Google bets on artificial intelligence

Google bets on artificial intelligence and machine learning as the company deals with the shift to mobile

Breaking with the company’s tradition of the Sergi, Google’s CEO Sundar Pichai writes this year’s founders letter laying out how the search engine giant is focusing of artificial intelligence and the machine learning.

Pichai’s view of the world seems to tie in very closely with founders Larry Page and Sergei Brin with him laying out a vision of making the internet and computers accessible to all.

The challenge for Google is the shift away from personal computers, something that the company is struggling with and a factor that Pichai acknowledges.

Today’s proliferation of “screens” goes well beyond phones, desktops, and tablets. Already, there are exciting developments as screens extend to your car, like Android Auto, or your wrist, like Android Wear. Virtual reality is also showing incredible promise—Google Cardboard has introduced more than 5 million people to the incredible, immersive and educational possibilities of VR.

Whether Google can execute on that vision and manages to diversify its revenues away from depending almost exclusively upon web advertising will be what defines Pichai’s time as the company’s CEO. He has a challenging task ahead.

Google’s Missed Revolution

Google may pay a high price for the failure of its social media platform

The slow demise of Google Plus has been painful to watch as the service is slowly wound back ahead of its inevitable quiet burial.

Mashable’s Seth Fiegerman has a deep look at what went wrong for Google’s nascent social media platform.

Adding to the company’s distress, early Google+ adopter and advocate Thomas Hawk posted on Facebook his requiem for the service citing how the organisation seemed to lose interest in the product and the departure of Vic Gundotra sealed its fate.

Google’s Corporate ADD

Hawk is particularly scathing about Google’s prospects of being trusted again by developers and the marketplace. “By quitting early, Google lost what little goodwill they might have to seed something in the future,” he says. “Who will ever take Google serious with social again?”

Once again we see the effects of Google’s corporate Attention Deficit Disorder and the message to developers and evangelists is clear – be very careful in devoting too many resources to any new product from the company.

Google Plus’ decline though signals something far more serious for the company however – it may well have missed some of the most serious shifts in its marketplace.

The SoLoMo opportunity

Four years ago when the service was launched with great fanfare SoLoMo was one of the key buzzwords and it was understandable for Google to want a slice of it. Unfortunately the company found that even an business as big as Google can’t force change by management diktat.

SoLoMo – Social, Local and Mobile – were seen as the big market growth areas and Google’s footprint in all of those spaces was poor. Although Google Places was leading the local search market at the time.

Google+ was intended to solve at least the social problem with the added advantage of overlaying personal information onto the already comprehensive ‘knowledge graph’ it’s gathered on users.

Four years later it’s clear Google Plus is a failure and much of that is due to the project being driven from the top down. From its launch the project was about meeting management imperatives and it’s notable in the company’s announcements about the service how little mention users get.

Google’s price of failure

The problem now for Google is they have wasted four years on the failed product at a time when Facebook have become the dominant social media platform and have successfully adapted the service to the mobile world.

Even in Local search, Facebook are making strong inroads into local business advertising, an area Google had the advantage by tying together maps and local search but lost because of inaction and bureaucracy.

A costly distraction

The Google+ distraction means the company has missed the entire SoLoMo opportunity and squandered the one area where they had a massive head start.

Google now face a future where their key advantage is stranded on the desktop without serious integration into social media. At the same time their ambitions to run a payments service seems stalled as well.

Whether Google+ turns out to be as strategic a mistake for the search engine giant as Windows Vista was for Microsoft remains to be seen but the similarity between the two companies stuck with declining desktop based business models in a world of mobile consumers is striking.

Facebook’s and Google’s enlightened self interest

Facebook and Google both put their users first in their latest updates. It’s something other business should consider.

Over the last few weeks much has been written about Google’s mobile search update that went live on Wednesday, some said it would be the death of small business on the internet while others claimed it would be the end of corporates online.

While all the focus has been on Google’s search changes Facebook quietly made a change that will probably be more vexing for many businesses.

Both Facebook and Google are struggling with making their services more useful for users, with the Google changes the intention is to make search on mobile devices more useful in giving preference to websites that work on smaller screens.

