The Essentials Of Internet Yellow Pages

by Rich Hargrave, Ambassador Publications

Things are finally starting to shape-up for the Internet Yellow Pages (“IYP”) search model. Thanks to the recovering advertising market, improved technology, increased broadband use and an increased focus on local advertising dollars, IYP has become more popular than ever before. Popular with users, as well as with the publishing and technology community as it’s ability to deliver valuable results and increased revenues increases. It has reached an interesting crossroads.

Short-term, if Publishers and technology companies continue to increase the effectiveness and value to users and advertisers IYP will become an even larger force within “local search”. However, if these parties allow “outside” technology to move forward and eventually provide a more valuable and locally relevant search result, the sought-after local revenue will follow. The essential knowledge from an Advertiser, Publisher and Sales perspective is following:

What Every Yellow Pages Advertiser Needs To Know About Internet Marketing-

“complete, relevant and geographically organized search results”.

There’s a reason Yellow Pages Directories are often referred to as “the original search engine”. Directive Advertising-or targeting the “ready-to-buy” customer is what the print Yellow Pages has done effectively for over 110 years. Since the mid 1990’s the Internet has joined the print pages in offering advertisers a directive channel to reach these “active” prospects.

For most local business, and in particular Small & Medium Enterprises (“SME’s”) the geographic scope and active reach of directive media can easily provide the greatest return-on-investment of all advertising choices available.

Typically, IYP is viewed as the “Internet” or “virtual” product of Yellow Pages publishers, but it is also a search option offered by many Search Engines and destination portals. Generally speaking, it’s a locally focused directory containing geographically organized listings, static or rotating links, display ads and banners. Advertisers usually appear 100% of the time (as opposed to being “bumped” down by new links or paid insertions). It can be hosted and designed internally or outsourced. It can be in the form of a co-brand, An IYP can be compared to a giant National directory-organized by headings and geography, just like the print product.

Having a visible presence on the web is a vital part of most SME business plans (I say visible because simply building/launching a site is only half the process, effective web promotions/visibility is the other requirement). In the current business climate, customers, and more importantly potential customers expect to find almost every legitimate business on-line. As a small informational home page, a large “catalog” site of products and services, or an e-commerce enabled storefront, the importance of this visibility is growing everyday.

Three years ago a Verizon SuperPages survey found “many consumers use the Internet to window shop – to research and browse before they buy from local merchants”. Over 21% of online consumers research online, but buy locally; no doubt this number has and continues to grow. In 2003, SuperPages research found that 80% of all IYP look-ups were followed by a purchase, 67% of which were over $50.

It is generally accepted that approximately 20% of all on-line searches have “local intent”. Recent improvements in CitySearch, Yahoo! Yellow Pages and Google are due in part to this realization.

In addition, January 2003 TKG/ComStat research found that 50% of the local businesses surveyed “totally agree” or “agree somewhat” that the Internet allows a local business to be more successful in the local market. 37% are using the Internet as a substitute for traditional advertising, and 44% believe it’s “absolutely essential” for all businesses to have a website.

So this website acts as an extension of the storefront, just like the Yellow Pages ad. It’s an additional “entrance” to the business; one more way prospects can find products or services when they are “ready-to-buy”. How does the traditional Yellow Pages advertiser leverage the fastest growing medium of all time?

Briefly, there are four basic ways to promote and drive traffic to a website:

ü Search Engines- Also known as Search Engine Marketing (“SEM”) or optimization. The most popular navigation tool for surfers is also the most challenging for local advertisers. First, there are hundreds of different popular search engines being used by millions of people, and there are over 500 million search inquiries per-day! Most use crawler or algorithm-based technologies, but may require individual “tweaking” or optimization. Bulk submissions offered by the general Internet Marketers usually won’t be enough to achieve visibility. Generally speaking, ensuring a websites competitive placement requires constant attention from a webmaster or technology company, something most SME’s don’t have the time or resources for.

The major downfall of optimization is there can never be a guarantee that you’ll be found by that sought-after “ready-to-buy” prospect…especially the one in your local area.

One effective option made popular by Google and Looksmart continues to be paid inclusion/keyword within a search engines results page. The CPC (cost per-click) formula is becoming increasingly popular, and if properly executed can be an effective tool in driving local prospects. Considerations such as “how much am I willing to pay for a potential customer” and call-to-sale ratios need to be weighed. The effectiveness of this strategy is dependent on your keywords/link description, your competition and your direct investment. Some homework will be required, but may be well worth it.

ü Traditional Media-the traditional forms of marketing should not be overlooked when attempting to drive traffic to a site. At the local level, it’s also the easiest and least expensive. This non-directional “pulling” method works the same way as a vanity phone number; you may not be reaching customers when their actively shopping-but with a little luck they will remember how to reach you when they’re ready to purchase at a later date. If you were not lucky enough to get that vanity “800 my name” number-try the “www” version!

