Local Search Site Judy’s Book To Shut Down

TechCrunch first reported (confirmed on CEO Andy Sack’s blog) that local search site Judy’s Book is shutting down and/or looking for a buyer. After struggling to monetize its traffic, the site shifted its business model to emphasize coupons and local deals. The firm had raised over $10 million in two investment rounds. This follows the sale of Judy’s Book competitor InsiderPages to IAC’s Citysearch and the failure of Backfence.com.

Some might be inclined to see this latest closure of a local site as evidence that local’s not working. The truth is that it’s quite complicated, with little room for error by startups. For online consumers, however, local is growing in importance. Just to put the discussion in larger context, here are some facts and stats about local that I quickly compiled:

Internet ad spending will reach $62 billion and surpass all other media by 2011; local online spending will reach $19.2 billion. Local search is projected to be $4.1 billion. Veronis Suhler Stevenson, August 2007

Local search is the second most popular online activity after e-mail. Piper Jaffray (2007)

60% of all local business searches now happen online (33% happen in print yellow pages) and 82% of the people using local search sites follow up their research with offline action. TMP Directional Marketing-comScore, August 2007

Out of the 130 million monthly unique users of Yahoo last year, 116 million of them came to Yahoo with local intent. Hilary Schneider, Executive Vice President, Global Partnership Solutions, Yahoo!

The Internet will influence a trillion dollars in offline/local retail spending by 2010/11. JupiterResearch, Forrester Research, 2007

Here’s some additional recent data on consumer usage of the Internet to find local information from WebVisible and Nielsen. I’ve also got some additional discussion of the Judy’s Book closure on my personal blog, Screenwerk.

Related Topics: Business Issues: General | Channel: Industry | Search Engines: Maps & Local Search Engines


About The Author: is a Contributing Editor at Search Engine Land. He writes a personal blog Screenwerk, about SoLoMo issues and connecting the dots between online and offline. He also posts at Internet2Go, which is focused on the mobile Internet. Follow him @gsterling.

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