In a post on Google’s webmaster blog, Developer Programs Tech Lead Maile Ohye answered the basic questions about the search engine changes which dispelled much of the hysteria and myths about the update. The main point of Ohye’s post is that Google want to show users useful information.

Facebook have a similar problem, they have to balance the often competing interests of their users and advertisers with the main aim being keeping visitors on their site for as long as possible.

The objective of keeping users engaged is the reason for a series of tweaks Facebook announced this week that change the newsfeed visitors see.

The goal of News Feed is to show you the content that matters to you. This means we need to give you the right mix of updates from friends and public figures, publishers, businesses and community organizations you are connected to. This balance is different for everyone depending on what people are most interested in learning about every day. As more people and pages are sharing more content, we need to keep improving News Feed to get this balance right.

Facebook are putting their users priorities first in making sure the news feed is interesting and relevant, which the company believes will entice visitors to spend longer on the site and make advertising more attractive.

If it works then it’s a win for Facebook, their users and those who pay to advertise on the site. Again though, the losers are the companies and brands not advertising who thought they could get views by the quality of their content.

Unless the content is very good, those companies not paying Facebook are in for more disappointment as their reach collapses even further than its current pathetic rates.

Google’s change too is something that puts users first; rather than dumping mobile web surfers onto an unreadable page, they are making sure people get to sites that are useful.

In many ways Google is only encouraging what has been best practice for at least five years, that every site should work equally well on mobile devices as they do on desktop computers.

What Facebook and Google are showing us is the value of putting users’ needs first. If your guests are happy then your business model has a much better chance of succeeding, regardless of who the eventual customer is.

Making business more user friendly should be a priority for all companies in a competitive world.

No country for small business

Online advertising for small business is wide open again as the Internet empires focus on big business.

Facebook’s latest changes to its layout creates more problems for small business using social media as the real estate available on its site for eyeballs gets smaller.

The social media giant has been catching criticism recently for changes to its algorithm that make it harder for businesses to be seen online.

In the hospitality industry, discontent was articulated by the Eat 24 website which closed its Facebook Page down after finding the problems too hard.

With the changes to the online advertising feed, it makes it even harder for small business to be seen on the platform as reduced space means higher prices for the space that remains available.

It’s hard to see small businesses getting much traction with the changes when they’re up against big brands with large budgets.

On the other hand for the big brands, the importance of proper targeting becomes even greater as wasting

A challenge for small business

The big problem now for small business is where do you advertise where the customers are?

A decade or so ago, this was a no-brainer – the local service or retail business advertised in the local newspaper or Yellow Pages. Customers went there and, despite their chronic inefficiencies, they worked.

Now with Facebook’s changes, it’s harder for customers to follow small business and this is a particular problem for hospitality where updates are hard.

The failure of Google

Google should have owned this market with Google Places however the service has been neglected as the company folded the business listing service into the Plus social media platform.

Today it’s hard to see where small business is going to achieve organic reach – unpaid appearances in social media and search – or paid reach as the competition with deep pocketed big brands is fierce.

Services like Yelp! were for a while a possible alternative but increasingly the deals they are stitching up deals with companies like Yahoo! and Australia’s Sensis are marginalising small business.

So the online world is getting harder for small business to get their message out onto online channels.

For the moment that’s a problem although it’s an interesting opportunity for an entrepreneur – possibly even a media company – to exploit.

Demand Media’s closed window of opportunity

Demand media’s downfall offers some hopeful lessons for those who want to see better quality content on the web.

A few years ago content farm Demand Media was being hailed in some quarters as the future of the media industry.

Today its stock is languishing, revenues are falling and any thought that the cheap, low quality writing that Demand Media delivered will be the future of media is laughable.

Variety magazine recently published a feature describing the of the fall of Demand Media  with a focus on how Google’s changes to its search engine algorithm undermined the content farm’s busines model. Variety’s story is an interesting case study on not relying on another company for your business plan and extends the hope that low quality writing is not the future of online media.

Dodgy business

Demand media evolved from the eHow and eNom businesses, both of which relied on dubious – if not downright dishonest – online practices.

eNom was particularly irritating, basically just registering domain names around popular search terms that led to   pages full of advertising that delivered nothing of value to someone searching the web for information on a topic.

