The latest from TechCrunch
- Groupon And The Problem With The Daily Deal Religion [Video]
- Kindle iPhone/iPad App Now Smarter With A Dictionary, Wikipedia, And Google
- Google Confirms: We're Not Currently Blocked In China
- Google Opens Places API With Initial Focus On Check-In Apps
- In April, Apple Ditched Google And Skyhook In Favor Of Its Own Location Databases
- Five Reasons You Want To Come To The Social Currency CrunchUp Tomorrow
| Groupon And The Problem With The Daily Deal Religion [Video] | Top |
| With the debut of Groupon personalization , I have little doubt that the daily deal site will double the number of deals (and double its revenue run rate) in just a few months. According to CEO Andrew Mason , the service is churning out 75,000 transactions per day. Through personalization, Groupon will be able to offer 20, 30 or more deals per city per day. Assuming the current growth rate in subscribers — in the last four months the site has more than doubled to 12 million registered users— 2x is likely a prudish estimate. It’s hard to fault a company that is making money hand over fist ; however, as a user, I do have one piece of advice: loosen that death grip on the daily deal mantra. According to Mason, the personalization system will give a user one deal a day based on their preferences, their purchase history and their profile. Although there will be several, simultaneous deals in any given area, a user will only be able to access one main deal from his/her account. However, if the user finds a link to a different deal from a friend, a blog, or a daily deal aggregator, that link can be used by anyone. (In the early stage of the personalization program, Mason says, Groupon users may see multiple deals but eventually Groupon will turn that off.) Thus, all the local deals are theoretically open to every subscriber but Groupon is playing air traffic controller in order to maximize the number of deals they can offer (aka cha-ching) and to ensure a nice distribution of users for their advertisers. It’s easy understand Mason’s rationale here, at just one deal a day their hands were somewhat tied, unable to fully absorb the number of interested advertisers. In turn, Groupon’s limited inventory has directly benefited the “army of clones ,” who have swooped in and picked up impatient retailers. “We believe in the deal a day model, but we were running into a problem where the demand for merchants to be featured has been absolutely overwhelming,” Mason says. “We have something like 35,000 businesses lined up that want to be featured, 97% of the businesses that we feature want to be featured again, so the problem is only getting worse. And what it means is for every business we’re featuring, we have to turn away 7.” (See video above.) Understandably, Groupon is trying to optimize the bottom line and enhance the consumer experience with personalized deals, but this structure also potentially creates a frustrating user experience. Under this system, a user knows that there could be 20, 30 deals floating around but s/he can only automatically access one. Thus, if a user doesn’t want their preselected deal of the day, she will have to scour the web and ping friends in a cyber goose chase. Of course, this search will be eased by the plethora of daily deal aggregators— but that doesn’t seem like an ideal solution for Groupon either. Why encourage users to jump off your website and spend more time on independent aggregators, where their wallets will be exposed to competitors’ deals. From the launch of Groupon, Mason has adamantly defended the model of one deal a day, a structure that has obviously served his company well (and its army of clones) and catapulted Groupon to a billion-dollar-plus valuation. However, I believe the massive demand in the market indicates that there’s some flexibility in the business model. The data suggests that consumers can stomach several deals a day— maybe not hundreds— but certainly more than one. From the vantage point of a user, I would like to see Groupon send just one personalized deal a day to my inbox because I think there is real value in that spotlight. However, on Groupon’s website, I also want the option to log-in and access all (or at least several) of my local deals in one simple repository, perhaps ranked according to my tastes and profile. Groupon, consider this my 700-word comment card. However, regardless of how you tackle the challenge of personalization, I get the feeling you’ll probably do just fine. Mason dropped by TechCrunch TV on Wednesday and we got a chance to discuss the new personalization campaign (above) and Groupon’s early days. In the second video (below), he discusses the key moment when Groupon kicked into second gear. CrunchBase Information Andrew Mason Information provided by CrunchBase | |
| Kindle iPhone/iPad App Now Smarter With A Dictionary, Wikipedia, And Google | Top |
| Despite their clear commitment to the hardware version of the Kindle, Amazon continues to make the Kindle apps that run on the iPad and iPhone better. Today, version 2.2 of the app brings a full dictionary with it. This matches the functionality of Apple’s own iBooks app, but the Kindle implementation is even a little better. Now in the Kindle app when you highlight a word, a definition will automatically appears at the bottom of the screen. And that’s not all — there you’ll also find links to further investigate the word on Google or Wikipedia. Though this dumps you out of the app and into the iPhone/iPad web browser, it’s a pretty nice feature. The feature also includes a link for the “Full Definition” of the word. Clicking on this will take you to the new Oxford American Dictionary that is automatically downloaded with this 2.2 version of the app. This dictionary contains some 250,000 entries, Amazon says. As I said, this dictionary functionality matches that of Apple’s own iBooks app. But those definitions are an extra click away (you highlight a word then select “Dictionary” which bring up the definition in a pop-up). The latest iPad version of the Kindle app also allows you to search inside a book for the first time. This too matches iBooks functionality. (The in-book search for the iPhone has also been improved with 2.2.) Other small improvements include better line spacing on the iPad version, and fast-app switching for iOS 4 devices. CrunchBase Information Amazon Amazon Kindle iPhone iPad Information provided by CrunchBase | |
