“Free one touch directory assistance” from Google’s free directory assistance service, Goog-411, is being advertised in Office Depot’s newspaper circulars as a main feature on GE Dect 6.0 Digital Cordless Phones.

The ad copy spells it out:

1- Use the dedicated one touch button on your GE phone.
2- Search for a business by name or category.
3- Goog-411 connects your call FREE of charge.

What it looks like is the beginning of a new “bounty” relationship that could pay nice dividends for GE, while bringing increased visibility to Google’s DA effort. The last time we saw this tactic was with PC makers, which routinely won bounties from Internet service providers like AOL and Earthlink in the mid-1990s.

European Directory Assistance has launched a new English-language directory assistance site in Belgium called 14-14, which offers residential and business search, with the latter available by name and category. Part of the new service’s positioning is that during business hours, consumers prefer Web-based over phone-based directory assistance.

According to the release:

“EDA’s specific aim is to reach the large expatriate community living in and around Brussels, who often speak neither Flemish nor French but generally converse in English, for instance people working for the European Union, NATO, Eurocontrol or the numerous multinationals established in Belgium.”

EDA operates phone-based DA services in Belgium (French and Flemish), Ireland and the Netherlands.

In a significant development, AT&T’s Yellowpages.com is replacing Yahoo! Local Search for AT&T’s broadband and Internet customers. It is a move that will greatly enhance Yellowpages.com’s position in the space. The company recently told analysts it expects to attract 2 billion searches in 2008 and 3 billion by 2010.

The move is part of a broad multi-year reworking of AT&T’s existing deal with Yahoo! that gives Yahoo! $300 million to $400 million in upfront cash, according to analysts interviewed by paidContent.

It replaces a previous deal that was primarily based on providing Yahoo! with a share of every AT&T broadband user for a co-branded AT&T/Yahoo! portal and sell through of premium services – an arrangement that AT&T has publicly chafed at.

According to published reports, the previous deal brought Yahoo! roughly $300 million in high margin cash flow. A complete collapse of the deal was unlikely, but the renegotiated terms reflect AT&T’s strong position in the company’s many markets like wireless, directories, and increasingly, the Internet.

AT&T is clearly focused on building up its own portal efforts. The new deal will have a portal “powered by Yahoo!.” With the Yahoo! deal completed, it is adding access to its portal and e-mail for all AT&T customers, not just AT&T Internet customers.

The news comes at an interesting time. Last week, the wireless spectrum bids were due and AT&T will clearly be a contender. Further, Google is rumored to benefit substantially from increased mobile traffic from the iPhone available exclusive through AT&T Wireless.

It is unclear if the deal essentially cuts Yahoo! out of being a local search destination site for AT&T customers. In an environment where top portal and search brands are recipients of mobile usage, that seems unlikely. Regardless, it gives Yahoo! more opportunity to sell display and search advertising throughout the AT&T network. It is something that could have strong dividends as Yahoo! battles directly with Google and others. No doubt, retaining tight control of the carrier deck will allow AT&T to steer traffic accordingly.

It is of no small coincidence that last month, AT&T reworked corporate branding to reflect the company’s intended direction. What was once “AT&T Advertising & Publishing” is now being touted at “AT&T Advertising & Search.” The merger between Yellowpages.com and Ingenio, a $250 million transaction, confirms our belief that AT&T is moving the company toward a fully integrated cross-channel marketing company.

It also extends the reach of the Yahoo! portal to the old BellSouth territories recently integrated into AT&T, and extends Yahoo!’s content beyond the desktop to mobile as well – something that will be much more important over time.

According to paidContent, Yahoo! may see declines over $150 million to $200 million in revenue due to the deal’s restructuring. But there clearly is also plenty of upside if Yahoo!’s advertising is widely used, and mobile develops as strongly as anticipated.

We have speculated for some time that AT&T is a natural fit for Yahoo! in terms of an eventual merger or sale. While this news doesn’t sway us one way or another, we do believe these two companies are moving closer together and an eventual marriage of some type is more than a remote possibility.

(This post was co-written by Matthew Booth and Peter Krasilovsky.)

AT&T and Call Genie have extended their relationship to provide 1-800-YellowPages free DA users business category search capabilities. According to the press release, “This feature will give users of AT&T directory assistance the opportunity to search by type of business in addition to searching by business name in the nine Southeastern (former Bellsouth territory) states.”  

Talking with Call Genie, the functionality it is providing AT&T includes voice-based search with business category, location and keyword refinement with multi-modal output of information including SMS text, maps, and coupons delivered to mobile handsets.    

Call Genie had been working with AT&T to support a trial product launch in the Atlanta market called EasyBusinessFinder that was seen as successful and is now being formalized in the latest agreement. While the current plan calls for the service to be carried in the nine Southeastern states, AT&T’s recent announcement to extend its 1-800-YellowPages coast to coast might signal a wider distribution of the business category search functionality.   

