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July 20, 2005

SME Advertisers to Increase Spending on Internet Yellow Pages During the Coming Year, According to The Kelsey Group and ConStat

Results of latest wave of Local Commerce MonitorSM study to be presented at The Kelsey Group’s DDC2005 Conference, September 27-29 in Denver.

Princeton, NJ (July 20, 2005) -- New research by The Kelsey Group and ConStat, Inc. shows a statistically significant increase in the number of small and medium-sized business advertisers that intend to raise their budget allocation for Internet Yellow Pages during the next 12 months.

According to the latest wave of the Local Commerce MonitorSM (LCM), an ongoing tracking study of small and medium-sized business advertisers sponsored by The Kelsey Group and ConStat, 8 percent of advertisers indicated that they were likely to spend more money on Internet Yellow Pages this year, up from 2 percent one year ago. Among the media tracked by the LCM study—print and Internet Yellow Pages, newspapers, direct mail, magazines, radio, outdoor, coupons, local TV, Web site, search engine key word optimization, e-mail, online city guides, pay-per-click—only Internet Yellow Pages showed a statistically significant jump.

“Over the last couple of waves of LCM research, we’ve seen gains for Internet Yellow Pages in terms of businesses using the online medium as part of their advertising mix,” said Charles Laughlin, program director for The Kelsey Report® and DDC2005 conference chair. “This is the first year we’ve seen an indication that advertisers are now ready to allocate more budget for Internet Yellow Pages. The data is a strong indication that traditional Yellow Pages publishers are making measurable progress in positively positioning Internet Yellow Pages with their advertisers.”

Additional findings from this year’s LCM study will be presented at The Kelsey Group’s Directory Driven Commerce 2005 Conference (DDC2005) taking place September 27-29, 2005, at the Denver Marriott Tech Center, Denver, Colorado. Day 1 of the conference features a session devoted to the study entitled, “Local Commerce MonitorSM: Tracing the Evolution of SME Advertising Behavior.” The session will highlight how local businesses are investing in technology to promote and manage their businesses, how they are evolving their media spend, and what their expectations are for behavior going forward.

About DDC2005
Since 1988, The Kelsey Group’s annual Yellow Pages conference has been recognized as the definitive event on the future of the industry. DDC2005 will consider the question, “What is the future of the Yellow Pages?” Keynote speakers include George Burnett, president, CEO and director, Dex Media, and Charles Stubbs, president and CEO, YellowPages.com. In addition, Marc Tellier, CEO of Canada’s Yellow Pages Group, will sit down with a Kelsey Group analyst for a probing one-on-one interview. For more information about DDC2005, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10, or online at www.kelseygroup.com/ddc2005/.

DDC2005 sponsors include Acxiom Corp., Amacai, Amdocs, DCCI, eStara, Fast Search & Transfer, Geosign, Innovectra, Interchange, Local Matters, OKS Group, TrafficLeader, YellowPages.com and Verizon Information Services. DDC2005 Association Partners include the Association of Directory Marketing (ADM), the Association of Directory Publishers (ADP) and the Yellow Pages Association (YPA). For information on sponsorship opportunities, contact Nanci Karas at (609) 921-7200 Ext. 21 or [email protected].

About Local Commerce MonitorSM
Since it began in 1999, the Local Commerce MonitorSM study has become 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. Sponsored by The Kelsey Group and ConStat, Inc., 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 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 or online at www.constat.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, 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™) and consulting (more than 300 individual assignments).

For more information contact:

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

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