SEARCH AND DISPLAY ADVERTISING ACROSS MOBILE AND ONLINE YP SM. Local Ad Network
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2 The YP SM Digital Report is focused on uncovering trends across the rapidly evolving local advertising ecosystem. This Insights Report is based on internal data from over 561 million searches and over 9.4 billion impressions in Q4 across the YP SM Local Ad Network s 300+ online, mobile, tablet and directory assistance publishers. The YP SM Local Ad Network SEARCH AND DISPLAY ADVERTISING ACROSS MOBILE AND ONLINE 23M unique users per month on YPmobile 2 properties 2.3B searches per year CONSUMERS unique users per month MILLION YP SM Local Ad Network mobile & online publishers 500,000+ advertisers 4 ADVERTISERS 18M listings across 4,600 business categories 40B annual impressions PUBLISHERS SM Includes YP.com site, a 3 top 40 online domain Need to Understand How Digital Media is Measured? Read our recently published white paper, Why Metrics Matter. This free resource breaks down how advertising networks and web properties are reported and gives a complete assessment of the digital media landscape. Download the report at 1 comscore Media Metrix, YP.com Network, Jan YP Internal data, Jan comscore Media Metrix, Top 2000 Web Domains, Jan Includes YP advertisers as well as those from cross-distribution relationships. All data in this report from YP Internal sources, Q1 Q4 2012, unless noted. Page 2
3 What Local Searchers Are Searching For The top ten searched categories are fairly consistent on the YP SM Local Ad Network. Restaurants are always the most popular search category, typically followed by Financial Services and Beauty Services. However, this quarter Physicians and Surgeons formerly the fi fth most popular category grew 29% (and 92% year-over-year) and is now the second most searched category. Searches for Utilities also saw huge growth and now appear on the list for the fi rst time (see below). Category Searches Top Category Searches 1. Restaurants 2. Physicians & Surgeons 3. Financial Services 4. Beauty Services 5. Auto Parts & Supplies 6. Auto Repair & Service 7. Real Estate Top Mobile Search Catergories 1. Restaurants 2. Beauty Services 3. Auto Parts & Supplies 4. Auto Repair & Services 5. Theaters YP internal data, based on mobile category searches Q Top Online Search Catergories 1. Restaurants 2. Physicians & Surgeons 3. Financial Services 4. Beauty Services 5. Auto Parts & Supplies YP internal data, based on online category searches Q Building Contractors 9. Materials, Equipment & Supplies 10. Utilities Searches for Utilities surged 25% versus the prior quarter (see page 4) and 80% year-over-year. Formerly the sixteenth most searched category, Utilities includes Water, Electric and Gas Companies, Internet Service Providers (ISPs), Telephone and Wireless Companies, Cable and Satellite TV Providers and more. YP internal data, based on category searches Q The Automotive Vertical Automotive categories (Parts & Supplies and Repair & Services) are nearly always among the top searched mobile and online categories on the YP SM Local Ad Network. This edition of the YP SM Digital Report (see pages 7 and 8), further dissects this vertical to give insights into what drives this consumer demand. YP internal data, Q vs. Q and Q Numbers are averages across entire category and do not refl ect individual performance. Past performance cannot be used to predict future performance. Page 3
4 What Local Searchers Are Searching For Category Search Growth Top Growth Search Categories 1. Political Organizations 767% 2. Shopping Centers & Malls 64% 3. Toy Stores 57% 4. Kitchen Stores 53% 5. Liquor Stores 49% 6. Music Stores 32% 7. Physicians & Surgeons 29% 8. Mining 26% 9. Insurance 25% 10. Utilities 25% Growth Categories Online 1. Political Organizations 811% 2. Shopping Centers & Malls 133% 3. Dance 78% 4. Music Stores 42% 5. Engraving 36% Growth Categories Mobile 1. Shoes Stores 44% 2. Liquor Stores 30% 3. Shipping Services 24% 4. Clothing Stores 17% 5. Jewelry Stores 16% YP internal data, based on mobile and online searches Q vs. Q YP internal data, based on mobile and online searches Q vs. Q Mobile searches continue to rapidly grow across the YP SM Local Ad Network. In Q4, 34% of all searches were made on a mobile device. Mobile penetration is even greater within YP SM properties, the YP.com SM site and YP SM apps, where 40% of all searches are mobile. Mobile Search Growth 200,000, ,000, ,000, ,000, ,000, ,000,000 Q1 Q2 Q3 Q4 YP internal data, based on total mobile searches, Q1 Q YP internal data, Q vs. Q and Q Numbers are averages across entire category and do not refl ect individual performance. Past performance cannot be used to predict future performance. Page 4
