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									Local Business Search
ONI Internet Product Brief
Executive Summary

Providing information on local businesses has always been a valuable service, as anyone
who has used an old-fashioned Yellow Pages directory can attest. In the evolving
Internet environment, this information is available faster, cheaper and better, creating an
increased value proposition for the consumers and advertisers in our markets.

Leveraging our current Internet sites – and a turn-key third-party vendor – each ONI
location is now positioned to quickly and easily enter the business of providing
information on local businesses. More than offering a simple line listing or display ad,
online local business search (LBS) can serve as a jumping off point for other advertising
opportunities for our customers. The platform we have licensed has a simple entry level
value proposition and is rich with up-sell opportunities.

In addition to providing you with a quick new revenue stream, having a LBS product on
your Internet sites will also serve to fight the competitive threat posed by Yahoo! and
Google, who have recently launched LBS products of their own. In sum, we believe that
a LBS product is essential for each ONI web site.

Opportunity Assessment -

Level of               Degree of               Relative Return on      Priority
Investment             Difficulty              Investment
Low – Medium           Low                     Medium – High           High

Level of Investment – The amount of time and money required to implement and
maintain the product. When deployed using our preferred corporate vendor –
Switchboard - LBS requires a minimal initial investment. Financial up-front cost is
limited to a one-time $1,000 fee; development time is estimated at only 20-30 hours for
set up. Incremental costs are incurred as advertising is sold ($7/ad/month) along with
low level of administrative time to maintain advertiser database (4 hrs/wk).

Degree of Difficulty – The range of non-financial/resource issues that need to be
managed to complete the project (e.g. site or page re-design, interaction with vendor,
length of project, need to modify existing product/site functionality, etc.). LBS can be
initially implemented with a low degree of difficulty requiring little more than the design
of a co-brand template. Once the product is up and running, management of advertiser
listings through a non-technical web interface is all that is required.

Relative Return on Investment – Value of project given investment and projected
stand-alone profit margin. Also factored in is the opportunity cost of not undertaking
other ONI Internet products. Depending upon which of two business models you adopt,
revenue in the first year could be $100,800 (forced revenue) with a 32% Gross Margin or
$25,000 (new Internet only revenue) with a 65% Gross Margin.

Priority – Importance of this project given competitive landscape and the need to meet
audience and/or advertiser demand. Given the competitive threat in this area from
Google and Yahoo! (both of which have excellent LBS products), not to mention local
and regional yellow page companies, this project has a high priority.

As with all product offering from ONI Internet, we are pleased to provide the following
“Silver Platter” – a comprehensive business-modeling and implementation guide.

This document is intended to serve as a guide for evaluating and launching local business
search on your ONI website. As such, this document should be shared with appropriate
stakeholders at your location, including sales, marketing, technical and design personnel.

I. Introduction:

Local Business Search can be broadly defined as a product that provides users with
information on local businesses. In rough terms, Local Business Search can be thought
of as an interactive yellow-pages product. As you will read below, however, LBS can be
used as more than a simple keyword “search” of business information. It can be used to
create any number of online “directories” of local business categories, such as restaurants
and lodging. It can also be used to augment online “special section” offerings through a
listing of local business targeted towards gardening, weddings and other niche areas.

In addition to serving our users’ needs, LBS is essential for our online advertising needs.
By offering local businesses the chance to “enhance” their listing information on our
sites, we can retain (and deepen our relationships with) existing local advertisers and
attract new local advertisers - many of whom have not had the marketing budgets
required to advertise in our print products.

ONI Corporate has entered into a company-wide agreement with a vendor known as
Switchboard (which is part of a publicly-traded company called InfoSpace, Inc.). With
this Switchboard product – which is provided as a turn-key solution – you may place
LBS functionality on your site in a relatively short time frame

Winning in the LBS arena will not be easy. Competition is already stiff, as Yahoo,
Google, and various Yellow Pages companies have been aggressively marketing their
LBS online offerings. We believe that ONI properties have two distinct advantages:

          Our local marketing reach with our print and online products
          Our existing advertiser relationships; and
          Our strong local advertising brand recognition.
These provide us the opportunity to create broad awareness of our platform as the LBS
resource in our markets.

