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March 18, 2010

Superpages Pushes Out Coupons, Twitter-Style

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Just six months after it launched its SP411 Twitter integration, Superpages is at it again with an offer to Tweet any coupon that businesses upload to an online profile.

To do this it has created 72 city-specific Twitter accounts, which users in those cities can follow to get daily tweets for coupons and promotions happening around them. Businesses interested in taking part can register on Superpages and go through a process to create or upload coupons.

According to the press release, this includes:

  • create up to three different coupons,
  • set a start date and expiration date,
  • add a disclaimer,
  • apply coupons to multiple store locations,
  • include a promotion code to track specific offers; and
  • update coupons at any time.

Coupons are then automatically tweeted out by the geographically appropriate Twitter handle. Of course this is only as good as the number of followers of each of these city-specific accounts, but they should build followers quickly.

The growing interest for coupons on Twitter combined with Superpages ability to cross promote this, will make it happen. Meanwhile you can check out the aggregated feed of all of the 72 city promotions on Twitter (and link directly to your city’s account) at @superpages/superpages-cities.

Like SP411, this is a clever integration, utilizing only a standard Twitter account to communicate and create additional touch points with users looking for local business information. The coupon angle makes it that much more enticing.

As we said at the SP411 launch, media is fragmenting and Superpages is meeting users where they are going. This is an important paradigm that traditional media need to take to heart, as a once siloed world becomes more about presence across platforms and less about owning destinations.

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March 13, 2010

Walsh Offers Nuanced Defense of Print on Fox

I finally got around to viewing Yellowbook CEO Joe Walsh’s recent appearance on FoxBusinessNetwork. The line of questioning presumed the obsolescence of print, which Walsh certainly anticipated. He made a few assertions that one might expect — that people still use phone books, despite what you might think, and that Yellowbook has been responsive to environmental concerns, with smaller books and opt out and so on.

He also said a couple of things that were kind of interesting. He made a distinction not based on big versus small markets, but rather coastal versus heartland. Asked if phone books would still be around in five years, he said “Yes,” but added that in some coastal markets, the migration from print to digital usage might be completed within five years. In smaller markets in South Dakota, Mississippi and so on, print is strong today and will likely still be strong in five years. And when asked what his biggest seller is today, his answer without hesitation was “Web sites.” Click here or on the image below to watch the interview in its entirety.

CM Capture 1

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Blog: Global Yellow Pages, Local Media Blog, Yellow Pages, Print
Posted by: Charles Laughlin at 2:49 pm - Comments (0)




March 12, 2010

Reflecting on the Future of Global Yellow Pages

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It’s nearing the end of earnings season for the global Yellow Pages industry, and my program, The Kelsey Report, will soon issue a detailed roundup of 2009 results across all the companies that report publicly.

In general, the news has been grim for print Yellow Pages, though some publishers have given faint glimmers of hope that print will stabilize this year, meaning a slowing rate of decline. Others are projecting an accelerating decline.

A recent (unscientific) Kelsey Report online survey of global YP industry insiders suggests that most in the industry see a strong secular component in recent revenue performance. Probably the most telling messages that has come out of some recent conversations I have had with leaders in the industry is that the continuing, if waning, effectiveness of print is an increasingly irrelevant point. The energy it takes to overcome objections to print can be more effectively directed to selling digital or a product bundle that emphasizes digital.

Ironically, I am hearing more and more that print may be necessary to making the bundle effective because it still drives leads, but it is poisonous to the messaging because no one believes it works. I am hearing more and more about strategies that essentially engineer a faster print-to-online shift because the investment story for a company focused on the local online opportunity is so much more compelling than a traditional media story.

So the big question is, does the industry have a viable plan to become a growing, profitable business in a post-print world? And how will organizations need to change to make economic sense in a world where the product mix is substantially different from what it is today?

These are some of the questions we’ll take a whack at in a workshop we’ll be conducting at the Yellow Pages Association’s conference next month in Las Vegas, and in much greater depth at BIA/Kelsey’s Directional Media Strategies conference in Dallas, Sept. 14-16. The workshop at the YPA event is titled, perhaps hopefully, “Built to Last: The new Yellow Pages Organization.”

