AT&T’s Buzz is more focused on advertisers than users

Posted by admin in Local Search, Social Networking

AT&T’s new site Buzz.com local recommendation site seems to be more focused on advertisers than users.  By limiting input from the general public and relying on “expert” reviewers, they’ve taken the ugliness of bad reviews out of the picture and that should make small business owners, aka Buzz’s advertisers, happier than they are with sites like Yelp.

It’s an interesting approach that will need some time to evaluate for effectiveness as a business model.  I believe that the sucess of the site will depend on a few factors.

1) User adoption.  Is the site easy and fun to use?  Will the smart phone apps be like Gowalla and Facebook, a joy to use and addictive?  Or will it be clunky and a chore to use?

2) Promotion.  Will there be all sorts of advertising to initiate awareness?  AT&T has spent a ton of money refuting Verizon’s bad coverage claims.  Will the Buzz promotion budget be even a fraction of that, or will they try a social media only strategy?

3) Advertiser buy in. Will the local small businesses buy in and spend money to advertise on Buzz?  Only 10% of small businesses have even claimed their listing in the Google Local Business Center, so will they pay for enhanced listings and the like on a compeltely new site?

It will be interesting to watch the evolution of Buzz as it progresses.  Stay tuned for more.