It was very profitable for a while though, as Variety reports;

Early on, Demand used eNom’s 1 million generic domain names (such as “3dblurayplayers.com”) to serve up relevant ads to people searching for specific topics. These “domain parking” pages were immensely profitable, generating north of $100,000 per day, according to a former Demand exec who requested anonymity. “That’s $35 million-$40 million per year without doing any work,” the exec said.

The eHow business wasn’t any better, relying on low quality, cheap articles that only worked because they were stuffed full of the keywords that Google would base their search results on.

On January 26 2011 Demand Media went public and the criticism of both the newly listed company and Google became intense.

This story from Business Insider – which ha featured some gushing and dreadful analysis of Demand Media previously – illustrated the problem the company had of being overwhelming dependent on Google, although the writer believed Google were making too much money from content farms to really act against them.

Google’s problem with the content farms was real, the quality of search results was falling and users were finding their pages were full of low value rubbish rather than authoritative sources which opened the search giant’s core business  to disruption from Microsoft’s Bing and other search engines. Something had to be done.

Jason Calacanis, whose Mahalo was a competitor to Demand Media, flagged the risks to content farms in a presentation early in February 2011, “the one rule of working with Google is don’t make them look stupid. If you make ‘The Google’ look stupid, they’ll f- you up.” He said. “eHow makes Google look stupid.”

Eventually Google decided they were sick of looking stupid and changed their algorithms and the rules for getting a page one search result suddenly changed.

Demand Media’s business was doomed from the moment Google made that change, as Variety reports;

By April 2011, third-party measurement services were reporting that the Google changes had reduced traffic to Demand sites by as much as 40%. Demand issued a statement that the reports “significantly overstated the negative impact” of the change, but the stock took a dive — plummeting 38% over two weeks — from which it has not recovered.

As Demand Media was affected, so too was the entire Search Engine Optimisation (SEO) industry where thousands of consultants found their strategies of placing low quality pages and link rich website comments now damaged their clients’ businesses.

For web surfers, Google’s change was good news as suddenly search results were relevant again.

Demand Media was, in essence, a transition business that prospered during a brief windows of opportunity that quickly closed along with the company’s prospects.

That window of opportunity was also dependent on someone else’s business strategy, which is always a dangerous position to be in.

Demand Media’s lesson is that while there are opportunities to be had in markets that are being disrupted by new technologies, there’s no guarantees those opportunities will last. What works in SEO, digital media or social marketing today may not work tomorrow.

It’s also a hopeful lesson that websites regurgitating low quality content is only a transition phase in the development of online media and that providing good, original writing and video is the best long term strategy for survival on the net.

Should that lesson be true, then it’s good news for both writers and readers.

A quick Christmas checklist for hospitality businesses

What should cafes, restaurants and hotels do to be found by holiday makers and tourists?

For listeners of my regular spot on ABC Riverland, here’s a quick checklist for regional business owners to make sure their online presence is ready for the Christmas holidays.

Prospective customers are using the web to find businesses and attractions, so taking advantage of the free listing services by the major search engines and directories is the first step.

Google Plus Local

The search engine giant’s local service gives a free business listing that feeds into their results and those of many GPS devices and social media services.

Fill in as many fields as possible, making sure you don’t forget opening hours and payment methods you accept.

You can also upload photos and menus to your Google Local listing, all of these will help you come up higher in the search engine results.

True Local

News Limited’s True Local offers a similar service to Google and this also feeds into various services along with the local news sites run by the newspaper chain.

Again, fill in as many fields as possible and make sure all your essential business details are listed.

Sensis

While the Yellow and White Pages may be dying, a free listing with their site will help come up on the various Telstra sites and companies that partner with them.

Review sites

Eatability, Yelp and Tripadvisor are all popular sites and applications used by customers to research accommodation and venues. You need to grab your listing and check what previous customers have said about you.

Social media

Along with having your own listing on Facebook, LinkedIn, Twitter and possibly sites like Pinterest; you should be doing regular searches to check what people are saying about you and your district.

One of the great things about social media is it’s a great market intelligence tool. For instance if there’s lots of people coming to your town to go fishing and there’s nobody catering for them, then this is an opportunity. Google Alerts can help you with this.