II. Product Overview:

Switchboard is an Internet Yellow Pages / Internet Business Directory platform that
delivers directory-styled business information. Underpinning the platform is complete
national business data provided by Axciom. Key operational features:

      Search: Vistors may search for business by name, geography, keyword, &
       business type
      Branding: Each ONI website will be locally branded with own site’s look and
      Directory Content: Listings are feature and keyword styled and includes name,
       address, contact, location/map and a broad array of business attributes, products
       and services.
      Taxonomy: Virtually all information associated with a listing is organized
       according to an extensive taxonomy making it available to the Switchboard search
       engine. This allows for very exact search results (e.g. Limo companies within 5
       miles of Middletown, NY featuring 15 seat vans and available for bachelor
      Search Result Structure: Search results are returned in a hierarchical fashion,
       allowing flexible revenue generating opportunities along the way. Not unlike
       Google and Yahoo which deliver sponsored listings around natural search results,
       Switchboard affords the opportunity to position paid advertisers in preferred and
       premium positions for given searches. Search results are structured as follows:
               o Base (free listings) – include basic business information. Data is
                    provided by Axiom Database.
               o Enhanced Listings (fundamental revenue opportunity) – rise to the
                    top of search queries; can include additional business information and
                    links which are controlled by us.
               o Premium Listings (up sell revenue opportunity) – permanent
                    placements at the top of category searches
      Banner Advertising: Display advertising inventory is available and controlled by
       us. We may individually sell this inventory locally or participate in a
       Switchboard advertising network.
      Administrative Interface: Product includes a secure administrative interface
       where local web personnel can enhance, edit and control listing information.
      Hosting & Branding: Switchboard is an application service provider. The actual
       system resides with Switchboard but each ONI site will have its own co-branded
       site, with its own look and feel.
III. Business Models:

Switchboard Business Model: Switchboard derives its revenue from three streams: one-
time implementation fees, fees for enhanced business listings and banner advertising
revenue. An ONI corporate contract is in place for this product. Our fee structure is as

      One-time $1000 implementation fee for each ONI site
      Enhanced Listing Fees: $7/Enhanced or Premium Listing/Month. Any data
       added to base listings or positioning of a listing at the top of a search query or top
       of a category is considered an enhanced listing for fee purposes.
      Banner advertising (optional): ONI sites by default sell and retain banner ad spots
       in the co-branded site. Switchboard does offer participation in an ad network on
       an opt-in basis. If an ONI site decided to opt in, Switchboard would sell and
       control the banner ad space on that site and would pay ONI a revenue share.

Recommended ONI Business Models: Two business models have emerged from ONI
and other Switchboard affiliate best practices.

 (1) Contract model: Print contract advertisers, upon initiating or signing a contract
have their base listings upgraded enhanced listings. A portion of advertisers’ annual
contracted print revenue or a portion of their annual contract rate increase is earmarked
for Local Search product and transferred monthly to Internet revenue accounts. Premium
enhancements are up-sold from installed contract base; non-contract advertisers are sold
on a one-by-one basis.

   - Added value/incentive for contract advertisers
   - Provides benefits of enhanced listings to critical mass of advertisers quickly
   - Provides optimal search results for consumers quickly
   - No sales time involved
   - Significant revenue realized from the start

   - Effectiveness of product will precede advertiser’s understanding – educating them
      regarding the value will take time
   - Requires administrative time to enter and maintain advertiser enhancements
   - Significant expense realized from the start

Recommended pricing: $12 - $15 / advertiser / month
Contract Model P&L:
                                     Ottaway Newspapers
                                 Contract Model P&L, Year One
                                       Unit Price    Annual
                              Number   per Month    Revenue                  Comments
                                                                    Excluded contracts include
Enhanced Ads, bundled                                               national advertisers, national
with newspaper contract        650         $14.00        $109,200   preprints, help wanted
                                                                    Premium(top of page)
                                                                    placements, links within
Premium upsells                 50          $50          $30,000    listings, etc.
Single-sale of non-contract                                         Non-print contract advertisers
advertisers                    100          $25          $30,000    sold at higher rate

Total Revenue                                            $169,200

                                                                    paid to SB; premium upsells
                                                                    do not incur additional SB
Switchboard fees               750     $          7.00   $63,000    charges
                                                                    Commission to Internet sales
  Sales Management                          5%            $8,460    management
                                                                    Paid on Premium upsells and
 Sales Force                                10%          $6,000     non-contract individual sales
Total Expense                                            $71,460

Net Income/Loss                                          $97,740
Margin                                                    42.2%
(2) Single sale model: Enhanced listings are sold to contract and non-contract
advertisers on an individual basis. Internet and/or print sales force sells enhanced listings
to advertisers one at a time. Premium enhancements are up-sold from installed contract

