Local businesses that long have been skeptical of advertising on the Internet seem to be changing their minds with the advent of paid online search.
That category, which gives prospective customers listings of local businesses in their neighborhoods similar to the community Yellow Pages, is projected to be one of the fastest growing advertising segments over the next five years.
A market outlook by Borrell Associates, a Portsmouth, Va. research and marketing firm, found that local paid search revenues will more than double, to $900 million next year from $346 million in 2005, as more local businesses get comfortable with the medium.
It also means big business for the Web firms that provide the search and advertising-related services.
Microsoft Corp. recently announced plans to offer paid search capabilities that will take advantage of the massive amount of demographic data gathered from the 400 million Microsoft users who have registered for its Passport, Hotmail or Messenger services.
The creation of Microsoft’s adCenter means a likely loss of business for Yahoo Search, the Pasadena-based unit of Yahoo Inc. that provides search capabilities for Microsoft Network. But it’s good news for firms such as Encino-based ReachLocal Inc.
ReachLocal functions as a middleman between the search engines and local advertisers and advertising agencies, helping them determine the best places to spend local online ad dollars. It also electronically tracks results.
“The more publishers, the more of a role for us because local businesses and agencies don’t have the resources to research and make the buys, then track them,” said ReachLocal co-founder and chief operating officer Michael Kline.
The nearly two year-old company announced that TMP Directional Marketing the world’s largest hard copy Yellow Pages advertising agency will use ReachLocal’s online marketing platform and tracking services as TMP bolsters its online services.
Still, it’s a market with a lot of maturing to do. Most locally oriented Web sites lack the technology to offer advertisers trackable, segmented audiences, and still rely on banner and pop-up ads easily blocked by the latest browsers.
And even if Borrell’s projections play out and local online advertising grows to about $8.6 billion over the next five years, that will only total about 6 percent of all advertising nationwide.
Deep Into the VOD
TVN Entertainment Corp. has announced a multi-year deal with NFL Network to provide quick turnaround video-on-demand services to enhance the network’s VOD package, which includes the popular “NFL Replay” that reruns two-hour versions of top games.
The Burbank-based firm provides content and technical support to video-on-demand services to a variety of cable channels, as well as multi-channel pay-per-view management and distribution services.
“This greatly expands the work that we do with the NFL,” said Jim Riley, TVN executive vice president for sales and business development. “Last year we were really successful with the NFL instant replay. Now you’ll get access to more programming related to the teams either games, highlights of games, coaching shows, best blitzes of the week to retrieve from your VOD screens.”
Of the estimated 20 million homes whose digital cable allows to them to receive VOD, about 15 million have access to the NFL Channel.
Under terms of the deal, NFL Network will use TVN’s platform to reach cable subscribers of 19 different cable services, including Cox Communications Inc. and Charter Communications.
Register Online
The Orange County Register has revamped its Web site.
OCregister.com recently swapped its logo and tagline and made the pages easier to navigate.
Among the changes: The main page has drop-down menus that include breaking news, related images and search tools. The Money section has a search box to check stock quotes. The paper also added links to help make searching the site easier and enhanced its events calendar.
Its new online tagline: “Click on Orange County.”
“Our goals for the OCRegister.com redesign were to create a clean, easy-to-navigate site that highlights local breaking news and goes beyond what we are doing today,” said Terry Moore, the Register’s deputy editor for online and features. “We wanted to build a foundation for our future online.”
Freedom Orange County Information, a unit of Irvine-based Freedom Communications Inc. that publishes the Register and the site, held focus groups to test the layout.
Consulting firm Nielson Norman Group directed the company on the move.
Comings and Goings
LA Architect magazine has a new editor, Jennifer Caterino, who comes from San Francisco after stints at the Skidmore Owings and Merrill LLP architectural firm and editorships at a construction industry newspaper and a San Francisco bar association publication. Caterino, who started Sept. 12, succeeds Jesse Brink, who is starting a software development business that aims to provide computerized storyboards for the film industry Los Angeles Times health section editor David Olmos, 1996 Pulitzer Prize co-finalist for his work covering managed health care, is taking a break from daily journalism to become director of publishing and communications for the Oakland-based California HealthCare Foundation. Olmos, who has edited the Times health section since 1998, plans to start his new job on Oct. 24. Times spokeswoman Martha Goldstein says the paper is interviewing several internal and external candidates to succeed Olmos. The Times also is interviewing internal candidates for a new senior editor position who will provide more high-profile oversight of its LATimes.com Web site Watchit Media Inc. has acquired Laguna Beach-based California Visitors Network for undisclosed terms. The Las Vegas-based media company, part of San Francisco’s Cotelligent Inc., makes TV programs for more than 100 hotels, casinos, conventions and other customers. California Visitors Network produces visitor information shows for about 30 coastal hotels in the area. California Visitors Network’s programming focuses on local and regional points of interest for hotel visitors. Advertisers include restaurants and stores. Watchit offers programming, digital signs and Web-based advertising, which clients can create and manage for their TV programs.
*Orange County Staff reporter Jennifer Bellantonio contributed to this column. Staff reporter Deborah Crowe can be reached at (323) 549-5225, ext. 232, or by e-mail at
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