Facebook Takes Another Shot At Google (GOOG)

markzuckerbergdropout.jpg

Facebook is quickly moving in on Google’s search business.

It’s now testing searching results ranked by “likes.”

Google ranks search results based on lots of stuff – but mostly on how often pages are linked to from other highly-linked to pages.

This could, someday not too far off, end up being a serious disruption for Google.

From All Facebook: Another big upgrade from Facebook: the company is currently testing search results which display articles ranked by likes. Additionally, the results for searches now shows the results from all around the web based on two things: the number of likes and the number of friends who liked that object, most likely leveraging some of the technology shown in their recently approved patent. We first received reports of these search results showing up earlier yesterday.

Don’t miss:  Ex-Googlers At Facebook Working Hard To Avoid Google’s Fate

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How To Use Google’s Cool New "Priority Inbox" With Your Company’s Email (GOOG)

gmail priority inbox

Google introduced a cool new feature this week called “Priority Inbox,” which tries to intelligently filter the important email from the less-important email in your inbox.

It’s now live for all Gmail.com users, but companies (and individuals) using Google Apps for their email can actually access the feature, too. 

How?

One of your domain administrators needs to go into Google’s Apps control panel and turn on a feature called “Enable pre-release features,” under “Domain Settings.”

Once that’s turned on, Priority Inbox will become available in Gmail, in red text in the upper-right corner of your window. (It might take several minutes to activate. You may have to log out and log in for it to kick in, too.)

(If you’re not using Google Apps for your company’s email — if Gmail isn’t your corporate webmail — you won’t be able to access this feature at all.)

Click here to see how Priority Inbox works >

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The Morning Lowdown 09.03.10


Morning Lowdown

Some of the stories people are talking about this morning:

»  Twitter’s Evan Williams says the company’s decision to launch its own mobile apps is paying off: mobile usage is up 62 percent since mid-April and 16 percent of all new Twitter users now start out on their phones, up from five percent before the company’s shift in strategy. [Twitter Blog]

»  The NYT profiles YouTube, declaring that the Google-owned site is an “increasingly fruitful place for advertisers.” The write-up includes the factoid that YouTube’s revenue has more than doubled each year for the last three years. [New York Times]

»  Users of Apple’s new Ping social network can no longer find their Facebook friends on the site after Facebook blocked access to its open API claiming that the kind of traffic that could be generated by 160 million potential users could cause “site stability” and “infrastructure” problems. Steve Jobs says “onerous terms” kept the two from a formal agreement in advance of launch. The two companies are reportedly working together to solve the problem. [AllThingsD, NYT Bits]

»  Consumer Watchdog has bought an ad in Times Square, calling out Google (NSDQ: GOOG) CEO Eric Schmidt for being out of touch regarding consumer privacy issues. [Marketing Pilgrim]



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If Your Startup Can’t Get Money In New York Right Now, There’s Something Wrong With It


  Smart Decisions is supported by Mercedes-Benz.

Baby MoneyGood news New York City startups: It’s never been easier to raise money to get your company off the ground.

One plugged in digital media exec told us, “If you can’t get money for your startup right now, then there’s something wrong with you.” Other people in the scene basically confirmed this, but added a few caveats.

Chiefly, getting quality capital is as challenging as ever. And big brand name VCs aren’t changing their pace of funding.

However, New York City is awash in capital for early stage startups looking for smallish (under $1 million) sized rounds. There’s a lot of “hedge fund guys” looking to invest in tech startups in New York right now, says one New York investor.

“If you’re a hedge fund guy you’re used to billions. And when you see valuations in the millions, it seems like nothing to invest,” says this investor. But he adds, the hedge fund guys don’t get the technology business. Taking their money, therefore, he argues is less valuable.

Of course, he’s talking his book, but he says he walked away from investing in a startup after some hedge fund guys made the valuation out of whack. The terms were more favorable for the startup, but it would have scared off later round investment, he says.

A VC we spoke with touched upon the idea of later round investment. He’s seeing a lot of angel funding cash out there, but he thinks some startups are getting funding before they’re ready for it, or deserve it. And when the startups go looking for a series A or B round, they might find that getting that later round is much more challenging.

One person we know who has a startup trying to raise money was floored at how easy it was to get a small slug of cash. It was basically a short phone call with a potential investor who said, “I’ve heard good things about you from people I trust. When you’re ready for me to invest, just call me back.”

The growth in early stage funds in New York is being driven by a few factors say the people we spoke with.

1. The New York tech scene is flourishing. And coverage of it is too, thus investors are interested.

2. Some of the people that had successful New York based startups in the early part of the decade are investing in New York startups now.

3. Wall Street types are willing to spend money on startups.

4. It’s easier than ever to do a lightweight startup. You don’t need much money for many web based companies. If you need less money, it’s easier to get funding.

