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3
Jun

Circulation at newspapers: I think we mean resumes at publishers are circulating

The Wall Street Journal reports that advertising dollars are down, triggering layoffs and closures at newspapers around the country.  Here in Boulder, the Rocky Mountain News has shut down, but nationwide, USA Today, The New York Times, LA Times, and other large publishers are cutting staff.

How do newspapers reverse the ad decline? The move to online ads has been slow. However, like radio, these publishers have an existing customer base that they can sell local online advertising in a bundle with print.  Google has tried to take online customers and migrate them to print, but the solution is the other way around.

30
May

RH Donnelley declares bankrupty

Yesterday, RH Donnelley’s bankruptcy filing comes as no surprise to folks who have followed their steady decline.  Idearc filed for Chapter 11 back in March and both of these guys were delisted from the NYSE months ago for not meeting capitalization requirements.  RHDC is the parent company for DEX as well as business.com. RHDC began trading over-the-counter on December 31st, following their inability to meet debt covenants.  This recent restructuring may allow them to shed some debt, but doesn’t get at the heart of the issue– they need to convert their print customer to online.

Sucks to be caught in a downward death spiral, since they have to spend time not only trying to remedy the core problem of being a yellow page publisher, but fending off the vultures, telling them “We’re not dead yet!”

10
Feb

R.H. Donnelley Downgraded by Moody’s

Moody’s downgraded R.H. Donnelley’s Corporate Family Rating today to Caa1 and its Probability of Default Rating to Caa2. That latter rating “reflects Moody’s concern that a pre-packaged bankruptcy, distressed exchange and/or other restructuring measures likely represent the optimal solution to re-align the company’s over-leveraged balance sheet,” and that market conditions may now be ripe for the same.

The downward spiral continues.

8
Jan

Cincinnati Bell phone book distribution stopped!

Cincinnati residents will no longer receive the white pages unless they request it.  However, they’re still sending out the yellow pages, since they make money selling the ad space.  Fewer books sent, regardless of if they’re opened, means less ad income— ad rates are based on how many books are sent.  Now isn’t it a bit ironic that the folk who advertise in the Yellow Pages are not seeing ROI, just like the makers of the book aren’t either?

6
Jan

The Death Of The Yellowpages

Not two days ago, I returned home to my apartment building after weathering the harsh Denver elements while walking my dog. A large pile of phone books had been hastily dumped in front of the entrance. Thinking back, my initial reaction was one of frustration and inconvenience. Then I thought to myself “Wow, I’m glad my apartment finally started recycling!” After all, this is not a once-per-year occurrence. These days, we can expect to have not one, but two or three releases of various Yellow Pages spin-offs. In modern times of conservation and efficiency this is one major waste of resources. Dex, Verizon, and others who overcharge for useless listings clog my hallways and landfills (or hopefully recycling bins) like greasy movie theater popcorn clogs the arteries. But at least movie theater popcorn is delicious.

My apartment hallways are a testament to the usefulness of the phone book in 2009, and it goes something like this:
• Phone books get delivered, tossed haphazardly in some unsightly heap of paper and plastic. Each one individually bagged, as if to preserve their eternal freshness (and of course phone book aroma).
• At some point over the next 24 hours, the phone books are distributed to each one of the apartments. They are gently laid next to each door in the hallway, waiting to be eagerly received by the tenant.
• On these glorious days when the phone book fairy delivers its treasures, I immediately take a trip to the garage where the hungry recycling bin awaits. The paper phone book goes into the paper bin, and the plastic bag goes into the other.
• Three or four days pass, and maybe 50% of the tenants have removed their phone books from the hallway.
• Five or six days later, perhaps another 10% decide to do something with their precious phone books.
• One full week later, our apartment manager has to post an official notice to the tenants. It usually reads something like this: “Attention ****** Tenants: If you do not wish to use your phone books, please remove them from the hallway and dispose of them properly.” These notices get posted by each entrance, as well as on each floor of the building.

People fall into three categories in my apartment building, which I think I can safely extrapolate to the rest of the US population. There are a percentage of people who actually still use the phone book. These tenants welcome this thick volume, removing them from my clean hallways very quickly, only to replace last year’s out of date publication. There is another percentage of people (like me) who immediately dispose of the nuisance and quickly forget about it. And then there’s the rest; they walk by the phone book, time after time, day after day, almost blind to the useless mélange of paper, ink and glue. It takes a letter from our apartment manager to draw attention to the phone books.

