BT Looksmart's Amsterdam Projects
Coordinator, Derek Fehmers, was kind enough to talk with Traffick recently. The
conversation was a reminder of how fast things change in the new economy, and
how rapid expansion is in the international marketplace today.
What you may already know is that Looksmart
is a web directory service offering "granular content" (a web guide carefully
organized by category) with the help of a staff of professional editors. It's a
competitor to Yahoo, offering the directory on a syndication basis to major
portal partners such as MSN and Excite.
You might also know that Looksmart
originated in Australia, and had significant backing early on from Reader's
Digest.
Here are some things that you may not know
about Looksmart:
1. Looksmart is signing deals throughout
Europe and Asia to provide information services to Internet Service Providers.
In fact Looksmart now provides directories for 25 countries, and the number is
growing fast. A recent coup was a deal for an Indian version.
European countries often have popular
Internet Service Providers who are suddenly discovering that their customers are
clamoring for information services. For high quality services with an
increasingly localized focus, many are turning to Looksmart. Looksmart likes to
hire native speakers to manage its international directories. Among the ISP's
they've inked deals with: Infinito (Italy), Sunrise Suite (Switzerland), Ocean
Free (Ireland), and Knock Knock (Holland).
2. Looksmart's European expansion was
initially made possible by a deal with Microsoft. Mr. Fehmers points out that
the financing and impetus to open European offices came from Microsoft's MSN,
which uses Looksmart for its directory. MSN wanted better local European
content, and Looksmart was asked to provide it.
3. Looksmart is powering Excite's directory
services, not just at excite.com, but increasingly in international versions as
well. Does this amount to a concession on Excite's part that its own directory
offerings are stagnating? Does it mean that Excite has major plans for
international expansion? Or does this mark an even deeper shift, with
Excite@Home eventually moving out of the portal business? Inquiring minds want
to know. In the meantime, companies like Looksmart can save major portals around
the world from having to reinvent the wheel to provide needed
content.
4. Looksmart is opening offices throughout
Asia. While Yahoo recently invested a bundle in Korea, Looksmart is there, too,
and they're in Hong Kong and Tokyo as well.
5. The Europe and Asia operation is in fact
BT Looksmart, a joint venture with one of the world's largest telecommunications
companies (110,000 employees). The JV is well-financed with $100 million from
each of the two partners. Obviously, WAP (phone-based protocol) portals are
going to be a big part of the future in Europe, and this group is at the
forefront.
6. Looksmart is a partner of Time Warner.
It now offers information services to web sites for major media properties such
as CNNfn, and Entertainment Tonight. There is a growing list of such partners.
This coincides with the strategic direction recently adopted by Looksmart. It
has aborted plans to move towards a "portal business model," opting instead for
a more behind-the-scenes role in powering others' content via a syndication
model. In other words, Looksmart now realizes it's no Yahoo. No matter how good
its directory gets, in terms of consumer recognition it can't compete
head-to-head with the leading brand. It can, however, help major partners
achieve their goals by allowing them to outsource custom content work to
Looksmart. That's the way we always thought it was going to happen, and it's
probably healthy that Looksmart once again recognizes that it must stick to its
strengths.
7. BT Looksmart is a partner of Netscape
Netcenter. Just have a look at the categorized content at
http://home.netscape.com/uk/ . While a headline
on the front page boasts "Open Directory Project Reaches One Million Sites," it
is the professionally edited directory brought to you by Looksmart which is
actually featured on the portal.
And just a reminder, courtesy of
Chris Sherman : Looksmart, like Yahoo, now offers
a "business express" service for companies wishing to expedite consideration for
a Looksmart directory listing. The service costs $199. Considering the fact that
Looksmart powers so many partners, including MSN, the investment might be worth
it to those seeking to maximize their search engine rankings.
Looksmart is one amongst many companies who
are recognizing that to make a go of it in the increasingly competitive
international online marketplace, a local presence is vital. The fact that new
business and editorial teams are just being deployed in many countries also
means that the story for major search, directory, and portal services is just
beginning. Think it's "game over" for the major consumer-oriented Internet
companies? Think again! They're just getting warmed up.
The question remains: what do global consumers want from a web
guide or directory? Isn't there more to life than simply helping web surfers track down good content, as was
Yahoo's humble mission from day one?
Although there may be no shortage of data and opinions on consumers' needs and wants,
the amazing thing is, it may be too early to really know what works online. Which services will be left
standing in ten years' time? Who knows? Yahoo! is only seven years old, and its competitors are even younger than that.
Seven years from today, those who tried to "build a better Yahoo" might well find that they have succeeded in bettering a
competitor which has itself become irrelevant. Or one which has shifted gears and left its old self in the dust.
