MerchantCircle’s Merchant Index tracks merchant confidence in the economy (low). But it also yields some unexpected “real world” insight into merchant awareness and use of their local online marketing options.

The Index is based on 11,000+ e-mail respondents, so there is likely to be an online bias in the results. Of its 1.1 million registered SMBs, MerchantCircle also has a strong base of rural and exurban members, but MerchantCircle officials don’t believe these businesses are disproportionally represented.

We’re most drawn to the low recognition accorded to many local mainstays that are “big deals” in our cyber capitals. The new LBS services, Foursquare and GoWalla, for instance, have recognition of just 7.5 percent and 5.7 percent each.

The principal city sites do better. Yelp has 39.4 percent while Citysearch has 66.5 percent. The disparity between them is not surprising given the latter’s longer track record and deeper national reach. Yelp’s awareness may be better pegged to its principal cities (i.e., San Francisco, where it is apparently the No. 1 resource).

The Index found that 26.1 percent of respondents are promoting on Citysearch, and 17.6 percent on Yelp. Google, Facebook and Twitter (among others) are used by more. Google is used by 59.5 percent; Facebook, by 52.8 percent; and Twitter, by 31.6 percent.

YouTube is a site that the respondents want to start using: 17.5 percent say they want to start using YouTube, while 14.2 percent say they want to start using Facebook.

MerchantCircle VP Darren Waddell is speaking on the New Directory Panel at Marketplaces 2010 in San Diego March 22-24 with Local Matters’ Mat Stover, SuperMedia’s Julie Miller and AT&Ti’s Greg Isaacs.

Redbeacon, one of the new breed of social/local leads providers for SMBs, said it is now available throughout the entire Bay Area and teaming up with BigTent, a mega-moms network in the Bay Area with more than 100 local cells. BigTent will receive a revenue share carved from Redbeacon’s 10 percent commission.

The deal between BigTent and Redbeacon positions the company not only against Yellow Pages and other newbreed leads providers (i.e.m ServiceMagic, AlikeList, HelpHive, ThumbTack and Sears’ ServiceLive) but also against other sites that specifically tailor to moms (and women generally). These include sites such as Angie’s List and Center’d. It plays on the theory that some women are intimidated by home and trade professionals and may be more likely to seek out a social network for advice and recommendations.

For BigTent, the partnership marks the first time it has partnered with an organization to promote local businesses. It had previously worked deals with a number of national brands.

The BigTent news caps off a campaign to land associations and other organizations as partners. The results of the effort means that the site now boasts listings of 16,000 service pros with the badges of their organizations — a major trust factor. One of the key prizes has been the local branch of the Better Business Bureau, which previously hadn’t loaned out its list.

In other site developments, Redbeacon, which won the top prize as best new idea at TechCrunch 50 six months ago, is adding “Friendly Advice.” The feature lets friends comment on job bids (and the bidders). This complements the company’s matching engine, and reviews and ratings found on other parts of the site — including both positive and negative reviews.

“We’re crowd-sourcing recommendations and sharing,” says CEO Ethan Anderson. One added benefit is the viral element and the added exposure for Redbeacon: 500 views may become 2,500, he says.

Anderson notes that the company has been in a constant state of “iteration” since launching, and will only begin the process of raising money when it is satisfied with the end product. So far, the site has added several features, such as enabling private communications between consumers and providers in the middle of a bid and allowing providers to additional information upon request. “Consumers need lots of information to make a decision,” he says. The site has also syndicated reviews from Yelp, Google and Yahoo to complement its own.

One milestone reached by the site is that it can now successfully furnish a quote for every job that is bid. In fact, it had more than 1,000 service providers almost immediately after launch, and continues to rapidly grow its base. “We don’t have a chicken or egg problem,” says Anderson. “Signing up (service providers) has been easy.”

Redbeacon CEO Ethan Anderson will join AlikeList CEO Jim Delli Santi and Reply.com COO Sean Fox on the “SMB Marketplaces” panel at Marketplaces 2010. ServiceMagic CEO Craig Smith is a keynoter at the conference.

Citysearch announced today that it has shifted its ad model for small businesses, moving from the cost-per-click model that it pioneered several years ago to a new model that will drive consumers directly to their own Web sites. The new model provides advertisers with a complete range of SEO and marketing services across the CityGrid network of 100 Web and mobile partners.