Your own website

Most important of all is your own website. Check that it works on smartphones and tablet computers, if necessary borrow a friend’s Android or Apple device and see what your site looks like on it.

When you review this with your web developer also check your keywords are working and make sure yourmeta-tagsall reflect what you have to offer your customers.

The Christmas-New Year rush is too important a period for hospitality business to miss out on customers. A few small thing might get you the visitors who might have kept on driving to the next town.

Rivers of gold

Can there be a downside to Google’s massive profits?

Google’s announcement that their revenues have increased by 24% over the last year shows the search engine juggernaut keeps rolling on.

It’s tempting to think that Google is untouchable and that’s certainly how it appears when you’re on track to earn forty billion dollars a year and book close to 40% of that income as profits.

On the same day, Sony announced a massive restructure including with 10,000 redundancies and the company’s CEO, Kazuo Hirai, spoke of a sense of urgency to address the once dominant corporation’s drift into irrelevance.

Twenty years the thought of Sony – one of the world’s innovators in consumer electronics – would be wallowing in the wake of companies like Apple and unknown upstarts like Google was unthinkable.

Fortunes are won and quickly lost in a time of great change and this is something we should keep in mind about Google when we look at their rivers of gold.

“Rivers Of Gold” was a term coined to describe the advertising riches of the newspaper industry in the 1980’s. Google’s online advertising is partly responsible for destroying that business.

Today Google is a search engine business that makes its money from the advertising that deserted print media and went online.

It may be that manufacturing mobile phones, running “identity services” disguised as social media platforms or augmented reality spectacles are the future of Google but right now they it’s search and advertising that pays the bills and books the massive profits.

The challenge for Google is not to lose sight of its current core business while building the future rivers of gold.

If Google’s leaders can’t manage this, then they risk following the newspaper industry that they themselves disrupted.

Can you trust your friends?

Does showing social results hurt search?

I remember the first time I heard about Google, it was in the run up to the year 2000 and my radio segments were mainly discussing if computers would blow up, dams collapse or aircraft fall from the sky as computer systems failed to deal with the change into the new millennium.

Despite the risk of impending disaster, I had a play with Google search and found the results to be far better than the established sites like Yahoo! and Altavista. Millions of others agreed.

Quickly Google became the definitive search engine. If you were serious about finding information on the web then Google was the way you found it.

For a while we wondered how Google would make money, it turned out that linking advertising to the search results was immensely profitable and the company quickly became one of the richest in the world.

Today, Google’s decided their searches will be something else. Rather than being a trusted source they’ll tell us what our friend think.

Which is great if our friends are trusted sources on Aristotle, post colonial South American politics, how to book sleepers on the Trans-Siberian or the best pie shop in Bathurst. But it’s kind of tricky if they aren’t.

As much as I love and enjoy the company of my friends both online and offline, not many of them are authorities in anything – except possibly pie shops.

This the flaw at the heart of integrating search and social media, they are two different things and we have different expectations for them.

As Pando Daily’s MG Seigler puts it; “Evil, Greed, And Antitrust Aren’t Google’s Real Problems, Relevancy Is.”

For most of my online searches, my friends views and ideas aren’t relevant. If they are, I already know how to find them.

The prediction is that tinkering with search will not end well for Google, it’s hard to disagree if we lose confidence in their results.

Has Google peaked?

Does altering a business’ core product destroy trust in a business?

This article originally appeared in Technology Spectator as Google’s Wavering Trust Presumption.

Google revolutionised the Internet when the service appeared just over a decade ago, the search engine’s clean and reliable results saw it quickly capture two thirds of the market from then competitors like Altavista and Yahoo!.

One of the keys to that success was trust – Google’s users had a fair degree of confidence that the service’s results would be an accurate representation of whatever they were looking for on the web.

With the continuing integration of social media services, local search, paid advertising and travel services into those search results, it’s time to ask whether we can continue to trust what Google delivers us.

Google’s attempt to become a social media service is seeing results being skewed with by Google Plus profiles. Search Engine Land’s Danny Sullivan yesterday illustrated how Google+ profiles are changing Google’s search results.

One thing that notable in these searches – and Google’s behaviour in enforcing “real names” on its Plus social media service – is the importance of brands and celebrities.

