The Evolution of Local Search The Evolution of Local Search

Eric Chandler, PresidentEric Chandler, President SuperPages.comSuperPages.com

The Evolution of IYPs and Local The Evolution of IYPs and Local SearchSearch

“Co-opetition”

Create an Interactive Community/Personalization

Willingness to Change/Risk-taking

“Co-opetition”

Create an Interactive Community/Personalization

Willingness to Change/Risk-taking

IYP vs. Local Search – Today’s IYP vs. Local Search – Today’s LandscapeLandscape

• SEARCH: Highly Structured Categories USPS-Defined

Geographies• LISTINGS: Merchant-Based• PRODUCTS: Fixed Fee• USER EXPERIENCE:

Reference-Type Look & Feel Find Business and

Contact via Phone Limited Online

Transactions

IYP

• SEARCH: Less Structured Keywords Areas, Neighborhoods,

etc.• LISTINGS: Products,

Brands, Services, etc.• PRODUCTS: Performance-

Based • USER EXPERIENCE:

Community-Type Feel (Social Search) Browsing/Researching User/Third-Party Reviews Enhanced Content

Local Search

Industry Growth TrendsIndustry Growth Trends

$0.0B

$2.0B

$4.0B

$6.0B

$8.0B

2006 2007 2008 2009 2010 Local Search IYP

Source: The Kelsey Group, October 2005, March 2006

U.S. IYP/Local Search Revenue Forecast Critical Success Factors:• Local Customer

Relationships• Quality Traffic• Robust Content• National Footprint• Full Service

SuperPages.com’s Evolution: SuperPages.com’s Evolution: Our Lessons LearnedOur Lessons Learned

2001 2005

Search Traffic Paradigm

Pay Per Search Fixed Rate Variable Revenue Share

Product Focus Fixed Fee

2004

Pay For Calls (Patents Filed

7/05)

Sales Channels

Local Channel FocusInternet Sales Channels

(Target Non-Traditional

Customers)

2003

Consumer Search

Category Based Directory Merchant - Focused

Product, Brands & Services

Enhanced Content (3rd Party,

Retailers, Consumer-generated)

2002

Pay Per Click (Patent Filed 9/03)

Pay For Calls Network Active in Print Pay For Calls Network Active in Print Yellow PagesYellow Pages

Patent-pending PFC Print Patent-pending PFC Print Distribution NetworkDistribution Network

Leverage Print Distribution Leverage Print Distribution to Drive Calls to Online PFC to Drive Calls to Online PFC AdvertisersAdvertisers

Projected Launch in over 500 Projected Launch in over 500 BooksBooks

““Co-opetiton” - The Competitive Co-opetiton” - The Competitive AdvantageAdvantage Fragmented Market

Leverage Strategic Partnerships

Improve Search Experience for Users

Bring Greater ROI to Advertisers

Fragmented Market

Leverage Strategic Partnerships

Improve Search Experience for Users

Bring Greater ROI to Advertisers

Local Advertiser ProfileLocal Advertiser ProfileAffordable Home Inspections PPC Campaign Performance

$0

$200

$400

$600

$800

$1,000

$1,200

$1,400

$1,600

Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06

Extended Distribution superpages.com Total Spend

Affordable Home Inspections PPC Campaign Performance

0

50

100

150

200

250

300

350

400

Jun-05 Jul-05 Aug-05 Sep-05 Oct-05 Nov-05 Dec-05 Jan-06 Feb-06

Le

ad

s

$0.00

$1.00

$2.00

$3.00

$4.00

$5.00

$6.00

$7.00

$8.00

Ma

x B

id

Total Leads Max Bid

Local Advertiser ProfileLocal Advertiser Profile

Personalization: Industry ViewPersonalization: Industry View

Local reviews:Yahoo LocalAOL YP a9.comInsider Pages, Judy’s book, ZipingoCitysearchGoogle Base

Vertical (mostly dining/entertainment and hotels):

Dining: Dine.com, dinnerbuzz.com,dinesite.com, chefmoz.org; Travel: mytravelguide.com; tripadvisor.comEditorial: gayot.com; phantomgourmet.com (Boston); guidelive.com (Dallas); sanfrancisco.com/dining

Subscription: Angie’s List

Personalization: Service-based Personalization: Service-based BusinessesBusinesses

San Francisco

Packaging & Shipping Services Dentists

Personalization: What We Are Personalization: What We Are LearningLearning

Personalization: Its EvolutionPersonalization: Its Evolution

How Will Personalization Evolve?

Reinventing Ourselves

“Connecting Buyers with Sellers”

How Will Personalization Evolve?

Reinventing Ourselves

“Connecting Buyers with Sellers”

Q&AQ&A