“What a tangled web we weave, when first we practice to lie and deceive…”
Just got back from the Dallas/Fort Worth Search Marketing Association http://www.DFWSEM.org meeting. You won’t believe it but the attendance was over 150 people tonight! The topic was the State of Search, featuring a gentleman from a Search Engine News Website and with two wonderful young ladies from Google and Bing. Very exciting stuff for search geeks like myself.
So… however that quote goes, has it never been more true than in the advertising sales business.
You ever go out and tell a client what they are really getting from the service you provide? If you do it with an absolute clear conscience, you know, kinda like the feeling of helping someone down on his or her luck, wouldn’t you think you and the company you keep should be rewarded with this clients future business? Companies that can do this well have a great product or service to offer. Companies, like those that report phone book usage is down from 25% to now 11%, but then claim that they want to “opt themselves” out of paying a State mandated (so to speak) “tax” that requires them to produce a product that consumers don’t want or use, yet they then want to sue for the “freedom of speech” to saturate homes with unwanted industry waste… is that not pot meet kettle or what? The business practices of what was once an honest profession are disturbing. It is not all publishers. The problem is really all publishers combined. Take for instance my zip code, if you visit the Yellow Pages Opt Out site you will see that my home receives 4 different yellow pages company products, which equates to 6 books a year worth of collective waste. I wonder how much useful wood chips are being wasted? It is not like they are keeping legal citizens on payroll distributing the waste anymore? Have we officially handed phone book distribution responsibilities to illegal immigrants? I guess if the garbage man who doesn’t speak a lick of English can remove the phonebook trash for free, at no cost to the publishers, I am sure it won’t hurt for his Wife to keep busy littering our porches with them? Probably not the intent of the design behind the recycle symbol circle on your phonebook, but it sorts takes on a whole new meaning huh?
John Paulson is a smart man for booting SuperMedia CEO Scott Klein, and his two EVPs out of the company. Time to make room for DexOne management. DexOne folks didn’t subscribe to the Verizon/Idearc way of cheating. With the bankruptcy of Idearc, FairPoint Communications, and Hawaiian Telecom, Verizon should be held liable for unloading massive amounts of debt free and clear after two years outside of the nest, especially considering the knowledge of mobile smart phone advancements and patents. Considering the timing of the bankruptcy, one has to question the integrity of the investors and executives, whom did an excellent job of raising executive salaries while demanding subordinates take massive paycuts and benefit reductions. I guess we should ask Congress to do the same too? It is not like the 545 folks that run our federal government ever get fired for doing a crummy job?
What does this have to do with Google?
Product advancements in search come from ideas. Problem solvers combined with engineers and designers who create amazing solutions and verticals for just about any consumer need. The best that the Worlds first and once most respected “internet technology” companies, the yellow pages industry veterans, could create was an online version of the printed product. Nothing more, nothing less. That was because they, like most other intelligent businesses, understand how to carve a niche. Too bad ethics and technology passed them up. Companies like the one I used to work for are inundated with mid-level sales managers, high quotas, fat profit margins, nepotism, excessive executive compensation, and a lack of focus on change. Just because you are relevant today, doesn’t mean you will be relevant tomorrow. The YP industry lacked the foresight to see the near future. Even paid search was a rush it to market solution with an inferior product like SMLocal that didn’t incorporate the tools from Google’s UI and AdWords Editor desktop applications. What we got was a cheap investment of the BidCenter tool from the purchase of Inceptor vs true software as a service (SAAS) solutions or platform planned and engineered application, such as those from companies like ReachLocal.com. To build a massive search marketing company you must find a way to embrace a holistic methodology to search and social, stay transparent with cpc/cpa and offer measurement tools and reporting such as Google Analytics.
The next step is to incorporate content strategy, and then after dotting i’s and crossing all the t’s you get to sales. Not sales and then a wonderful and almost preplanned game of hot potato by the outsourced and overworked/understaffed fulfillment department. Beuller? ANYONE want to take some accountability for the clients problems? Your CEO must be on the same page as your head engineer and his team of programmers. This is the side of corporate that deserves investment. Clearly not what Verizon chose to invest in with its Yellow Pages division Verizon Information Services.
Do you know why two terrible companies, or expired business models combined, just make one really bad company or idea?
John Paulson’s Hedge Fund was lied to by yellow pages executives. Now Mr. Paulson’s fund managers are making plans to turn yellow lemons into lemonade by combining the administrative and management expenses of SuperMedia and DexOne. I guess that is what most people hope, just because some monopolizing of the printed yellowbook business would be a good thing for porches everywhere. So the plan is to cut costs, merge resources and expenses, kill white pages, and then sell whatever is left back to investors or bondholders, but not at 40 bucks a share and the thirty some odd dollars per share they shorted the way down…. does this ring a bell folks? Gotta love crony hedge funds as much as crony capitalists right? I guess you deserved to be lied to… that is what you get for backroom deals to rob shareholders on bankruptcies of a dying business model before the companies had the opportunity for fresh and creative leadership to take a shot. Too bad when Verizon Yellow Pages and Idearc Media was spun off of big Verizon that big Verizon didn’t get to keep the crony leadership team from Kathy Heartless…. errr I mean Harless.
Maybe they need to just stop pretending they are so Super and actually do what is needed to become it… invest in something… anything. Just RIF the entire Verizon Management Team and start fresh… or do what Local.com did and buy a company like Octane360 for a basic SEO offering? Heck, you can’t do worse than BidCenter/SMLocal and Business.com. (lol)