It’s no coincidence in the example Danny Sullivan shows above that typing “Brit” into a Google search comes up with the instant suggestions of Brittany Spears and British Airways.

More troubling is Google’s foray into travel with the purchase of  travel software company ITA. The travel industry site Tnooz recently looked at how searches for flights is now returning results from Google’s own service before the airlines or other travel websites.

Another of Google’s search strengths was the clean interface. When advertising was introduced, most users accepted this was the cost of a free service. Today a search result on Google is cluttered with Google+ suggestions, local business locations, travel results along with the ubiquitious advertising.

Suddenly Google’s search results aren’t looking so good and when you do find them, you can’t be sure they haven’t been skewed by the search engine’s determination to kill Google, Facebook or the online travel industry.

If it were only search and online advertising that Google was tinkering with, we could excuse this as being an innovative company experimenting with new business models in a developing industry, but a bigger problem lies outside its core business.

The purchase of Motorola Mobility – which is still subject to US government approval – changes the game for Google. Motorola Mobility employs 19,000 staff, increasing Google’s headcount by 60%.

Even if Google has only bought Motorola for the patents, closing down or divesting the operations and laying off nearly twenty thousand staff would be a big enough management distraction but there is real possibility though that Google want to make phones.

Google as a phone manufacturer, their previous attempt with the Nexus One wasn’t a great success, creates the problem of channel conflict with its partners who sell mobile phones with the Android operating system installed.

Right now those partners are having great success selling phones through mobile telcommunications companies who desperately want an alternative to the iPhone given they perceive, quite correctly, that Apple is taking their customers and the associated profits.

Apart from Apple the incumbents of the mobile phone industry are failing as Motorola have given up and are selling themselves to Google while Nokia are desperately seeking salvation in the arms of Microsoft.

Microsoft’s failure to take advantage of Google’s missteps is also instructive. Microsoft seem to be unable to capitalise on the conflicts in the mobile handset industry with Windows Phone while their competing search engine, Bing, seems to following Google’s cluttered inferface and anti-competitive practices.

With Microsoft largely out of the way with as an innovative competitor, it has fallen on newer business to challenge Google.

In social media we clearly have Facebook and Twitter while in phones Apple is by far the biggest and most profitable opponent, something emphasised by Google giving Android away for free.

The biggest question though is who can replace Google in web search, while there are worthy attempts like DuckDuckGo, Blekko and even Microsoft Bing, it’s difficult to see one of these displacing the dominant player right now.

Which isn’t to say it can’t happen; as we see with the examples of Nokia, Motorola and possibly Microsoft, the speed of change in modern business means empires fall quickly.

For Google, the lack of management focus on their core businesses may well cost them dearly in the next few years if web users stop trusting the company’s search results.

Comparing local review and search sites

How do the local search services compare?

With the Australian launch of local search and recommendation site Yelp, it’s worthwhile comparing the different sites to see how well they worked.

The sites work in different ways, some – like Sensis Yellow Pages and True Local – are online directories that search just the title and description of business.

Yelp, Foursquare and Word Of Mouth Online, are socially based and derive their searches on the content and number of community reviews. Their algorithms, the formulas to figure out what customers are looking for, are more complex than the basic online directories.

Most complex of all are the hybrid searches, notably Google Places and Facebook Places, that build local upon their search and social media data.

Each model has it’s own strengths and weaknesses which shows when we do a search. Due to time restrictions we only did two.

Looking for brunch in Neutral Bay, NSW

The first search was using what somebody might be expected to search for on a casual weekend or holiday morning. Neutral Bay and surrounding suburbs have plenty of cafes catering to the brunch crowd so it should be expected to return plenty of hits.

Yelp

search results for neutral bay brunch on yelp

The new contender only found one local result and the rest being on the other side of the Harbour Bridge, including one at Bondi Beach which may as well be in the Upper Amazon to the average Sydney North Shore dweller.

Interestingly, entering neighbouring suburbs changes the first two or three results to that suburb but the subsequent listings are the same remote locations as for the Neutral Bay query. This might indicate popularity with the current Yelp users or may be part of the package merchants get when they pay for a listing.

True Local

a search on true local for brunch in neutral bay

News Limited’s True Local disappointed one cafe in the district was identified and the number one result was in the city.

