Continued strong growth of Internet Yellow Pages and Local Search.

According to The Kelsey Group’s Global Directories Forecast 2007, advertising revenues from print Yellow Pages, Internet Yellow Pages (IYP) and Local Search will grow from $30.6 billion in 2006 to $38.9 billion globally in 2011, representing a 4.9 percent compound annual growth rate (CAGR).

The Kelsey Group expects the print Yellow Pages segment of the global directories marketplace to grow from $26.5 billion in 2006 to $27.8 billion in 2011 (0.9 percent CAGR).

“Bucking the trend of some other traditional media, the global print Yellow Pages market will grow slightly through 2011, driven by aggressive and innovative publishers,” said Charles Laughlin, senior vice president and program director, The Kelsey Report®.

The online segment, which comprises IYP and local search advertising, is expected to grow from $4.1 billion in 2006 to $11.1 billion globally in 2011 (22.3 percent CAGR).

“Increasing SEM prices, and the resulting margin compression, are causing resellers and aggregator sales channels to invest heavily in SEO platforms,” said Matt Booth, senior vice president and program director, Interactive Local Media, The Kelsey Group. “Yellow Pages publishers with deployed sales forces are positioning to bring more advertisers and content to the local search experience as a means to control more of the digital economics.”

“Our outlook for IYP and local search is supported by the latest wave of the Local Commerce Monitor (LCM), our annual research of small and medium-sized business (SMB) advertisers,” said Neal Polachek, senior vice president, The Kelsey Group. “LCM Wave X shows that while SMBs continue to utilize traditional media, they are increasingly turning to targeted, vertical electronic media.”

For more information at http://www.kelseygroup.com