5 What Local Searchers Are Searching For Quarterly Search Trends The Election The election in November drove a huge number of searches to Political Organizations, particularly online. Interestingly, searches for this category increased by more than 100% for every state in the U.S., but not in Washington, D.C., which only grew 30%. For a more detailed look at how the election affected local search, check out our infographic Election 2012 and Local Search at Superstorm Sandy In emergency situations people are forced to fi nd supplies or businesses they don t typically seek out. For instance, Superstorm Sandy, which hit the northeast in October, caused a surge in our Network for Insurance searches in New Jersey (49%) and New York (41%). Additionally, Utilities categories searches saw a 25% increase, as many residents lost key municipal services. Holiday Shopping Holiday shoppers were out in force this November and December. Evidence of this can be seen in the growth of searches for Shopping Centers & Malls (64%), Toy Stores (57%), Liquor Stores (49%), as well as Candy Stores (24%), Gift Shops (18%) and Consumer Electronics (17%). Mining Hi Ho, Hi Ho Searches for Mining categories grew 26% compared to the previous quarter and were up 82% year-over-year. These categories include Oil Well Drilling and Services, Petroleum Oils, Natural Gas Equipment, and more. YP internal data, Q vs. Q and Q Numbers are averages across entire category and do not refl ect individual performance. Past performance cannot be used to predict future performance. Page 5
6 Where Local Searchers Search With over 2.3 billion searches per year, the YP SM Local Ad Network gives local advertisers the ability to reach consumers, no matter where their business is located. The map below illustrates how category searches on the Network were distributed among the top 50 search markets over the past year. Top 50 Search Cities (by Total Search Volume) Seattle Portland Minneapolis Boston Reno Salt Lake City San Francisco Las Vegas Los Angeles San Diego Phoenix 20,000,000 5,000,000 Detroit New York Chicago Pittsburgh Philadelphia Omaha Columbus Denver Indianapolis Cincinnati Washington, D.C. Kansas City St. Louis Louisville Wichita Springfi eld Knoxville Raleigh Tulsa Nashville Charlotte Oklahoma City Memphis Little Rock Atlanta Columbia Birmingham Forth Worth Dallas Jackson Savannah Baton Rouge Jacksonville Austin New Orleans San Antonio Houston Tampa Orlando 1,000,000 YP internal data, total mobile & online searches by city, Q1 Q Miami The cities that had the most local search growth also saw big increases in mobile searches. For instance, El Paso and Detroit residents searched for local businesses on their mobile devices 90% and 78% more, respectively, than they did in the previous year. Phoenix, however, saw the largest annual increase in mobile searches in the nation at 98%. Top Local Search Cities (by Total Search Volume) 1 Houston, TX 2 Los Angeles, CA 3 Chicago, IL 4 Dallas, TX 5 Miami, FL YP internal data, based on category searches by city, Top Growing Local Search Cities 1 El Paso, TX 63% 2 Columbia, SC 58% 3 Arlington, TX 50% 4 Detroit, MI 24% 5 Memphis, TN 12% YP internal data, based on category searches by city, 2012 vs Page 6
7 Spotlight: Automotive The Automotive vertical is one of the most important and fastest growing segments of the YP SM Local Ad Network. There were over 75 million category searches made by consumers looking for automotive related businesses over the last year, a 17% gain versus the prior year. 1 Automotive Vertical: Quick Stats #4 Search Vertical ,930 Automotive Categories 75M Category Searches/Year Automotive Advertisers Top Searched Automotive Categories 1. Auto Repair & Service 2. Automobile Salvage 3. Tire Dealers 4. Auto Parts & Supplies 5. New Car Dealers 6. Used Car Dealers 7. Motorcycle Dealers 8. Used & Rebuilt Auto Parts 9. Towing 10. Gas Stations YP internal data, based on total category searches in Automotive Search Growth by Platform 80,000,000 70,000,000 60,000,000 50,000,000 40,000,000 30,000,000 20,000,000 10,000, Mobile 2012 Online According to recent surveys conducted by Compete Digital Insights, nearly 23% of all consumers used a mobile app like the YP SM app when researching auto service and for fi nding where to buy a car or truck. 3 This trend is evident across the YP SM Local Ad Network. Mobile searches for automotive businesses increased by 83% in 2012 compared to YP internal data. Based on total category searches in 2012 vs YP internal data, based on total Automotive Vertical searches, 2012 vs Verticals are aggregates of categories. The Automotive vertical consists of Auto Parts & Supplies, Auto Sales, Auto Service & Repair and more. Ranking is based on Q category searches. 3 Compete Digital Insights, YP Custom Auto Purchase Study, November 2012 and Compete Digital Insights Custom YP Auto Repair & Service Study, September Page 7