The new services are being offered as “CityGrid Complete,” and will use Orange Soda as a partner. As part of the announcement, Citysearch also announced an investment in Orange Soda, which competes with the likes of ReachLocal, Yodle, WebVisible, Marchex and MatchCraft to resell search engine advertising and optimize content. Orange Soda currently works as a reseller for media companies such as Gannett and Freedom Interactive, and also works with franchise operations such as Remax and Jiffy Lube.

Neil Salvage, Citysearch executive vice president of sales and service, said the announcement is consistent with the enlargement of his own job description, which now includes product development on the merchant side. Salvage acknowledged that Citysearch has had a “not robust” search engine marketing platform, and has been searching for a better solution for 18 months.

“We talked with everybody,” Salvage said, and came to the conclusion that Orange Soda is a superior solution with a “robust back end oriented system.” Its SEO solutions “fit somewhere between ReachLocal and Yodle,” he added.

To Salvage, what’s really important about the announcement is that Citysearch is moving away from its complex cost-per-click sales model and toward a fixed-fee model that will boast a wide bundle of services. The move should allow Citysearch to increase its monthly yield from$600 to $800 per advertiser to more than $1,000, said Salvage. “That’s where we need to be.”

Cost-per-click overemphasizes the reseller factor and has become “old school,” added Salvage. “It was built to go after Yellow Pages, but wasn’t really appropriate because the Citysearch product set did not really support that. It was an entertainment site. Now we want to focus our time and energy on platforms and the process,” he says. “We are focused on signing up more publishers, not on owning the [SMB] relationship. ”

Citysearch CEO Jay Herratti is a keynote speaker at Marketplaces 2010, which is taking place March 22-24 in San Diego.

Self-serve ads will bring the SMB masses to the Web. But they haven’t made much of a dent in SMB advertising at this point. That hasn’t stopped a rush of new self-serve products coming out, several married to social media features. The latest is “minute ads” from AlikeList, one of the new crop of social/directory plays that also includes Redbeacon, Thumbtack, HelpHive, PriceLocal, Center’d and many others.

AlikeList’s Minute Ads allow business owners to create and publish offers on the fly, and change the offers as often as they like. They can be sent out to consumers that specifically request recommendations for a specific type of provider (i.e., plumber).

The Minute Ads are part of Alikelist’s “Business Central” platform, which is being priced at $19.99 a month. Included in the subscription is a “PromoSite,” along with presence and reputation management capabilities that enable customers to see how many people have “liked” or “want to try” their business, or who have clicked to their Web site or phone number.

CEO Jim Delli Santi believes that ALikeList’s like-only platform is highly differentiated from simple reviews and ratings sites (i.e., Yelp and Citysearch). “Review sites are more like media companies broadcasting review content generated from consumers,” says Delli Santi.

In theory, the site also does away with the “volume” problem of not enough reviews on a social site by letting users see “likes” from their friends, friends of friends, and then also from all over the Web.

By focusing only on “likes,” it also skims off the negative reviews. That obviously has pros and cons. I tend to like negative reviews because they provide nuance and important warning signs and make for entertaining reading. But negative reviews may also be the work of consumer vigilantes, and they don’t necessarily help people quickly find a business that they want to use.

AlikeList CEO Jim Delli Santi is speaking at Marketplaces 2010 on a hot session with Redbeacon CEO Ethan Anderson and Reply.com COO Sean Fox.

As it readies its expected public offering, ReachLocal is branching out beyond its roots as a third-party SMB reseller for Google and others. First, it started selling display. Now it is set to offer improved search optimization, digital presence and reputation management via the acquisition of SMBLive.

Other companies in the space have made similar moves to branch out beyond their reseller roots to solidify their relationship with SMBs. Marchex and Yodle, for instance, have major organic search and reputation management initiatives under way.

The acquisition of SMBLive will enable SMBs to use Reach to publish multimedia content from a single interface to a business profile page, as well as to local directory sites, search engines and social media sites, including Twitter and Facebook. In addition, Reach will monitor local review sites, social media sites, and local blogs for references and comments related to the SMB.

SMBLive occupies a rapidly evolving space that also includes such companies as Google, Yahoo, YellowBot, MerchantCircle, ShopCity, Brownbook and various IYP sites. It started out providing upsellable free Web sites for ISPs that had separated from their Yellow Pages business. A couple of years ago, it launched operations for BT TradeSpace. Last year, it also launched TelMex.

The company has continually added features, such as video and blogs. But the company has recently focused on scalable cloud profiles that are entirely Web based and enable “write once, publish many times” functionality.

SMBLive’s Cloud Profile also enables SMBs to publish updates using e-mail and SMS text messages — tools that they’re already comfortable with. The service also includes a “virtual coach” to remind and encourage SMBs to regularly update their profiles and engage prospects in online conversations.

