The Fate of Yellow Page Company Business Models…

August 23, 2010

What an interesting topic? Almost as interesting as discussing the weather on June 3rd, 1963.

Well, I had an interesting call with Yext folks once again. Paying up to $25.00 per call for quality leads is not asking for too much, unless you can get them for less by a qualified local search engine marketing firm. A client has a Yext account. Why you ask? Because sometimes SEO agencies don’t or are not capbable of serving “bold listing” and “HS ad” type budgets. This is why YEXT is such a good offer. They gamble on the search marketer skills in-house by providing result within a margin and aggregate traffic amongst all the different listing sites, such as SuperPages.com, Yp.com, CitySearch, AllTheWeb, Local.com, etc.  Most small search marketing agencies focus on Google, Yahoo, Ask.com, and Bing.  Sometimes, especially in rural markets, the value of local directories with older and less experienced computer users, the directory sites can provide a greater value. Competitive markets that have populations over 200k drive up cost by aggressive advertisers and amount of advertising competiton as well as standard bid minimums and less volume to justify monthly media service fees.

So…. what is the fate? Better focus on driving quality traffic to you directory. I think print will still be fragmented with competition and .com will be all about customer traffic, managing traffic, and cost per aquisition or lead.

Your thoughts?

That is why going from 20 million UVs (unique visitors) to 8 million is such a big deal!

If you think a sales model is the future of the internet you are DUMB or a liar.  Traffic driving lead aggregators, search engines, local search companies will saturate the local smb market. The company that wins adapts a service oriented holistic approach.

Bet!

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What is REALLY wrong with Yellow Pages company products and services?

February 4, 2010

Recently a few bankrupt Yellow Pages publishers sent letters to clients disclosing information regarding previous contracts and commitments.  Does this permit them to no longer follow SIZE & Seniority commitments to yellow pages clients?

Did you know that to curb massive revenue losses, as consumers have shifted away from print yellow pages phone books, the yellow pages industry is now offering ad seniority placement buyouts?

When Bell South began publishing mini-books other publishers quickly followed suit. When one does something… so does the other? Let’s not hope so!

Rumor is post-bankruptcy yellow pages directory publishers are considering offering “select clients” the option of jumping phone book directory placement (old contract agreements that outline size and seniority guidelines) with new “display ad placement buyout options”.

Seems like they will do anything to earn a buck, huh?

How can you trust a organization who fails to keep promises clients regarding these advertising investments. They made a commitment to the client that the ad they purchased would be placed by size and seniority from the date when the contract is signed. The print yellow pages industry has held the “decrease your ad and lose your discounts” AXE over clients heads to persuade clients into keeping ads for many years.  Is the Yellow Page industry selling products or services? Is the pricing fair? In my opinion the yellow pages industry needs to stick to products… not services.  Search Marketing service requires fulfillment and constant attention, something the print industry has very little experience in vs local advertising agencies.

Yellow Pages sites are attempting to become the local resellers of Google advertising. As a local search marketer, I don’t think the long contracts that leave little recourse and zero cancellation options in the event the Phone Book Companies PPC Management campaigns are not performing to expectations. In my opinion this is another means of continuing to grind the axe on cancellations. Without flexibility and a diverse offering (product portfolio) they are going to have continued issues with client churn.

Did you know that when you place advertising on Google’s AdWords interface, not only do you own the work produced when hiring a local search marketer, (I do not recommend  signing a 12 month contract , considering Google does not require such a contract to advertise) you also are able to see what changes your account manager and “PPC coach” made to your campaigns

PPC management Account Activity Reports prevent PPC Fraud by Google Guru

Next topic for Today:

Google Maps vs Yellow Pages searches:

Here is the graph continued and combined with Searches for Yellow Pages companies:

"Yellow Pages" is now obsolete

Who has experienced the greatest and/or most rapid decline in the Top IYP (Interactive Yellow Pages) & local search brand sites?


Notice how much Yelp.com gained compared to the decline of Superpages.com? This goes to show the consumer preference for review based sites  (and why Google was tendering an offer for Yelp.com)

FACT:  Did you know that Yellow Pages print directory usage has declined over 50%?

Has your “Yellow Page Rep” told you about the trends away from print and towards digital that is taking place?

Have print ad rates gone down to accomodate for the decline of print yellow pages and the industry fragmentation?

According to Greg Stewart from TMPDM, “Print Yellow Pages accounts for approx. 28% of Local Search.”

Primary Source of Local Business Information

I will go ahead and state my prediction: Yellow Pages Print usage will be less than 24% of Local Search by 2012! That means the phone books of 2005 (that were over 70+% of local search product or service queries) are now less than half as popular as they once were as a medium. (yet more phone books exist today than ever!

Do you think it is time the phone book publishing industry adapt to OPT IN vs a very misleading OPT OUT method? What are your thoughts? Take my poll!

