According to a recent study by comScore of internet usage patterns, local search grew much more quickly last year than the overall search market, with searches for local businesses and services growing 58% in 2008, compared to growth of 21% for overall search traffic.
The following quote from the report is encouraging for sites like Nelso:
75 percent of the top 100 keywords searched on Internet Yellow Pages sites were non-branded, indicating that a majority of consumers have not decided on a specific company or product brand when they begin their search.
What this means is that most users are not searching for a specific business or brand (e.g. Louis Vuitton), but for a general category like "luggage". This is a big positive for sites like Nelso that can offer good category listings, but have difficulty competing for traffic from searches for brand names.