This poor results are probably due to the word “brunch” not appearing in the local cafes’ descriptions or titles, but this is a serious weakness for True Local, particularly in a district where they dominate the local news media.

Google Places

brunch local search results for google places

Surprisingly, Google Places returned an extremely poor result with no local businesses found.

Again, this is probably due to the failure of business owners to ensure keywords are entered in their business description and it illustrates how Google is allowing an opportunity to pass them by.

Facebook Places

Facebook Places results from Neutral Bay brunch searchNothing. Nyet. Zip. No brunch for you.

Yahoo!7

yahoo local search results

Another poor result that has just scraped information off the web. It shows the weakness of the Yahoo! and Channel Seven joint venture which, like News Limited, is letting opportunities pass.

Bing/NineMSN

Local search results on NineMSN for Neutral Bay Lunch

Probably the most disgraceful of the results, NineMSN returned two cafes for the whole of Sydney, a city of four million people.

The second result entailed, according to Bing’s directions, a 38km drive timed at an optimistic 23 minutes involving $9 in tolls and an illegal u-turn.

NineMSN’s performance shows just how irrelevant Microsoft has become in the online space and their Australian joint venture partner is more interested in selling big integrated campaigns to advertising agencies.

Given NineMSN and Bing are the default browser and search engine on nearly two million computers sold in Australia each year, not having a local business strategy is squandering a massive opportunity.

Citysearch/Sensis

brunch local search on Citysearch for Neutral Bay

Founded by Fairfax, Citysearch could have been a great success combining the assets and readership of Fairfax’s metropolitan and local newspapers coupled with their experienced sales teams selling advertising space and subscriptions. Good management could have done this.

Sadly Fairfax was being run by Professor Fred Hilmer and his army of power suited McKinsey consultants and Citysearch was eventually sold for a pittance to Sensis, who have allowed it to shrivel away as the zero result for our search shows.

Eatability

local search on eatability for neutral bay brunch

Eatability was a genuine surprise, returning no brunch establishments in the area. The only thought is that no cafe in the neighbourhood has the word “brunch” in their keywords. Still a very poor result.

Urbanspoon

local search for brunch at neutral bay on urbanspoon

The web version of Urbanspoon returned the most bizarre result, correctly finding one local cafe but misinterpreting the address as being in Bankstown on the other side of Sydney.

Urbanspoon’s iPhone app returned a far better range of results in surrounding suburbs although it only found one cafe actually in Neutral Bay which wasn’t the one incorrectly found on their web app, which didn’t appear at all.

Word of Mouth Online

word of mouth online local search for brunch in neutral bay

Word Of Mouth Online delivered the best result of the web pages with two of the first three results being relevant. Of the other seven, they met the criteria of being within a 5km radius of the location which in Sydney can be a 12km drive.

The results would have been better with more local establishments but it appears the keyword “brunch” hasn’t been used by many of the WOMO reviewers.

Note: After the review I was contacted by the founder of WOMO, Fiona Adler, it appears some of the reviews have have been updated in the meantime. I’ve changed the results below, but the left the one above as it was correct at the time of the review.

Foursquare

neutral bay local brunch search on four square

Like Yelp, Foursquare relies heavily on users’ contributions and this shows in the flaky, almost useless results for our search terms on a web based search.

Foursquare’s iPhone app was far more efficient, identifying a range of good venues in the area which were ranked according to friends’ recommendations.

Sensis/Yellow Pages

search for brunch on yellow pages for local brunch in neutral bay

Again, “no brunch for you.” It’s almost scandalous that Yellow Pages has no entries at all for “brunch” for an inner Sydney suburb.

Redoing the search

Clearly the term “brunch” is problematic in all the services, so as a check here’s the relevant first page results for other search terms on each of the services;

Service Café Neutral Bay Breakfast Neutral Bay Lunch Neutral Bay
Yelp 7/10 2/10 7/10
True Local 9/30 0/30 0/30
Google Place 10/10 0/10 10/10
Yahoo!7 not relevant
Bing/MSN 3/10 0/10 0/10
Citysearch 6/10 3/6 4/4
Eatability 40/50 8/8 23/31
Urban spoon 3/3 0/0 0/0
foursquare 3/20 1/20 1/20
WOMO 8/10 2/10 5/10
Sensis 7/10 0/10 0/10

As we found with the earlier search, Yelp was somewhat inconsistent and no doubt the social aspects will see it improve as more users come on board, the results are highly dependent on the terms used by reviewers and this will affect the search results.

