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Local Corporation Message Board

  • flankenking flankenking Sep 22, 2013 11:25 AM Flag

    Local Corp.'s Secret Sauce

    "But, if one of Local's customers is instead surfing on one of the company's regional network publisher's sites on a web page hosted by Local, if he or she "clicks through" a sponsored ad there, Local will receive a much higher margin on that visit since it is derived organically; thus there are no costs associated with the larger search engines and the majority of site traffic does not come from SEM. Perhaps what's even more important is that the actual ad revenue per click paid by the merchants for localized searches are much larger than those normally paid out for basic web searches. Why? Because merchants are much more willing to pay higher "click through" fees to area specific queries since local buyers are much more inclined to purchase goods or services when they're looking for vendors in their community. This "local" connection is Local Corp.'s secret sauce."

    Source: Merriman Capital - Local Offers Margin Expansion & IP Opportunities-- Initiating Coverage With a Buy Rating and $4.50 PT

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    • Currently, Local Corp. has arrangements with over 150 publishing companies across 1,600 separate websites, and this list is growing
      continually. Each site uses Local Corp.'s local search platform and aggregates traffic to the company's search platform. These network
      publishing partners also help to attract local merchants to the web as a powerful advertising medium. Ultimately, Local and its network
      partners provide a powerful reach to local consumers for local businesses around the country. But, with its strong local focus, the
      company has established a franchise it can control and protect, while also sustaining powerful and constructive relationships with
      Google and Yahoo! as part of this local search ecosystem.

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