Monster Worldwide has bought HotJobs from Yahoo for $225 million. It will also be in charge of Yahoo’s recruitment content in North America for the next three years, bringing in perhaps another $100 million for the life of the deal from home page traffic, etc. As part of the deal, which closes in 3Q 2010, Monster also gets exclusive rights to negotiate similar arrangements with Yahoo’s overseas properties.

HotJobs has been on the market since Carol Bartz took over as CEO of Yahoo early last year (or even before). It hasn’t been clear if anyone would buy it for more than a fire-sale price. The deal’s price of $225 million does represent a significant discount from the $439 million that Yahoo paid in 2002, but it is more than some handicappers had been predicting.

The deal likely propels Monster well past Gannett’s CareerBuilder as the online recruitment leaders (by revenues). Lately, CareerBuilder’s lagging profits have become a drain on Gannett’s profits. Likewise, Monster today reported that 4Q revs were down 27 percent, and that it suffered a net loss of $2.1 million on 4Q revenues of $213 million.

For Yahoo, the deal is the latest in a series of selloffs. Notably, it sold its search business to Microsoft last year, has de-emphasized other areas such as shopping and small business, and has been rumored to put some of its other verticals in play as well.

HotJobs, of course, had been the original glue that brought Yahoo and the newspapers together. But the consortium has lately been focused more on using Yahoo’s APT behavioral targeting advertising platform. Some members of the consortium already use Monster.

Recruitment remains a huge category, but in recent years, has been challenged by the recession. It has also become a major battle zone driven by technologies, such as semantic search-and-match job listings, mapping and communities of interest. Indeed, a growing part of the market has moved to niche specialties, such as trade associations, etc. At the same time, ancillary verticals such as vocational education, relocation and job fairs have proved to be less important than once thought.

New York Magazine, whose online effort is run by longtime MSNBC.com exec Michael Silberman, has emerged as one of the most ambitious city magazine efforts on the Web, competing directly against city guides and other local services. Yesterday, the site, which leverages a sales force of 100, announced a partnership with Clickable to power its local online advertising.

Clickable itself is gaining steam. The company has expanded beyond its roots in vertical search to include a platform with display ad management as well. Last week, it announced a similar deal with Fox Audience Network.

CEO David Kidder tells us that more than 2,000 sites are currently using the Clickable platform, which provides access to Google, Yahoo and Microsoft. Kidder says that Fox is rolling out the platform in two phases. The first phase will utilize Clickable’s performance-based model. It is a lot of strategic positioning for inventory and integration. The second phase will include several enhanced features, such as click to call.

Local.com, the public company that started life as Interchange Corp., observed its 10th anniversary last week, complete with a red balloon-festooned party at its headquarters in Irvine, California, and an upgrade of its three-year-old, local ad distribution agreement with Idearc’s Superpages.com.

There are, of course, a lot of pieces to Local.com, which has evolved right along with the local ecosystem. It includes the local directory/city guide sites, the outside sales force selling “Local Promote,” the networks, a mobile site, an SMS site, a U.K. site, and its growing “Local Connect” private-label directory service (formerly PremierGuide).

The expanded agreement with Superpages illustrates how some of the pieces can be leveraged. Under the deal, Superpages.com’s performance-based and subscription advertisers now receive preferred placement on Local.com’s 700+ regional sites. The expanded agreement also includes distribution of enhanced content from Superpages.com advertisers, including ratings and reviews and links to enhanced local business profile pages and videos.

I’ve often pondered CEO Heath Clarke’s vision. It goes like this: “Local is really big. If you scale it right, you don’t need to be No. 1 or 2 to make a go of it — you just need to get a few percentage points, and then leverage it.”

AT&T Advertising Solutions has announced a partnership with Hispanic publisher Seccion Amarilla to sell Hispanic advertising into select Seccion Amarilla directories.

“AT&T is always focused on enhancing our directories to best serve our business and residential customers in the diverse communities we serve,” Carlos Salinas, executive director of strategy and business development at AT&T Advertising Solutions, said in the release. “This is one more way AT&T strives to connect people everywhere they live and work and do it better than anyone else.”

The agreement allows Seccion Amarilla to carry the AT&T logo on the directory covers in recognition of the partnership.

Earlier this month, The Kelsey Group release an Advisory (“Hispanic Directories a Small but Mighty Growth Segment for Print”) on the growth of the Hispanic directory segment, demonstrating the opportunities within the market. While many local media segments have suffered from decline, the Hispanic segment continues to show strong growth. TKG projects the Hispanic segment will grow at a compound annual growth rate of 5.9 percent to US$218.4 million in 2012 from US$163.7 million in 2007.

The move by AT&T combines two strong brands within the Hispanic community and allows more focused Hispanic revenue development for both parties. The combined effort by AT&T and Seccion Amarilla will continue the trend of more focused sales and strategic efforts in the Hispanic market and may spur additional segment growth.

Today sees a couple of more announcements in the local video space, both involving companies with a big presence here at The Kelsey Group’s DMS conference.

First off, local search platform provider Innovectra has partnered with Digital Media Communications to bring video capability to its ActivImpact platform used by IYP publishers.