   - Advertiser realized and understands nature of product at point of sale
   - Less immediate expense
   - Requires less time to administer
   - Allows few featured advertisers to stand out from the pack
   - Does not impact print contract revenue
   - Better margin/advertiser

   - Limits effectiveness of search results for consumers
   - Marginal Internet revenue impact
   - Limited effectiveness for broad-base of advertisers, potentially opening door for
   - Requires significant sales force time

Recommended pricing: $25 / advertiser / month
Single Sale Model P&L:
                                           Ottaway Newspapers
                                 Typical Single Sale Model P&L, Year One
                                                      Unit Price    Annual
                                           Number     per Month    Revenue        Comments
                                                                             Move directory
                                                                             advertisers from
                                                                             various stand-alone
Import existing base of directory                                            Internet directories
advertisers                                 100         $25.00     $30,000   into SB
Sale of additional directory listings       100         $25.00     $30,000
                                                                             Premium(top of
                                                                             page) place mints,
                                                                             links within listings,
Premium upsells                             25           $50       $15,000   etc.

Total Revenue                                                      $60,000

                                                                             paid to SB; premium
                                                                             upsells do not incur
                                                                             additional SB
Switchboard fees                            200     $       7.00   $16,800   charges
                                                                             Commission to
  Salesperson                                            10%       $6,000    Internet sales force

Total Expense                                                      $22,800

Net Income/Loss                                                    $37,200
Margin                                                              38.0%
IV. Launching Local Business Search:

Following is the recommend approach for launching LBS using Switchboard –
    - Designate administrative & development resources
    - Develop Local Search site/brand and vertical landing pages
    - Train administrative staff on operating Switchboard
    - Populate site with initial enhanced listings
    - Launch search widgets

Administrative and Development Resources: Initial and ongoing resources are required
to launch and maintain Switchboard.

Resources to Define and Allocate:
    Development – webmaster to create html templates for Local search website and
      possibly additional vertical landing pages. Also testing, troubleshooting, and
      working with Switchboard implementation staff. Ongoing, webmaster will create
      search widgets, install on newspaper site and refine templates
           o Local Search website – 8 hours
           o Vertical Landing Pages – 2 hours each
           o Search widgets – 2 hours each
    Administration – sales administrator to maintain enhanced listings in Switchboard
      platform; manage & reconcile contract information from business office w/
      Switchboard schedule.
           o Initial listing management(contract model): 25 hours
           o Ongoing listing maintenance (contract & single sale model): 4 hours /
           o Ongoing contract/listing scheduling (contract model): 4 hours/month.

Local Search Website and Vertical Landing Pages:

      Local Search website – A search sub-brand and look must be created for your
       local search website. It is advised that you decide with key newspaper
       stakeholders, how to position your local search product (e.g. “Online Yellow
       Pages” vs. “Business Directories” vs. “Local Search”, etc.
           o Examples

      Vertical Landing Pages – In addition to providing a complete yellow
       pages/business directory system, Switchboard can be used to create virtual
       individual business directories. These are developed and hosted locally and can
       include content from your cms and a search widget leading to Switchboard. That
       search can be constrained to include only search choices from a specific category.
           o Example Vertical Landing Page:
                           Page is designed in local site’s wedding look & feel
                           Page includes links to newspaper wedding info
                           Search widget look & feel features customized graphics
                           Search criteria is limited to wedding related business

           o Example Vertical Landing Page:
                       Page includes review information from newspaper
                       Page includes banner advertising related to dining
                       Page includes constrained restaurant search

           o Example Vertical Landing Pages / Directories:
                 Lodging
                 Dining
                 Health Care
                 Professional Services
                 Building & Home Services

Administrative Staff Training: It will be necessary for a local resource to understand and
manage the Switchboard administrative interface. It is through this interface that listings
can be enhanced and controlled. Although the interface is relatively straightforward,
training is required to manage listings. Switchboard will provide tele-conference / web-
based training to each site – usually an hour session. It is advised that the local site
administrator work with sample listings in the pre-launch environment and consult w/
Switchboard staff to better understand the nuances of the product. This learning period
should take approximately 4 hours – 1 day.