Are we omniscient? In our year-end predictions, BIA/Kelsey SVP Matt Booth predicted that “mergers and acquisitions between vertical ad platforms and social marketing companies” should be watched for.

Yodle, the third-party SMB reseller, has now divided its business into “Yodle Sponsored” and “Yodle Organic.” The formation of the latter division, which has been live for a month with 150 clients, is a recognition that SMBs are increasingly relying on organic search as much as paid search — and they need help driving exposure to their Web sites, blogs, YouTube, and social sites such as Facebook and Twitter.

For $400 a month, with six-month initial contracts, Yodle Organic is set to pump up its clients’ organic search rankings. It will provide personalized consultations, design and code Web sites to maximize search rankings; help create and syndicate video; distribute local business profiles to search sites and directories; and provide a dashboard that allows SMBs to measure goals.

Yodle CEO Court Cunningham says the timing feels right. “SEO’s price-per-lead and price-per-click is substantially lower than SEM. But it isn’t ‘either-or.’ They complement each other,” he says. “SEO takes time to build your site so it becomes visible and builds authority in the eyes of the search engines. It is about building equity in a brand that is long lasting.”

The challenge is to properly scale the effort for each client and make money — Yodle gets an average of about $1,000 per month from its 7,000 paid search clients. “No one has productized and automated and put clear accounting” around something like this, he says. But “we’ve been building Web sites for three years. We’re experts in automation.”

Still, it is an ongoing experiment as Yodle works to get clients non-paid traffic in such new areas as maps, article sharing sites and even Google’s 7 Pack. “We look at these things as organic distribution,” says Cunningham.

Content production is probably the biggest question mark for Yodle (and for any company entering this space). Out of the gate, Yodle is using a combination of external contributors, internal editors and curated content from other sources. It hopes to provide at least 10 fresh pieces of content a month to each client.

IAC’s ServiceMagic reported today that it saw a 51 percent boost in 4Q revenues, growing from $25.3 million in 2008 to $38.2 million in 2009. The boost was accompanied by 21 percent growth in the number of home and trade providers that pay for its leads and a 46 percent gain in service requests. The addition of revenues from two new units — ServiceMagic International and Market Hardware, a search and Web site provider for verticals — also increased the pot.

Profits, however, were low at $1.2 million. They were held down by increased marketing efforts, including an expanded sales force and a major advertising campaign. Losses caused by the rapid expansion of the company’s international unit also held profits down.

ServiceMagic CEO Craig Smith is keynoting at Marketplaces 2010, March 22-24 in San Diego.

In the quest to produce good leads, no stone goes unturned. In coming years, one of the best sources of leads may be online scheduling (or “appointment calendars”). Former YPG executive JP Lion is working on scheduling solutions with Maxipage. Bookfresh has concentrated on scheduling as its differentiator. Now along comes Full Slate.

CEO Bill Lange says that his two-year-old online scheduling company may look like a simple utility, but it plays a much larger role. “We’re a revenue generation and business growth tool for the SMBs, resellers and partners we work with,” he says.  “Consumers want to complete the deal online, and this gets you closer to the revenue.

“In the short term, it is a huge differentiator,” adds Lange. “In a couple of years, it will be a ‘must have’ feature.”

Top categories for Full Slate have been alternative health care, message therapists, fitness centers, hair and beauty salons, pet groomers, and mental health therapists and counselors. “These people live and die by their schedules,” says Lange.

Full Slate is pursuing its customers via a number of channels, including companies that create and promote online presence, general Web site builders, vertical Web site builders, vertical directory/trade associations, city guides, Internet Yellow Pages and SMB resellers. The site has also been surprised by the high degree of organic growth it has achieved, in part by being listed by SMB sites such as GoDaddy and Web.com.

One thing it won’t try to be is a destination site.  “We are not doing that,” says Lange. “We provide the conversion element.”

The company’s business model relies on offering free trials of 10 appointments, and then converting to monthly subscription fees that typically range from $29.95 to $49.95. Pricing is generally based on the number of employee schedules are maintained.

One of the company’s newest customers is Goodtherapy.org, the No. 2 therapist site (after Psychology Today) with 3,000 mental health therapists. It sees its business doubling or tripling in 2010 and eventually working its way up toward the 600,000 practicing therapists in the U.S.

CEO Noah Rubinstein tells us that the addition of online scheduling “is something we’ve been wanting to do for a long time. Therapy is a unique service in which relationships are very important.”

