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Yodel™ ties up with Google to take on Yellow Pages
First published in The National Business Review, July 21st, 2007. Written by Sineva Toevai
Search engine marketer Yodel™ has secured a "multi-million" dollar contract with Google Inc that would see it become the first reseller of the search engine’s pay-per-click advertising service in New Zealand.
Yodel, a unit of web creator and host FulfilNET, has signed a two-year deal with California-based Google to sell its Adwords to small to medium size enterprises [SMEs] in New Zealand.
Yodel™ chief executive Paul Harvell believes New Zealand’s relatively untapped SME market has the potential to reach a wider local audience through Google’s keyword-based approach given that 87 per cent of all searches in this country are done through Google.
"There’s opportunity in New Zealand," Sydney-based Mr Harvell told NBR. "More and more people in the world are using Google as a local search."
Mr Harvell said SMEs had been relatively overlooked because of a tendency to chase the larger corporates that have more money.
"Our thing is really to give SME businesses a chance to look at what this [service] can do for them," Mr Harvell said.
A government report released this week showed SMEs make up 96 per cent of New Zealand businesses, 30 per cent of jobs and close to 40 per cent of the nation’s output.
Yodel™ doesn’t have a pure rival in the New Zealand market but the closest at the moment is Yellow Pages, which has around 15,000 companies advertised on its online, category-based search engine, Mr Harvell said.
Industry speculation suggesting Yellow Pages is looking to become a reseller of Google Adwords hasn’t deterred Yodel.
"There’s space in the market for two," he said.
"Yellow [Pages] primarily has an uphill battle with trying to get the average SME businesses over the line. Our pricing is going to be competitive."
Yodel™ is currently in talks with Yahoo and Ninemsn about securing a contract similar to the one with Google in the hope that it would further expand the reach of its customers.
Yodel™ has already secured 360 New Zealand customers since starting up here in April and is aiming to get another 640 in the next two weeks.
The company’s goal is to get 5000 SME companies advertising on the New Zealand Google.co.nz search engine within the next two years and, ultimately, for New Zealand to become its biggest market.
Yodel™ is spending half a million dollars to set up offices in Auckland that are due to open in February. The New Zealand operation will have 30 staff in the call centre and editorial divisions.
Yodel’s parent, FulfilNET, founded by chairman David Mayman, started operations in New Zealand nearly seven years ago when it built software and websites for Yellow Pages.
It later shifted the New Zealand operations to Australia and its ventures included Australian-based search engine Truelocal, which it sold to Rupert Murdoch’s News Corp for $A22 million, Mr Harvell said.
The sale subsequently led to Yodel™ being shoulder- tapped by Google to become the first reseller of its Adwords in Australia in May last year, Mr Harvell said.
It is estimated that 70 per cent of all searches in Australia are done through Google. Today, Yodel™ Australia has 2800 customers and makes $A15 million in revenue a year.
To view the original article, click here [The National Business Review]