True Local’s score was surprisingly bad, the search for “cafe” found 12 places but three are long closed. “Breakfast” listed B&B accomodation and “lunch” found outlets in the city and Eastern Suburbs.

Google Places also disappointed on “breakfast”, picking up some B&B establishments along with some city cafes. This is almost certainly due to keywords missing in descriptions.

Yahoo!7 doesn’t get a rating as all it does is scrape other sites and often refers you to other search services. They are just going through the motions.

Microsoft and NineMSN’s service again failed dismally; the “cafe” result was poor, “breakfast” looked for B&Bs and “lunch” amazingly didn’t find a thing in Neutral Bay.

Citysearch’s results for “cafe” found nine places, three of which are long closed which indicates the lack of maintenance their database receives. Encouragingly, Citysearch was one of the best performers for lunch and dinner, albeit only on four and six places found.

Eatability had by far the most impressive number of results, however a large proportion of the places have closed and are not flagged as such. This probably indicates a lack of maintenance by the owners.

WOMO was good and like Yelp their results are highly dependent on the words used by reviewers, so key words could be missed simply because reviewers didn’t use them.

Sensis performed well on “cafes” except that three of the ten listed were closed. The lack of results on “breakfast” and “lunch” is due to no places having those words in their name.

Conclusions

This comparison is not scientific, being based on a narrow search and small sample size, but there’s a few things we can take away from the experiment.

Search is still young

Right now, search is still a crude tool.

From the results, we can see that the keywords used by reviewers and businesses matter. If the public are looking for “brunch” and that isn’t on your cafe’s website and online listings, then you won’t appear.

Over time that will change as the web and search engines get smarter but right now search is still at a basic stage in its development.

You have to be there

Customers are using these tools to find what they need and if a business isn’t listed, then they can’t be found. Setting up a profile and getting some favourable reviews is important.

The business who are being pro-active are the ones who are succeeding.

There’s a lot of opportunity

It’s no surprise that older organisations like Fairfax, Sensis and Microsoft are failing to understand local search. What is suprising is how poorly the newer players like Google and Facebook are doing.

This opens up a lot of opportunity for services like Yelp and Foursquare in adding value to the data already available through services like Google, Facebook and Sensis.

Yelp’s tie up with Sensis makes a lot of sense from the US company’s point of view; they get to ride on Sensis’ sales team, maybe some licensing fees and – most importantly – they can access the richest, albeit not always accurate, database of Australian businesses.

For small, local business there’s a lot of opportunity as well. By getting online and registered on these services, it’s possible to become more visible and improve your competitive position.

The market’s young and there’s a lot of potential for disruptive players. It will be interesting to see how incumbents deal with the threat.

Santa’s online business checklist

The run up to Christmas is a good time to make sure essential business information is online

Regardless of what sector your business is in, the web has become the way customers find us. Giving the key information shoppers are looking for is good start to getting their business.

An analysis by search engine giant Google of Australian consumers’ online Christmas shopping habits shows how the web is evolving as it becomes the main way customers discover businesses in the crowded marketplace.

Even if your business isn’t in retail, it’s worthwhile paying attention to the survey as a guide to what customers – both in the business to business (B2B) and business to consumer (B2C) spaces – expect online.

Do you list opening hours?

Number one failure of many sites is they don’t list opening hours or hide them. Warehouses, distributors and suppliers are particularly bad for this and if you’re in retail it is the unforgivable sin.

Your operating hours have to be clearly shown on the front page and come up early on a mobile site, people don’t want to navigate ten menus, subscribe to your newsletter or, worst of all, have to call you to find out if you’re open Sundays or in the evening.

List shut down and public holiday hours

If you’re in an industry that shuts down during the Christmas break, make it clear when you won’t be available.

Sending out a terse email message at 10am on the day of the close down and putting a sticky taped note on the front door that your accounts, receiving or sales department will be shut for two weeks doesn’t help your business or your customers.