What does this all mean? Well it means three things to me. First is the waste of resources to create and dispose of these phone books. Most phone books use recycled material, so they do not directly kill trees. But think of the millions of pages wasted on consumers like me, who immediately dispose of these books. Whether recycled or thrown away, this takes countless more resources to deal with the discarded phone books. Not to mention the amount of energy that went into the printing of the books. And I never signed up for this service, in fact I wish I could opt-out of this service, like the plethora of credit card offers that infiltrate our mailboxes.

Second, and just as important, is the waste of finances. Small business owners blindly invest thousands of dollars per year to have their small ad in the wholly grail which is the phone book. With hopes high, they shell out their hard earned dough to advertise here. What is the ROI? Very often 0%. The only people who benefit from this are the salespeople working for the phone book companies, who are paid on commission.

Last, it means that advertising should be re-directed from the phone book to a much more efficient outlet. Where do I go to find phone numbers? The Internet, of course. Google is your friend. Google doesn’t take up space in your closet or drawer, and stays constantly updated. If more businesses focused advertising budgets on Internet marketing they would see much greater ROI. A successful combination of search engine marketing, search engine optimization and pay-per-click advertising can yield incredible results for businesses small and large.

6
Jan

Have you fallen for these Top 10 Scams of 2008?

The Better Business Bureau listed these top 10 scams for 2008.  Among them are free yellow page and directory listings.  What these scams all have in common is that they trick you into giving up your personal information.  Obviously, know who you are dealing with before you provide this information.  Same is true for the scam last week on twitter and other examples of “phishing”, where spammers will hijack the profile of you or your friends.

1
Jan

RH Donnelly (DEX Yellow Pages) delisted on the NYSE

DEX’s financial woes have worsened.  They’re now trading on the pink sheets. This is not to say that the yellow pages are dead– that would be too dramatic.  Rather, it’s a sign that these publishers haven’t been able to move to where their customers are now spending their time.  You want to be where your customers are, as opposed to the old-time reverse thinking of creating something to foist onto customers.  Expect the same fate of IDEARC, which is the Verizon Yellow Pages.  Adapt or die!

And if you’re an advertiser, it doesn’t mean you shouldn’t be using the yellow pages (of which there are many books).  Rather there are other forms of local online marketing that you should be considering and carefully measuring the ROI on.

10
Dec

Yellow Pages Trends, Tests and ROI

There seems to be much debate over whether the Yellow Pages are still useful or not. Some seem to think that while younger people have opted to utilize search engines, , those from the older generation are still more likely to pick up the Yellow Pages. Some argue that the Yellow Pages have no place in an environmentally friendly conscious society and many are even opting out to “save trees.” However, according to the Yellow Pages Association website, trees are not used in the manufacturing of directory paper.

So, what is the real story on the Yellow Pages? According to Google Trends, United States usage has gone down since 2004. The downward trend is even more obvious for the general term search of “phone directories.”

US Yellow Pages Trend Statistics from 2004 to 2008

US Yellow Pages Trends Since 2004

US “Phone Directories” Trends from 2004 to 2008

US "Phone Directories" Trends since 2004

Of course, ROI (return on investment) tells the real story. One business owner used a special phone number, specifically for their Yellow Pages Ad. This number was called one time the entire year! This means the business owner paid thousands of dollars and locked into a contract for advertising which only brought them one client in twelve months. Smart business owners test their marketing efforts and know where to find the return on their investment.

A small business owner can set up an optimized site with a special number as well. The difference is, that if they notice they are not getting a return on their investment, they can opt out of a month to month agreement, before wasting thousands of dollars needlessly.

This means it just makes sense to put the majority of one’s advertising dollars toward online marketing. A small business owner should not cut out offline print modalities completely, but they should definitely consider cutting ¼ or ½ page ads to one line text ads and utilize free local publicity, community events, direct mail, billboards, newspapers, radio and TV for offline advertising as well.

25
Nov

Local online advertising growing relative to overall online advertising

According to this local media report, local internet advertising grew 48% last year but is going to grow only 8% in 2009.  Contrast that with the decline of yellow pages and televison advertising by 17% or more next year.  Now is a great time to be investing in growing your company for the long term, while everyone else is scratching their heads and crying woe.  If you have the cash, invest in your business now.

23
Nov

Yellow Pages Association in denial, after Wall Street Journal article

The Yellow Pages Association tried weakly to claim that the yellow pages are alive and well as ever.  Makes we wonder if L Ron Hubbard and Kim Jong Il are still alive, too.  Meanwhile, businesses need to cut our marketing dollars that aren’t producing ROI– and the easiest fat to cut (usually, but not always) is the various local directories.  Radio and print have been much more effective for our clients.