An overview of rise of ‘Request for Quote’ offerings by Yellow Pages directories

April 8, 2023

Strictly Confidential

Executive Summary

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• Directories face significant competitive pressure from large players offering performance based products (google, yelp..) and from a burgeoning number of vertical specific competitors offering RFQ in attractive iYP headings

• The failure of directories to offer compelling performance based products has provided new entrants with the oxygen to penetrate traditional iYP profit pools

• This trend is particularly stark in the US, where the proliferation of new entrants is particularly rapid

• Next generation directories are offering small businesses performance products and achieving 30%+ revenue growth

• ServiceMagic is the dominant successful RFQ player in the USA with a $200m+ revenue run rate (with plans to enter a variety of European markets)

• The success of ServiceMagic in the US has enticed a variety of players to enter the space – these players are growing fast by offering performance based products to small businesses

• Some traditional directories are realizing the opportunity to play and win – using their sales force reach to offer new performance products to small businesses

• Sensis acquired quotify.com.au, Australia’s leading RFQ player

• PagesJaunes acquired Keltravo’s RFQ business to capture the small business lead generation opportunity

• KellySearch acquired Approved Index to capture the B2B lead generation opportunity

• Rogers Ventures acquired homerenovationguide.com to increase the monetization of zoocasa.com

• Eniro is building their own reverse auction business – but starting from scratch and building your own is a slow (and risky) approach

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Directories face significant competitive pressure….

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Pressure from large players offering performance based products……

……and a burgeoning number of vertical specific competitors offering RFQ in attractive

iYP headings(Canadian example)

Often characterized by rich content, high SEO and aimed squarely at the most attractive small business advertiser

segments

Moving

Home Improvement

Roofing

Attorneys

Dentistry

Insurance

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The failure of directories to offer performance based products provides new entrants with access

to the YPs’ traditional profit pools

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Revenue Trends – Yellow Pages (USA) (2009 – 2014)

2009 2010 2011 2012 2013 2014-20%

-10%

0%

10%

20%

30%

40%

PYP

IYP

Next Gen. directories

Source: Kelsey Group 2010

$10.8

$7.1

$1.7

$3.6

$0

$2

$4

$6

$8

$10

$12

$14

2009 2014Online YPPrint Yellow Pages

$12.6$10.7

85.7%

13.5%

33.6%

-8.0%66.4%

16.2%

-3.2%

% Share% Share 5-Year CAGR

Industry Revenue – Yellow Pages (USA)(2009 – 2014)

Proliferation of new entrants is particularly rapid in the US - next generation (online only) players like yelp and service magic are taking share

Yelp, ServiceMagic & Reachlocal consistently

growing at 25%+ paIndustry shift underway –

significant pools of revenue at stake

Rate of Revenue Growth/Decline – Yellow Pages (USA)

(2009 – 2014)

YP’s pressured to monetize online faster (since print is in

decline)

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Next generation directories are offering small businesses performance products and

achieving 30%+ revenue growth

52005 2006 2007 2008 2009

-

50

100

150

200

250

-

5,000

10,000

15,000

20,000

25,000

26

68

147

191

11 16

93

124

156

6,139

10,605

16,413

21,129

22,889 Google (RHS axis)

ReachLocal

ServiceMagic

Annual Revenue of Small Business Lead Generation Players (M) (2005 – 2009)

$m $mDotted line

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ServiceMagic is the dominant RFQ player in the USA - coming to a market near you (soon!)

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Case Study: ServiceMagic

123Devis.com, a French lead generation business

with the largest network of tradespeople in France

Travaux.com - the largest French website for

consumer information regarding home improvement

123GetAQuote.co.uk - leading UK lead generation

platform

ACQUIRED

ACQUIRED

ACQUIRED

ServiceMagic is the biggest RFQ player in the USA and has recently expanded internationally

US Results include:• Revenue run rate of ~$200m

and CAGR of 25%+ pa

• ~6m projects initiated per year (with the opportunity to sell 3 leads for each project)

• Coverage of 250+ verticals

• In Q3 2010, Service Magic increased advertiser coverage by 28% (now have 80,000 advertisers) = advertisers like the product

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The success of ServiceMagic has awakened a variety of players – growing fast & offering

performance based products

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New competitors are entering the local performance marketing space in the US….

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Some directories are realizing the opportunity to play and win

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Directories are leveraging their sales force reach to offer new performance products to small businesses

ACQUIRED

LICENSED

ACQUIRED

BUILT

See case studies in following slides

… and more licensees soon to be announced!

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PagesJaunes acquired Keltravo’s RFQ business to capture the lead generation

opportunity

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PagesJaunes has made a bet on vertical portals – accelerated with the acquisition of Keltravo – the leader in online quotations in the home improvement segment

Case Study: PagesJaunes & Quotatis

Keltravo is a stand-alone multi-vertical RFQ brand now owned by

PagesJaunes

Keltravo is PagesJaunes’ weapon to beat Quotatis – the European equivalent of ServiceMagic

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KellySearch acquired Approved Index to capture the B2B lead generation

opportunity

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Reed Business Information has made a bet on a branded multi-vertical portal – accelerated with the acquisition of Approved Index – an online B2B marketplace in the UK across more than 100 different

sectors

Case Study: Reed Business Information & Approved Index

KellySearch supercharged its RFQ initiative by acquiring a multi-

vertical RFQ businessApproved Index now owned by

Kellyseach

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Sensis is using Quotify to power their RFQ deployment across Yellow Pages’ assets

Sensis is working with Quotify to power their request for quote on and off their Yellow Pages network

Portal site with 40+ verticals

IAB friendly form widget – consumers complete a form within an ad unit

Sensis voice directory assistance productsYellow Pages

Vertical specific sites (Home Improvement)

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Eniro is building their own reverse auction business,

- starting from scratch is a slow path

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Case Study: Eniro

After 6 months, Eniro Offert is generating a total of only ~10 projects per day across 6 verticalsWhereas Kellysearch, ServiceMagic & PagesJaunes acquired hundreds of verticals and thousands of

projects instantly via acquisition

Eniro is strategically committed to RFQ - Eniro has created a sub brand

‘Eniro Offert’ for their RFQ offering

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Zoocasa acquired homerenovationguide.com to boost the monetization of its traffic

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