1. ©2011 eMarketer Inc. Local Online Advertising: Digital Trends, Challenges and Opportunities For more information on this subject, see the related report at http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000854 http://totalaccess.emarketer.com/Reports/Viewer.aspx?R=2000854

2. ©2011 eMarketer Inc. National brands are looking to extend their local presence online

3. ©2011 eMarketer Inc. As a result, online continues to increase its share of US local ad spending

4. ©2011 eMarketer Inc. Ad dollars will follow consumer interest in select online resources  Local search  Mobile devices  Hyperlocal communities  Daily deals and other discount sources For quick, relevant local information, consumers are turning to: “Local advertising—whether it’s online or offline—is community-specific. It’s not a place where a brand means a whole lot. It’s a place where relationships mean a lot, and relevance is what it’s about. Whether it’s a small or a big brand, it’s a winner-takes-all advertising environment.” —Heath Clarke, CEO of Local.com, in an interview with eMarketer, October 26, 2011

5. ©2011 eMarketer Inc. Hyperlocal ads connect brands at the community and neighborhood levels

6. ©2011 eMarketer Inc. Key Takeaways: Local Online Advertising  Reinforce brand presence locally where expectations for immediacy and relevancy supersede branding. Consumers use local search for quick access to local businesses as well as community news and information. Here, the first and most relevant brand to capture their attention will win.  Local search, mobile devices, daily deals and hyperlocal communities will drive consumers—and ad dollars—to local online. As consumers turn to these local information sources en masse, local online advertising will be there to meet them.