April 28, 2006

Yahoo Local and Online Yellow Pages

Michael Arrington

15 comments »

Yahoo announced Local Featured Listings today, a way for local businesses to advertise on Yahoo Local search results. This is not pay per click advertising, but rather first come, first serve service that allows local businesses to advertise on Yahoo Local for a flat monthly fee. This is the same pricing model used by offline yellow pages - small businesses are very comfortable paying a set monthly fee.

Local businesses that would like to have a permanent place in local search results can use Yahoo Local’s automated system for placing ads. There are just six total slots on each results page (three at top, three at bottom).

I’m confused as to the exact pricing. The blog announcement (linked to above) states that ads can be purchased for “a flat, monthly rate starting at $29.95/month, depending on the business category and location”, whereas the linked rate card states that pricing ranges from $15-$300 per month based on ad location, business category and geography. Either way, this compares very favorably to offline yellow page advertising options, and will be attractive to advertisers.

I thought there was a window of opportunity for a startup or open source project to enter this space before the big guys came in to dominate (see no 7 here). And while I still think there is an opportunity here (particularly for an open source project) for a true online yellow page business directory, that window may be closing fast with today’s announcement. For more on the offline yellow page angle, see John Battelle’s post earlier today.

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  1. TheWeb20Dev

    The struggle for local advertising dominance is a tossup between Google and Yahoo, this in my opinion bring Yahoo back into the game.

  2. Saul Weiner

    This is a great idea - for both local businesses and consumers. I don’t mind relevant ads (if I get a service for free). As long as the ads aren’t intrusive, I’m happy.

  3. Vlad

    The thing about relevant local ads is that they are often useful and pay off better in general for the advertisers.

  4. Ben Smith

    Levine is doing some great work on Local. As they begin to work the user generated content angle (social computing or whatever) that they have been pushing in other parts of Yahoo, Yahoo Local has a chance at beating Google in this area.

  5. Jenny

    What about http://www.ibegin.com or http://www.Yelp.com? I think both are superior local search systems. Then again, I’m in Toronto, so maybe that is why iBegin is useful to me and not to everyone else.

  6. Choosenick

    What about:
    http://www.yellowikis.org/

    This is a well meaning, open source, local business directory. Suffers on the design side massively though.

  7. Jarad

    Finally an easy vehicle for pairing local businesses with the search engines…add auto-location capabilities like http://www.loki.com and all of a sudden things get interesting in local search.

  8. Jeb

    So what happens when a customer posts a highly negative (but not defamatory) review of a business on Yahoo Local?

    Will Yahoo just delete the negative review to appease the advertiser?

    Won’t they just be stealing from Paul (users) to pay Paul (advertisers)?

  9. Jeb

    Follow-up: I checked out iBegin. They serve Canada, but Canada does not have the CDA shield from liability for user-submitted content.

    So how is iBegin handling the liability for every review that users post?

  10. Tom Brady

    Amazing how many new local search sites are out there. Yellow Pages is the latest I’ve seen.

  11. Tom Brady

    Amazing how many new local search sites are out there. Yellow Pages is the latest I’ve seen. (sorry wrong URL)

  12. James Hobson

    Regarding the comparison to offline yellow pages, and from a SEM perspective, this Local Search model is vastly superior. First the pricing structure seems very equitable, easy to understand and not subject to haggling like typical yellow pages transactions. Additionally the pricing in terms of CPM (cost per thousand) is dramatically better which further underscores the value of Yahoo’s new model. Although not mentioned I assume that Yahoo will not require a long term contract (i.e., yellow pages). News like this makes you say Yahoo!

  13. Sport Talk

    Do I have to be a member to post to this blog?