Study: Web Yellow Pages Market to Reach $101M This Year

Internet yellow pages will generate about $101.7 million in revenues in 1999,
less than 1 percent of the total yellow pages advertising market, but a 120.4 percent
increase over 1998, says a new industry study.

The report, “Internet Yellow Pages 1999: Business Models & Market
Opportunities,” was prepared by Simba Information Inc.

Simba projects that Internet yellow pages revenues will increase to $393.2
million by 2002, or 2.6 percent of the total yellow pages market and 5.5 percent of the
total Web advertising market.

“We see niche directories continuing to grow and offer more of a threat to
traditional yellow pages sites because they allow consumers looking for a
specific purchase to bypass the directories altogether,” said Harry Baisden,
editorial director at Simba Information. “These niche sites also are
increasingly forming partnerships with major Internet players that drive
heavy traffic to the specialty sites.”

Meanwhile, name brand search engines represent a competitive threat to
Internet yellow pages because search engines point consumers either directly
to business Web sites or to partner niche directories, the report says.

The 178-page research report provides estimates and projections for the size
of the Internet yellow pages market in relation to the Web advertising market
and the yellow pages industry overall. The report also includes detailed
profiles of Internet yellow pages services from major publishers, independent
publishers, Internet-only directories, search engines, niche directories,
city guides, Internet yellow page suppliers and advertisers.