Peter Krasilovsky reports:
IAC’s ServiceMagic reported today that it saw a 51 percent boost in 4Q revenue, growing from $25.3 million in 2008 to $38.2 million in 2009. The boost was accompanied by a 21 percent growth in the number of home and trade providers that pay for its leads; and a 46 percent gain in service requests.
Profits, however, were low at $1.2 million. They were held down by increased marketing efforts, including an expanded sales force and a major advertising campaign.
Consumers are clearly searching for and sourcing local services online more and more and ServiceMagic has done a great job capturing the home improvement slice of these leads. But who is going to aggregate the long-tail of services remains to be seen. This morning we got one more reminder as to just how big this market is when we generated a lead for this Farrier in Magnolia, Texas.