European video production company Spotzer also teamed up with MerchantCircle to bring video to its business profile pages. The deal extends video production to MerchantCircle advertisers while also expanding Spotzer’s reach into the SMB marketplace (and its further growth to the U.S. market).

Meanwhile, Mixpo has formed a partnership with Where2GetIt, which will similarly bring the video vendor’s technology to Where2GetIt’s advertisers. This deal varies from Spotzer’s in many little ways, including the fact that Where2GetIt has lots of national brand advertisers that extend Mixpo’s reach into that space.

We’ll have more on both deals as the day goes on, but generally speaking, they each extend reach for these video companies, which we’re seeing more and more throughout the space. This will be necessary for survival in terms of scaling to required business levels to stay alive.

Meanwhile, there is a noticeable increase in local video companies showing up for Kelsey conferences. The clear Yellow Pages-centric angle of this particular show has proved attractive for these providers to gain exposure with sizable local sales channels. Based on my own rough count, about 20 percent of the exhibitors in the expo hall were providing local video advertising in some way.

Our upcoming Interactive Local Media conference in September will have more local video on the agenda with a “superforum” devoted to it. More on that as we develop the topics and speaker list. In the meantime, if you’re here in Atlanta, come check out the local video session on Wednesday:

10:45 am – 11:30 am
The Online Video Opportunity
Video is fast advancing as a key element of the local online advertising mix, and Internet Yellow Pages providers are jumping in with their own products. This session will explore the emergence of online video on IYPs and examine its potential growth trajectory.

Bottom-Line Questions: What are the most effective approaches for selling online video to SMBs? How do publishers deliver a quality video product at high margin and low price point? Should video be a high-premium, low-penetration product or vice versa?

Panelists:

Chuck Lee, Executive Director, Internet Marketing, AT&T Advertising & Publishing
Olivier Vincent, President and CEO, Canpages
John McIntyre, CEO, PixelFish
Murray Roblin, VP, Strategic Alliances, SpotMixer

When Insider Pages was sold to IAC’s Citysearch, it seemed like it was probably a distress sale. Many of the Yellow Pages/ratings and review sites of 2004-2006 were falling apart at the same time. Since then, however, Insider Pages appears to have thrived.

“We are profitable and growing every month,” says General Manager Eric Peacock. “I can’t tell you how many people assume that acquisition by big company means their death. But I’m saying this is the reason Insider Pages is flourishing.”

Basically, it is all about scale for Insider Pages. Citysearch handles all Insider Pages’ sales, as well as many of its administrative roles — allowing Insider Pages to run mean and lean with 10 people in Citysearch’s San Francisco office. One success metric for the site has been a big jump in its review count (i.e., Google gulch). It now has nearly 1 million reviews under its belt, or double the number it had before its acquisition. A major reason for its jump in reviews is a fund-raiser scheme in which the site pays schools, bands and other community fixtures $1.50 for every new review posted, and 50 cents for other reviews.

The service also extends Citysearch’s reach with 5 million or 6 million unique visitors a month — largely parents and home owners. While it does well in all the metro areas, like Citysearch, Peacock says it provides a somewhat unduplicated suburban audience as well.

Looking at the broader picture, Insider Pages has been a test case for the creation of the Citysearch Partner Network. Since then, Citysearch has reached outside IAC to form deals with larger sites, such as AOL and Superpages. “What we found is we could amortize one sale, one product across both sites,” says Peacock.

While the positive signs abound, Peacock says there is plenty of room for progress. For instance, “there is not a ton of frequency.” Many users come in via SEO, and they aren’t coming back often enough.

 As an innovative way of promoting its Yellow Pages and Yellow Frontdoor, its magazine-styled directory focused on home improvement and decorating, Yellow Pages Group New Zealand is now the main sponsor of New Zealand’s largest home show as reported by New Zealand’s Thread Magazine. Within the environment of a slowing real estate market and the focus on green building and renovation, YPG-NZ’s decision to sponsor this event is well timed. 

Marketing Director Kellie Nathan says YPG-NZ’s sponsorship of the Auckland Home Show is a natural fit. “Yellow plays a key part in getting the job done for many renovators and home enthusiasts. Yellow Frontdoor, our exciting magazine-style directory, the second edition of which launches at the home show, is particularly designed with the home and garden market in mind. This year’s Yellow Auckland Home Show is building up to be the biggest yet, with impressive stands and exhibitions of all manner of home products.” 

At most home shows, visitors are overwhelmed by brochures and business cards that often get lost or forgotten. By tapping into this show, YPG-NZ offers a single source of information and contact details of the vendors in attendance. This is a great way not only to promote the vendors but also reinforce a practical application of directories and the benefits of Yellow Frontdoor. 

At The Kelsey Group, we have been counseling directory companies to find innovative ways of reinforcing the value of the product and tying in with new audiences to potentially build usage and the desire to keep the directories they receive each year. Approaches like this will be discussed at TKG’s upcoming Directional Media Strategies conference in Atlanta and specifically on the panel Reconstructing Print Yellow Pages. New approaches to marketing and Yellow Pages content and design will also be discussed, making this an important discussion for the industry.    

