BizWeek reports that SBC and BellSouth have cut a deal for listings on AOL.
The battle over local Internet advertising pits some of America’s most powerful companies against each other over a highly lucrative business. Profit margins at Yellow Pages publishers are often higher than 50%, excluding interest, taxes and noncash charges.
There’s one hitch: The print Yellow Pages business is growing slowly — only about 1% to 2% a year, according to researchers at Kelsey. But the combined business of Internet Yellow Pages and local Web search is expected to grow 50% a year, from about $670 million last year to $5.1 billion in 2009.