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Having ran a travel directory site for a bit I'm always interested in Google's ambitions in the space. I still haven't completely understood why Google bought Z
by rwhitman 14y ago
Having ran a travel directory site for a bit I'm always interested in Google's ambitions in the space. I still haven't completely understood why Google bought Zagat, and now Frommer's is a bit odd as well. My theories -
1) Small business relationships - well established relationships with long-established small businesses that may never have tried advertising online. Every listing is a potential new Adwords customer. I know someone who worked with Zagat and the 1st thing they did was swap out the ad network, so I'd say this is reason #1. These guys have very trusting and loyal ad partners
2) Brand recognition and perception of quality control in consumer listings.
3) Databases - its really hard to get a complete database of small business info from foreign countries. Googlebot is just never going to as good of a job cleaning up this content as a decent editorial staff. These guys have been intricately compiling and updating DBs of eateries and attractions for decades.
4) The guidebooks - I doubt the revenue from selling paper guidebooks means much to Google, but it might be a lesson in selling digital content, who knows
5) They acquired them both for a steal. A bunch of editors working for peanuts, content and new adwords customers scooped up at a fire sale.
- gdilla 14y agoGoogle paid 151M for Zagat - is that considered cheap? Would be surprised if the Frommer's price was even half that. http://www.mercurynews.com/breaking-news/ci_21301531/google-buys-frommers-travel-business-will-add-it http://www.mercurynews.com/breaking-news/ci_21301531/google-...
- jonhohle 14y agoWhen you think that Zagat - a world renowned service for restaurant ratings for over 30 years - was purchased for about 15% of what Instagram cost, I would say it's cheap. I know new whiz-bang startups can generate a lot of cash (if they are lucky), but it always surprises me how low the valuation of old guard companies can be.
- mcherm 14y agoComparing to Instagram, which even its defenders admit is an outlier, is poor choice.
- stcredzero 14y ago> I still haven't completely understood why Google bought Zagat, and now Frommer's is a bit odd as well... 2) Brand recognition and perception of quality control in consumer listings. Speaking as a consumer, I'd say that both are highly respected brands.