JupiterResearch Finds Portals Poised for Growth in Local Advertising Market as Local Search Marketing Matures

Business Wire, July 6, 2006

NEW YORK -- Broadening Distribution Using Syndication and Data Services Will Help Local Yellow Pages, Classifieds, Directories and Retail Compete

JupiterResearch, a leading authority on the impact of the Internet and emerging consumer technologies on business, has found that portals are poised to grow in the local advertising market. According to a new report, "Local Advertising: Blending Categories to Compete Effectively," portals have begun to layer classified, directory and yellow pages advertising into their local services in new ways.

"Portals are experimenting furiously in local media, driven by competition with each other," said Barry Parr, JupiterResearch Analyst and author of the report. "By mixing local classifieds, maps, news, reviews of local merchants, and yellow pages listings on one locally-oriented page, portals are moving in the direction of erasing the artificial distinctions between local advertising media that are embedded in a century or more of print media practices."

JupiterResearch has found that one-third to one-half of online local yellow pages searches are immediately preceded by a visit to a portal. While local advertisers say that printed yellow pages are the number one source of leads today, Internet yellow pages have grown to become their second most popular ad medium.

"Local advertising media should broaden their distribution using syndication and data services to compete with portals," said David Schatsky, President of JupiterKagan. "Yahoo! currently has more market share than the next five services combined, including both Google's and MSN's local services."

Trackable leads and demonstrable performance are strong benefits of online advertising, but traditionally, businesses in local markets have not had the skills, tools, time, or ability to measure the performance of their advertising. More than two-thirds of local advertisers today are only counting ad clicks or nothing at all and less than one-third are counting leads or calls generated by their online advertising.

The complete findings of this report are immediately available to JupiterResearch clients online at www.jupiterresearch.com. For additional information on this report or JupiterResearch's Advertising & Branding research services, visit www.jupiterresearch.com or contact Kieran Kelly, Senior Vice President of Global Sales and Client Service, at 1-800-481-1212 or researchsales@jupitermedia.com.

About JupiterResearch

JupiterResearch provides unbiased research, analysis and advice, backed by proprietary data, to help companies profit from the impact of the Internet and emerging consumer technologies on their business. The company helps online businesses make critical decisions about technology selection, spending, staffing, and Web site effectiveness; advises consumer-facing companies with online advertising, marketing, and customer service strategies to understand, attract, convert and retain customers; and guides technology vendors and service providers on market opportunity, positioning, product definition, and pricing. JupiterResearch is headquartered in New York City and has offices throughout the US and Europe. For more information, visit www.jupiterresearch.com. JupiterResearch is a division of JupiterKagan, Inc.

About JupiterKagan, Inc.

JupiterKagan, Inc. was formed in 2006 from the merger of JupiterResearch and Kagan Research, two companies providing thought leadership, research and advice in the domain of the media and telecommunications, Internet, and emerging consumer technologies. The company's deliverables include continuous information services (available by subscription), research reports, data, inquiries with research analysts, appraisals, litigation support and consulting. JupiterKagan operates from six offices in the United States, United Kingdom, France and Germany. For more information, visit www.jupiterkagan.com.