| Google Confirms: We're Not Currently Blocked In China | Top |
| We’ve just received official word from Google confirming that they are not currently blocked in China and that a server issue was most likely the cause of their dashboard misread . One month ago, Google put up their watered-down engine to avoid being shut down completely in Mainland China. Because the Chinese government did not like the auto redirect to Google Hong Kong previously in place, the new degraded version at the center of all today’s confusion simply links to Google Hong Kong. From Google, in an email today: Because of the way we measure accessibility in China, it’s possible that our machines could overestimate the level of blockage. That seems to be what happened last night when there was a relatively small blockage. It appears now that users in China are accessing our properties normally. Please also note that the dashboard is not a real time tool. The email also suggests that an error in measuring what turned out to be a small amount of blockage was responsible for the false alarm . The fact that the dashboard does not update in realtime is probably what lead to today’s mixed reports as to whether or not the service was working. When asked what specific issue caused the blockage, Google responded that they had nothing more to add. Image: Bramus! CrunchBase Information Google Information provided by CrunchBase | |
| Google Opens Places API With Initial Focus On Check-In Apps | Top |
| At Google I/O in May, the search giant indicated that they were about to take their commitment to location to the next level. Sure, Latitude had been around for a while, but everyone knew that Google could do more in the space. The announcement of some new location APIs seemed to a big part of the solution. And now comes the fun part. Today on their Geo blog , Google is announcing that they’re beginning to open the Places API for business. The first developers getting access? Those working on check-in services. Here’s what Google has to say: We are going to focus initially on check-in applications. These are the applications that we feel the API currently caters to well, and we are excited to work with developers building these applications to understand their requirements, and ensure that we are offering them the best possible experience. So does this mean the end of Foursquare, Gowalla, Loopt, and all the rest? Well, no. All this means is that it should be a lot easier for startups to build the next versions of those types of services. Of course, if you listen to Foursquare talk about it, they’ll say they’re already moving on to bigger and better things beyond simply the check-in. Google is pointing those who wish to get access to this API to fill out this application form found here . Again, the focus at first will be on check-in apps, but they promise to expand the API to other uses once they feel it is up to speed. They are also accepting check-in apps for this API built in conjunction with the Buzz API as well. Just prior to I/O, Latitude manager Steve Lee hinted that some sort of check-in functionality was likely in the future for the service. At I/O, the Latitude API made it possible for others to build such functionality. But this new Places API will allow for location services built on top of Google’s data but independent of Latitude. CrunchBase Information Google Information provided by CrunchBase | |
| In April, Apple Ditched Google And Skyhook In Favor Of Its Own Location Databases | Top |
| As you’re undoubtedly aware, location is one of the hottest fields out there right now. Startups, services, devices, and advertisers are all hovering around it. As you’re also likely well aware, Apple likes to be in control of their own devices. So it should come as no surprise to hear that Apple is moving to be in complete control of their own location database. Back in June, Apple changed its privacy policy to reflect some of the newer things they were doing with regard to location. This worried some people — including two U.S. Congressmen who sent a letter to Apple asking about the change. A couple weeks ago, Apple responded to that inquiry with a letter from Apple’s general counsel, Bruce Sewell. The overall main points of that letter have already been covered quite a bit (basically, none of the data Apple collects is linked to a specific user or device and no data is shared without consent). But buried on page 5 of the 13-page letter is a bit of information that’s rather interesting. Here’s the passage (highlights are mine): To provide the high quality products and services that its customers demand, Apple must have access to comprehensive location-based information. For devices running iPhone OS versions 1.1.3 to 3.1, Apple relied on (and still relies on) databases maintained by Google and Skyhook Wireless (“Skyhook”) to provide location-based services. Beginning with the iPhone OS version 3.2 released in April 2010, Apple relies on its own databases to provide location-based services and for diagnostic purposes . These databases must be updated continuously to account for, among other things, the ever-changing physical landscape, more innovative uses of mobile technology, and the increasing number of Apple’s customers. Apple