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

November 15, 2005

Annual Local Search Volume Could Exceed 20 Billion Searches in 2006, According to The Kelsey Group

Monetization implications of the increase in local searching will be explored later this month at Interactive Local Media 2005 in Reston, Virginia.

Princeton, NJ (November 15, 2005) -- Annual Web search usage and volume is projected to cross the 100 billion threshold during the next 12 months, driven by a range of advances and new developments in general and vertical search as well as video and multimedia search. In parallel with those larger trends, local commercial searches could surpass 20 billion (or 20 percent of Web search) during 2006, according to The Kelsey Group. With increasing user awareness and the introduction of dynamic new local products, including maps, user-generated content, mobile local search and local targeting via IPTV, the firm believes local searches could potentially exceed 30 billion by 2009.

The projected growth in local search usage, and its impact on how businesses will allocate $100 billion in advertising budgets targeting consumers in geographically defined markets, is a key issue that will be examined at The Kelsey Group’s upcoming Interactive Local Media 2005 conference (ILM:05), taking place Nov. 30-Dec. 2, 2005, at the Hyatt Regency Reston in Reston, Virginia.

“Paid search advertising may well reach $7 billion in 2005,” said Neal Polachek, senior vice president, research and consulting, The Kelsey Group. “Based on today’s traffic volume, local search should be a $1.4 billion marketplace, yet it is less than $500 million. The question is: When will local get its share of search dollars?”

Conference sessions that will examine local search traffic drivers include:

  • “Generation i: Focus Group.” The Kelsey Group asks the next generation of users what they think about online communities, wireless, IM, video search and other tools.
  • “Verticals and Aggregators.” The role of locally oriented verticals and content aggregators, which offer a potentially richer and more structured user experience.
  • “The Revolution Will Be Available On Demand.” IPTV and cable’s “triple threat”—TV, voice and Internet.
  • “VoIP and IM: New Communication Technologies and Local.”
  • “Waiting for Wireless.” A look at the current demand for local content and services and solutions that are on the horizon.

About ILM:05
The ILM:05 agenda will explore the full range of issues surrounding the various segments of interactive local media—local search, Internet Yellow Pages, IPTV, vertical directories, online newspapers and classifieds, social networks and wireless. The conference program features keynotes by Anne Busquet, CEO, IAC Local and Media Services; Erik Jorgensen, GM, MSN Local Search and MapPoint; Paul Levine, GM, Yahoo! Local; Caroline Little, CEO and publisher, Washingtonpost.Newsweek Interactive; Shailesh Rao, Local Search and Channel Partnerships, Google; and Jim Riesenbach, SVP, AOL Search and Directional Media Group.

Sponsors for ILM:05 include Acxiom, AdMission, CountyWebsite.com, DCCI, eStara, Fast Search & Transfer, i411, infoUSA, Ingenio, Interchange, Jambo, Local Matters, Localeze, MapQuest, Marchex, TrueLocal, Who’s Calling and YellowPages.com. ILM:05 Association Partners are the Association of Directory Marketing (ADM), the Association of Directory Publishers (ADP), the Search Engine Marketing Professional Organization (SEMPO) and the Yellow Pages Association (YPA). For more information about the conference, contact The Kelsey Group by phone at (609) 921-7200, ext. 10, or by e-mail at at [email protected], or visit www.kelseygroup.com/ilm2005/.

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

For more information contact:

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

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