Literally printing the website address on everything from business cards to delivery trucks, invoices, brochures, the store-front window, advertising (including the Yellow Pages), and even directly on your products will ensure continued visibility and competitiveness.

ü Creative on-line programs-such as run-of-network banners and tile ads mirror the results direct mail campaigns provide; a very low return (or click-thru) rate. These types of programs have suffered in recent years, and are being replaced with more targeted links and strategically placed keyword campaigns. The most popular current examples include link-exchange networks with similar interest sites and Affiliate programs. Paid placement is typically purchased by CPM (cost-per-thousand), you pay for impressions regardless if they click-thru to your site. I’d compare this strategy to putting up a billboard; the more popular the highway, the more expensive the real estate.

As with all creative campaigns, long-term frequency of the impressions is key. These billboards may be virtually useless to the local business unless it’s visible to your particular market-which in the on-line world may be a challenge. CPM costs can be high, and can vary according to projected traffic and the sites popularity. How much does your business really benefit? Unless your goal is long-term branding immediate effectiveness is difficult to measure. An important reminder: unless you’re conducting e-commerce or are interested in National scope, be sure to include your specific location; City, phone number or geo-targeted message – you must localize your strategy.

ü On-line Directories-also known as Internet Yellow Pages (“IYP”). These rapidly growing tools can be found both as stand-alone sites (such as YellowPages.com & the re-born InfoSpace.com) and as an incorporated product within major properties (such as Yahoo!, AOL or AmbassadorPublications.com). In an effort to capture the coveted local advertising dollars most major search engines offer their own “Yellow Pages” product as well.

Just like the print yellow Pages, IYP provides a complete database of listings within a specific geographic area. This simple, familiar format is one reason for their growing use. The other is their ability to provide truly local search results; something no other on-line tool or search engine has accomplished…yet. IYP delivers RELEVANT, ACCURATE and COMPLETE results-organized geographically and by “heading”…just like the print product. This is the key to this models success.

For example: You’re in Newark NJ on business. Try finding a local printer by searching Google. The results you receive are in the millions, and most likely don’t include the local printing shop within the first several pages. No fault of their own, but this is how search engines work. They rely on either paid “sponsored” listings, secret algorithms or proprietary “crawler” technology to find what your searching for, and at the local level these results are inadequate. Major improvements in this area are anticipated, but have yet to be realized.

Now try the same exercise thru a popular IYP; Switchboard.com.You’ll find virtually every printer in Newark, as well as those spending local advertising dollars within the top category (they want your business!). Typically, these are the businesses that are physically located near you. Complete, accurate and geographically organized results, just like the print product-that’s what local search is all about.

Now the best news. Top category listings within the most popular local IYP’s are extremely affordable (and by nature-all IYP’s are local). Just make sure they have substantial traffic or usage within your market. Extra’s such as maps or directions to the advertisers location are usually included, as is a line or two of specific copy, general facts such as parking or hours of operation, a logo and your complete address. A business may not even have to have a website to benefit from the increased visibility IYP’s can provide...as users still make contact the “old fashioned” way. Bottom line-a local business that traditionally profits by Yellow Pages representation needs to investigate this potentially even more profitable on-line version.

IYP: The Future Of Print Yellow Pages?

Several years ago in an Ads Guide.com article I asked, “When will IYP replace print directories? Although much has changed, the answer today is essentially the same as it was three years ago, ultimate and universal success is dependent on:

· The content and technology forces behind its development.

· Continued increase in broadband usage.

· A successful (complete and accurate) user experience.

For the most part these requirements have all been met, however the “forces” behind the product is shifting. IYP was developed for, and is a product of the print publisher… its come a long way since the first “NYNEX Interactive Yellow Pages” debuted in 1995. To put things in perspective, “Prodigy” was the #1 ISP, Netscape Navigator was a dominant browser and on-line transactions were virtually non-existent. Print advertisers were being sold one-page template sites for $25/mo. Companies such as Switchboard.com and InfoSpace then took things to the next level, proving that IYP was not just a Publisher’s product. The real story now is where IYP usage and revenues are heading, as well as the local YP Publishers ability to leverage their current position within this increasingly faster-changing marketplace.

According to The Kelsey Group (TKG), IYP revenues are projected to be over two billion dollars by 2006. TKG also predicts that by 2008 there will be more users of digital products than print Yellow Pages for local information. In other words, they believe more consumers will turn to cell phones and computers than print yellow pages to find local products and services! Although current print references have leveled off after several years of slight decline, most agree that a major shift in usage is inevitable.

