Dex Strikes Distribution Deal with Yahoo!
Like Yell in the U.K. two weeks ago, Dex Media becomes the latest directory publisher to provide its local advertiser database to a major search provider. In Yell's case it was Google Local U.K. In this case it's Yahoo! in the U.S.
Dex local advertisers will appear on Yahoo! Local and Yahoo! Yellow Pages.
The press release states that this will extend Dex's network and reach via Yahoo!'s brand and traffic. Yahoo! benefits by enriching its local database and providing a better user experience. Both statements are undoubtedly true, but as with all such deals it ultimately raises questions about how the move will affect Dex's traffic as a destination over the long term. (Dex already has a distribution deal with Google.)
Dex will need to continue to improve DexOnline and aggressively market the site in its 14-state territory. However, Dex reported to TKG that it has been faring very well among online consumers in its local markets.
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Greg:
Wow, this is interesting. Can you expand on the question you ask in your wrap-up?
Seems to me this is doing everything possible to protect the bird in hand, and risking the future. Protect the hugely profitable print business, even if you risk arming online competitors that will eventually render IYP irrelevant.
Related question, what did you think of the Gomes piece in the WSJ? Huge smack-down of the search engine's local efforts to date, and endorsement of the old-fashioned book!