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SuperMedia's CEO Discusses Q2 2011 Results - Earnings Call Transcript

On note, perhaps, in part, because of sales management, compensation and other process improvements, we saw a significant reduction in year-over-year sales turnover. And last, we launched new local TV, radio, online and print advertising, highlighting the value of SuperMedia provides to small businesses across print, online, direct mail and mobile media. All that said, throughout the second quarter, small and medium-sized business confidence remained low, and they lacked the confidence to invest.

Along with the slow-growing economy, the landscape for advertising choices is becoming more fragmented and dynamic. A small-business owner -- small business owners are suffering from advertising offer overload. The average small business is contacted by over 30 people a month, offering an array of individual advertising products. More often than not, owners are left confused and frustrated, not having the time, the money or the inclination to sort through proposals and claims, much less buy, and manage a wide variety of advertising products. The good news is latest research indicates the solutions we are currently offering and those that we are trying are a value to consumers and businesses.

First, the Yellow Pages. New corroborating data collected by CRM Associates for multiple publishers shows call tracking studies capture only slightly more than 1/2 of the response to an ad. Between in-person visits and visits to websites with subsequent calls to the numbers listed in the website rather than the ad, the number of leads delivered by Yellow Pages ads can be significantly higher than indicated just by call-tracking studies.

Second, Internet Yellow Pages. Online activity continues to grow in usage and intensity. New data from comScore shows local searches now account for 13% of core activity. Internet Yellow Pages in local search sites also exhibited strong growth with 5.6 billion local searches in 2010, a 15% increase over 2009.

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