The Yellow Pages Industry, long ruled by an elite class, used to regular golf and 65% plus profit margins, needs to come to a new reality. The viability of the product is very much part of the new age but only if they listen to the needs of their customers, rather than driving them out of business in a recession. I mean if you are a carpet cleaner seeing a reduction in business, how well do you bond with your local yellow pages sales rep expounding the virtues of ROI under your heading?

While the facts cannot be ignored they can be addressed. The Yellow Pages Industry saw a reduction of 3% percent in usage this year. Next to other media that is not too bad. Newspapers saw a reduction of 5% last year and they are still available in the marketplace.

Search Engines by-passed the Yellow Pages this year as the #1 source in terms of local search when people are ready to buy. (33%) vs. (30%). This is a huge change for the industry. Let’s look at why.

According to the 2008 Local Search Usage Study conducted by Comscore and TMP Directional Marketing the online yellow pages is only consulted (19%) of the time. This industry does not translate well to the online environment as their hierarchal internal structures get in the way of the constant innovation required to sustain these properties.  

Too many businesses fail trying to be all things to all people. Yellow Pages will thrive when they go back to their roots and embrace the print environment in innovative ways that create customer value and drive sales.

In the meantime the opinions of bloggers will proliferate as I believe the decline in usage will continue until, from the ashes, an innovative (maybe independent directory  company) will appear who provides a value that will simply remove the yellow pages from its self-imposed extinction list.

Everyone thought Yellow Pages was dead, but Sensis believed that print never loses its touch. The recent financial success of ‘Australia’s Search Engine’ has actually proved that, in order to succeed, good management and determination are the most important factors. Taking a cue from the success of online search engines and Yellow Pages, the Sensis team thought ‘why not?’. The results for the year 2008 have been amazing. The company’s revenue has grown almost 10%, which is no small feat considering the fact that the Yellow Pages was almost a dead concept.

In a recent convention, which was held in Sydney, Telstra revealed to the world it’s success story and how, along with a current workforce of 46,649, it grew into one of the biggest names in the world of directories and advertising. Breaking ground in the fields of advertising, directories and the Yellow Pages, Sensis has shown tremendous growth and increased its revenues with strong and proper management.

Complete transcript of the convention and the details about Sensis’s progress have been released for the benefit of the general public. The firm seems to have no qualms in sharing everything with the consumers!

After looking at the statistics, it is certain the Yellow Pages is not dead, print has not lost its appeal and touch, and hard work and good management are all that are needed in order to succeed. Sensis is calling 2010 a big year for the firm. New developments are envisioned and the company’s revenue is expected to be at an all time high.

Sensis CFO, John Stanhope says, “We are reaffirming our fiscal year 2010 free cash flow objective of between $6 billion and $7 billion. This is a critical target. It is one which we watch very carefully, and it is the overall objective of our transformation”. Will it happen? Looking at the current results, most definitely. When a firm focuses more on satisfying the general population and aims at doing good without thinking too much of the profits, it is bound to grow!

All the best to Sensis for its future and many congratulations for the present success.

Here’s something that could quickly invade the Yellow Pages. Michael Taylor of The Kelsey Group reported that a new “quick response” bar code technology, called QR Codes (created in Japan by Denso-Wave) was introduced in Singapore last March.

“Branded as ZapCodes, the two-dimensional bar codes enable mobile phones equipped with cameras and special software to download information or link users to Web sites for more information,” Taylor wrote.

According to the Singapore-based Straits Times, “ZapCodes add an interactive element, a new dimension to 2-D advertising. They pack more value into your print advertisements…ZapCode allows users to simply point their mobile phone cameras at a ZapCode icon and click. When installed on a mobile phone or PDA, the software reads and deciphers the ZapCode and triggers the sending of data back to the mobile device. The data, in the form of a WAP (URL) site, may contain extra information and pictures, vouchers, music and even videos.”

Taylor believes the technology has the potential to drive traffic and usage to both the online and print versions of the Yellow Pages. “One of the executives I was working with needed information about a restaurant and saw the directory ad had a QR code. With a snapshot from his mobile phone camera, he was able to quickly download the pertinent contact information and store it in his address book.”

In the US, the technology has been used for product data, replacing outdated simple bar code technology. Japan and Singapore, however, clearly recognize its wider marketing potential. According to eMarketer, more than 60 percent of U.S. mobile phones have built-in cameras, providing a solid base of potential customers who could use the QR code technology.

“If a critical mass of QR codes could be driven into Yellow Page directories, it would represent the largest collection of QR codes in one place, adding another level of relevance and usefulness to the print directory,” Taylor added. “Utilizing QR codes in the print book would drive traffic to Internet Yellow Pages and profile pages that provide more information, online coupons and video, thus driving consumer interest in contacting and purchasing products and services.”

