Local Corporation Launching New Vertical Sites
Focus on Consumer Services Verticals with Lead Generation Revenues
IRVINE, Calif. -- December 06, 2012
Local Corporation (NASDAQ: LOCM), a leading online local media company, today
announced the launch of the first in a series of industry-specific, content
driven websites designed to further extend its reach and engagement with local
consumers and businesses.
The company, which connects businesses with over a million consumers each day
and was recently ranked #8 on Website Magazine’s “Top 50 Digital Advertising
Networks,” plans to leverage these new industry-specific sites to further
expand its reach into and monetization of local markets.
The first site, www.insurancelow.net, offers a car insurance guide that
provides important decision criteria when choosing an insurance carrier, as
well as the ability to compare quotes, and a directory for car insurance
agents. Auto insurance is a $161 billion industry that, according to J.D.
Power and Associates, spent about $5.3 billion on advertising in 2011.
Each site is expected to include educational articles and other content about
specific topics, the ability to request and receive a quote from licensed
industry professionals by completing a brief form, and a directory that
enables consumers to search for and locate service providers in their local
area, including contact information and, where available, user ratings and
Local Corporation expects to focus monetization of its new portfolio of
industry-specific sites primarily via lead generation, but will also monetize
through a variety of digital ad formats, including pay-per-click,
pay-per-call, display and subscription ad units. The company plans to launch
additional vertical sites in other key consumer service categories in the
“We already provide small businesses with leads as part of our ‘Launch by
Local’ digital media suite for small businesses, so it’s natural for us to
expand further into this performance ad segment,” said Heath Clarke, Local
Corporation, chairman and chief executive officer. “These sites expand our
ecosystem and lead generation is expected to help us to optimize overall
monetization by harvesting leads from the 30 million consumers we reach each
month, who are searching for goods and services locally.”
According to BIA/Kelsey, in 2011 30 percent of all online searches were local
searches, and were valued at $5.7 billion. The value of local searches is
expected to grow by a CAGR of 12 percent to $10.2 billion and represent 35
percent of all online searches in 2016. Billions of new dollars flow into
digital media from traditional and online advertisers in order to reach local
consumers online and the company expects these new vertical sites will assist
the company in claiming a larger portion of this transitioning media spend.
About Local Corporation
Local Corporation (NASDAQ:LOCM) is a leading online local media company that
connects brick-and-mortar businesses with over a million online and mobile
consumers each day using a variety of innovative digital marketing products.
To advertise, or for more information, visit: http://www.localcorporation.com.
Forward Looking Statements
This press release contains certain forward-looking statements that are based
upon current expectations and involve certain risks and uncertainties within
the meaning of the U.S. Private Securities Litigation Reform Act of 1995.
Words or expressions such as "anticipate," "plan," "will," "intend," "believe"
or "expect" or variations of such words and similar expressions are intended
to identify such forward-looking statements. These forward-looking statements
are not guarantees of future performance and are subject to risks,
uncertainties, and other factors, some of which are beyond our control and
difficult to predict and could cause actual results to differ materially from
those expressed or forecasted in the forward-looking statements. Key risks are
described in the filings we make with the U.S. Securities and Exchange
Commission. The forward-looking statements in this release speak only as of
the date they are made. We undertake no obligation to revise or update
publicly any forward-looking statement for any reason. Unless otherwise
stated, all site traffic and usage statistics are from third-party service
providers engaged by the company. Traffic and our monetization of that traffic
combine to determine our revenues for any given period. Our traffic volume
alone for a period should not be viewed as demonstrative of our financial
results for such period.
Investor Relations Contact:
Janine Zanelli, 949-341-5340
Media Relations Contact:
Cameron Triebwasser, 949-789-5223
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