New Research by The Kelsey Group and ConStat Indicates 70% of U.S. Households Now Use the Internet When Shopping Locally for Products and Services

Findings also suggest the Internet is poised to surpass newspapers as a local

shopping information resource



Mar 22, 2005, 00:00 ET from Kelsey Group

    PRINCETON, N.J., March 22 /PRNewswire/ -- According to a new study by The
 Kelsey Group and ConStat, Inc., 70 percent of U.S. households now use the
 Internet as an information source when shopping locally for products and
 services -- an increase of 16 percent since October 2003. This puts the
 Internet on par with newspapers as a local shopping information resource, with
 the Internet likely to surpass the impact of newspapers in the very near
 future.
     "Use of the Internet as a shopping resource is already changing the face
 of local advertising," said Neal Polachek, senior vice president, The Kelsey
 Group. "Traditional local advertising media must find ways to evolve or risk
 losing dollars to the new advertising options available to local and small
 businesses."
     "Most of the Internet's growth for shopping research can be attributed to
 large search engines such as Google, Yahoo! and Ask Jeeves, the usage of which
 increased significantly, from 47 percent in 2003 to 55 percent in 2005," said
 Tim Trickett, vice president of business development at ConStat. "Further, the
 research shows that the increase in usage of the major search engines has been
 powered by broadband users exclusively."
     The Kelsey Group will present additional findings from this survey at its
 upcoming local search conference, "Drilling Down on Local: The Online-Offline
 Opportunity," taking place April 18-20, 2005, at the Santa Clara Marriott,
 Santa Clara, California.
     The conference will provide several opportunities for close examination of
 the future of newspapers in the local advertising space. Day 2 of Drilling
 Down on Local will feature a keynote address by Lincoln Millstein, senior vice
 president and director of digital media, Hearst Newspapers. Millstein's
 keynote will be followed by a panel session entitled "Newspapers: Sleeping
 Giants or Just Asleep?" This panel will explore whether newspapers, with their
 powerful local brands and unique local content, can overcome internal
 organizational and cultural issues to compete online for local users and SME
 revenues.
     Sponsors for Drilling Down on Local: The Online-Offline Opportunity
 include Acxiom Corp., AgendiZe, Amacai, Aptas, CallSource, DCCI, eStara, Fast
 Search & Transfer, Geosign, Ingenio, Interchange, IPIX AdMission, MapQuest
 Business Solutions, MarketingVOX, OKS Group, Pay Per Click Analyst, SEMPO,
 Telcontar, TrafficLeader, TrueLocal, Yahoo! Local and YPsolutions. For
 information on sponsorship opportunities, contact Nanci Karas by phone at
 (609) 921-7200 Ext. 21 or by e-mail at nkaras@kelseygroup.net. To register for
 this conference, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10,
 or register online at http://www.kelseygroup.com/dd2005/.
 
     Survey Methodology
     This is the second wave of the User View survey conducted jointly by The
 Kelsey Group and ConStat. Wave 1 was conducted in October 2003; Wave 2 was
 conducted in February 2005. Five hundred respondents were interviewed by
 telephone--250 from the top 20 Metropolitan Statistical Areas (Tier 1), and
 250 from the top 21-100 MSAs (Tier 2). Tier 2 markets were weighted down
 slightly. To qualify, respondents needed to be 18 years or older and have
 purchased something (besides groceries) from a business in their local area in
 the past six months.
 
     About ConStat, Inc.
     ConStat, Inc. is a research firm that specializes in the Yellow Pages and
 information technology industries, with offices in San Francisco and Denver.
 ConStat has served clients in the telecommunications, media, advertising,
 wireless and high-technology communities for more than 10 years. For
 additional information, ConStat can be reached at (510) 267-3100.
 
     About The Kelsey Group
     The Kelsey Group is the leading provider of strategic research and
 analysis, data and competitive metrics on Yellow Pages, electronic
 directories, small-business advertising and local search. Beginning in 1986,
 the company has built a reputation as the leading analyst firm covering the
 directory publishing community, providing advisory (The Kelsey Report(R) and
 Interactive Local Media), publishing (Global Yellow Pages(TM) and Local Media
 Journal(TM)) and consulting (more than 300 individual assignments).
 