Populating Site: Depending on the business model chosen, administrative time needs to
be allocated prior to launch in order to create enhanced listings in Switchboard.
    - Contract model: With the contract approach, a large number of advertisers will
        need to have their listings enhanced and positioned prior to launch. Assuming an
        initial base of 500-650 advertisers, this process should take approximately 25
        hours. Basic optimization process as follows -
             o Each listing is first “switched” from a basic or free listing to “enhanced”
                 status. At this point, the listing moves to the top of a search category (or
                 multiple search categories).
             o Once tagged as an enhanced listing, the administrator may begin to add
                 and edit additional features including:
                   Logo
                   Website link
                   Email links
                   Marketing headlines
                   Optional external links – these can be used to link to non-
                    Switchboard based upsells like newspaper display ads, coupons,
                  Brands sold, services offered
                  Additional business categories
                  Search radius
           o Comprehensive information for each advertiser will likely not be available
             from the advertiser at this point. You will not have been able to contact all
             of your advertisers to fully enhance the listing. Some basic refinement
             with the initial upload is recommended as follows –
                  Logos – if logos can be obtained either from print ad or
                    advertisers’ websites, it is advised to add them. System use so far
                    indicates that listings with logos experience increased clicks.
                  Business categories – in order to be seen at the top of selected
                    search results, a listing must be tagged with the appropriate
                    category(ies). Based on the Axiom business database, these
                    taxonomic tags are already associated with the listing in the admin
                    interface. They simply need to be made visible with the listing
                    when it is enhanced.
                  Search radius – Switchboard is set up with a default search radius
                    for each co brand site (usually 10 miles). This search radius can be
                    dialed up or down in the admin interface for business categories
                    and individual listings. It is recommended that each site consider
                    its local geography when adjusting search radius for individual
                    businesses. For example, Cape Cod has created a 5 mile search
                    radius from selected town for restaurants and a 30 mile radius for
                    real estate brokers.
                  Additional attributes – businesses brands, services and full range of
                    categories can be added as more information about individual
                    businesses is obtained.

Search Widgets: The key to Local Search is access. We are in a position to leverage the
strength of our local websites by providing access to Switchboard from multiple locations
throughout our sites. This can be accomplished most effectively by integrating search
widgets into the navigation framework of our sites. Widgets of varying types are
available from Switchboard’s affiliate services site. Additionally, Switchboard staff is
available to help you configure and launch your search widgets. It is recommended that
you deploy two types of searching:
    - General search: These would be broad-based search boxes, usually offering text
        box searching for business by name or category.
           o Example: (see search in top horizontal rail)
   -   Vertical search: These are the landing page widgets described above. They are
       available along with instructions on how to configure them from Switchboard.
       Their use would be in context with specific content or in the creation of a vertical
       directory (e.g. dining, lodging, health care, etc.)
           o Examples:,
      (see search pull down in right
               rail below fold)

V. Marketing Local Business Search

Marketing: An ongoing marketing campaign is critical to the success of your Local
Search initiative. Once your system is in place, consistent messaging to local consumers
through the newspaper will convey the message that your Local Search website is the
local primary resource for local search. It is recommended that the campaign be simple
and scaleable and mindful of the following –
    - Bear in mind that although we are targeting consumers, we also need to remind
        advertisers of importance of our Local Search capabilities. The marketing
        message should contain sub-text directed at educating advertisers.
    - Create ad units with consistent messaging in a variety of sizes so that Local
        Search in-paper marketing can take optimal advantage of promo space

VI. Selling Local Business Search

Sales Plan: Successful implementation of Local Search requires education and training
of both sales staff and advertisers. It is strongly recommended that a Local Search sales
plan be developed that is in keeping with the selected business model. Following is a
sample sales plan drawn from the Cape Cod Times:

      Introductory in-paper marketing. Goal: drive consumer traffic to site; create results for
       advertisers; create increased advertiser awareness:
           o Develop Local Search ad campaign w/ features, benefits, etc. Design for
               consumers w/ advertiser awareness in mind. Ready by 9/15 (Ryder, Kempf)
           o Set advertising schedule: goal is 3-4 times/weekly, Launch by 10/1/04 (Ryder)
           o Review site traffic monthly, add information as appropriate (Ryder, Kempf)

      Listing Enhancement/Collateral/In-house Evangelism. Goal: Enhance contract
       advertiser listings to improve search result matches & advertiser results; create
       advertiser & print sales force awareness.
           o Create & launch web-based data collection instrument (Zoomerang) for
               advertisers to submit directory info. (Gilbreth). Tool ready by 9/7
        o   Create sales one-sheets for mailings & sales calls. Goal: materials to presell
            and sell upsells and non-forced directory listings. (McMahon, Gilbreth). Ready
            by 9/10
        o   Introductory presentation to print sales force as sales meeting. Goal: have reps
            spread word on benefits of Local Search; deliver info on how to enhance listings,
            pre-sell premium opportunities. (Kempf, McMahon, Gilbreth, reps and
            managers). In Sept.

