ReachLocal Inc.

Woodland Hills

Business: Local online advertising for small and medium-size businesses

Founded: 2004

Two-Year Growth Rate: 471%

2008 Revenue: $147 million

Making the Web work for local retailers has given global ambitions to Chief Executive Zorik Gordon.

Secret to Success? ReachLocal brings order to the fragmented local Internet ad market. When customers are online, ReachLocal helps businesses find them through local search engine and display ads. Proprietary technology tracks Internet users and measures the effectiveness of ads to optimize results for local advertisers. The company has a network of locally based Internet marketing consultants in 38 offices in the United States, Australia, Canada and the United Kingdom.

Long-Term Strategy? As local advertisers shift their ad spending from print directories and newspapers to online search, ReachLocal will help them accomplish the customer outreach and brand building they have historically done through offline media. Our growth story is a testament to the power of the shift from offline media to online. Our new Xchange service allows local clients to place ads on more Web sites than they could previously. Also, our first international operation in Australia has demonstrated the global growth opportunity of ReachLocal’s business model.

Growth Potential? It is our policy not to comment on growth projections.

Los Angeles Forever? This year we opened offices in North Carolina and Texas. But as for our headquarters, we intend on staying in Woodland Hills.