Could provide a small counterpoint to pg's post-Kiko claim that, "The best solution for most startup founders would probably be to stay out of Google's way." (http://paulgraham.infogami.com/blog/kiko)

Interesting that where Google proves to be kind of soft is the product that actually creates all their revenue. Complacency as the market leader? Just a blip like the Google rep suggested?

This article gave me a lot of encouragement and heart, because they are based in New York and because they are out-hacking large, established players.

I agree with what Paul et al have written about the importance of being in a startup hub, but this article makes me think that if you are targeting a particular industry (like advertising), you might be able to find success by locating yourself wherever those industries are concentrated. Not as good as being in a hub, but an option for people who find themselves elsewhere.

It's also a perfect example of a small (comparatively tiny Quigo) company flying under large behemoths (Google and Yahoo) by being open, agile, and transparent.