YellowPages.com Charles Stubbs September 29, 2005
Jan 12, 2016
YellowPages.com
Charles StubbsSeptember 29, 2005
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Agenda
MarketMarket StrategyStrategy ExecutionExecution
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Online Advertising Market
U.S. Online Advertising Spending ($B)
Source: The Kelsey Group; Feb. 2005
$7.8
$10.1
$12.7
$15.8
$19.0
$22.8
2004
2005
2006
2007
2008
2009Explosive growth
◆24% per year growth through 2009
◆Online share of total advertising to double over the next 4 years
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2004
2005
2006
2007
2008
2009 $5.0
$3.7
$2.5
$1.6
$1.1
$0.7
Online Local Advertising
U.S. Internet Yellow Pages and Local Search Markets ($B)
Internet Yellow Pages
Local Internet Search
Source: The Kelsey Group; Feb. 2005
Forecasted growth almost 50% per year over the next several years
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IYP & Local Search
Usage Market Share (Searches)Q2 2005
Fragmented Usage
Traditional Yellow Pages Publishers and New Internet Businesses
Dynamic and Competitive Marketplace
source: comScore Media MetrixQ2 2005 Internet Yellow Pages Search Report
Other1.9%
BLS & SBC9.0%
Superpages Network21.5%
Google10.5%
Switchboard7.1%
AOL2.3%
Yahoo26.5%
Mapquest6.1%
Dex Online5.0%
YellowPages.com7.1%
Citysearch2.1%
Yellowbook1.1%
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Agenda
MarketMarket Strategy
Strategy ExecutionExecution
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Dual Aggregation Strategy
Print Yellow Pages
Indexed ContentIndexed Content
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Print Yellow Pages
Indexed ContentIndexed Content
Local Sale
s
Dual Aggregation Strategy
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Print Yellow Pages
Print &Distribut
eIndexed ContentIndexed Content
Dual Aggregation Strategy
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Print &Distribut
eIndexed ContentIndexed Content
End-to-end Solution Resulting in ~50% Operating Margins
End-to-end Solution Resulting in ~50% Operating Margins
Local Sale
s
Print Yellow Pages
Dual Aggregation Strategy
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Core Pieces◆ Technology◆ User Interface◆ Content◆ Advertising
Products◆ Business Model◆ Reporting◆ Cross-Platform
Indexed ContentIndexed Content
Dual Aggregation Strategy
Electronic Yellow Pages
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Maximize Revenue◆ Local Coverage◆ National Sales ◆ Business Model
◆Subscription◆PFP
◆ Prioritization
Local Sales
Dual Aggregation Strategy
Electronic Yellow Pages
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Direct◆ Organic Use◆ Advertising & Promotion◆ SEO
Syndication◆ AOL◆ Switchboard◆ Yahoo!◆ Search Products
Publish &
Distribute
Dual Aggregation Strategy
Electronic Yellow Pages
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Publish &Distribute
Indexed ContentIndexed Content
Local Sale
s
Dual Aggregation Strategy
Electronic Yellow Pages
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Dual Aggregation Strategy
Fixed Monthly
(Placement)
Fixed Monthly
(Placement)
CostPer
Click
CostPer
Click
CostPerCall
CostPerCall
Business Model Options
% ofTransactio
ns
% ofTransactio
ns
Yellow Pages
Search E-Commerce
Service / Broker
5000 Business Segments Across 500+ MSAs 5000 Business Segments Across 500+ MSAs
AA AA CC DDBB
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Agenda
MarketMarket StrategyStrategy Execution
Execution
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Areas of Focus to Win
Consumers Product Advertisers
Advertising & Promotion of YellowPages.com
Partners/ Syndication
Best-of-Breed Technology
Great User Interface
Robust Content Fast Results Right Product Mix Multiple
Platforms
Complete Coverage◆ Local◆ National
Right Business Model
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Common Vision
Joint Venture formed in November, 2004
Ownership apportioned between SBC (66%) and BellSouth (34%) with joint management control
JV Objectives Parent Objectives
Single Brand / URLCommon DistributionCommon Platform/
ProductsNational Sales Local Sales in
Whitespace
Local Sales in Territory
FulfillmentCustomer Care
BillingLocal Content
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Common National Brand
Goal Direct Consumer
Relationship Simple Intuitive URL Existing Usage Complement Print
Business Leverage Parents’ Assets
◆ 150M Books Published◆ DSL/IPTV◆ Cingular
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Common National Brand
Goal Direct Consumer
Relationship Simple Intuitive URL Existing Usage Complement Print
Business Leverage Parents’ Assets
◆ 150M Books Published◆ DSL/IPTV◆ Cingular
Execution Acquired
YellowPages.com 5.4% of IYP Market
share with no advertising or promotion
Incredible monthly growth
Stick to our roots Potential
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Common Distribution
Must partner to have greatest audienceMust partner to have greatest audience
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Consumer Reach
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Common Platform/Products
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Common Platform/Products
Flash Demo◆YellowPages.com
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Dual Product Strategy
IYP Search
Subscription Model Placement Broadest Reach Category Based
“Performance” Model
Clicks Broadest Reach Keyword Based
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Common Platform/Products
REAL SEARCH ENGINE SOLUTIONSConnecting Buyers and
Sellers◆85% of all Search Engine traffic◆Annual Performance Guarantees◆Monthly e-Mail Reports
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Combined Networks
Source: comScore Media Metrix, Q2 2005 Internet Yellow Pages Search Share report
Disaggregated Usage
National Aggregation
National Aggregation
Other1.9%
BLS & SBC9.0%
Superpages Network21.5%
Google10.5%
Switchboard7.1%
AOL2.3%
Yahoo26.5%
Mapquest6.1%
Dex Online5.0%
YellowPages.com7.1%
Citysearch2.1%
Yellowbook1.1%
Yahoo26.5%
Other16.1%
Google10.5%
Superpages Network21.5%
YPC Network25.4%
IYP & Local Search
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Content Strength
Combined Local Sales Force -
“Feet on the Ground” in 22 States: 4000+ sales reps
Print relationships provides unmatched depth of content
Enhanced Sales Capability Through National Account Teams and Familiar URL
SBC
BLSSBC
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Largest Audience
◆ Direct Consumer Franchise◆ Syndicate through
Partnerships◆ Deliver Advertiser ROI
Conclusion
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Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through
Partnerships◆ Deliver Advertiser ROI
Standard and Rational Product Set
◆ Logical and Simple◆ Right Pricing/Business
Model
Conclusion
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Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through
Partnerships◆ Deliver Advertiser ROI
Standard and Rational Product Set
◆ Logical and Simple◆ Right Pricing/Business Model
Robust National and Local Sales Force
◆ Monetize Usage◆ Geographically and
Category
Conclusion
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Conclusion
Largest Audience ◆ Direct Consumer Franchise◆ Syndicate through
Partnerships◆ Deliver Advertiser ROI
Standard and Rational Product Set
◆ Logical and Simple◆ Right Pricing/Business Model
Robust National and Local Sales Force
◆ Monetize Usage◆ Geographically and Category
Result: Long term Profitability
◆ Value enhancement for SBC & BLS publishers and shareholders
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Thank You!
Q & A