:39

2007 person-to-person music downloads were worth a staggering $69 billion, and movie/television piracy continues to grow, says a new study.

And all that free promotion didn’t cost them a penny.

At least, that’s how Techdirt sees it. And I agree. Instead of embracing what might be the largest free marketing giveaway in the history of the world, the music labels instead sue their customers.

And ask the social networks for handouts.

Somebody over there needs to put their thinking cap on, quit screwing around and just give the damn music away for free with no lawsuit strings attached. Then use 360 contracts to find a way to survive on other revenue stream. Or even thrive.

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SnapTell: Instant Product Lookup From The iPhone. You Want This.

TechCrunch - Wed, 2008-11-19 22:04

If you have an iPhone, you’ll probably want to check out SnapTell Explorer, a free application now available on the App Store. The premise is simple: take a photo of the cover of any CD, DVD, book, or video game, and the application will automatically identify the product and find ratings and pricing information online.

I was skeptical when I first saw the app - the iPhone has had difficulty with image processing for barcodes, and most image recognitions systems I’ve tried on other platforms have been iffy at best. But SnapTell just works. Every time.

The app correctly identified just about everything I threw at it: Xbox games, Pocketbook O’Reilly manuals, The Dalai Lama’s Little Book of Wisdom, Kurt Vonegut novels, and a number of more obscure books (yes, it worked on The Twinkies Cookbook). It even managed to ID a copy of Civilization 4, despite the fact that it was covered in obnoxious price tags and stickers. I actually tried to mess it up by taking photos in poor lighting and odd angles, but the app still stayed nearly flawless. No, it doesn’t have everything - I managed to stump it on a book about Danish Grammar - but it will do just fine for any trip to a retail store.

But while SnapTell seems to have the technology perfected, the app itself still needs a little work. Once you’ve located a product there is no rating or description offered - instead you’re directed to the appropriate links on stores like Amazon and Barnes and Noble (it would be nice if some basic rating information was pulled into the app). There’s also currently no way to quickly view a product’s price across multiple online stores, though this will be included in the next release which is expected in the next few weeks. The UI could also use some more polish - buttons are oddly placed, and the app doesn’t look nearly as slick as it should.

SnapTell works best on Wi-Fi and 3G, but also supports Edge (it takes around 10-15 seconds to upload the image on the slower network, versus a moment or two). The application will also be coming to the Android soon, and will feature both the image recognition seen on the iPhone version as well as barcode lookup (which is popular on Android but very difficult to pull off on the iPhone). The app was developed by SnapTell, a company that primarily focuses on image-recognition based marketing, and is making use of the company’s 5 million+ product database.

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