Cheers,

Mike Stewart

“Your Dallas Local Google Guru”

BTW, Webformance Inc. will be offering call tracking to all clients. If you want to track your phone book, direct mail, email, Google, Video, Business Card, or other advertising investments and see which ones are really bringing the calls….. all you need to do is call: 214-267-9553!

“You can’t manage to get the best advertising if you can’t measure what advertising efforts work!” – Mike Stewart the Local Dallas Google Guru


Crony Capitalism vs Main Street Capitalism, Duopolies of Economics and the future of Yellow Pages Advertising.

November 17, 2009

Our American economy, politics, and consumer spending market have all become a duopoly.

A true duopoly is a specific type of oligopoly where only two producers exist in one market. In reality, this definition is generally used where only two firms have dominant control over a market.

The most commonly cited duopoly is that between Visa and MasterCard, who between them control a large proportion of the electronic payment processing market. In 2000 they were the defendants in a US Department of Justice antitrust lawsuit.[1][2] An appeal was upheld in 2004.[3]

Examples where two companies control a large proportion of a market are:

What is most common in all these examples is the fear of competition by the capitalists at the top of these companies.  Regular Americans are not afraid of competition. Competition creates better jobs, better, economics, and better political policy. Competition creates innovation. Google is essentially afraid of it’s competition from Microsoft, Yahoo, and the next greatest internet fad or brand. It is what keeps Google on it’s toes and innovating.

What has contributed to making the above companies successful is creating a duopoly. Duopolies can be very profitable for category leaders. The only thing better for a large company is a monopoly. Take a moment and think of the yellow page advertising industry. For many years the local phone company was the only game in town for local advertisers to reach out to local consumers, essentially a monopoly. In 1984 the AT&T Telephone company was broken up. This essentially created healthy competition in an industry that really did not have competition. It was good for consumers since very few options existed at the time other than printed yellow page phone books, thus creating a duopoly.

Fast forward to the Telecom Act of 1996: It opened up competition and gave consumers more choice. Over the next few years  we saw an increased amount of competition among incumbant and CLEC phone companies in the yellow page advertising industry. No longer did the “phone companies” have a duopoly on the yellow page market. GTE Yellow Pages competed with Southwestern Bell Yellow Pages in the Dallas area market. Then all of a sudden we  saw a few independent phone books pop-up (mostly due to employees of the phone companies leaving and starting yellow page publishing companies with investors who saw the huge profit margins in yellow page advertising sales) over the next few years.

So what really happened to the yellow pages? The birth of the INTERNET. Google. Yahoo. MSN. etc., but most of all……” a huge change in the manner in which consumers find information.” Consider this, the internet has only been around for “Local Search” online since about 1999-2000, that is  just about four years post telecom deregulation.  I can tell you that from 2002-2009 the industry has done very little to compete with Google. While losing business to other forms of advertising media (such as Google and direct mail growth.)

The Yellow Page Duopoly in Media is Over

I witnessed the following questionable practices by executives of major yellow page publishers in order to create new revenues:

  • Dave Bethea at Idearc

and last but not least, what I witnessed first hand:

  • Sporting and Concert Tickets to friends and family vs Clients

Competition is good for all businesses (and in politics.) Competition creates innovation. Competition always offers a better value to consumers in the long run. Competition is bad for Crony Capitalists. Competition could have been good for the yellow pages, but since the Industry apparently disregards the feelings of its end-users by inundating homeowners with yellow page waste, It will eventually become a smaller factor in Local Search. Local search online will continue to outpace printed yellow pages. This is a FACT. The problem for Yellow Pages publishers is that they are not Google. They are not Yahoo. They are not MSN. They are FAR from innovative. They don’t ask the right questions. They do not care about the opinions of those that sale to clients. I was told this first hand.

I would love to conduct a poll among yellow page advertising sales reps about the usage of yellow pages. The company never asked for the information the entire time I was an employee? Why you ask? They don’t want me or 80% of the other 6,000 employees to let them know that we do not use the phone book. This is a fact. I have discussed this very subject with folks in the office while at Idearc Media in Dallas Tx.

Now there is the possibility that I am wrong. Considering that the Dallas-Fort Worth Metroplex has always been the #1 Market for Yellow Pages in the country, I have a feeling that I am correct on my opinions. After almost 10 years at Verizon/Idearc I have come to realize that my employers did not value my opinion or the opinion of sales. Chalk it up to crony capitalism!

Google is currently still a Monopoly in local Search

By the way, be sure to check out the national CMR agency TMP., the largest client for yellow pages companies in the country, on what is happening with phone book usage, advertising rates, and the true value of print yellow pages. You can follow them on Twitter at http://twitter.com/TMPDM. They are doing a great job of distributing “syndicated” research on the trends of Local Search Marketing. Don’t ever rely on the statistics from the industry. Don’t ever trust a “sales rep” who is not accountable for achieving your results.

So what is the real future?

Cheers,

Mike Stewart

POST SCRIPT:

Great video (very long…….) on Duopoly, Capitalism, and Politics…….