Prepared by comScore, Inc.

5th Annual Local Search Usage Study

February, 2012

Introduction & Background

V1011

comScore 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 comScore’s U.S consumer panel.

- Survey Design: The survey study consists of a targeted sample of over 4,000 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.

Key Findings

1.The explosion of tablets and mobile is reshaping local search and buying behavior 

2.Consumers are increasingly engaging in new methods to find local business information like social media and daily deals

3.Local listings are the most relevant and trusted search results

Explosion of Mobile, Tablets Shapes Local Search & Buying Behavior

Smartphone ...

61%

39%Don't Use Local Search

Use Local Search

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

27%

42%

Smartphone Penetration, U.S. Mobile Phone Owners

% o

f To

tal U

S M

ob

ile U

sers

55%Y/Y Growth

Local Search Usage

comScore Mobilens U.S, Dec’11

42% of mobile phone owners have a

smartphone

Mobile Phone Use in Local Business Search

61% of smartphone owners conduct local

business searches from their phone

Local Business Search Device Choice

0%

10%

20%

30%

40%

50%

60%

51%

37%34%

25%22% 21%

1%

15%

33%

40%36%

39% 38%

32%

4%

15%

Reasons for Choosing Device for Local Business Searches

Mobile Phone Tablet

Because tablets are easily used throughout the entire local business search process, tablet users believe they can find more complete information on this device.

As smartphone technology allows for location-based services, many mobile users engage with search on their devices due to the on-the-go necessity for local information.

Purchase Rate by Device

Made Purchase Amount Spent on Purchase

All Mobile Phone Tablet

46% 45% 51%

21% 22% 11%

22% 26%26%

10% 7% 12%

$500+

$100-$499

$50-$99

$1-$49

Due to the on-the-go local nature of mobile searches, mobile phone and tablet users have more of an opportunity to purchase shortly after search and are more likely to make a purchase after searching for a local business on device.

32% 32% 38%

All Mobile Phone Tablet

58%

72%

86%

Frequency of Online Local Business Searches

Overall PC/Laptop Mobile Phone

Tablet0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

6% 9% 8%16%

16%20% 19%

27%0.15235560504831

8

0.198959299118815 0.17641690652155

5

0.218320492240247

0.416979706143026

0.502551155492323

0.292749940336986

0.247710707199919

0.206947343149006

0.00952230460381573

0.260593691020575

0.110350905964442

Never

Less than once a week

Once a week

A couple of times a week

Every day

Frequency of Online Local Business Searches

Mobile Phone Tablet0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

44%57%

48%36%

9% 7%

Less often than last year

About the same as last year

More often than last year

Change in Device Usage in Past Year

(Among Mobile and Tablet Users)

Tablet owners are the most active local business searchers – more than 64% use weekly for local search.

Tablet users are the most active. Most tablet users conduct local business searches at least once a week. This is more frequently than PC/Laptop users and Mobile Phone users.

New Methods of Finding Local Business Info Including Social Media and Daily Deals

Use of Social Networking Sites for Local Search

2008 2009 2010 2011

4%

7%

9%

15%

Overall Use of Social Networking Sites to Search for Local Business

(Primary and Secondary Source)

Use of Social Networking Sites for local business searches has increased 67% since 2010. Facebook proves to be the Social Networking Site most frequently used to find local business information.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%91%

37%30%

25%

14%11%

3%

Social Network Sites Used in 2011

In 2010, 93% cited us-ing Facebook. 47%

used MySpace.

* Response Added in 2011

Daily Deal Repeat Customer

Typical Business Purchased From

31%

17%

53% Purchase equally from new and previously used businesses

New customer

Old customer

Purchased Multiple Daily Deals from Same Business

45%

41%

15%

Do no intend to do so

No, but plan to do so

Yes

Most daily deal users return to businesses they have visited in the past. Additionally, they have or intend to purchase multiple daily deals from the same site.

Satisfaction with Daily Deal Sites

Satisfaction with Daily Deal Sites(Top 2 Box Rating on 5 Point Scale)

RedBea

con.

com

Tippr

.com

DealsG

oRou

nd.co

m

Sharin

gSpr

ee.co

m

Yipit.c

om

Tanga

.com

BuyW

ithM

e.co

m

CityPoc

kets.

com

Scout

mob

.com

DailyC

andy

.com

1sal

eada

y.com

Group

on.co

m

Yelp.

com

Livin

gSoc

ial.c

om

Kgbde

als.c

om

bloo

msp

ot.co

m

Thrilli

st.co

m

Evers

ave.

com

Trave

lzoo.

com

93% 93% 93% 92% 92%91% 90% 89% 89% 89% 88%

88% 87%86% 86%

84% 84% 83%

78%

And, overall satisfaction with the deals purchased remains high.

All Social Networkers

22%10%

22%

13%

31%

30%

14%

20%

11%

27%More than 10

6-10

2-5

1

None

2010 2011

23%27%

38%

45%

All

Social Networker Local Business Users

Consumer Review Submission

Submit Consumer Reviews

Number of Reviews Submitted in Past 30 Days

55%

76%

2010 2011

23%

29%

49%52%

All

Social Network Local Business Users

Use of Consumer Ratings and Reviews

Social network local business users are heavily engaged in social aspects of local business search through profound usage of and contribution to consumer reviews sites.

Local Listings Most Relevant and Trusted Search Results

Expected Features and Information by Site

Phone number

Address Hours of operation

Website Maps Driving di-rections

Distance to the business

Consumer ratings/reviews

Promos/on-line dis-counts

Methods of payment accepted

67% 67%64%

48%46%

42%

36% 35% 34%32%

72%68% 67%

46% 44%41%

34%31% 30%

32%

62%64%

58%

46%50%

46%

39%35%

33% 32%

67% 67% 66%

53%

45%41%

35%39% 40%

33%

All IYP Local Portal

When searching online for local businesses, basic business Name, Address, Phone Number (NAP) information is still the most critical search data.

Local Search Results – Most Relevant and Trustworthy

Local search results

Natural search results

Paid search results

Paid results

61%

27%

10%

2%

58%

31%

9%

2%

Most relevant results Most trustworthy results

Opinion on Search Results

Local business searchers do not believe paid results are relevant or trustworthy.

The Influence of Social Networking Sites

“Are you more likely to use a local business if a connection recommends it?”

2010 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

69% 63%

14% 19%

18% 18%

Yes No Don't Know

“Are you more likely to use a local business if it has information available on a social networking site?”

2010 20110%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

74% 72%

12% 15%

14% 12%

Yes No Don't Know

Social networking sites influence local business decisions. Users are more likely to use a local business if its information is available on a social networking site.

-6-2

Pt. Change

Discovery Search

All - 2009 All - 2010 All - 2011

IYP - 2009

IYP - 2010

IYP - 2011

Local - 2009

Local - 2010

Local - 2011

Portal - 2009

Portal - 2010

Portal - 2011

58% 55% 51%59% 57% 53%

62% 57% 53% 54% 52% 47%

42% 45% 49%41% 43% 47%

38% 43% 47% 46% 48% 53%Non-Specific Business Search

Specific Business Search

Search Type By Site

More local business searches are conducted without a specific business in mind, once again showing that more research is being done online early in the search process.

Questions?

Gregg StewartPresident15miles855.515.0015 x501gregg.stewart@15miles.com

Mike PychaSenior Director Business Development, ChannelsLocaleze703.272.6267mikepycha@localeze.com