5. Companies are acquisitive again. Google has purchased 25 companies in 12 months. Facebook is acquiring at a decent clip. Even Apple is buying some companies. And there’s many other companies stepping up their M&A.

Add it all together, and the city is looking quite “frothy,” according to our digital media exec friend.

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Normal People Haven’t Heard Of Groupon Yet… But They Think It’s A Great Idea

We asked people on the street what they think of daily deals company Groupon. Most of them hadn’t heard of it. But once we explained what the company does, most of them got pretty excited. That’s probably why Groupon revenues are supposedly going to reach $500 million this year. Watch above.

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AOL Didn’t Have A Choice For Search, And It Shows (AOL, GOOG, MSFT)

Tim Armstrong

AOL doesn’t seem to have gotten any big upfront payments from Google for its search deal.

How come?

Probably because AOL wasn’t in a very good position to negotiate.

The speculation is that while CEO Tim Armstrong may have talked and even negotiated with a handful of search companies (he says it was six or seven), he only really ever had one choice…Google – the incumbent.

One source familiar with the process gave us two big reasons:

  • AOL has about ~4.5 million access subscribers who still generate huge amounts of cash for the company. It can’t do anything to scare them away. They are very used to seeing Google search results. Can’t mess with that.
  • The only real rival to Google for AOL search was Microsoft. But AOL couldn’t do a search deal with Microsoft because it wants to sell to Microsoft. The only reason Microsoft would ever actually buy AOL is to get AOL’s search business. If AOL turned itself over to Bing for a cash payment now, Microsoft would no longer have any incentive to take that step. It’s that whole if-you-give-the-milk-away-no-one-will-buy-the-cow thing.

And then there’s another reason: Money. Microsoft’s revenue-per-search is so much lower than Google’s that Microsoft would have had to have taken a huge loss on the deal to guarantee as much revenue to AOL as Google will deliver. 

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What President Obama Can Learn From Steve Jobs

obama jobs

The sunlight of summer has begun it’s annual transition to equinox, and we are all reviving the pulse of the work-year.

The President has returned from Martha’s Vineyard to face what will surely be a challenging fall.  It’s mid-term election season and the mood of the voting public is downright ornery.  

ODS (Obama Disappointment Syndrome) a growing wave of depression, has created a huge anti-incumbent wave.  ”Throw ‘em all out!” seems to be the mantra of the season.

In the last couple of weeks the number of negative op-eds on the President from both sides of the aisle have grown considerably.  The mildest theme seems to be “he is too smart to be in touch with the people,” or “we just don’t know who you are or what you really are about Mr. President.”  The really challenging ones drift into the inevitable issues of racism.

I have long held that the most qualified people to be in government are business folk.  Not just Billionaires like Mayor Bloomberg, but anyone who has successfully run anything, been responsible for making payrolls, paying back loans, paying bills on time, navigating through good times and bad.  Most important: balancing a budget.  But the reality is most people who have these credentials are too smart to get sucked into the dysfunction of the public sector. Nor will they submit themselves to the relentless intrusion and scrutiny of the press.  So what’s the next best thing for the “beleaguered” President?  Take some lessons from the guys who know how to really get things done. And who better than the best CEO in the Universe: Steve Jobs.

So Mr. President, in an effort to help you succeed, herewith is a new playbook for your consideration:

1. You have to make other people cool. Being cool got you elected because it made people feel cool electing you. But then nothing much else happened. You thought healthcare would be the cool thing but dramatically misread your audience.  Steve makes millions of people cool, it is his most amazing talent.  Buy an iPhone and you are cool.  But if you don’t have a job, you have no chance of being cool.  And the Healthcare plan? No one is cool with it (outside of DC).

2. Get citizens to voluntarily pay more taxes.
Apple has been doing this for years.  Customers happily fork over a big premium for their products. They will even camp overnight outside an Apple store to have the privilege of doing it first.  We have a huge debt problem. In Europe everyone pays a VAT (Value Added Tax). Apple has a CAT (Coolness Added Tax).  Watch and learn Barack.  You just have to figure out what it is the Federal Government does that’s cool, or useful, or is of particular benefit to anyone.

3. Replace Congress with a Genius Bar. The current spin is that the Republicans are obstructionist.  But if there are Democratic majorities in the House and Senate, how could that possibly prevent you from bringing “Change we can believe in?”  The answer is that Congress just isn’t smart enough.  Sure these are fine, well-intentioned people but we need really super-smart folks to fix our dysfunctional system.  Steve Jobs figured out that even people savvy enough to buy Apple products were going to have problems now and then, and he wasn’t going to subject them to someone you’d find working at the Division of Motor Vehicles.  He recruited an army of Geniuses.  So why not forget about political party affiliations and just support the election of Geniuses.