As many of us have read over the past week, some major hotel chains — Hyatt and Hyatt Place Hotels, Omni and some Starwood properties – have made the decision to remove Yellow Pages directories from their hotel rooms. (Although a call to our September conference hotel, Atlanta’s Hyatt Regency, revealed it has yet to receive notice from its headquarters regarding this decision.) According to The Charlotte Observer, “The chain has dumped in-room phone books ‘primarily due to the convenience the Internet provides.’ ”

While this may be positioned as a “green” decision or one that is based on the belief that people use the in-room Yellow Pages less frequently than they do online search, the real reason for the move is likely more about revenues than convenience. At many major hotels, in-room high-speed Internet access (HSIA) is a paid commodity. According to a white paper by Nomadix, a BusinessWeek survey “respondents ranked HSIA as the second most important attribute they consider in making a hotel selection decision.” And according to Gartner Group, “there are 36 million business travelers in the U.S., 75% of whom carry laptops.”

Based on demand and the increasing number of business travelers who take laptops with them and spend greater amounts of time online using VoIP and Web-enabled services such as video and CRM connections, the demand for HSIA has increased dramatically. With a slowdown in the travel market, hotel chains often turn to what Hotel Executive Magazine calls secondary sources of revenue outside room rentals, including on-demand movies, valet parking, spa services and HSIA. Oftentimes these secondary revenue sources produce higher revenue gains as compared with room revenues. By eliminating the trusty Yellow Pages directory from hotel rooms, hotel chains make using the Internet a must when travelers are seeking local information and services. By increasing the demand, they greatly improve their ability to drive additional revenues in a key growth category.

With most mid- to upper-tier hotels charging for HSIA use, this becomes a significant secondary revenue source. So let’s call this trend what it really is – an expanded revenue opportunity for hotel chains that generates needed revenue as room profits decline. The reality of this move, however, ignores the needs of business and leisure travelers who want and need easy and free access to local businesses and services. That just doesn’t make sense.

One of the most challenging aspects of speaking to the geodomain industry was the diverse backgrounds of the people in the industry. They come from media companies, technology firms, the music industry and the real estate business. What they have in common is a strong competitive streak (not unusual in entrepreneurs) and an incredible desire to succeed.

Many, if not most, Kelsey Group conference attendees are also entrepreneurs, but typically they share a common background related to the need to sell advertising in order to thrive. In the geodomain business, the price of entry is often buying the name (LasVegas.com, SanFrancisco.com, PigeonForge.com), but it is all about real estate. In a time when housing prices are falling and the construction industry is in a free-fall, the geodomain industry is doing just fine, thank you.

The challenge that members have is to put the right kind of content on their particular geodomain Web site. In other words, there is no one right answer for a geodomain owner. Branson.com is focused on attracting visitors, whereas Richmond.com is more heavily used by the locals. The geodomain owners have a leg up because of their names, but to create real value in their sites they need to provide content that meets the needs of their particular marketplace. That sounds obvious, but it is hard to implement because each of the members is starting from a different place. The real value in the long term is to build a meaningful site. Going back to the real estate metaphor, it does you no good to own beachfront property that only has a shack on it.

Dan Pulcrano, head of Boulevards New Media, was one of the founders of Associated Cities, and he has worked very hard and successfully to bring the geodomain industry together. This is only the third year for this trade association’s annual meeting, and already it is attracting close to 200 people who are eager both to learn as much as they can and also share what they know. They are taking advertising dollars away from traditional media, and if they can prioritize opportunities, utilize technologies aggressively and build effective sales forces to become go-to local sites, they will be formidable local competitors.

The Kelsey Group was pleased to work with Associated Cities to help produce this successful event.

Yellow Pages Group New Zealand has announced the debut of “Yellow mobile” on the Telecom and Vodafone Live! networks. 

According to New Zealand’s Business to Business magazine:

“Yellow Pages Group Digital Media Director Blair Glubb said Yellow mobile will complement the company’s existing range of advertising solutions which already cover the print, online and voice (via the 018 and 0172 directory assistance services) channels. ‘Yellow mobile will help businesses connect with the huge numbers of New Zealanders who want to find businesses and their products and services while they’re on the go. This is a big step towards our vision of reaching every New Zealander every day.’ ” 

While YPG-NZ could have gone with a more sophisticated approach, it has opted for a simple application that provides users with flexibility in how they want to interact with Yellow mobile.

“By texting a keyword, category or business name and a location to 018, subscribers will automatically receive a text message with contact details of the business most relevant to their search criteria. For example ‘Café Valentino. Christchurch’ or ‘Plumbers, Ellerslie.’

“As well as containing contact details for the business, the return text message will also include a link to a full set of search results on the Yellow mobile WAP portal (a WAP capable handset is required to use the link).” 

With a high penetration of mobile users, New Zealand is an ideal location for mobile local services. Mobile was an area lacking in YPG-NZ’s portfolio and was a stumbling block to its goal of reaching “every New Zealander every day.” The key to the success of this venture will certainly be in selling existing advertisers onto the mobile platform with incremental investment.