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Top Trends in 2013 and Beyond in Local Search

Gregg Stewart, President 15milesBrian Wool, VP of Content Distribution, Neustar Localeze

# comScore, Inc. Proprietary.1PresentersBrian WoolVice PresidentContent DistributionNeustar Localeze

Gregg StewartPresident15miles

# comScore, Inc. Proprietary.

comScore Customer Knowledge Platform: A granular 360 view of the multitude of online activities for 2 million global usersDesigned to be representative of the total online population.TRUSTe certified for information privacy & security.

# comScore, Inc. Proprietary.3

# comScore, Inc. Proprietary.4 Neustar, Inc. / Proprietary and Confidential

The Online Local Business RegistryFast, easy, cost effective way for businesses to manage their online identities

Reseller programs to help your clients manage their local search profiles

Accurate, consistent business identities for search & mobile platforms

# comScore, Inc. Proprietary.5

Introduction & BackgroundcomScore analyzed the behavior, attitudes, and intentions of online local business searchers.

Study Design: Overall study design leverages both a quantitative survey and behavioral data from comScores U.S consumer panel.

Survey Design: The survey study consists of a targeted sample of over 3,000 users of local business Internet searchers, broken into 3 search categories: Internet Yellow Pages, Local Search Sites, and Portal Search Sites

Behavioral Data: comScore provides additional analysis of total web search activity, local web search activity, and local mobile content consumption.# comScore, Inc. Proprietary.6State of Online SearchSearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda

# comScore, Inc. Proprietary.

Decline of PC Search in the USSource: comScore qSearch 2.0 Total US Internet SearchersTotal US searches on the PC dropped 6% year-over-year to 26.7 billion in November 2012.Total Web Searches (Billions)Non-Local-4%y/y increaseLocal-18%y/y increase

Dec-1129,54126,590Nov-1128,28725,43928,501Feb-12Oct-12Jan-12Jul-12Mar-12Apr-12Nov-1228,040Sep-12Aug-12Jun-12May-1229,53427,67628,07728,14929,93028,51026,24628,03126,72225,71526,72425,99925,00525,52127,25325,35925,58423,90825,59824,374Non-Local SearchesLocal Searches*# comScore, Inc. Proprietary.

Primary Source for Local Business InformationPrint Yellow PagesPortal SitesIYP SitesLocal Search SitesSocial Networking Sites*Consumer Rating/Review Sites*Other-2+1+2---Search Engines are increasingly the most popular primary source of local business information. Primary use of Local Search Sites remains stable wave over wave.Pt. ChangeSource: comScore custom research - 15miles/Localeze Local Search Usage Study-Primary Source for Local Business Information# comScore, Inc. Proprietary.Survey questions: Q1 In general, what is the first thing you use when searching for local business information?*NOTE- Social Networking sites added in 2008, Consumer Rating/Review Sites added in 2011, Cell Phone/Wireless Device removed in 2011

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Frequency of Local Business Searches on Primary SiteWhile local businesses searchers are less likely to use their primary source of local business information on a weekly basisSocial Networking Sites and Local Search Sites are the exception.Source: comScore custom research - 15miles/Localeze Local Search Usage Study2011201220112012201120122011201220112012Social Networking SitesConsumer Rating/Review SitesPortal SitesLocal Search SitesIYP Sites+3% +24% 56% of those who identify Local Search Sites as their primary source utilized local sites weekly in 2012# comScore, Inc. Proprietary.Survey questions: Q2 How often do you use this source for local business searches?

Make this everybody with the base ADD BOX NEXT TO THE 56% SAYING OF LOCAL SEARCH SITE USERS..or whichever one I like most

10All Sources of Local Business Information local business searchers are using a greater variety of secondary online sources.The average searcher uses 2.5 different type of sources!Source: comScore custom research - 15miles/Localeze Local Search Usage Study48% of people cite Local Search Sites as their primary or secondary source for local business information in 2012# comScore, Inc. Proprietary.Survey questions: Q1. In general, what is the first thing you use when searching for local business information? Q3. Are there any other sources you use for local business information? Please select all that apply11State of Online SearchSearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda# comScore, Inc. Proprietary.Tablet Ownership GrowthYears Post Introduction40 Million100 MillionDevice Owners

Tablet ownership is growing at an unprecedented pace, far outpacing Smartphone ownership in its early years. It took Smartphones nearly a decade from their first introduction to reach 40 million owners. Tablets have crossed that threshold in only two years since the launch of the iPad Source: Mobilens. comScore custom research 2012# comScore, Inc. Proprietary.The first Smartphone in the US was a Kyocera device running Palm OS introduced in early 2001.The first iPad was released in April 2010.

