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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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Neal Polachek
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June 29, 2004

Nearly One-Quarter of Small and Medium-Sized Businesses Now Include Internet Yellow Pages in Marketing Mix

Analysts from The Kelsey Group and ConStat to present latest research on SMB advertisers at Directory Driven Commerce Conference next month in Atlanta.

Princeton, NJ (June 29, 2004) – New research from The Kelsey Group and ConStat, Inc. indicates that Internet Yellow Pages (IYP) is gaining ground among small and medium-sized business (SMB) advertisers. According to the Local Commerce Monitor, an ongoing study of SMB advertisers co-sponsored by the two firms, 24 percent of SMBs are using IYP as part of their advertising and promotion mix – a 60 percent increase over last year.

"This finding is a clear indication that advertisers are increasingly interested in online advertising solutions," said Charles Laughlin, program director for the Kelsey Report®. "It also suggests that Yellow Pages publishers have made good progress in leveraging their sales channel to sell online Yellow Pages."

Kelsey Group Senior Vice President Neal Polachek added, "Now that publishers appear to be making strides in getting advertisers to consider Internet Yellow Pages as a key component of their ad mix, the publishers must also focus on ways to drive user traffic to their sites. The pressure to deliver traffic will only increase now that the publishers are solving the sales channel challenges."

Analysts from The Kelsey Group and ConStat, Inc. will present complete findings from Wave VII of the Local Commerce Monitor at DDC2004, The Kelsey Group's Directory Driven Commerce conference, taking place July 21-23, 2004, at the Omni Hotel at CNN Center, Atlanta, Georgia.

Additional findings from Wave VII of the Local Commerce Monitor include:

  • Broadband connectivity among SMBs has seen a significant increase over the past year – from 43% in 2003 to 53% in 2004.
  • Though not statistically different from a year ago, the number of SMBs with a Web site advanced from 48% to 52%.
  • 30% of businesses that do not have a Web site today indicate that they intend to have one within 12 months.

Now in it's seventh wave, the Local Commerce Monitor continues to be a key research tool for understanding the advertising and marketing challenges small and medium-sized business owners face. It 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.

About DDC2004
Since 1988, The Kelsey Group's annual Yellow Pages conference has been recognized as the definitive conference on the future of the industry. It is truly a global event, where directory leaders converge to hear the objective perspectives of Kelsey Group analysts regarding the key issues facing the global Yellow Pages industry. For more information or to register for DDC2004, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10, or visit www.kelseygroup.com/ddc2004/.

About ConStat, Inc.
ConStat, Inc. is a research firm that specializes in the Yellow Pages and information technology industries with offices in San Francisco and Denver. ConStat has served clients in the telecommunications, media, advertising, wireless and high-technology communities for more than 10 years. For additional information, ConStat can be reached at (510) 267-3100.

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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