4. Wear the same outfit every day. I know it sounds trite but you probably have figured out it takes a lot of brain cycles to be POTUS.  Why waste any time trying to pick out a slick Armani and matching tie (or arguing with the First Lady about HER selection).  Steve’s turtleneck and jeans thing has worked for 30 years now because it sends a simple clear message “all I care about is making insanely great products.” You could be transmitting “all I care about is improving your life, making a better America.”

5. You can’t be afraid of pissing people off. Probably your biggest Freshman error has been to try and make everyone happy.  Yes you passed a Healthcare bill but it didn’t take on the tough issues (Tort reform, insurance rate controls).  You decided we needed to “surge” in Afghanistan but also announced we’d only do it for a little while, so as not to over-irritate all of the antiwar constituency who voted you into office.  Steve Jobs takes on the tough issues. He decided that Adobe’s Flash, one of the most widely used media formats on the Internet, sucks and that was that. iPhone and iPad don’t support it.  So I can’t view half of the stuff on the WWW on my iPad; but I still have one.  Take a real stand on something President Obama and live with the fact that to be effective you are going to make some people angry.  As long as there are more happy people then angry people you’ll have a second term.

6. Vision without execution is nothing. We elected you because you understood how frustrated we were with DC Dysfunction.  You had a vision for “not a Red America or Blue America but a United States of America.”  You said you would bring change to Washington.  True you never said you’d make DC “Insanely Great” or “Magical” but you presented your campaign vision with compelling Jobsian conviction.  Yet, the partisan aisles are wider than ever.  No one seems to want to solve problems, they are just obsessed with maintaining or regaining their majority.  Steve Jobs has a saying: “there are two types of people in the world: those who have shipped products and those who haven’t.”  Steve has shipped more Innovative products over the last 30 years than any other tech executive.  The lesson here?  Get rid of all of the professors, policy wonks, career bureaucrats, and Chicago thugs and convince some real capitalist operational executives to come work for you (even if you hate the way we smell).

7. Build a little intrigue. Tell us something big is coming.  Set a date for a big presentation.  Leak a little here and there to tease.  Cut all the deals behind the scenes so Congress backs you. Then get on stage and tell us all about our shiny new Healthcare Widget.  We won’t mind what’s missing because we’ll know it’s just 1.0 and your bound to have a bunch of improvements next year and it will be much cheaper too.

8. Make us USA Fanboys.
Right after the election it was fun to be an American again, especially while traveling abroad.  Europeans in particular were not Bush fans and we took a big hit in our image.  Electing you made the World feel good.  But the bloom has quickly faded. No one can figure out what you really stand for.  We are straddled with debt, and seem to be losing our innovative edge. We can’t even give our kids a decent education.  Apple went through bad times prior to Steve Job’s comeback.  It lost it’s Mojo.  But Steve returned with laser like focus. The company’s back was against the wall and he put forth a simple proposition. He said they would only do two things and had to make them spectacular to survive.  He thew away all of the previously bloated, PC-like Macs and introduced the first iMac and iBook. They were a hit.  That led to iPod.  Which led to iPhone.  Which led to legions of proud Apple Fans. And most important huge financial success.  All due respect President Obama, we need to focus on innovation and education.  If we are not giving our children the best and nurturing our innate Yankee ingenuity, we will never create jobs and return to prosperity. It’s hard to feel patriotic pride when your house is being repossessed.  

9. When all else fails. Blame it on us stupid Americans.  We just don’t get it.  We don’t need to access our iTunes library on more than five computers.  Calls dropping on our brand new iPhone4?  We are holding it the wrong way!  Go to the Genius bar and Apple will give you a rubber and show you how to practice safe iPhone4.  Mr. President, Yes you can to bring change to Washington, but everyone else is going to have to want to change too.  If they won’t play ball, make it crystal clear that they are the morons and send them to a Genius Bar for help.  Well actually looks like the voters are going to do that for you in November.

The final lesson is that passion and persistence against all adversity will pay off.  After all of the adoration bestowed during the campaign, it must be horrible to have to endure the current spate of negative press.  But hey, Steve was summarily thrown out of his own company, thrashed around for a bunch of years trying to get NeXT to be something. Perhaps it was a dose of humility that helped polish his edges a bit but he never lost his passion or focus.  His return and turnaround of Apple is now epic.  And the story is really just beginning.  So President Barack Obama, can you turn it around and become an epic President? One for the history books? Take a lesson from Apple. It’s all about Jobs.

This blog post was originally published at Barry Schuler’s Synapsis. It is republished here with permission.

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Here’s Why Everyone Is Stupid To Keep Ridiculing Demand Media

rosenblatt demand media

It’s been nearly a month since Demand filed its S1, and I promised you all a longer look after my initial posting. Here are some thoughts now that I’ve had a chance to digest the document. A caveat: I know Demand CEO Richard Rosenblatt well, and consider him a friend. And one of his investors, Oak, is an investor in my company, Federated Media. However, neither Oak nor Richard participated in the preparation of this post.