has always taken great care to protect the privacy of its customers. In other words, since iPhone OS 3.2 (since renamed “iOS”) which shipped on the iPad, and continuing with the new iOS 4, Apple is now in complete control of the location services on the iPhone (and iPad/iPod touch). Previously, Apple relied on the location information from Skyhook and Google. But now they have built their own databases to be able to drop those guys going forward (though, as they note, the older iOSes still use that outside data). As I said, this continues Apple’s long tradition of wanting to have complete control over their products by developing everything they need in-house. They didn’t have the capabilities to do that with location services when the iPhone launched. Now, apparently, they do. When reached for comment, Skyhook wouldn’t specifically talk about their relationship with Apple, but they did say that “ everyone who has a platform wants to own as much of the location stack as possible. Location data is going the be huge and owning it is going to be the next big war in mobile. “ It has to be particularly nice for Apple to be able to ditch Google in this regard. While Google helped Apple build the Maps application on the iPhone, the relationship between the two has obviously changed over the years. With Apple now making its move into mobile advertising with iAds, clearly they didn’t want to be sending or receiving all the location information for all of their millions of devices from what is now a chief rival. And Google is making fast moves to beef up its mobile location-based ads , as well. It will also be interesting to see what, if anything, this means for the Maps application on the iPhone and iPad. Earlier this month, Apple bought Poly9 , makers of a 3D mapping software. And last year, they bought Placebase , another map-maker. Both of those purchases were likely for their talent, rather than the products — it would seem as if Apple is moving in the direction of having its own mapping products. If they do that, clearly they’re going to want their own location databases as well. And now they have just that. One thing a lot of services such as Google have been working on recently is building up their place databases . It’s not clear if Apple will be building their own one of those as well — but I wouldn’t bet against it. This also may signal Apple eventually baking in location to some of their other apps — like Contacts. While I suspect they wouldn’t do this in a way that would directly compete with all the third-party location startups out there, it could be something along the lines of being able to tell where family members are at all times (provided they opt-in, of course). And, of course, Apple likes to tout their “Find My iPhone” feature, which is all about location. It’s perhaps the perfect example of how Apple is able to tell where any iPhone (or iPad) is at anytime, anywhere. It makes sense to try to fully control that information, and all the data surrounding it. CrunchBase Information Apple Google Skyhook Wireless iPhone Information provided by CrunchBase | |
| Five Reasons You Want To Come To The Social Currency CrunchUp Tomorrow | Top |
| Tomorrow, Friday, is our fifth annual yearly blowout party at August Capital – the event I look forward to all year. Tickets to that event are long gone, but a handful are left for the all day conference we hold prior to the party, the Social Currency CrunchUp . Here’s five reasons why you’ll want to attend: 1. Ron Conway and Paul Graham , the alpha deities of entrepreneurs, will kick things off at the ungodly hour of 9 am in the morning. 2. Playdom CEO John Pleasants is joining us for a special interview just days after he sold his company to Disney for $763.2 million. He promises to tell everyone in the audience how to build and sell a company for at least that much. 3. Chamillionaire will be on stage in the afternoon to explain how, after you sell your company for $763.2 million (see no.2 above), you can go on to dominate the hip hop scene and become famous as one of the most talented musicians of a generation. 4. You’ll then see a special demo of new search engine Blekko . Only 30 or so people in the world have used Blekko to date . Attendees will get access to the new service. 5. It’s the only damned way you can get into the party at August Capital at this point, and you definitely don’t want to be the person who just reads about it on Twitter the next day. Yes, I know the CrunchUp is $300, and some of you aspiring entrepreneurs really need that $300 for food while you build your empires. So we’re going to give away four tickets to the event to the four people who leave the most believable comment below as to why this will change their lives, and they must attend. Also, if you can juggle really well, that’s a plus, and we’ll probably put you on stage between sessions. We’ll pick the winners at 5 pm California time. Update: Ok, we’ve picked out the winners for the tickets, they will be receiving emails shortly. Buy Tickets To The Social Currency CrunchUp Here . | |
CREATE MORE ALERTS:
Auctions - Find out when new auctions are posted
Horoscopes - Receive your daily horoscope
Music - Get the newest Album Releases, Playlists and more
News - Only the news you want, delivered!
Stocks - Stay connected to the market with price quotes and more
Weather - Get today's weather conditions
| You received this email because you subscribed to Yahoo! Alerts. Use this link to unsubscribe from this alert. To change your communications preferences for other Yahoo! business lines, please visit your Marketing Preferences. To learn more about Yahoo!'s use of personal information, including the use of web beacons in HTML-based email, please read our Privacy Policy. Yahoo! is located at 701 First Avenue, Sunnyvale, CA 94089. |
No comments:
Post a Comment