ReachLocal Introduces New Online Advertising Solution for Local Businesses -- Enlists Local Search to Bring Internet Marketing within Reach of Every Business

Comprehensive Advertising Solution Taps Multiple Search Engines, Connects Local Merchants and Consumers, Dramatically Easing the Process of Marketing Online

ENCINO, Calif. (Feb. 22, 2005)

With the goal of bringing Internet marketing to Main Street – or virtually any street -- ReachLocal (www.ReachLocal.com) today introduced a new online advertising solution that provides local businesses with an easy and cost-effective way to use the Internet to attract local customers.

Through its patent-pending technology, ReachLocal enables smaller, independent businesses – which often don’t have the time or resources to manage an online marketing presence – to immediately start advertising their products and services online via the most popular local search vehicles.

ReachLocal works with the Internet’s leading pay-per-click search engine providers (Google, Yahoo), Internet Yellow Pages companies (SuperPages.com), paid inclusion providers (Yahoo!) and geo-targeted banner networks (Advertising.com). In addition, ReachLocal markets local businesses on MSN and AOL through their inclusion in the Yahoo and Google networks.

According to industry estimates, local businesses in America spend $100 billion annually on advertising targeting local or regional audiences, but only about three percent of that advertising has migrated online. Local businesses have stayed away from Internet marketing because the Web’s global reach discourages some from spending on potentially irrelevant leads, while the complex search engine keyword bidding system and the decentralized nature of online advertising makes the process too time-consuming and costly for many small businesses. But with Kelsey-Bizrate estimating that 25 percent of Internet searches are local in nature – meaning local consumers are looking for local merchants – these businesses need to be online.

The ReachLocal solution makes Internet marketing dramatically easier by providing local businesses with prominent placement in local search results, while limiting the display of the ads to only those who live within designated geographic areas. With the “pay-for-performance” model, advertisers pay only when users click on the ads to visit specific sites.

Using proprietary technology, ReachLocal creates customized campaigns based on advertisers’ budgets, the types of products or services being promoted and the areas they want to target. The ReachLocal system automatically selects the best online publishers for a specific campaign, adding new publishers to the network as appropriate.

“There is a powerful opportunity for local businesses to capture new customers online, but few are taking it because the process has been so complicated in the past,” said Zorik Gordon, president and CEO, ReachLocal. “Our solution removes the organizational burden and makes it fast, easy and cost-effective to create a results-driven online advertising campaign.

“The market for this kind of service is enormous,” Gordon said. “Consumers are shopping and looking for local businesses online, but less than one percent of those businesses have established a marketing presence on the Internet. More and more local companies want to be online where the consumers are, and our solution helps them get there.” According to comScore Networks, 111 million people execute 46 billion Internet searches each year – three times the number of annual Yellow Page referrals.

ReachLocal provides end-to-end management of the entire process, aggregating traffic by plugging into multiple publishers and automating many of the management tasks. It sets up accounts with each online publisher, handles all search engine keyword selection and bidding (with an average of 5,000+ keywords per advertiser, including different keywords for each city serviced by the advertiser), and continually optimizes the campaigns to ensure that the highest possible number of leads are generated. For businesses that don’t already have a Web presence, ReachLocal will even create a Web site or time-sensitive offer page to be used for the campaign.

Advertisers receive detailed reporting to track their return on investment, including daily summaries of Web site visits and phone, email and coupon tracking. By providing advertisers with a unique phone number for each campaign, ReachLocal is even able to track phone calls originating from an existing Web site. This number automatically forwards to the advertiser’s existing phone number (or one that they specify). Advertisers know the number of phone calls received and get individual call information, including the phone number of the person who made the call (if it’s not blocked).

“Our reporting capabilities provide an accurate account of money spent and actual results, bringing the campaign full-circle,” said Gordon. “ReachLocal provides an easy, pain-free entry into the search business for the massive number of disenfranchised local businesses. They don’t need a huge budget or computer expertise. We manage the campaign from start to finish, letting business owners concentrate on what they do best.”

Industry Veterans Cultivate Independent Sales Agents

ReachLocal is bringing its platform to market by developing a nationwide network of independent sales agents who already have their own client base of local businesses – working with them to incorporate the ReachLocal solution into their existing campaigns to help drive online customers to their clients.

An agent can set up a ReachLocal account in less than 15 minutes, complete a profile of his or her client, set up a campaign and pay for it – at which point ReachLocal takes over, placing the campaign with various online publishers. Without the ReachLocal solution, agents could spend hours, if not days, picking keywords, figuring out bids and setting up accounts with each publisher. Agents are able to track the activity of all of their clients’ campaigns with a single ReachLocal account.

Venture funded, ReachLocal already has built a diverse client base that includes auto dealers, dentists, home improvement companies, real estate agents, attorneys, travel agents and more.

ReachLocal was founded by an accomplished team of Internet marketing and technology veterans. The experienced staff is headed up by Gordon, who previously served as chief executive officer and vice president of corporate development for WorldWinner, Inc., the leading provider of prize-based tournaments in online games of skill. At WorldWinner, Gordon signed major partnerships with Yahoo!, Pogo, Lycos, and Shockwave that positioned WorldWinner as the No. 1 provider of cash tournaments on the Internet, with more than five million gamers registered as part of the service. Before that, Gordon founded Jackpot.com – an Idealab company – a business that has grown to become The Vendare Group, one of the leading online media and marketing companies.

About ReachLocal

ReachLocal (www.ReachLocal.com) uses local search to bring Internet marketing within reach of every business, dramatically easing the process of finding customers online. Its proprietary, patent-pending advertising platform gives local businesses prominent placement on leading search engines, including Google and Yahoo!, along with online Yellow Pages companies and other popular commercial listings – while limiting the display of the ads to only those people who live within specific geographic areas. Based in Encino, Calif., ReachLocal utilizes a nationwide network of independent sales agents to serve a diverse client base that includes auto dealers, dentists, home improvement companies, real estate agents, attorneys, travel agents and more.

Contact:

Ken Greenberg
Edge Communications, Inc.
818-719-9292
ken@edgepress.com