While the other telcos have divested their Yellow Pages units, AT&T maintains that there is real synergy in pursuing a three-screen strategy. Rather than selling the YP unit and using the proceeds to build out its network, a la Verizon, AT&T is betting that there is a home field advantage in keeping its landline, mobile and U-verse video customers intact, and selling advertising — especially local advertising — across the digital channels.

It is a big bet. U-verse apparently has had start-up pains in an intensely competitive video marketplace. And mobile advertising obviously needs to be very sensitively handled. AT&T could always change course and spin out the YP unit. But for now, I like the ambition of it all.

Speaking at its 2007 analyst conference, Ray Wilkins, group president of diversified businesses, said his revenues are $600 million today, but that he hopes to see $1.5 billion in non-print advertising revenues by 2010. Yellowpages.com, especially, is the core of the opportunity, since it represents a giant umbrella for all the products. It is expected to get 30 percent revenue growth CAGR over the three-year period.

The basis for these projections is integrated sales from the YP sales force, a boost in searches from 2 billion to 3 billion, the integration of Ingenio’s Pay-Per-Call platform and the general growth from search revenues, especially on the mobile side. Wilkins noted that 18 million wireless handsets will be pre-installed for AT&T mobile search next year, and enabled in 20 million others. By the end of the year, he said, digital ad insertion will begin in U-verse homes.

It is hard for me to comprehend, but we are finally finished with ILM:07. We were grateful to have had 650 interesting and enthusiastic attendees from all over the world, 72 stimulating speakers, a full load of sponsors and an excellent partnership with SES.

Our next conference, April 30-May 2 at the Westin in Seattle, will be a highly differentiated affair. Stay tuned for what we are doing with that (but not for a couple of months, OK?).

For those of you who can’t get enough coverage, a virtual conference will be up with all the PPTs in a couple of weeks (but only for attendees). You can also order the DVD.

For immediate gratification, however, check out the posts from my talented colleagues on the Kelsey Blog.

I especially liked Michael Taylor’s write-up of our discussion with Mahalo CEO Jason Calacanis. Michael is totally correct: “The long and short of Calacanis’ comments go to several of the key themes heard over and over again at ILM:07 — relevant content, deep content and engaging, passionate people are all needed to make a highly relevant and personalized search experience.”

In addition to the Kelsey write-ups, Mike Boland has captured links from the press and bloggers who attended our event. It was good to have them aboard. And Mel Taylor took some great pictures.

Here are easy links to Kelsey ILM:07 posts:

1. TKG Analysts Lay the Groundwork (Michael Boland)

2. Winebaum Provides a Fresh Look at Local Search (Michael Taylor)

3. Cash Is King for Local Search Investors (Charles Laughlin)

4. Herratti’s Citysearch: Social Media Video Partnerships (Bobbi Loy-Luster)

5. NCI: ‘We Can Work with Zillow’ (John Kelsey)

6. ILM:07 Spotlights mobilePeople (Stephen Marshall)

7. Stubbs Discusses AT&T’s Post-InGenio Vision (Michael Taylor)

8. TMP’s McKelvey Discusses Online/Offline Research Data (Michael Taylor, Michael Boland)

9. New West’s Weber and Independent Local Media (John Kelsey)

10. Marchex’s Horowitz: Bet on People Already Winning (Charles Laughlin)

11. Google’s Hanke: Maps, Mobile and Mashups (Michael Boland)

12. An Intuit-ive Approach to SMB Marketing (Stephen Marshall)

13. Injecting Social into Local Media (Michael Boland)

14. Taking It Home: The Final Panel at ILM:07 (Stephen Marshall)

Interactive Local Media: 07 is ready to roll Nov. 28-30 in L.A. That’s next Wednesday through Friday!

The show, which is being produced in partnership with SES Local, has attendees from all over the world. One exec told me he is coming on Wednesday, taking the red eye to New York that night due to a prior commitment, and flying back on Thursday night for the final day.

Attendance-wise, we have the biggest sign-up list for a Kelsey event since the mid-1990s. Almost everyone that we have slotted will actually be there. While the agenda has been tight for some time, with 70-plus speakers, here are some last minute adds:

• Christophe Maire, a cofounder of Nokia’s Location-Based Experience Development, is set for Day 3. HOT DISCUSSION TOPIC: Nokia’s $8.1 Billion purchase of NavTeq.

• Laurel Gilbert, from Microsoft’s Atlas division, is speaking on our localizing national advertising panel. HOT DISCUSSION TOPIC: How Microsoft will use Aquantative to transform itself into a true Web advertising giant.

