Winning Against the Yellow Pages

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Winning Against the Yellow Pages
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Note To Our Members

• This document is meant to be an informational
  resource for you on the status of the Yellow
  Pages
  
• Current state of the Yellow Page Industry makes
  it difficult get accurate information therefore,
  multiple resources along with industry estimates
  have been utilized to better portray the
  marketplace as it exists today
• This document is not meant to be presented in
  its entirety to clients
  

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Note To Our Members

• Select Slides can be utilized for presentations
• These slides were created on a white background
  so they can easily be inserted into your
  presentation template
  
• A source is provided for all facts and figures on
  the bottom of each slide
  

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Winning Against the Yellow Pages

• Yellow Pages...Background
• Yellow Pages... Today
• The Yellow PagesThe Dilemma

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Yellow PagesBackground
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The History of the Yellow Pages

• Yellow Pages have been around for 130 years
• Traditionally the Yellow Pages are a print
  directory, providing an alphabetical listing of
  business by geographic region
  
• Currently there are over 7,400 directories in the
  United States, published by multiple providers
  
• Yellow Pages came about (rumored in 1883) when a
  printer ran out of white paper and substituted
  yellow which popped more than white

Source Wikipedia 2008
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Longevity Leads to Awareness

• 99 of U.S. adults are familiar with the Yellow
  Pages
  
• 88 of adults refer to Yellow Pages at least
  once a year
  
• 48 of adults refer to Yellow Pages in a typical
  month
  

Source KN/SRI 2006
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Yellow PagesToday
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Yellow Pages Place in Todays Advertising
Environment

• Traditionally, Yellow Pages play a role outside
  the big 6 media
  
• They serve as an inexpensive reminder to the
  consumer at the end of the purchase cycle
  
• Today's evolving media marketplace (digital) has
  chipped away at Yellow Pages position...placing
  traditional Yellow Pages directories in jeopardy,
  affecting usage revenue

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Usage of the Traditional Directory Has Declined
of Yellow Page Directory References
15.1
14.9
14.6
14.5
Billions
Consumers referenced the Yellow Book 600 Million
times Less in 2005
Source Simmons National Consumer Survey 2005
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Not Surprisingly, Yellow Pages Ad Revenue Has
Also Fallen
A Projected 39 Drop in Print Directories Ad
Revenue by 2013
Yellow Page Directory Ad Revenue
4.9 Million is expected to be shifted from the
Yellow Pages in the next 5 years
15.2
13.2
12.7
Millions
7.8
Source Borrell Assoc Say Goodbye to Yellow
Pages July 2008
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As a Result, a 130-Year Medium is Now Searching
For a Place

• Declining usage and revenue has forced Yellow
  Pages to shift their focus to the Internet

But, is the Internet the answer? Will people
automatically shift from the book to the online
version?
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As a Result, a 130-Year Medium is Now Searching
For a Place

• There isnt much data but initial studies have
  shown only moderate success as it relates to
  references online

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The Number of IYP References Has Increased Only
Modestly Year Over Year
Total Annual Internet Yellow Pages References
(Billions)
1.8
1.5
1.2
1.1
Source Simmons National Consumer Survey 2005
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In 2008, Usage of Both the Book and Internet
Declined
Last Reference To Yellow Pages By Phone Book or
Internet A18
-3
-8
-16
-19
-26
Source MRI Vert BaseA18. Spring of 2008 v.
2003.
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Most Products and Services are Referenced by Less
Than
10 of Adults Within a Year
Only 6.3 of adults checked the Yellow Pages for
a florist in the past year
Source MRI Doublebase 2007
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Yellow Pages Today...
Total Combined (DIR IYP) Usage is not showing
signs of Life

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Yellow PagesThe Dilemma
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The Yellow Pages Dilemma...
Fighting for Ad Dollars in Two Arenas...Print
Digital

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The Yellow Pages Dilemma...
Fighting for Ad Dollars in Two Arenas

• Most experts believe that Yellow Pages best
  opportunity lies on the internet with a
  combination of search video options.

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The Yellow Pages Dilemma...

• How do you compete with established search
  engines who currently dominate search and have
  made in roads into video?

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Internet Ad Revenue Trends
Although showing a steady increase in ad revenue
IYP share vs established internet players is
decreasing
Local Yellow Pages Online Ad Revenues (Millions)
Local Yellow Pages Online Ad Revenues (Millions)
Local Yellow Pages Online Ad Revenues (Millions)
Source IAB Advertising Revenue Report. Borrell
Assoc What Local Media websites Earn 2008
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The Yellow Pages Dilemma...

• How do you compete against Cable in the video
  arena!

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Cable Has a More Desirable Audience of Affluent
Consumers
Source MRI Spring 2008 Horiz
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Cable is Superior in Top Yellow Pages Categories
Source MRI Spring 2008 Horiz
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The Yellow Pages Dilemma...
Fighting for Ad Dollars in Two Arenas...Print
Digital