RefreshClassifieds

In a trend that seems to defy most Web 2.0 companies, Local.com has released the Uk.Local.com from beta.  Other online sites, most notably Google Gmail have stayed in beta for years.

The Uk.Local.com has also launched with an updated search interface which lets users : 

• Sort results by rating, distance, business name and category
• Limit results to a defined radius
• Filter results by related categories and nearby cities
• Sort by star ratings and read user reviews
• Access recent searches, which are now automatically saved for easy reference

The site also lets users search for various UK landmarks like “Piccadilly Circus” or “Westminster Abbey” and combine these with what they are looking for like “Pub near Piccadilly Circus”.    UK search is up 22% overall since 2006, as reported by Hitwise, and expected to grow as high speed internet becomes more popular in the UK.  

Local.com has announced that they have renewed a multi-year deal with Yahoo to provide sponsored links on Local.com.  The deal seems like a good relationship for both parties but its not clear how successful the Yahoo search marketing products have been.  Yahoo has been steadily loosing ground to Microsoft Live.com and Google is the gorillia in the space.  The Yahoo new search marketing system is currently only available in the US but Microsoft and Google have launched internationally.

No financial terms were disclosed as part of the deal but Local.com has been growing steadily but I suspect that most of their revenue comes from their own sales force.  There is also no mention of Yahoo.com licensing the Local.com local search patents.  This might be a critical factor with other competitors as Local.com has indicated their desire to enforce their patent ownership.

Local.com is in the news again with private stock issue worth $13M US today.  The company issued 2,356,900 shares at $5.50 per share.  The company will use the money to fund acquisitions, like the PremierGuide purchase last month, and expand its sales channel, defend its patent portfolio and for general operations.

The company also issued warrants to purchase additional shares in 2 issues.  The first issue is for 471,386 additional shares of the company’s common stock at a price of $7.89, exercisable beginning February 1, 2008 and for a period of five years thereafter.  The 2nd issue is for 471,386 additional shares of the company’s common stock at a price of $9.26, exercisable beginning February 1, 2008 and for a period of six years thereafter.

As Local.com raises more money it will be interesting to see if how they assert their local search patent over other sites that might infringe.  Its not clear how much of this funding round is connect with defending their patent portfolio.

The Sun-Times News Group in Chicago has launched a new Real Estate site  for their classified listings.  The new website allows consumers to search Real Estate listings from 90 classified listing titles around the greater Chicago area and 10 counties in Northeastern Illinois and Northwest Indiana.  The new website is located at SearchChicago.com/homes.

The SearchChicago.com  aims to be come the best source for local information including classifed search for automotive, real estate and employment.   SearchChicago.com also provides additional information, like school ratings, dinning and community information but we were unable to combine this with the new search functionality.  For example once we found an attractive condo in downtown Chicago, it was not possible to find the closet school and its rating.

The new site is an advantage for advertisers with 16 photos and enhanced description being included a no additional cost.  The search functionality also includes a detailed map generated using the Google maps product.  All of properties in a geographic region can be mapped on the map for a very visual search.   Each search also includes an RSS feed so that quick updates can be made available.  The search functionality is powered by Adico, one of the leading providers of classified website and search functionality.

Local.com, one of the leading search engines in the US focused on the hyper local market purchased the PremierGuide business directory sites.  As more and more companies chase the hyper local market we expect to see more consolidation between Directories, Search and Classifieds.  These 3 services are expected to become the pillars of the hyper local experience with local events, news and entertainment hanging off of them.

One of the interesting aspects of the Local.com approach is their patent on the local search.  We see this is as a strong barrier to enter for competitors but business process patents have always been difficult to uphold.

The deal is reported at $2M for PremierGuide which had revenues of approximately $800K in the last 12 month period and $300 in operating costs.  The deal does seem very sweet for Local.com and well aligned with their business direction.  Its expected the PremierGuide technology and products will combined into the LocalConnect product line over the next few months.

Autobytel has launched MyRide.com, a new Automotive with a more focused community experience. Car lovers can use video, audio, multiple pictures, message boards and even blogs to description their favourite cars. The site includes feature articles on popular automotive topics like Hot Rods and Classics but also includes more environmentally friendly topics like Driving Green.

By combining more social features into the site Autobytel hosts to create more of a meeting place for car enthusiasts. The site will be expanded shortly with feature car calendars and car club events. The site is built on the KickApps social media functionality.

The site still features new and use automotive classified ads and this is expected to be the primary revenue source. Its not clear how the site will connect the car fans with the classified listings though. Currently the functionality appears to be very separate so while the new features may drive traffic to the site it might not generate additional interest in the classified listings. The site is a good first attempt at bring social media to the Automotive classified space.

The Denver Post is reporting that their local TV station KUSA-Channel 9 has started looking at classified advertising.  So far their only initiative seems to be to pull some ads onto their own site through a local search. You can see some of the results here:

http://search.9news.com/sp?aff=102&keywords=classifieds

Its not clear the value that this provides to the KUSA channel except to become more of a destination for users. They don’t currently have a method to advertise directly with them or monetize the adverising thats come through from competing local media. It might let them test the market and provide another reason for users to visit their website. As it becomes easier and easier to develop an online classified experience I think we’ll see more of these odd mash-ups.