Rubinstein sees the feature giving a boost to his conversion numbers, and adding value in terms of retention. “It will help lock-in members for the long term,” he says. He especially appreciates that members can access their schedule via Full Slate, GoodTherapy.org or their own site.

Full Slate CEO Bill Lange is speaking on the Tools of Marketplaces precon at Marketplaces 2010 March 22-24 in San Diego.

Vertical businesses that have relied on Yellow Pages and newspapers and other classified channels aren’t always seeing the same performance-based results that they might expect in the Google age. But many of them also aren’t likely to become keyword experts, or spend a lot of time managing their accounts. That’s always the SMB dilemma, right?

That’s what Reply.com is focused on. The two-year-old, 125-person company, backed by $17 million of venture capital, provides vertical advertisers with “enhanced click” packages and validated leads, complete with leads scoring. In addition, advertisers using Reply.com’s auction-based system can filter locations, and put caps on spending and cost-per-click rates.

Vertical segments targeted by Reply.com include key leads categories, including home insurance, health insurance, life insurance, education, auto finance, mortgage, used cars and auto insurance. Auto and real estate segments make up the biggest segments, with 60 percent to 70 percent of Reply’s customer base. Under Reply’s system, each category is customized for the particular aspects of a vertical.

One key differentiator is that the targeted categories are typically not “inventory based.” They may be new cars, rather than used cars; mortgage, or pure relocation leads, rather than search-based rentals leads.

Reply CEO Payem Zamani suggests that Reply’s clicks and lead offers are more efficiently processed than typical ad exchanges, in part due to narrowing the market base with geotargeting and a system for discerning consumer intent. The company is processing 9 million clicks per month, and 1.58 million leads, with customers for its auctions including auto manufacturers, major media companies such as Hearst Newspapers, and vertical sites such as RealEstate.com and Autobytel. The company also works with several of the search engines, SEO sites and e-mail providers.

The basic idea is to create a “Google-like” platform for acquiring traffic, says Zamani. Reply’s knowledge of user intent and location — driven in part by the installation of a pixel to track users — really streamlines the process and drives higher conversion rates, he says. Conversion success depends on how deep the advertiser wants to go. Information that goes all the way through to consumer credit cards for purchase will be a small fraction (maybe 0.1 percent) of more general conversions (30 percent to 40 percent) that provide additional information.

Reply.com COO Sean Fox is a featured speaker at Marketplaces 2010, March 22-24 in San Diego.

Here’s a question: How long would directory publishers sit back and let new companies such as RedBeacon, AlikeList and others disrupt the leads economy for SMBs with search and socially driven features such as Twitter and Facebook? Or Google, with Place Pages? That’s a question that Local Matters and other Yellow Pages  vendors have obviously asked themselves.

Now Local Matters has come out with “Destination Search,” a new social platform that seeks to level the search and social playing field for its U.S. and international clients, which so far includes  Dex B2B in the U.S;  Truvo, European Directories and Pagini Aurii in Europe;  and Yellow Pages Group in New Zealand.

Playing off a feature set originally developed for real estate multiple listings services, Local Matters’ platform includes state of the art social and search features. It also seeks to leverage existing strengths, such as business profile information.

Key features of the white label solution include enhanced profile listings; search optimization; integration (and easy sharing) with Facebook and Twitter; blog enablement; ratings and reviews ported from Yelp and other sources; and the addition of social media feeds on assorted online advertising.

Kris Skavish, Vice President of Products and Marketing, told us that Local Matters started planning Destination Search last September, with the specific intent of focusing on building rich local context. “A problem with online directories has been search relevancy,” she noted.

Another challenge has been to reconcile Yellow Pages headings with most searched categories, which are typically microheadings. “’Plumbers’ is too broad. You need to get to the correct root,” said Skavish, noting that Local Matters has also created custom microheadings for categories such as hotels and attorneys.

For instance, “romantic hotels” might be sought out in user generated content but not generally included as a category. Users can also rate pictures included in romantic hotels.  Publishers can also insert content at the top of the page, or refine results. They can also create brand oriented categories, such as “Toyota.”

While Destination Search leveraged Local Matters’ work with real estate Multiple Listing Services,  important differences revealed themselves, added Skavish. “With the MLS,  you prove your value with a lead ” she notes. “It isn’t a ranking model.  And in real estate, the default view is maps. But with Yellow Pages, it is an ad model. You want users to make an action.”

Local Matters CEO Mat Stover is a featured speaker at Marketplaces 2010 March 22-24 in San Diego.