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Eileen Pacheco
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Charles Laughlin
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The Kelsey Report®
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Greg Sterling
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Interactive Local Media
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Kelsey Group Research
Neal Polachek
SVP, Research and Consulting
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August 4, 2003

KELSEY GROUP ESTIMATES DIGITAL DIRECTORIES WILL CAPTURE 24% OF DIRECTIONAL MEDIA MARKET BY 2008

Tenfold increase projected between 2002 and 2008, led by growth of search-based advertising.

Princeton, NJ (August 4, 2003) – The Kelsey Group, a global authority on Yellow Pages, electronic directories and local media, estimates the digital directories segment of the $22 billion North American directional media market will increase from 2.4% in 2002 to 24% in 2008.

According to the company, leading indicators of this projected growth include the continued evolution of digital directories, which already encompass much more than online Yellow Pages; the extension of key players beyond the traditional directory industry; the emergence of keyword search as an important advertising category, particularly among small and medium-sized enterprises (SMEs); and the rapid adoption of high-speed Internet access by SMEs.

To fulfill the market intelligence needs of the growing digital media industry, The Kelsey Group is introducing "Digital Directories: Interactive Local Media" (DD:ILM), a new Continuous Advisory Service focused on directional media in the local space. DD:ILM will offer essential research, analysis and advice to businesses looking to capitalize on the opportunities afforded by this emerging market. Coverage will address market sizing, evolution of key players, value metrics, emerging trends, business models, sales channels and technological challenges and innovations.

"Our Interactive Local Media service is a natural extension of our existing Yellow Pages industry coverage," explained Neal Polachek, senior vice president and head of The Kelsey Group's Directional Media business practice. "After conducting extensive market research and gathering valuable input from our clients, we determined there is a healthy demand for relevant data and analysis about online directories, local search, location-based services, city guides and online classifieds."

The DD:ILM program is designed to benefit a range of industry participants, including publisher-affiliated online directories, independent online directories, CMRs, portals/keyword search engine sites, intermediaries/aggregators, local interactive media, value-added services and technology providers.

Clients of the new DD:ILM program, along with members of the broader Kelsey community, will convene at The Kelsey Group's Digital Directories and Interactive Local Media Summit, October 22-24, 2003, in Alexandria, Virginia. For details, visit www.kelseygroup.com/ddilm2003/. To learn more about the new DD:ILM Continuous Advisory Service, contact Steve Vasil at [email protected].

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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