Infoserve announces joint venture

ONLINE local search specialist Infoserve has entered a joint venture agreement with Iliffe News and Media (INML) – the media arm of Yattendon Investment Trust.

Under the agreement the joint venture company 2i Local will offer small firms the opportunity to purchase a combined internet and print advertising package.

Leeds-based Infoserve and INML will each own 50% of the issued share capital of 2i Local.

Yattendon Investment Trust has interests in local media including newspaper publishing and television.

The business’s launch follows a successful seven month trial during which 2i Local offered new hybrid advertising solutions to businesses in seven separate locations where INML provides a local newspaper.

Infoserve said results of the pilot were highly encouraging leading to both increased classified print revenue and greater conversion of web customers through combined sales offer.

2i Local will now roll out the offering to local businesses across a further 17 newspaper regions covered by INML over the next few months.

However, as a result of initial start-up costs Infoserve’s earnings for the year ending March 31, 2011 will be lower than previously expected.

Infoserve’s executive chairman, Steve Barnes, said: “The trial confirmed that there is great demand from businesses for blanket coverage across print media as well as online.

“The reputation of the newspaper group in its circulation areas and our knowledge of online marketing is a very powerful and credible combination.

David Fordham, chief executive of INML, added: “We have the experience of providing local businesses with tailored and innovative print solutions, whereas Infoserve can help them to be found quickly and easily when people search for them on the web.

“It makes sense therefore to combine our expertise to give local businesses and tradesmen a cost effective ‘best of both worlds’ solution.”