Danger for the business-model of Gannett's ShopLocal
Danger for the business-model of Google? 12-Jan-12 06:47 am Local.com's New Patent Could Offer Company Significant Opportunities Last week, the USPTO granted a patent to Local.com (Nasdaq: LOCM) that appears to have significant implications for location based product and deal search offerings in the local space and has the potential to be the most valuable among a growing and increasingly valuable stable of local and directory search patents owned by Local.com.
Patent #8,032,427 related to location based product search appears to encompass core aspects of services being offered by Groupon (GRPN) (Groupon Now), Living Social (Instant) and Foursquare; and is part and parcel of the product search functionalities offered by eBay's Milo (Nasdaq: EBAY), Gannett's ShopLocal (NYSE: GCI), Jiwire's NearbyNow, Retailigence and Goodzer. This patent could offer LOCM one of its most significant opportunities for near term licensing revenue, as we believe that the patent encompasses core aspects of the local product search offerings of these companies. This niche is growing rapidly, attracting significant capital and most importantly for Local.com's purposes, the key players emerging in the space are not partners/revenue sources for Local.com.
1. a local media company that connects local merchants with online consumers
2. reaches 30 million consumers each month searching for local products and services via a flagship property plus publisher network of over 1,000 regional media sites
3. monetizes traffic with a sophisticated technology platform covered by 9 patents (8 pending) that serves over 30,000 direct customers with web hosting, search engine optimization, pay per click, subscription, display and daily deals ad units
4. #2 in the directory segment by traffic and Deloitte Fast 500 company for 2010, 2011
5. receives additional ad coverage via Google, Yahoo, ATTi, Supermedia, Marchex, ReachLocal and others
•History »Founded in ’99; IPO’d in 2004 (NASDAQ: LOCM)
•Transitioned from search network to local search in 2005 »Focused on capturing $5BB in transitioning ad spend from old to new media
LOCM Connect Local Merchants with Online Consumers
LOCM generating revenue from ads, including pay-per-click, pay-per-call, subscription, daily deals & display.