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interactive local media


Interactive Local Media Advisory

Yahoo! Goes after Both the 'Chicken and Egg'
Neal Polachek,Greg Sterling , 8/19/2004

Summary: Within the past two weeks, Yahoo! has launched a new consumer-facing local search site and a suite of upgraded Internet products and services for small business, most notably domain name registration for US$9.95 per year. Though outwardly unrelated, these two developments are very much connected in seeking to address both sides of what’s been called the “chicken and egg” problem of local search. Search sites need content to attract local search usage and, in turn, advertisers. But without enough advertiser content, there won’t be sufficient usage.

On the usage side of the equation, Yahoo! Local search offers a single entry point into a wide range of local Yahoo! content. Still in “beta,” it has strengths and weaknesses. Its strengths are the simplicity and usability of the interface and the enhanced features and capabilities it offers. On the content side, Yahoo!’s range of merchant solutions is part of an aggressive bid to get small businesses online and become the leading provider of small-business Internet services. With these two initiatives, Yahoo! is ambitiously tackling both sides of the chicken and egg problem simultaneously.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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