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The Kelsey Report® White Paper

DDC2001: Getting Back to Basics
Carlotta Mast , 5/17/2001

EXECUTIVE SUMMARY:

Thanks to a softening economy and too many new players chasing after too few funding dollars, the ranks of companies offering new technologies that seek to connect local buyers and sellers have thinned. This was evident during The Kelsey Group's Directory Driven Commerce Conference (DDC2001), held March 7-9 in Lake Buena Vista, FL.

One year ago, The Kelsey Group argued that the surge in dot-coms attending our New Technologies for Directory Publishers conference, most seeking directory partnerships, was proof that the directory industry was not withering on the vine, as some believed. While many of those start-ups were absent from this year's event (replaced in part by a new crop of players in search of directory partnerships), their absence proves, in a different way, that the directory industry is still vital.

As the economy slows and funding evaporates, the focus has shifted to what works - and there is no argument that Yellow Pages directories do work. They're easy to use, merchants understand their value proposition, and they make money. Even though Internet Yellow Pages products have not performed well to date, the directory model remains attractive in the Internet space.

Of course, the challenges facing directory publishers and other companies trying to grab a piece of the directory-driven commerce market are greater today than they were a year ago. The economy is forcing companies to go back to basics, a development that many are celebrating. Companies are reassessing business models, controlling customer acquisition costs, harnessing technologies that make sense for consumers and local businesses today, and seeking to make real money by connecting buyers with sellers - in the real world.

In this White Paper, we will explore and explain the key messages coming out of DDC2001. We will also explain key findings presented during the conference from Wave IV of the Local Commerce Monitor research conducted by The Kelsey Group and CONSTAT, Inc.

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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