     For more information contact:
      Eileen Pacheco
      (781) 556-1026
      eileen@tango-group.com
 
 

SOURCE Kelsey Group
    PRINCETON, N.J., March 22 /PRNewswire/ -- According to a new study by The
 Kelsey Group and ConStat, Inc., 70 percent of U.S. households now use the
 Internet as an information source when shopping locally for products and
 services -- an increase of 16 percent since October 2003. This puts the
 Internet on par with newspapers as a local shopping information resource, with
 the Internet likely to surpass the impact of newspapers in the very near
 future.
     "Use of the Internet as a shopping resource is already changing the face
 of local advertising," said Neal Polachek, senior vice president, The Kelsey
 Group. "Traditional local advertising media must find ways to evolve or risk
 losing dollars to the new advertising options available to local and small
 businesses."
     "Most of the Internet's growth for shopping research can be attributed to
 large search engines such as Google, Yahoo! and Ask Jeeves, the usage of which
 increased significantly, from 47 percent in 2003 to 55 percent in 2005," said
 Tim Trickett, vice president of business development at ConStat. "Further, the
 research shows that the increase in usage of the major search engines has been
 powered by broadband users exclusively."
     The Kelsey Group will present additional findings from this survey at its
 upcoming local search conference, "Drilling Down on Local: The Online-Offline
 Opportunity," taking place April 18-20, 2005, at the Santa Clara Marriott,
 Santa Clara, California.
     The conference will provide several opportunities for close examination of
 the future of newspapers in the local advertising space. Day 2 of Drilling
 Down on Local will feature a keynote address by Lincoln Millstein, senior vice
 president and director of digital media, Hearst Newspapers. Millstein's
 keynote will be followed by a panel session entitled "Newspapers: Sleeping
 Giants or Just Asleep?" This panel will explore whether newspapers, with their
 powerful local brands and unique local content, can overcome internal
 organizational and cultural issues to compete online for local users and SME
 revenues.
     Sponsors for Drilling Down on Local: The Online-Offline Opportunity
 include Acxiom Corp., AgendiZe, Amacai, Aptas, CallSource, DCCI, eStara, Fast
 Search & Transfer, Geosign, Ingenio, Interchange, IPIX AdMission, MapQuest
 Business Solutions, MarketingVOX, OKS Group, Pay Per Click Analyst, SEMPO,
 Telcontar, TrafficLeader, TrueLocal, Yahoo! Local and YPsolutions. For
 information on sponsorship opportunities, contact Nanci Karas by phone at
 (609) 921-7200 Ext. 21 or by e-mail at nkaras@kelseygroup.net. To register for
 this conference, contact The Kelsey Group by phone at (609) 921-7200 Ext. 10,
 or register online at http://www.kelseygroup.com/dd2005/.
 
     Survey Methodology
     This is the second wave of the User View survey conducted jointly by The
 Kelsey Group and ConStat. Wave 1 was conducted in October 2003; Wave 2 was
 conducted in February 2005. Five hundred respondents were interviewed by
 telephone--250 from the top 20 Metropolitan Statistical Areas (Tier 1), and
 250 from the top 21-100 MSAs (Tier 2). Tier 2 markets were weighted down
 slightly. To qualify, respondents needed to be 18 years or older and have
 purchased something (besides groceries) from a business in their local area in
 the past six months.
 
     About ConStat, Inc.
     ConStat, Inc. is a research firm that specializes in the Yellow Pages and
 information technology industries, with offices in San Francisco and Denver.
 ConStat has served clients in the telecommunications, media, advertising,
 wireless and high-technology communities for more than 10 years. For
 additional information, ConStat can be reached at (510) 267-3100.
 
     About The Kelsey Group
     The Kelsey Group is the leading provider of strategic research and
 analysis, data and competitive metrics on Yellow Pages, electronic
 directories, small-business advertising and local search. Beginning in 1986,
 the company has built a reputation as the leading analyst firm covering the
 directory publishing community, providing advisory (The Kelsey Report(R) and
 Interactive Local Media), publishing (Global Yellow Pages(TM) and Local Media
 Journal(TM)) and consulting (more than 300 individual assignments).
 
     For more information contact:
      Eileen Pacheco
      (781) 556-1026
      eileen@tango-group.com
 
 SOURCE  Kelsey Group