Where are your contact details?

Probably the most bizarre aspect of hospitality industry websites is how many bars and restaurants hide their location.

This is fine if you’re one of these Melbourne laneway hipster haunts where only the ‘in-crowd’ are welcome, but most businesses actually want customers to find them.

Have your address and a map on your site showing exactly where you are. If you are in hospitality or retails have a mobile version that shows this first so lost shoppers and taxi drivers can find you.

Are local listings up to date?

A lot of mobile phone applications get their data from services like Google Places and True Local so get your listing up to date with these services, making sure you have accurate Christmas trading hours and that their maps accurately show your location.

The good news for hard pressed retailers is the overseas online threat fades in December as foreign websites can’t guarantee delivery after the first week of the month and local web outlets drop out around the 16th.

If you want to grab those last minute shoppers – which includes most men – then you’re going to have to make sure they can find you when they pick up their smartphone or log into their computer.

As Telstra have found, people are no longer turning to the phone directory and calling you for information, they expect contact details and opening hours to be clearly on your web site.

The web is where our businesses have to be, so make sure you can be found there.

How Google’s identity obsession hurts

How the search engine giant is damaging business and its own reputation

Imagine giving a presentation at a conference where you fire up a live demonstration of a product you’ve been urging the audience to use and the audience start giggling.

You turn around to find a bright red message at the top of the screen stating your account has been suspended. It wasn’t there the night before and you certainly didn’t receive an email warning you this had happened.

Embarrassing or what?

That happened to me with Google Local earlier this and the many stories like it illustrates a serious management problem within the world’s biggest search engine company.

Local search – where businesses can be found online based on their location – is one of the main web battlefields with Google and Facebook, along with outliers like News Limited and Microsoft, are competing to get business of all sizes to sign up.

Recently though Google seems to be going out of its way to squander the massive opportunity they have in this sector despite the CEO, Larry Page, identifying local services as one of their priorities.

Despite Google’s intention to promote Places – as their, and Facebook’s, local search platforms are called – many businesses are finding the company’s arbitrary and often incorrect application of its own rules and Terms of Service difficult to understand and use.

“I have found that with the ‘moving target’ Google is presenting to businesses” said Bob, a commenter on one of my blogs, “is paralyzing them from doing exactly what Google wants, which is updating and providing fresh content on their listings pages.”

In many ways, this is a small front on the “nymwars” that has broken out since Google introduced their Plus social media service and started enforcing their “rules” on “real names”.

Unfortunately their real names “policy” – and I use inverted commas deliberately – is vague and arbitrary with users finding their accounts suspended despite signing up with “the name your friends, family or co-workers usually call you” as required by Google.

Account suspensions are wide and varied; some people, quite legally, have a name without a surname, others have a combination of languages such as Chinese or Arabic, while others have simply fallen foul of the computer and Google’s secretive bureaucratic culture.

This secretive bureaucracy would be funny if it wasn’t so downright hypocritical. Any correspondence with Google about account suspensions either on Places or Plus is signed off by an anonymous functionary from “no-reply” email address. So it appears real identities, and accountability, don’t extend to the company itself.

Last week at the Edinburgh International TV Festival, Google’s chairman Eric Schmidt, announced Plus is not a social media platform, but an “identity service”. Good luck with that, Eric as your staff’s arbitrary and often incorrect interpretation of the company’s own rules doesn’t engender confidence in any identity verified by Google.

That announcement by Google’s chairman should worry investors, as this is a company that is first and foremost an advertising company powered by the best web search technology.

Management distractions such as becoming an “identity service” or buying a handset manufacturer distract focus from the core business and result in the mess we’re seeing around business and private accounts.

For the moment, Google Places remains a service that businesses must list on given the visibility the results have when customers search the web for local services and products.

If you aren’t already on Google Places, do sign up but make sure you get your listing right first time as editing your profile once it’s up risks your account being suspended or cast into “pending” purgatory.

Should you have already an account, leave it alone as any change risks coming the attention of Google’s anonymous bureaucrats.

Hopefully, this madness will pass and Google will clarify their policies, ground them in the real world then enforce their terms fairly and consistently. Until then, you can’t afford to rely on your personal and business Google accounts.