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Charles Laughlin
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Neal Polachek
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June 17, 2003

SMALL BUSINESSES ADOPT SEARCH ENGINE AND PAID INCLUSION ADVERTISING, ACCORDING TO THE KELSEY GROUP AND CONSTAT

Co-Sponsors of Local Commerce Monitor study to present findings at DDC2003, The Kelsey Group's upcoming Directory Driven Commerce Conference.

Princeton, NJ (June 17, 2003) – Small businesses are quickly adopting the use of search engine advertising solutions, according to new research previewed today by The Kelsey Group and ConStat, Inc., co-sponsors of the ongoing Local Commerce Monitor study.

The findings of the sixth wave of the Local Commerce Monitor indicate that among small businesses that advertise, 17% utilize search engine keyword advertising and/or paid inclusion in Internet search results as a means of reaching potential customers.

"This places search in the seventh position among the advertising and promotion options being used by small businesses that advertise," said Neal Polachek, senior vice president for The Kelsey Group, a leading authority on Yellow Pages, electronic directories and local media. "While 77% of small-business advertisers utilize print and online Yellow Pages, the emergence of search in the small-business advertising mix may very well have an impact on the $25 billion global Yellow Pages industry."

The study's findings also indicate increased Internet savvy among small-business advertisers, as local businesses try to get their share of the rapidly growing number of local commercial searches being performed across numerous search platforms. Furthermore, nearly 50 percent of these same small businesses are now connecting to the Internet via some form of high-speed access – a 67% increase from a year ago, according to Polachek.

"Historically, many have considered search advertising beyond the grasp of small businesses," said Bill Deaton, managing director of ConStat, Inc., a research firm based in San Francisco, California. "The new data suggests that it would be wise for local media players to seriously consider the fact that search is now clearly on the menu for small businesses that advertise."

The Local Commerce Monitor is the first nationally scoped, quantitative research program for understanding and anticipating the attitudes and behaviors of America's small and medium-sized businesses regarding the numerous options they utilize for acquiring and communicating with their customers. The ongoing study represents findings across 14 major and secondary U.S. markets-Atlanta, Boston, Chicago, Columbus, Hartford, Houston, Los Angeles, Nashville, New York, Norfolk, Oklahoma City, Omaha, Sacramento and Seattle.

The Kelsey Group and ConStat will present detailed findings from Wave VI of the Local Commerce Monitor at The Kelsey Group's Directory Driven Commerce Conference (DDC2003), July 21-23, in Denver, Colorado. DDC2003 is The Kelsey Group's 17th-annual Yellow Pages conference, attracting the widest and most diverse audience in the Yellow Pages community. The conference agenda reflects the priorities of today's publishers, which must balance the need to focus on the basics-selling and publishing the best print directories they can in the current economy, while finding ways to achieve sustainable, long-term growth. For more information regarding DDC2003, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10, by e-mail at [email protected], or visit www.kelseygroup.com.

About The Kelsey Group
The Kelsey Group is the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories and local media. Beginning in 1986, the company has built a reputation as the leading analyst firm covering the directory publishing community, providing advisory (The Kelsey Report®), publishing (Global Yellow Pages™), consulting (more than 300 individual assignments) and conference services.

About The Kelsey Group
The Kelsey Group is the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories, small-business advertising and local search. Beginning in 1986, the company has built a reputation as the leading analyst firm covering the directory publishing community, providing advisory (The Kelsey Report® and Interactive Local Media), publishing (Global Yellow Pages™ and Local Media Journal™), consulting (more than 300 individual assignments) and conference services (60 events).

For more information contact:

Eileen Pacheco
(781) 556-1026
[email protected]

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