IYP has not “taken over” as the preferred medium connecting buyers with sellers, and most agree it won’t for quite some time. I believe the current IYP product is the perfect compliment to an advertiser’s print program-not an alternative. If correctly bundled, Publishers can easily provide SME’s with the full circle of directive advertising solutions. Although this local search tool has grown in both usage as well as its effectiveness in delivering local results, its position vs. print revenue should be viewed as an opportunity.

From the Advertiser’s perspective, everybody agrees that the Internet is growing and few will dispute the print products effectiveness in local search…so why not combine both print and on-line and continue to reach 100% of the local market? The reality today is there are currently few (if any) cost-effective, locally focused alternatives to IYP.

There are several different platforms and interfaces currently being used, but one of the most important keys to this tools effectiveness is the ability to obtain the requested result within 2-3 clicks. Required search information should be limited to heading (category) or business name and city/zip.

Yahoo’s product places a cookie on your hard drive so that this information is only required once, an excellent feature. Switchboard’s rotation of it’s advertisers ensures the value of inclusion, regardless of how populated the category.

Incredibly, most large National players continue to serve up products with several questionable and sometimes confusing parameters. For example, almost all still offer duplicate versions of the same traditional heading (or category). The Verizon SuperPages requires users to choose from more than nine almost identical sounding “Moving” headings. At the same time Yahoo’s YP directory take almost nothing from the proven, time-tested print heading structure: “Massage” (a notoriously related heading for Escorts) and “Massage-Therapeutic” are lumped into one single category, and their “Advertising” Category offers “Direct Mail”, “Signage” and “Radio” headings, ironically forcing Yellow Pages publishers to fall into the “Other Supplies and Services” catagory.

Additional challenges that exist virtually without exception are data-related. The on-line version of “directory failure” is experienced within many products. Incomplete listings, outdated data and poor search results are still served up, even within major Metropolitan areas. Properties such as YellowPages.com and 411.com. would greatly benefit should they begin to aggregate data from local publishers, and the user experience would increase substantially. The mapping of keywords/related headings also needs attention across the board.

One of the more interesting IYP platforms currently in use is the “look and feel” product. It is actually an on-line digital replica of the print directory. It can include imbedded links, maps/directions, and advertiser information. It can be created from the actual printers files, or converted into HTML from the pagination files. Although it’s looks and functionality appear to be a bit dated (compared to everything a portal can offer) it actually combines a publishers strongest assets; the complete database of local business with advertiser copy/illustration. From a sales perspective-this simple model makes it a no- brainer even for the most technology-challenged Sales Person. In addition, it completely supports what is currently the core-revenue source-the print directory. If you’re not in the book, you’re not on-line. The downfall: it will not be the ultimate solution, so publishers need to demand further enhancements, which include alternative search methods and of course greater traffic or distribution channels.

Although electronic/digital Yellow Pages completely replacing big, fat print directories may make for an amusing or exciting story-it is certainly not reality…. and won’t be for years to come. The more likely model has yet to be seen, but will most likely aggregate content from a variety of sources-the new AOL “in your area” tool is a good example. CitySearch is not far behind. Looksmart, Google and Overture are also going to be major forces.

The real question is; who will act as the major providers and entry points to local search queries? The answer? Companies that have the following; A) deep pockets, B) reliable local content, and C) local advertiser relationships. The only industry that can currently make this claim is Yellow Pages Publishers.

The Publishers Responsibility-

As mentioned previously, I believe IYP is at a crossroads. Why is IYP important to us, Yellow Pages Publishers, and what is our responsibility?

I’m convinced that the responsible parties behind the continued development of IYP are, and should continue to be the traditional print publishers. As outside technology and search companies enter the local search market the IYP model will either become an increasingly valuable source of local products and services, or a stagnant on-line print replica. Of course, the lines may also become blurred and IYP may morph with traditional search engines; providing results from numerous sources. For example, Yahoo’s purchase of Overture is already evident with within it’s YP results-content considered “relevant” is delivered along with listings.

Regarding Internet revenue; regardless if weather you are selling a co-branded directory, building an in-house product, or re-selling an existing third party directory; an insertion or link should be considered to be just as important as a clients print DHC or 3HS. If the digital portion of the Advertiser solution is ignored, the revenue will be lost to another player (this revenue is definitely available, and up for grabs). Bundling may be an effective strategy to combat the common “one product” thinking of established sales forces.

One goal should be to begin leveraging the print ad content, not just the listing and database content. Publishers are in the unique situation-in what some have called the “pole position”, to take advantage of not just their strong SME relationships but their ad content as well. Developing IYP’s that can use what I refer to as “geo-keyword” searches (based on advertiser copy and market) will be a key strategy in remaining competitive.

In a nutshell; Yellow Pages Publishers sell ads & charge pre-set rates based on an assumed or “predictable” amount of business that will result. Pay-for-performance models are attractive because their investment is based directly on real-time results. This becomes a direct threat to the print product and current IYP model as soon as effective local search is perfected.