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Marchex Q3 2007 Earnings Call Transcript

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2007-11-08 21:17:09.0

Tags: Marchex Inc.

Question-and-Answer Session

Operator

Your first question comes from Christa Quarles – Thomas Weisel.

Christa Quarles - Thomas Weisel

First question is around your pipeline. As you look at the YellowPages directories, newspapers, ISPs, etcetera, where do you see your platform and your offering differentiating relative to some of the others out there, Reach Local, WebVisible for example?

Second question is really just about where the state of the local market is. We have seen Judy's Book and Insider Pages seem to go away, I guess. Just wondering if you think that the market continues to accrue toward the YellowPages partners and therefore, is that sort of emblematic in how your strategy plays out? Thanks.

Russell Horowitz

When we define having the most local-centric advertising platform, for us that means can we support aggregators of advertisers and direct advertisers in the first place? And, can we sell them the products they want, in the second place, which are clicks and calls.

Our system takes complex technology and makes it very simple at mass scale and so that's the key part. Clearly early adopters that are directory companies like the YellowPages, we see this as being very relevant across all vertical categories whether it's The Cobalt Group in the auto space or other folks who are large aggregators of local advertisers across the United States.

So one of the key elements relative to the competition is there are folks who might be focused on calls or might be focused on search but may even have challenges with the kind of scale we're talking about or may just be looking at aggregators or direct.

In our case, we've made a big investment and we have greater scale than anyone in the industry and we're well-positioned to support more growth with existing partners and at the same time add lots of new partners beyond that. So that's really one of the key components to this.

On the other end, clearly the traffic side is important. Where we have at this point we are the largest local ad network in the industry, whether owned and operated, local sites are at the center of it.

Operator

Your next question comes from Brian Pitz – Banc of America Securities.

Brian Pitz - Banc of America Securities

Just a further drill down on OpenList. While it is improving visitation to the site, would you discuss how it is really impacting the velocity of ad clicks through the pages?

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