Continue reading at Searchblog →

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BUSTED: Anti-Google Privacy Group Consumer Watchdog Is Tracking Your Clicks With Google Analytics

Google Analytics Cartoon

How’s this for a little hypocrisy?

Consumer Watchdog, a nonprofit advocacy group and vocal Google critic, has been a promoting a video that lampoons Google’s privacy practices by depicting an animated Eric Schmidt preying on unsuspecting children.

In the video, Eric performs full body scans on the children using a tool called ‘Google Analytics’, the actual name of Google’s web analytics tool.

That’s an odd choice for Consumer Watchdog, whose website, like many others, including our own, collects information on how users browse it using… wait for it… Google Analytics.

Consumer Watchdog’s privacy policy admits that it uses tracking cookies to monitor its readers behavior, but insists that it does not “sell, share, trade, rent, distribute, or otherwise disclose personal information provided by End Users to any third party without an End User’s express consent, except as provided in the End User Terms and Conditions, or as required by law.”

Google Analytics works via tracking code placed in a website’s source by the publisher which collects information and sends it to Google, which displays that data to the publisher in useful charts and tables. In other words, Consumer Watchdog collects information about your click-behavior — certainly something Consumer Watchdog considers private information in other contexts — and sends it to a third-party: Google, just about the least trustworthy third-party on the planet in the group’s estimation.

Apparently someone at Consumer Watchdog realized that there was something off about this, because on Inside Google, the group’s site dedicated to Google-bashing, it doesn’t use Google Analytics. Instead, it tracks readers with Piwik.

And what is Piwik?

According to its official website, “Piwik aims to be an open source alternative to Google Analytics.”

Well, that’s a relief.

Of course, we don’t think there is anything nefarious about this. It’s incredibly useful for a website to understand how users are reading it. But some people think sending this sort of data to third-parties without explicit consent is very wicked.

Like, for instance, Consumer Watchdog.

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Here’s How Apple Is Beginning To Destroy Google’s Core Search Business (GOOG, AAPL)

eric schmidt

Earlier we pointed out that thousands of iPad owners have been paying money for third-party Facebook apps — bootlegs, basically — instead of just using Facebook’s iPad-tailored website, which is free and does many of the same things as those apps.

While the obvious message is that Facebook should get its butt in gear making an iPad app, there are also implications here for Google.

Specifically:

  • The App Store is replacing the web search engine for mobile device users, at least for some searches. This should scare Google, because search is its core business, and it’s being supplanted.
  • And, additionally, that Google really can’t afford for Android to bomb.

It’s obvious that mobile App Stores would be incredibly popular for the sort of stuff you can’t really do on the web, like downloading games, camera apps, productivity, utilities, etc. But these Facebook iPad apps aren’t popular because they’re particularly advanced, or offer dramatic new features. These are basically just tuned-up versions of Facebook’s free “touch” website.

They’re popular because these people are using the App Store to search for “Facebook,” and are not using Google for that. (And, perhaps, because they might not know that Apple lets you save web bookmarks to your iPad’s home screen — looks just like an App — to quickly launch later.)

This highlights the fact that search on mobile devices is going to be different than search on desktop computers, which puts Google’s core search business in jeopardy.

Google is doing its part, for sure, innovating in areas like voice-activated search, photo search, producing iPhone apps, etc. And iPhone and iPad users are still conducting plenty of Google searches on their devices. But even the best Google apps in the world won’t do much if the search engine people are using to find them is Apple’s App Store, which is built into the phone’s operating system.

If App Stores are going to intercept at least some web searches, Google stands to be less important for those queries and users than it is on the desktop.

Of course, this assumes that apps will continue to be a major force on mobile devices. Perhaps mobile websites will take over a lot of the work we’re doing in apps today, as the technology for mobile apps and wireless networks improves. But for today, apps are a big deal.

The good news is that Google is pushing like crazy on Android, its answer to Apple’s iOS — both on smartphones, where it has already passed Apple in market share, and on tablets, where Android-powered iPad rivals are popping up.

Google will at least own the primary App Store for those users — unless their carrier or manufacturer partners strip it out. And users will probably be more likely to use Google service than non-Google services on Android devices — unless their carrier or manufacturer partners put their own services ahead of Google’s. So that’s an improvement over Google’s situation on Apple devices, where Apple owns the App Store. (Or RIM, Nokia, etc.)

But this is why Google must fear Apple and other strong rivals, and can’t afford for Android to bomb. And should be pushing as hard as it can to convince the world’s top smartphone makers — Nokia and RIM — to switch to Android.

See Also: The Truth About The iPad, Day 100

Facebook iPad apps

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