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Mobile Phone Use in Local Business SearchSource: Mobilens. comScore custom research - 15miles/Localeze Local Search Usage StudyLocal Search on Smartphonesof local business searchers with Smartphones Smartphone ownership continues to increase. Additionally, an increasing portion of local business searchers with Smartphones are using this device to conduct searches.+41%Increase from 201133%Y/Y Growth# comScore, Inc. Proprietary.Survey questions: Q5.1_NEW. How often would you say you search for local business information using each of the following devices?14

Frequency of Online Local Business SearchesSource: comScore custom research - 15miles/Localeze Local Search Usage StudyFrequency of searching on mobile phones remains constant, while those with tablets are using the device for local search less frequently than last year.PC/LaptopMobile PhoneTablet Frequency of Online Local Business Searches onof those with each device# comScore, Inc. Proprietary.Survey question: Q5. Overall, how often do you search for local business information online? Q5.1_NEW. How often would you say you search for local business information using each of the following devices? QNEW4. Compared to last year, would you say that you use the below device(s) more often, less often, or about the same to search for local business information?

15Mobile Phone and Tablet Local Business Search StageStage of Local Business Search When Device is UsedPC/Laptops are primarily used in the beginning stages of a local business search. In comparison, mobile phones and tablets are more likely to be used in the middle or at the end of the process.Source: comScore custom research - 15miles/Localeze Local Search Usage Study# comScore, Inc. Proprietary.Survey question: Q102C. Generally, at what point in your search for local business information do you use the below device(s)?

EOPLE ARE LIKELY TO START AT PC, WHEN THEIR ON THE GO FINISH ON PHONE OR TAB

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Search Success and Satisfaction by DeviceSatisfaction with local business search is high across devices, however a decrease in satisfaction correlates with an increase in the mobility of a device.Satisfaction with Local Business Search by DeviceSource: comScore custom research - 15miles/Localeze Local Search Usage Study# comScore, Inc. Proprietary.Survey question: Q102J. Using a 7-point scale where 1 is Extremely Dissatisfied and 7 is Extremely Satisfied, please indicate your satisfaction with searching for local business information on the below device(s) Q18. Did you ultimately find what you were looking for on > during your last online local business search? 17State of Online SearchSearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda# comScore, Inc. Proprietary.

Consumer Review SubmissionUse of Consumer Reviews by Engagement with Local Business Info on Social Networking SitesLocal business searchers that interact with brands on Social Networking Sites are more likely to use and submit consumer reviews. Source: comScore custom research - 15miles/Localeze Local Search Usage Study50% of people who actively search for local businesses on Social Networking Sites used consumer reviews.# comScore, Inc. Proprietary.Survey question: Q35. Did you use any of the online consumer ratings and reviews information on ? Q37 Have you submitted reviews online for local businesses? Q38b. How many online reviews have you submitted in the past 30 days? 19

The Influence of Social Networking SitesAre you more likely to use a local business if a connection recommends it?Are you more likely to use a local business if it has information available on a social networking site?People that actively use Social Networking Sites are influenced by brand marketing more than passive users.Source: comScore custom research - 15miles/Localeze Local Search Usage Study# comScore, Inc. Proprietary.Survey question: Q3e. If a local business has its information available on a social networking site, are you more likely to use the local business? Q3f. If one of your connections on a social networking site recommends a local business, are you more likely to use the local business?

20State of Online SearchSearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda# comScore, Inc. Proprietary.

Use of Map ResultsSource: comScore custom research - 15miles/Localeze Local Search Usage StudyDo You Generally View Results in the Form of a List or a Map?by primary site used for local business search

Maps are heavily relied upon during local business searches. Consumer rating and review sites are the only online source that has a majority of primary visitors using only list results.# comScore, Inc. Proprietary.Q2b. Search results for local businesses can be presented in two different ways: in the form of a traditional list, or on a map which shows results in conjunction with a map of where the businesses are located. The image below shows the difference between these two types of results. >When you use for local business searches, do you generally view results in the form of a list or on a map?22

Use of GPS Navigation SystemsNavigation System Ownership 2012Source: comScore custom research - 15miles/Localeze Local Search Usage StudyIn 2011, 43% of respondents did not have a navigation systemIn addition to searching for map results online, many are finding local businesses based on proximity through a navigation system. An increasing portion of local business searchers own navigation systems. These individuals believe searchable Points of Interest are an important function of the device.Importance of Points of Interest# comScore, Inc. Proprietary.Survey Question: QNEW20. How often do you use a navigation system? QNEW21. What type of a navigation system do you use? QNEW22. How important is availability of searchable Points of Interest in your navigation system to you?

