Local.com Reports Earnings and Growth

Posted by Steve under General on Sunday, February 24th, 2008 10:11 am

If you are still looking for validation to get into the geo domain industry or if you are still undecided whether you should advertise on a geo domain, I have some news for you.  The local advertising market continues to grow at an astonishing rate and consumers are the cause of this growth.  Local.com reported their 4th quarter 2007 earnings of $5.9 million.  This was 6% higher than 3rd quarter and was a growth of 64% over 4th quarter 2006. 

What does this mean?  This means that consumers and advertisers embraced local.com’s platform.  Overall, consumers increased the bottomline by increasing monetization by 114% from 4th quarter 2006.

This is only the beginning as consumers are just figuring out how to get the local information they are dire need of.  Some obviously have already figured it out and have started to embrace thousands of geo domains for their local needs.  It is always good to see news that validates local market growth. And keep in mind, this is only one company out of thousands in this market with revenue growth and increased consumer use.

“Local.com doubled local search revenue from 2006 to 2007, and we are set to double overall revenue in 2008. In the past quarter our organic traffic has grown substantially, page views per visitor are up, and monetization is at an all-time high. We entered 2008 very strongly,” said Heath Clarke, Local.com chairman and CEO.

 (via foxbusiness.com)

3 Responses to “Local.com Reports Earnings and Growth”

1. Michael Castello Says:
   February 25th, 2008 at 01:59 am

   I feel the city level for the public to drill down to is the gateway for most local. Of course a country like Dubai would be an entry way for most westerners or an island like Maui. I was once offered Italy.com for Acapulco.com but turned it down because I believe that Acapulco was a solid gateway that could not be beaten if developed proportionally. Italy is also spelled Italia in Italy and would have had competition at that level. Local is personal and emotional to its inhabitants and is a sure bet for the future.

   ***SMO***

   Absolutely agree with this. The proof is in the pudding, the more focused you are with local content the better the user experience. While there are many country.com and state.com domains, it is hard to build these up effectively because there are millions of levels you have to build.

   Consumers hate to sift thru all of them to get the information they need. This frustrates the consumer and they head to a more local website, additionally, this raises development costs to produce an efffective site. You turning down Italy.com for Acapulco.com was definitely a smart decision with many rewards to come from that decision and saved you big development dollars.

   Even the most generic domains, want to be local! There is no other way more effective than reaching the consumer in their own environment.

   
   
   
2. Tommy Butler Says:
   February 25th, 2008 at 09:14 am

   Hi Michael,

   I would totally agree with that

   
   
   
3. paul lasikiewicz Says:
   February 27th, 2008 at 09:34 am

   very interesting article. I am currently developing http://www.locals.co.uk to hit the uk local market. should be interesting to see what responce i get from this.

   Paul

   
   
   

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