My colleague Mike Boland will also have a prominent role at the YPA event, moderating a panel on “Monetizing Mobile Yellow Pages,” which is also the topic of an upcoming joint report from BIA/Kelsey’s Mobile Local Media and Kelsey Report advisory services. Mobile is increasingly seen as key to the future of the business, and arguably, because of its inherent emphasis on calls over clicks as the currency of leads, a place where directories have a more level playing field.

Next week I will be traveling to the Association of Directory Publishers meeting in Houston, where I’ll be very interested in talking to smaller market publishers about the environment they are experiencing. At the last ADP event I attended, it was clear the economy had taken a toll on many publishers, but there wasn’t much talk of a secular decline. I’ll be interested in hearing how the mood and message have changed since the last gathering.


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March 5, 2010

DexOne Posts Grim ’09 Results, Sees Modest Improvements Ahead

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On Thursday’s earnings call, DexOne (ex-R.H. Donnelley) leaders cautiously projected that the rate of decline in ad sales would improve in 2010, from being down 20 percent in 2009 to down between 12 percent and 15 percent this year. The company made the case to financial analysts that its performance in 2009, while dire, was in line with the overall media landscape.

Most critically, DexOne leaders tried to sell the story line that it has emerged from bankruptcy as a stronger, healthier company that is well-positioned to succeed in the local marketplace. Along with other leading publishers, DexOne is offering its take on the “one stop” model where SMBs can go for a simplified solution that delivers leads from multiple channels, including a mix of proprietary and third-party sources. DexOne CEO Dave Swanson doesn’t even like to refer to the business as a Yellow Pages company, even though the core product remains the primary, if diminishing, source of revenues and leads.

“We have evolved far beyond our Yellow Pages roots,” Swanson said. “Yellow Pages is only one of seven platforms we are using today to drive leads for our customers and revenues for the company.”

For the full year 2009, DexOne posted net revenues of US$2.2 billion, down from US$2.6 billion in 2008, a 16 percent drop. Ad sales reflect the value of ads sold for books published during the year, while net revenues account for dollars amortized during the year, since directory revenues are recorded over a 12-month period to reflect the lifespan of a directory. Ad sales are generally considered a better indicator of how the business is performing.

DexOne CFO Steve Blondy, echoing other industry leaders, described the third and fourth quarters of 2009 as the “bottom” in terms of ad sales declines. Ad sales were down 21.9 percent in Q4 2009.

He added that the company is being cautious in its 2010 guidance because the small-business advertiser is not bouncing back as quickly as larger and national advertisers. And that recovery will continue to lag. “Small businesses are not participating in the recovery consistent with [advertisers in] major media.”

Some other earnings call highlights:

  • Swanson described the company as following a “merchant centric strategy.” Essentially this means it is all about aggregating the kind of traffic that drives quality leads to advertisers.
  • DexOne reported losing 110,000 advertisers in 2009. Blondy said about two-thirds of the loss was the result of companies going under or being locked out for credit reasons.
  • Swanson reiterated the recent announcement that DexOne is aggregating Yelp reviews into its DexKnows platform. BIA/Kelsey originally reported this on the Local Media Blog on Feb. 1.
  • There was some back and forth on EBITDA margins. DexOne reported a 52 percent 2009 margin, and margins are expected to decline further in 2010. Pressed on this, Blondy shot back that it is a “business decision” to invest in the customer value proposition. “We are getting a diminishing return from cost savings,” Blondy said. “We can’t save our way to success. Our focus is on growing the top line.”
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Blog: Ad Sales, Local, Financial Results, Global Yellow Pages, Local Media Blog
Posted by: Charles Laughlin at 2:41 pm - Comments (0)




March 1, 2010

Signs of Life for Yellow Pages?

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We’ve been listening to earnings webcasts for the major global directory publishers over the past days, trying to pick up any clues for how publishers see 2010 developing. Most publishers have shortened their guidance horizon or have stopped giving it altogether. In many cases, the banks and hedge fund analysts on the calls are pressing CEOs and CFOs pretty hard for any indication absent of formal guidance of how the year is shaping up.

