In the three weeks since the year began, I’ve been hearing about a whole host of new, hyperlocal online community services launching:
- Outside In: aggregates local news and provides forums, etc.
- Parkmatch: social networking for parking spaces (yes, really).
- Front Porch Forum: email your neighbours.
- Placeblogger: aggregates local blogs.
- Peuplade: Parisian neighbourhood network; not a launch, but reported on by the BBC.
Suffice to say that local is hot. So there may be some nervousness greeting this news story from the Washington Post about the troubles at the, yes, hyperlocal social networking site, Backfence. The site received $3mn in funding in May 2005, but doesn’t look like it’s going to earn any of that back in a hurry:
Media analysts agree that many readers are looking for hyperlocal content, but they say most citizen-journalism sites aren’t mature enough to tap into the lucrative local advertising markets.
“Realistically, it’s going to take close to 10 years for the business models to be there and for there to be enough advertisers willing to give money to hyperlocal start-ups,” said Vin Crosbie, managing partner of Digital Deliverance, a Connecticut media consulting firm. “Backfence’s problem is that it was too early.” […]
[Co-founder Susan] DeFife said Backfence sites [13 in total] had sold 550 ads to local businesses since April and got 2 percent of community members to register. “We were making significant strides,” she said.
I can see why very local social networks might seem like a great idea. The BBC story about Peuplade was very inspirational. However, like the analyst says, it seems like it will be some time before such sites are able to make much money on the basis of advertising. At the same time, this social media approach certainly seems like a great way forward for local council websites and a way for them to demonstrate their usefulness.
Technorati: hyperlocal, social networks, website
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Hi Ian,
Interesting post — I’d seen some of the hyper-local services, but not the quote about Backfence.
As someone working (some of the time) in local government comms it’s interesting you make the link with local council websites — the challenge is to use social networking functionality to enable communities to connect and develop that would not otherwise have existed.
We’re working on a climate change/environmental awareness website that hopefully will encourage residents to form into local groups in our area.
Some social networking functionality will be used to help make this happen.
cheers,
sw
Hi there Simon, I’d seen that you’d introduced a podcast into Medway and social networking seems to me like a great next step. Would be great to talk to you more formally (ulp!) when you’re ready to speak about it. I really believe that these sites have a great deal of value but that commercially they’re going to struggle for the time being.
Hear me.…See me… I’m here waving my arms like a Katrina victim on o roof top!! Hyper-local can work, is working!!! If your revenue models are on target with what others consider valuable.…then the value is automatic, to many people are trying to sell the idea that some of these local sites are valuable just because of the local user generated content…and usually the content is derived from a handful of locals that are town ego-maniacs that take the open forum to advance their opinions…when in the real world, people discount these reviews…Let’s redefine Hyper-local to be accurate local information generated by the business owners — as they are the focus of advertising dollars and the only ones that should be able to convey the truth about their business.…bottom line if a business is poorly run the locals stop using it.…but Hyper-local is to wide a vertical…DiscoverOurTown is Hyper-local with user generated content from the only person that matters…the business owners!! The local news – the local gossip should be one tab among many on a site…not the whole site…I’m waiting for JudysBook to announce the same problem soon…even though it has taken a very large step into the advertising model with banners, towers and more with national advertisers!…Just what the consumer wants in a local site…Right???
Hey there Howell, DiscoverOurTown looks like a good idea to me in terms of revenue. Directories like yours always seem to do well (in my very limited experience). But will it be possible to add a social element to the site, without diluting the attention your advertisers get?
Just to be clear, I’m not talking about *all* local sites, but ones with a social networking basis.
Greeting Ian, The social aspect is an element that deserves some attention…does the element have enough gravitas to be a stand alone site…so far, the market place say No…But in communities where the right people drive traffic to the content, then YES! But does the concept have staying power…will it become stale as people become preoccupied with other sites…I just have a hard time grasping the concept for the long term
Front Porch Forum is enjoying a great response from people in our initial location. Our mission is all about helping neighbors connect and foster community within neighborhoods. Recently a couple posted a note in their neighborhood’s forum looking for helping moving their household, hoping for a couple strong backs. THIRTY-SIX neighbors showed up and moved their entire four-person home out of the old place and then into the new in 90 minutes! Story like this are multiplying. Next up… generating revenue to sustain all this. Track our progress on our blog.
That’s a sensational story, Michael, and is great evidence for why hyperlocal sites *DESERVE* to succeed.
Ian — would be happy to talk about the project, probably best in a couple of months once funding is in place. We’re planning to launch in June 2007.
sw
The whole trouble with hyper-local is that at a certain point it just becomes easier to bypass your site in favour of actually stepping out into your community. At the hyper local level you’re competing with established local newspapers, community associations, bulletin boards etc. — at some point people prefer to be in physical contact with local media rather than using a website to do the same thing.
– JF