Yellowbook recently launched their new integrated marketing campaign entitled “Say Yellow to the Future.” The campaign includes a full branding makeover with a new streamlined logo and a name conversion to one word (formerly Yellow Book), new television commercials by Oscar-nominated Hollywood director Vadim Perelman, and newly-designed print directories that present the company as “a forward-thinking, innovative digital force of the future.”

The newly condensed name and fresh typeface give Yellowbook a sleeker, more digitally-focused feel. Part of the new logo depicts an evolution of the traditional industry-wide walking fingers icon. The book is removed and the fingers could now pass for walking or running through pages, pointing or clicking – an adaption to reflect the growing versatility of Yellowbook’s search options.

“Local businesses have relied on Yellowbook for more than 75 years to drive and support their client base,” said Gordon Henry, Yellowbook’s chief marketing officer. “While 87 percent of Americans use traditional yellow pages, there’s been exceptional growth online. Yellowbook.com has seen explosive growth in unique visitors, and our search engine advertising product, WebReach, has gained tremendous momentum. This campaign is part of our commitment to continued innovation and, importantly, to helping consumers find what they’re really looking for—wherever they search.”

The new “Say Yellow to the Future” campaign represents a natural evolution of Yellowbook’s brand and its goal to help local business remain visible and accessible in an e-commerce society.

In one of the new television spots, set in the future, a bullied boy with an extreme wedgie returns from school. He turns to Yellowbook on his touch-screen and a holographic sensei leaps from the screen into his living room – transforming the boy into a martial arts whiz, brimming with self-confidence. A second TV spot, also set in the future, features Blanca Soto, former Miss Mexico World, as a bride-to-be who needs an embarrassing tattoo removed before her wedding. Her interactive Yellowbook guide helps her on her quest for a clean slate.

“The TV executions are fairly simple storylines, but the subtext of the spots is that Yellowbook will not only help you find a local business, but a higher order emotional benefit like self-confidence or a fresh start,” said Michael Jordan, creative director for Gotham, Inc.

The last scene in each ad showcases and directs viewers to visit yellowbook.com. The site’s consumer interface was recently redesigned, offering an enhanced overall user experience and greater relevancy in search results as well as advanced interactive mapping. The new campaign follows on the heels of the Yellowbook Network being named the top-gaining web property in the United States in March of this year, according to comScore, a leader in measuring the digital world.

Yellowbook’s multi-media advertising campaign will launch on national TV and cable networks and national print publications. In addition, Yellowbook is expanding its marketing campaign to include online digital display.

Yellowbook developed the campaign in partnership with the New York City-based ad agency Gotham Inc. The television spots were shot by Vadim Perelman, acclaimed director of “The House of Sand and Fog” and the newly released “The Life Before Her Eyes.”

“Small businesses today are very conscientious about spending, but advertising is an important operating investment because businesses always need reliable ways to attract new customers and increase sales,” said Neg Norton, president of the Yellow Pages Association (YPA). “The most important thing small businesses can do is have the proper resources in place to handle all the inquiries generated from their advertising programs.”

Indeed, both print and Internet Yellow Pages are a valuable source for generating sales leads from new customers. According to the 2008 Yellow Pages Usage Study conducted by Knowledge Networks/Statistical Research, Inc. (KN/SRI), among those consumers making a purchase after referencing the print Yellow Pages, 39% were new customers to the business they chose. Internet Yellow Pages usage shows that 51% of purchasers were new customers to the business.

The YPA offers small businesses the following tips for making the most of new business leads:

1.  Answer the Phone & Return Messages Promptly

As many small businesses are understaffed, it is important to dedicate someone who is qualified to respond to phone calls and voice messages as these inquiries are coming from customers who are ready to buy. This is especially important for service businesses, as the majority of these potential customers make a phone inquiry. Examples of headings for which consumers are more likely to make a phone call include: Contractors, Movers, Financial Services, Karate & Martial Arts Instruction, Dancing Instruction, Home Health Services, and Kennels.

2.  Check Email Frequently

As more and more consumers use the Internet to search for businesses, it is essential that your ads contain your email address. Again, customers who take the time to contact you are ready to buy. Some headings that are more likely to generate online inquiries include: Banquet Facilities, Limousine Service, Photographers-Portrait, Employment Agencies, Health & Fitness Club/Gym, Burglar Alarm Systems and Travel Agencies.

3.  Track Leads

Make sure every customer is asked about where they found your business so you can better track lead generation and measure the

performance of your advertising programs. Most Yellow Pages publishers offer metered ad programs that allow advertisers to insert a unique telephone number in their ad, so they can quantify the number of leads the ad is generating. While almost 9 out of 10 Yellow Pages users intend to make a purchase, certain headings have an increased tie from inquiry to sale, for example Mattresses, Bowling, Photo Finishing-Retail, Spas & Hot Tubs, Bridal Shops, Florists, among others.