While it seems to be true that users are becoming increasingly cynical about the likes of MySpace and Facebook as they seek more ways to monetize and stay fresh to attract even more members, it seems that 2008 is the year of the ‘useful’ social network.
Qype is a case in point – an ever-expanding and innovative website similar to Yelp, where user-generated reviews of venues and events help people plan their next adventure out on the town, from free festivals to discovering the best place for a family of eight wanting a meal deal.
In the words of Rob Waugh, a writer for the UK’s Mail on Sunday, “Unlike Facebook, there are no Zombies, Funwalls, SuperPokes or other pointless social “games”. Qype is focused entirely on you, your area, and what to do there… some of the user-made guides are genuinely great… Qype is easy to use and has the sort of clean layout that is the reason Facebook triumphed over MySpace.”
Great – but competing with huge existing networking sites for users and investment is a tricky business. Finding out how to maintain funding, fresh content, and therefore growth of membership is a major gripe for such sites.
Becoming popular is just the beginning – trying to make money off the back of it proves to be less than easy. Fortunately some of the big players have big backers who identified the potential and invested in it. News Corp bought MySpace in 2005 and Microsoft acquired a 1.6% share in Facebook last year.
So, to use Qype as an example, how has an upstart start-up secured more than $11.3 million of investment that must have left similarly ambitious networks gasping?
Apart from having great concepts and content, Qype were also very clued up when it came to marketing. One such success was becoming one of Mozilla’s featured favorites in the release of Firefox 3, along with Gumtree and Facebook. Having this kind of coup even got them noticed by members of Digg.com, another website where members can tell the online community the difference between “quality and hype”.
Andrew Hunter, Qype UK’s General Manager, commented upon the impact this kind of exposure had, “Qype grows through word of mouth. We don’t do TV or billboard advertising – people discover the website and shout about it to their friends. Having the likes of Mozilla and Digg raving about Qype played a massive role in our recent growth. I guess you could call them “super friends”.
It seems you simply cannot buy that kind of marketing.
Nor was being mentioned in BBC Click – the BBC’s flagship technology programme – as part of the next step in the “evolution of the social network“. Being listed as one of the most important up-and-comers was flattering but could also lead to investment. Especially when a source like the BBC says something as thought-provoking as this: “The big players have the users and the new sites have the ideas. Convergence between the two could see the dawn of a new age of social networking.”
“After the BBC piece went up, we saw a step change in the number of quality users joining Qype and the review rate went through the roof. A day after being featured by BBC Click, we were getting a new review every minute.”
It’s not just the people involved who are shouting loudest though. Sometimes the product itself does the talking, actions speaking louder the words. The momentum was continued when Apple highlighted just how popular Qype had become on the iPhone. It was not only their Staff Pick on Apple.com, but iQype topped the Travel category for popularity in regions including the UK, France, and Germany.
“It’s a key part of our vision. If I’m in a new part of London and I’m craving Mexican food, I want to know what’s nearby and what real people would recommend. iQype solves this problem and I guess Apple recognizes this.”
The ’net effect of these and other successful marketing strategies was the announcement of over $11.3 million in funding from Partech International, Advent Venture Partners, and Wellington Partners. The money will pay for Qype’s expansion into five new countries and increased functionality on their sites.
Qype founder and CEO, Stephan Uhrenbacher said: “This is an exciting time for Qype and the funding will help us to continue our European expansion as well as continue to create new services for our growing community and ensure we stay at the forefront of the marketplace. We’ve had huge growth in visitors over the last year and this new funding round should help us grow even faster.”
With Qype recently breaking through the five million visitors per month barrier and with over a quarter of a million active users, it’s safe to say that this social networking site has stolen a march upon its European rivals such as Tipped and TrustedPlaces.
It’s not an exaggeration to say that Qype could begin to think about branching out of Europe and going global, but then the heavily backed Yelp in the US could also be considering a move into Europe. Neither site will be the next Facebook or MySpace though. And that’s a good thing.
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