Paradigm Shift At Technorati Has Analysts Raising Questions

Posted May 16, 2007

There’s been a paradigm shift in Technorati’s offerings.  I realized this after reading an article on Red Herring.  Technorati’s core competencies were in blog search, but now the company is offering search for various types of media such as photos, videos, and music.

Technorati recently cashed in on a $11.52 million third round of funding from Draper Fisher Jurvetson and Mobius Venture.  By diluting itself into other areas of search, there is a concern about whether the company becomes less attractive for an acquisition from a big media company.

According to the Red Herring report, “twenty percent of Technorati visitors in April went on to visit photo-sharing site Flickr after finding links on Technorati, according to Hitwise.”  Other places that visitors landed in by using Technorati’s search include YouTube, MySpace, and Last.FM.

Earlier this month, Technorati introduced Authority which displays how many blogs have linked to a particular blog within 6 months.  The more incoming links, the more authority that particular blog has and they can show this off with the Technorati Authority Widget.

“Thereâ??s no question that Technorati is at the center of a lot of interesting phenomenon happening on the web right now, but itâ??s hard to understand how it works as a stand alone business,” stated Barry Parr, a Research Analyst at Jupiter.