8 Spotlight: Automotive Nearly all Automotive categories experienced search volume growth compared to the prior year. This trend was inflated by a huge uptick in mobile searches for on-the-go service categories such as Tire Repair (338%), Roadside Service (323%), Windshield Repair (168%) and Car Washes (95%). Category Search Growth Top Growing Automotive Categories Automotive Growth Categories Mobile 1. Auto Spring & Suspension 266% 2. Antique & Classic Cars 186% 3. Four Wheel Drive Parts 140% 338% 323% 4. Road Service 128% 283% 225% 175% 5. Tire Retread & Repair 126% 6. Engines Rebuild and Exchange 110% 7. Electric Motors 109% 8. Recreational Vehicles Service 106% 9. Trailers 103% Tire Retread & Repair Roadside Service Auto Salvage Window Tinting Auto Radio & Stereo Systems YP internal data. Based on online category searches, 2012 vs Automotive Growth Categories Online 10. Diesel Engines 100% YP internal data. Based on total category searches 2012 vs. 2011, minimum 100,000 searches. 246% 181% 115% 107% Searches are More Relevant with YP In a recent study published by CrowdFlower, YP.comSM site search results were found to be more relevant than those of other local sites: Google Local, Bing Local, and Yahoo! Local. This was particularly true in the Auto Repair & Service category. Auto Spring Antique & & Suspension Classic Cars Electric Motors Vans Renting & Leasing 90% Auto Body Parts YP internal data. Based on mobile category searches, 2012 vs Check out the full report: Measuring Local Search Relevance at YP internal data, Q vs. Q and Q Numbers are averages across entire category and do not reflect individual performance. Past performance cannot be used to predict future performance. Page YP Intellectual Property LLC. All rights reserved. YP, the YP logo and all other YP marks contained herein are trademarks of YP Intellectual Property LLC and/or YP affiliated companies.
9 Advertisers On The YP SM Local Ad Network There are over 500,000 advertisers on the YP SM Local Ad network, spanning 200 industries and 4,600 categories. These advertisers, mostly small and medium sized local businesses, rely on the YP SM Local Ad Network to connect them with over 60 million local consumers that access YP SM listings and advertisements every month. Top Local Advertiser Categories (Based on Ad Spend/Revenue) Top Growing Advertisers (Based on Change in Number of Advertisers) 1. Building Contractors 2. Legal Services 3. Dentists 4. Physicians & Surgeons 5. Auto Repair & Service 6. Materials, Equipment, & Supplies 7. Heating & Air Conditioning Contractors 8. Auto Parts & Supplies 9. Maintenance & Cleaning Services 10. Financial Services YP internal data, based on category ad spend, Q Q Home Repair & Maintenance 18% 2. Grocery Stores 10% 3. Transport Trailers 10% 4. Trucks 10% 5. Assisted Living & Elder Care 6% YP internal data, based on number of advertisers, Q vs. Q Advertisers in the Heating & Air Conditioning Contractors category spent 12% more on local advertising than in the prior quarter, jumping into the top Local Advertiser Categories list for the fi rst time. Advertisers Reap the Mobile Benefits of YP According to analyst fi rm IDC, YP is the number two company in the U.S. mobile advertising industry 1. In 2012, local businesses received nearly 100 million calls from consumers who selected their business on the YP SM app. On average, that is 3 phone calls made to a business every second. Clicks on paid listings accessed by a mobile device also grew by 100%. Home Repair & Maintenance businesses spent 32% more quarter-over-quarter, a possible result of homeowners investing in their properties again as the real estate market has begun to improve. 1 Source: IDC New Media Market Model 2H Ranking based on mobile ad revenue. Page 9
10 About YP YP is North America s largest local search, media and advertising company. Its mission is to help small businesses and communities grow. Millions of searches occur daily using YP products to fi nd, compare and select local merchants. The company s fl agship consumer brands include YP.com SM, a top 40 U.S. Web domain, the highly rated YP SM app and the YP Real Yellow Pages SM directory, the largest Yellow Pages directory in the world by revenue. The company s wide range of print and digital advertising products is designed to address the evolving local search needs of consumers and help advertisers grow their business. The YP SM Local Ad Network provides advertisers with an opportunity to reach more than 180 million monthly users across 300 affi liated online and mobile publishers. Through customized campaigns designed by expert advisors, YP provides local businesses with one of the most cost effective sources for consumer leads. YP SM products and service are backed by thousands of media consultants and customer service professionals in local markets across the US with relationships spanning over 600,000 businesses. About the YP SM Report As an industry leader in local advertising with a wide range of both print and digital ad products, YP is uniquely positioned to provide valuable insights on key components of the local advertising landscape. Published quarterly, The YP SM Local Insights Report focuses solely on data from the YP SM Local Ad Network, the digital component of YP s diverse local ad business, to provide assessments of the rapidly evolving online and mobile local advertising ecosystem. YP internal data, Q1-Q4 2012, unless otherwise noted. Page 10
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