Case Study: Going Up Against Google

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The Decision

The prototype of Google's Blog Search went live at midnight on September 14, 2005. Most of Technorati's work force of about 30 was online, waiting. Sifry spent about half an hour checking it out, then posted a welcome note to his new competitor on his blog, including some friendly trash-talking about all the things Technorati could do that Google couldn't, such as image finding. Then Sifry went home and got some sleep.

There were no big surprises. Google Blog Search, he concluded, was solid but simple. It seemed to have a hard time keeping up with the dynamism of the blogging world; many search results it displayed were more than 24 hours old, which is ages in the blogosphere. On the other hand, Google delivered those results in less than half a second, compared with at least a full second for Technorati. It sounds minor, but in the world of Web search, that's a big difference. "We knew we had a lot of work to do," Sifry says.

Since then, the company has been scrambling to keep its edge by launching new features. First up was a tool that provides constant updates of the things that matter most to people who write and read blogs at any given moment--such as the most-discussed books, movies, and news items on the Web. Then in October, it added a feature that is able to determine who is the most authoritative blogger on any particular topic. In November, a "Mini" search window debuted that automatically refreshes users' favorite searches while they're doing other things online. And in December the company introduced a prototype called Technorati Explore, an experiment in creating a newspaperlike front page from blog posts.

Traffic growth slipped slightly in September. But it rebounded in November and is still growing faster than Google Blog Search, according to Hitwise, a company that monitors Internet traffic. As of mid-December, Technorati was tracking some 23.4 million blogs, adding some 70,000 more to the list every day, and getting 1.53 visitors for every one visitor to Google Blog Search.

Sifry, of course, knows that Google's product will almost certainly get better. He's also facing new competition from Yahoo, which rolled out a blog search function on its news page in October. But he remains confident that Technorati will not lose its technological edge for some time. "What we're building is fundamentally difficult," he says. "If it were easy, everyone would be doing it."

Another advantage: Unlike Google, Yahoo, or any other major player, Technorati needs to keep its focus on just one thing--the blogosphere. With blogging more popular than ever, Sifry says he's currently evaluating more than 100 potential deals--primarily advertising, sponsorship, and syndication deals. And a lot of the credit, he says, goes to Google. "I no longer have to explain what a blog is," he says. "It's absolutely an easier business discussion now."

The Experts Weigh In

Switch to services

Technorati has some good technology, but I'm not sure that it has a strategy that can keep it alive. In fact, I'm not sure what its strategy is. I'd like to see Sifry build a business around services, not search. Many of Technorati's rivals are offering private label services for Web publishers or platform services to bloggers, like hosting and tools. Technorati seems to be doing neither. It has introduced some very clever technology, but I don't think an advertising-based revenue model is enough to sustain the business.

Susan Mernit
Partner, 5ive, a digital media consultancy in New York City

Look for a buyer

Technorati can point to different features it has that Google doesn't, but that's only for now. Technorati's best bet is to try to get acquired. It needs to stop worrying about search technology and take the head start it has in creating online communities and leverage it. Bloggers come to Technorati for more than just searching. Building on that community will make Technorati more than just another search engine. Anything it can roll out that makes it harder for people to switch will make it a sweeter acquisition target.

Stephan Spencer
President, Netconcepts, a Madison, Wis.-based Web consultancy

It's all in the execution

I use Technorati every day to see what's being said about my blog. It's not clear to me what Technorati thinks its market is. Is it trying to be an entry point for consumers? Or a tool for blog publishers like me? Compared with Technorati, Google is terrible, especially in terms of timeliness. On the other hand, Technorati is overwhelmed by spam. Technorati's strategy is not unique, so its execution has to be perfect. Sooner or later, somebody's going to get it right. I hate to say it, but it's probably Google.

Peter Rojas
Co-founder, Engadget, a New York City-based blog about tech gadgets

What do you think? Does Technorati have the right strategy to compete with Google? Sound off at casestudy@inc.com.

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