   Product Development & CapeCodOnline Link Optimization. Goal: Expand access and
    content connected to Local Search throughout CapeCodOnline; expand consumer &
    advertiser awareness; increase traffic; improve search results; expand advertising
        o Install PSB (portable search boxes) leading to Local Search throughout CCOL.
            (Bryant, Swallow). By 10/1
        o Enhance content on directory landing pages (Kempf, Bryant, Gilbreth, Swallow)
            By 11/1
                 Lodging
                 Dining
                 Weddings
        o Create additional directory landing pages: (Swallow, Gilbreth) 11/1
                 Health Care
                 Professional Services
                 Home Improvement
                 Boating

   Sales Initiatives:
        o Telesales, Internet: distribute collateral material to prospective non-contract
            advertisers, distribute up sell materials to key directory categories; follow with
            phone sales effort; prospect leads for field rep.(Gilbreth?); create phone script
            and manage the initiative (McMahon)
                  Q4 ‘04: New listing sales - Lodging, Dining, Wedding, Health Care,
                      Professional Services
                  Q1 ’05: New listing sales - Home Improvement, Boating, Recreation
                  Q1 ’05: Premium listings, additional links, additional keywords from
                      above categories
        o Telesales, Phone Room: Up sell contract advertisers from general categories –
            additional keywords and links (phone room and managers); create script, train,
            track results (McMahon), Q1-2, ’05.
        o Field Sales, Internet: Follow up on prospecting by Internet telesales; close leads
            brought from print sales via solo and four-legged calls; secure search page
            sponsors, landing page sponsors and premium search result sales.
                  Q4, ’04: Secure general search page (
                  Q4, ’04: Sponsors for landing pages – Weddings, Health Care,
                      Professional Services
                  Q4, ’04: Premium listings – Lodging, Dining, Health Care
                  Q1-2 ’05: Premium listings across general categories
                  Q1-2 ’05: Multiple sponsors for landing pages.
       o   Field Sales, Print Sales Force: Distribute collateral material and information
           from Internet sales management, collect listing info from customers, and provide
           leads for Internet follow-up. (Print Sales, ’04-’05)

   Products, Inventory and Estimates:
       o Non-contract new directory sales – 5/month @$250/yr.
       o Non-contract directory price increase - $250/yr, effective 1/1/05.
       o ad inventory (estimate: 50% sold by Q4, ’05):
                 Marquee – $400/mo. (two in rotation @ $200/mo. ea.)
                 Skyscraper - $400/mo. (two in rotation @ $200/mo. ea.)
       o Landing Page ad inventory - $400/mo/page (Rotating Marquee and
                 Lodging – sold
                 Dining – sold
                 Wedding – available
                 Professional Services – available
                 Marine/Boating – available
       o Premium Category Listings:
                 Goal: 8 categories, 4 advertisers each = 32 slots@$50/mo.= $1600/mo;
                    estimate 50% sold by Q2 ’05.
VII: Resources

   1. Additional Documentation:
         a. Borrell research document on newspaper strategies for local search
         b. InfoSpace PowerPoint on local search
         c. Sample sales collateral material (Cape Cod)
         d. Sample marketing campaign advertising (Cape Cod)

   2. Proof of Concept: CapeCodOnline - CapeCodOnline launched Local Search
      using Switchboard in July. Below is a snapshot of that business thus far:

Local Search Proof of Concept: CapeCodOnline


Business Model:
 Primary                     Contract bundle
 Additional                  Premium position upsell
                             Non-contract single sale
                             Banner ad positions

Installed Advertiser Base
  Contract                             650
  Non-Contract                         200

Monthly Revenue*
 Contract                            $8,000
 Non-contract**                      $2,000
 Premium upsells                      $500

       Searches/Month            18,000 - 25,000
  Click Actions* (enhanced
            listings)                6 - 10%
  Click Actions* (premium
            listings)                7 -15%
 Click Actions (additional
         listing links)             1.5 - 2%
      Page Views/Month              40,000 +
3. Contacts:

   Strategy, business modeling, launch plans: Bob Kempf,

   Switchboard 1st point of contact, our business contact: Vance Gorke, (508) 898-8178

   Switchboard implementation and training: Carolyn.Johnson, (508) 898-8136

   Implementation experience and suggestions: Jamie Bohlin, Cape Cod Times, 508-862-1196

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