Local Corporation Engages Fraudlogix to Expand Protective Measures to Ensure Traffic Quality

IRVINE, Calif.--(BUSINESS WIRE)--

Local Corporation LOCM, a leading local search and advertising technology company, today announced that it has engaged Fraudlogix, a leading online advertising fraud detection company, to further ensure traffic quality for display ads running on its Owned and Operated properties and Network.

“We take traffic quality very seriously and remain laser focused on protecting our advertisers from the persistent efforts of sophisticated third parties intent on defrauding them. This type of activity not only dilutes ad inventory value and monetization, but weakens the core foundation of the advertising model we've worked so hard to build. Once we can significantly reduce the monetization of fraudulent traffic and prevent this traffic from being sold, only then will we be able to successfully prevent it altogether,” said Fred Thiel, Local Corporation chairman and chief executive officer. “We continue to be focused on protecting our advertisers and look forward to working with Fraudlogix and the industry to support IAB's efforts to combat fraudulent traffic practices and create real-world preventative solutions.”

Local Corporation and Fraudlogix are both members of The Interactive Advertising Bureau's (IAB) Trustworthy Supply Chain Management Group, bringing together industry stakeholders to focus on eliminating fraudulent traffic, combatting malware, fighting Internet piracy, promoting brand safety through greater transparency and creating accountability in combatting non-intentional traffic from non-human actors.

IAB recently released its “Anti-Fraud Principles” that outline the fundamental need to stop the fraud where it begins and root poor quality ad traffic out of the system once and for all. The principles, which consist of three tenets meant to push poor-quality ad traffic out of the programmatic eco-system, include: fraud detection, source identification and process transparency.

“Fraudulent traffic practices are pervasive and pose challenges for the industry as a whole. In fact, The Wall Street Journal recently reported that approximately 36 percent of traffic generated online is considered fake. As a result, we must take the necessary critical steps to elevate the entire industry discussion and create awareness of this major issue. It is only by leveraging our strength in numbers and creating innovative solutions that we will begin to move the ball,” said Hagai Schecter, Fraudlogix chief executive officer. “We are pleased to be working with Local Corporation and other companies to continue implementing solutions that are effective and affordable for the supply side with the ultimate goal of eliminating traffic fraud indefinitely.”

Currently, Local Corporation utilizes the Fraudlogix fraud detection service that empowers the company to reliably detect and prevent fraudulent traffic sources and impressions for display ads, and therefore, protect advertisers in real-time using its traffic quality scoring system for publisher sites' domains.

About Fraudlogix

With offices in the U.S. and Israel, Fraudlogix is a privately held company which is currently protecting some of the largest online brands against the risks associated with purchasing fraudulent traffic. Fraudlogix provides solutions for advertisers in the following environments: RTB/Programmatic Buying, Video, Display, Mobile, Click, Conversion (Pay Per Lead/Registration, Pay Per Sale and Pay Per Install). Visit Fraudlogix.com for additional information, announcements, and industry news.

About Local Corporation

Local Corporation LOCM is a leading local search and advertising technology company that aggregates and curates the most relevant and rich personalized content and presents it to millions of consumers wherever and however they search for information, while providing significant reach and value to the company's advertisers and partners. For more information, visit: http://www.localcorporation.com or visit the company's flagship site: http://www.local.com. To download the company's Havvit™ shopping app, go to: iTunes® (http://bit.ly/1d8Y111).

Forward-Looking Statements

This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "anticipate," "plan," "will," "intend," "believe" or "expect'" or variations of such words and similar expressions are intended to identify such forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements, including our future ability to monetize our patents through licensing efforts with third parties, and our ability to overcome any challenges that may be posed as to the validity of our patents. Key risks are described in the filings we make with the U.S. Securities and Exchange Commission. The forward-looking statements in this release speak only as of the date they are made. We undertake no obligation to revise or update publicly any forward-looking statement for any reason. Unless otherwise stated, all site traffic and usage statistics are from third-party service providers engaged by the company. Traffic and our monetization of that traffic combine to determine our revenues for any given period. Our traffic volume alone for a period should not be viewed as demonstrative of our financial results for such period.