Summary

A search is one of the most significant aspects of the Internet, both for the user and the dominant sales generator on the web. Search engines generate around 50 percent of the online advertisements in the USA though not as high, sales figures in Europe are also moving along the same lines. The bigger search engine operators have captured large portions of the market and positioned themselves as “search brands” in the eyes of the users. This vantage point facilitates the rapid expansion of their services which include news portals, price comparisons and mapping services to name a few. However, they are basically pushing their way into local (advertising) markets and hence into the traditional domain of newspapers. To what extent would local search be instrumental in the success of local markets? What is the course of action adopted by publishing houses? How and with whom can they carve a niche for themselves in the local search market? In light of these pressing issues, Ifra has commissioned an expert’s report on “local search” for German publishers in collaboration with the Federal Association of German Newspaper Publishers (BDZV). Local search is an important issue not only for the newspaper publishers in Germany but also worldwide. We have thus decided to include an overview of selected countries in the report, which mainly focuses on the German market, and to modify it as per the requirements of non- German publishers. Although no parallels can be drawn between the German newspaper market with its multitude of medium-sized publishing houses and other publishers, we believe that the statements in the report are pertinent to publications in other markets as well. The white paper should provide newspaper publications – whether large, medium-sized or small – with all information essential for implementing the local search. It should give them an overview of all the important issues and help them decide on their commitment to local search. The white paper does not claim to handle and work on all issues in academic detail. It can only work with hypotheses and prognoses especially in case of market figures since the local search market is still in its nascent stage it is building and developing itself. The author of this study is Dr. Frank Meik. He is an Ifra Senator and managing partner of MW Verlag Munich/ Berlin. He has a doctorate in law and has been in the publishing business for almost 20 years initially with the Süddeutschen Verlag GmbH Munich, then with the Münchner Zeitungsverlag as Managing Director and finally with Frankfurter Allgemeine Zeitung GmbH as Chairman of the management. He subsequently built a company for special search and managed it in the capacity of CEO until the beginning of 2005. Dr. Meik has been occupied with the issue of local search for almost two years now. We would like to extend our sincere gratitude to the Federal Association of German Newspaper Publishers (BDZV), which has been working on this issue with us. This international report would not have come into being without their cooperation and assistance.