23State of Online SearchSearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda# comScore, Inc. Proprietary.

Use of Daily Deals and Opinions About the EconomyUse Daily DealsWhile there was a decrease in the use of daily deals, most respondents do not believe that the economy is in a good state. The most cited top economic concern is rising prices.Source: comScore custom research - 15miles/Localeze Local Search Usage StudyPerception on Current State of the EconomyWhich Economic Conditions Most Concerns You? -13%# comScore, Inc. Proprietary.Survey question: QNEW6. Do you actively use online or mobile search to find local sales, coupons, promotions and/or deals? QNEW8X3- How would you rate economic conditions today? QNEW8X4. Based on your current situation, which one of the following economic conditions most concerns you? (None of the above excluded)25Daily Deal Repeat CustomerWhen Purchasing Daily Deal Offers, Do You Typically Purchase From.?Do You Typically Purchase Daily Deals From Business You?Local business searchers do not have a preference for businesses theyve visited in the past versus businesses they would like to try when purchasing daily deals. Familiarity with the business also does not play a role in offer selection.Source: comScore custom research - 15miles/Localeze Local Search Usage Study# comScore, Inc. Proprietary.Survey question: QNEW11. When purchasing daily deal offers, do you typically purchase from: QNEW11.1. Do you typically purchase daily deals from businesses you are familiar with, or do you tend to purchase daily deals from businesses you have not heard or before? 26State of Online SearchSearch Methods by Search CategorySearch Methods by DeviceThe Role of Peer InfluenceConsumer reviews and Social NetworkingUse of MapsDaily DealsAppendix

Agenda# comScore, Inc. Proprietary.

ObjectivesSurvey MethodologycomScore, in conjunction with Localeze and 15 Miles, designed on online survey instrument that focused on understanding the use and value of IYP, Print YP, Search, and monitor shifts in consumer behavior and opinions.RespondentsThe target respondents were individuals who have conducted a local business search in the last twelve months. comScore surveyed panel members and the general population via email and POP invitations. 4,205 completed responses were collected. Respondents were categorized based on the site they used for their last online business search, and weighted on age, gender, and last site used to conduct a local business search.Research Design

TotalYellow Page SitesLocal Search SitesPortal SitesSampleSize3,1463948751,614CategoryDefinitionSuperPages.comYellowpages.com(YP.com)DexKnows.comYellowbook.comLocal.comGoogleLocal/MapsYahoo! LocalBing LocalCitysearch.comCity.Ask.com/ Maps.Ask.comMapquest.comYelp.comGoogle.comYahoo.comMSN.com/Bing.comAOL.comAsk.comTimingThe survey was fielded December 4th, 2012 to December 14th, 2012. # comScore, Inc. Proprietary.28

Definition of SearchBehavioral MethodologyOnline user interaction where the user is presented with a search result page - the search result page allows the user to refine or change search parametersDefinition of IYP/Local SearchBusiness directory searches on internet yellow pages and local search sites (traditionally two-box search)

Search with local intent on a portal site (traditionally one-box search) comScore looks for the presence of certain keywords on the top portion of the search result page as a local identifier to determine if the search engine presented local business listings.

Definition of Portal Search with Local IntentLocal SitesMapquestCitysearch Google Maps/Places Bing Maps/Local* Yahoo! Maps/Local

IYP Sites AOL Yellowpages Superpages.com Dexknows.com Yahoo! YellowpagesYellowpages.com Yellowbook.comGoogle.comYahoo.comBing.comAOL.comAsk.comPortal Sites# comScore, Inc. Proprietary.Gregg Stewart203-451-6358Gregg.sSewart@15miles.com

Brian Wool312-909-0769Brian.Wool@neustar.biz

Thank you for attending & contact us for more details on the study.Questions?

# comScore, Inc. Proprietary.The Big Picture30