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interactive local media

Interactive Local Media White Paper

LCM: Yellow Pages Solid, Search Rising
Greg Sterling , 6/23/2003

Issue: New Data Released Amid Rapidly Shifting Local Ad Landscape

News: The Kelsey Group and ConStat, Inc. have completed Wave VI of the Local Commerce MonitorSM (LCM), which measures how local small and medium-sized enterprises (SMEs) in the United States allocate their advertising dollars. The annual study offers data and findings from 14 major and secondary markets, including Atlanta, Boston, Chicago, Houston, Los Angeles, New York and Seattle, among others.

Yellow Pages, both print and Internet, was again the most popular local medium, with 77 percent of local SMEs indicating they use it to advertise. Another significant LCM finding is that search-engine advertising (pay-per-click and/or paid inclusion) has come from out of nowhere to attain 17 percent utilization by local SMEs today higher than Internet Yellow Pages (IYP).

Coinciding with the release of these data was a flurry of announcements that underscore the intensity of activity in the search-based marketing space:

  • U.S-based and U.K-based Espotting are merging to create a more viable rival to Overture and Google's performance-based advertising programs.
  • Google has teamed with Web-hosting provider Interland to offer incentives for small businesses to use Google AdWords.
  • Google has also launched AdSense. Designed to expand distribution of Google's pay-per-click listings, the program offers context-specific advertising on third-party sites.
  • Microsoft/MSN is devoting more resources to improving its search functionality and reliability.

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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The Kelsey Group, Inc., 600 Executive Drive, Princeton, NJ 08540-1528
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Copyright© 2006 The Kelsey Group. All Rights Reserved.