Insights into the Australian search and directories market
Vishal Sharma of Startups Carnival fame has just released a nice review of the Australian search and directories market. It pulls together data from the recent BRW Digital Generation edition and PricewaterhouseCoopers, and perhaps most interestingly reviews 18 players in online search, looking to tap a market estimated at A$254 million currently, and A$532 million in 2010.
Google is even more dominant in online search than in the US (86% vs 60% for the US March 2008 figures from ComScore), while Sensis hs 98% of the local directories market.
In the local directories market, one of the interesting players is Hotfrog, which was established by Reed Business Australia in 2005 to diversify from its core print operations . Its local success has led to Hotfrog being replicated in 18 other countries.
Ross what will be interesting to know and esp yr thoughts on the analysis for Sensis. What do you think how they can prepare for the future.
I have suggested some basic steps at this stage, but more in future.
Hi Vishal, I’m far more interested in how new participants can take market share from Sensis than how the dominant player can continue to take the value (unless I’m offered a lucrative consulting contract! :)).
I think one particularly useful strategy is building communities in specific local search domains e.g. plumbing, dentistry, auto mechanics, natural health etc. Everybody wants good recommendations for these kinds of suppliers, and the best way to get this critical mass of participation is to be focused. For example I think raveaboutit.com.au is conceptually good in providing peer reviews for local suppliers, with lots of associated business models. However because it has hundreds of categories, it is likely that in fact none of them get traction. Multi-niche can be combined later into something bigger, but it’s tough the other way around…