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Eileen Pacheco
(781) 556-1026
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Charles Laughlin
SVP and Program Director
The Kelsey Report®
[email protected]

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Greg Sterling
SVP and Program Director
Interactive Local Media
[email protected]

Kelsey Group Research
Neal Polachek
SVP, Research and Consulting
[email protected]

October 9, 2003

White Hot 'Local Search' Opportunity Focus of Upcoming Kelsey Group Conference

Kelsey analysts and panelists to debate the future of paid search and local advertising at the firm's Digital Directories & Interactive Local Media Summit.

Princeton, NJ (October 9, 2003) – As much as 30 percent of the roughly 1.6 billion searches conducted online each week have a geographic or location-specific dimension, according to a survey of search providers completed by The Kelsey Group. Attempting to tap into this market, Google and Overture have recently conducted tests of local search applications, and AOL and Yahoo! are increasingly integrating local information into general search results. In addition, earlier this year, Citysearch launched a local paid search product across its nationwide network of city guides. Other search firms, such as InfoSpace, have also said they are actively developing localized search. And some online Yellow Pages companies are seeking to reposition themselves as providers of "local search."

Coinciding with this growing interest in local search, The Kelsey Group's upcoming Digital Directories & Interactive Local Media Summit (DD&ILM) will examine the outlook for local search and feature many of the companies working aggressively to develop this capability.

"Local search has clearly become a front-burner issue for service providers and advertisers alike," said Greg Sterling, Kelsey Group managing editor and program director of the firm's DD:ILM Continuous Advisory Service. "Many small businesses were among the early adopters of paid search, but have generally been shut out by its complexity. Development of a viable local search application has the potential to not only satisfy increasing user demand for local information online, but also tap into the multi-billion dollar small business local advertising market."

Fueling small business interest in paid search is the continued growth of broadband Internet access among small and medium-sized businesses (SMBs). According to The Kelsey Group and ConStat, Inc.'s Local Commerce Monitor (Wave VI), there has been a 60 percent increase since January 2002 in the number of local SMB advertisers with a high-speed connection. Of those, 17 percent are already using paid search advertising as part of their overall marketing mix.

DD&ILM is taking place October 22-24, at the Hilton Alexandria Mark Center, Alexandria, Virginia. Keynote addresses will be delivered by Jim Lanzone, senior vice president and general manager, Ask Jeeves, Inc., Marc Tellier, president and CEO, Yellow Pages Group Co. and Jim Voelker, chairman and CEO, InfoSpace, Inc. Conference attendees include representatives from Google, AskJeeves, Yahoo!, AOL, InfoSpace, FindWhat, TerraLycos, as well as many of the major Internet Yellow Pages and print directory publishers today, including Verizon, SBC, Dex Media, Switchboard.com, R.H. Donnelley, Sensis Pty, Thomson Directories and VNU World Directories, among others.

Summit sponsors include Acxiom Corporation, Aptas, CallSource, eStara, MapQuest Business Solutions, StandardCall, Inc., YellowPages.com and YP.net Inc., as well as all three major North American Yellow Pages trade organizations – Yellow Pages I.M.A., the Association of Directory Marketing, Inc. (ADM) and the Association of Directory Publishers (ADP). For more information regarding sponsorship opportunities or Summit registration, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10, by e-mail at [email protected], or visit www.kelseygroup.com/ddilm2003/.

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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