• Doug Kilponen from MerchantCircle is speaking on the localized shopping panel. MerchantCircle just received a $10 million cash infusion from IAC and others. HOT DISCUSSION TOPIC: Best Practices for Signing up Small Businesses.

• Claudia Poepperl from mobilePeople is set to provide a demo of the London-based company’s cutting-edge social mobile technology.

We are also expecting a drop-in from a top executive of a company that’s been in the news, but we can’t say much more about it. And speaking of news, there are lots of interesting news announcements that will drop around the show as well. So, will we see you in L.A.? Here is the registration page.

AT&T has bought Ingenio and will use its call tracking platform across Yellowpages.com, 800-YellowPages, Mobile and Print Yellow Pages. We think the deal is quite important. This is a story that will unfold in the months ahead as more information about integration becomes public.

For a while now, we have been saying that the inclusion of call tracking is the inevitable conclusion of a true multi-platform business where usage is distributed across mobile, print and the Internet.

Our view is that call tracking provides a sort of “portfolio optimization” of lead delivery. For example, if the Internet cannibalizes consumer usage traffic from print, call tracking can make up for the declines via mobile or search.

This is easier said than done. But we have viewed this outcome as a foregone conclusion for some time.

Some will say this acquisition is defensive posturing. We disagree. If you take AT&T and list the company’s portfolio of assets, you quickly realize that it maintains a leading position in every key market in which it operates save one: the Internet. Even with the latter, we’re talking about overall usage and not the ability to successfully sell SMBs into the channel, per se.

Market fragmentation is making advertising more complex, time intensive and accountable. But advertisers want accountability and simplicity. This gives it to them.

In our view, Ingenio is a good acquisition for AT&T for a few reasons:

It’s profitable, with revenues rumored to be north of US$100 million.

• It has key distribution with key portals like AOL.
• It has substantial technical experience in pay-for-performance, call optimization, call tracking and lead tracking.
• It’s rumored to have hundreds of key patents around call tracking, pay-for-performance and cross-media lead optimization.
• It has deep experience with PFP bidding engines and placement.
• It has a strong management team with big ideas about multi-platform lead optimization.

This shows that AT&T has enormous plans across all the company’s business units. In our view, this includes print directories as well. There are numerous categories, for example, where prices have risen to such an extent that many advertisers have left the print book. Value-based pricing opens the door to bring back advertisers, sell new ones and retain more of the current ad revenue base.

In the end, value-based advertising is what this is all about. This means simple and accountable results for advertisers. If AT&T can successfully employ this strategy across the company’s diverse set of assets (print Yellow Pages, Internet, mobile, directory assistance and ad-sponsored DA), it will have managed to push to the forefront of the strategic landscape.

We’ll have more to say later.

Toronto-based voice search technology provider Call Genie announced today that it will acquire European DA technology provider BTSLogic for $1.5 million.

The press release is somewhat unclear on details of how this will play out, but it states generally that the deal brings Call Genie more capability to integrate business name business category search in its DA offerings, as well as an operator workstation platform.

BTS currently operates in North America, Europe and parts of the Middle East, while Call Genie’s Enhanced Voice Directory platform powers the voice search and DA offerings of Hello Yellow in the Canadian market, among others.

The numbers are looking very, very good for the Interactive Local Media:07 conference in L.A. Nov. 28-30. Internally, we think this one is a record breaker. Register and book the hotel while you can. The latter tends to sell out.

In recent weeks, we’ve been putting the final touches on the program. For instance, we’ve added Facebook’s Chamath Palihapitiya, who is VP of product marketing. Here’s a snippet about Chamath from Fast Company’s cover story this month:

“Palihapitiya, 31, is tall and whippet thin, with elegant manners and a ready smile. A former electrical engineer, born in Sri Lanka and raised in Canada, he ran AOL’s instant-message group, then jumped to the venture fund Mayfield. He is part Sand Hill Roadster and part freethinker.”

Other notable adds include ShopLocal CMO Bob Armour, Scott Ferris from Microsoft’s Atlas division, LA Times.com’s Robertson Barrett, and City Voter’s Josh Walker. There is also a brand-new Local Mobile panel, featuring Gary Roshak, who has migrated from Marchex to Yahoo!, Jeff Torgerson at InfoSpace, and Collin Holmes at V-Enable.

Also, take a look at the SES side of the show. Google Local head Eric Stein, Zorik Gordon from Reach Local, and Topix head Chris Tolles are just some of the great execs SES is bringing in. Kevin Heisler and Kevin Newcomb are moderating the SES panels.

The Kelsey Group also has its LinkedIn networking set up for the show. We’ve got dozens participating already. Once you register, you should sign in for that, too (even if you haven’t used LinkedIn for a while). See you in L.A.?