What we are hearing on these calls is a hint of cautious optimism that the rate of decline in print revenues has bottomed out and in some cases the rate of decline may be slowing.

For example, here is what SuperMedia CFO Dee Jones said on last week’s earnings call:

“From an ad sales perspective we feel that we are in the valley. Our ad sales for the fourth quarter, on top of what we did in the third quarter, indicate to us that we are in the valley. It is too early to tell when we get out of the valley.”

Jones later clarified that he was referring to the rate of decline in ad sales. For the full year 2009, SuperMedia’s ad sales were down by 18.7 percent. SuperMedia, which emerged from bankruptcy on December 31, has stopped breaking out its revenue performance by segment (print, online and other), which it had done through the third quarter of last year.

Here is what Yell Group CEO John Condron said on his company’s Feb. 4 call announcing its third quarter and year to date earnings (the company’s financial year ends March 31):

“We are still experiencing revenue pressure. However, the rate of decline is stabilizing, and there is a significant increase in confidence.”

Through three quarters, Yell Group posted a group revenue decline of 13.3 percent at a constant exchange rate.

Pressed on this point during the questions and answers session, Yell CFO John Davis conceded that “We have a Long way to go. The rates of decline are still in double digits.”

Still, both Condron and Davis continue to argue that the negative performance of directories, print in particular, is largely the result of the brutal 2008-2009 economic environment, and not a long-term secular shift. A recent (unscientific) BIA/Kelsey online survey of industry insiders suggests that many if not most in the industry believe the declines are the result of a combination of secular and cyclical forces.

At this stage of the year at most directory companies, the (calendar) first quarter and much of the second quarter revenue has already been sold.

These comments suggest essentially that the business is stabilizing and no further deterioration from the abyss that was 2009 is expected. Perhaps there may even be a modest improvement in the rate of decline as the year progresses.

BIA/Kelsey expects 2010 to be a year where the directories business stabilizes. The degree to which things improve in 2011 and beyond will be driven in part by the performance of the economy, but perhaps even more so by the directory companies themselves.

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Blog: Ad Sales, Local, Financial Results, Global Yellow Pages, Local Media Blog
Posted by: Charles Laughlin at 6:40 am - Comments (1)




February 15, 2010

Telstra, Sensis Lose Copyright Case, Appeal Possible

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Following a significant court decision, Yellow and White Pages content is not entitled to copyright protection in Australia. Assuming the case is upheld, any entity can legally copy the content from a Sensis directory, even to build a competitive local search or directory product, according to Australian press reports.

The decision is the outcome of a lawsuit filed by Sensis and its parent company, Telstra, against Local Directories, a small independent Australian publisher that used Sensis data in building its product.

The presiding judge argued, in essence, that the effort involved in building the databases didn’t rise to the level of intellectual property worthy of protection.

Sensis also released a statement following the ruling, which said, “This decision raises fundamental issues about the score of copyright law in relation to complex compilations, with far reaching impact beyond the facts of this particular case. Sensis is presently considering its position in relation to an appeal.”

We spoke also on Tuesday with Sensis CEO Bruce Akhurst, who downplayed the impact of the ruling. He pointed out that while the decision was not welcome, it really only clarifies the legality of an already common practice, copying Sensis’s listings data and classification system. He notes out that the content of the actual ads within the Sensis directories is and will continue to be protected under copyright.

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Blog: Global Yellow Pages, International Markets, Local Media Blog
Posted by: Charles Laughlin at 3:11 pm - Comments (0)




February 14, 2010

Canpages Looks to Expand; YPG Looks to Rebrand

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Canpages, the leading competitive directory publisher in Canada, appears to be making a play for the CanWest media properties, which would greatly expand and diversify Canpages’ operations. According to a story this week in the Globe and Mail, Canpages is one of two companies bidding on 46 newspapers owned by the financially troubled CanWest Global Communications. The report values the assets at C$1 billion. Canpages would make the bid along with its owner, Hicks Capital, and Paul Godfrey, president of CanWest’s National Post.

If successful, the deal would leapfrog Canpages into a leadership role in Canada’s media landscape, and make it an even more formidable competitor to Canada’s leading directory player, Yellow Pages Group, which announced its year-end earnings yesterday.

Canpages also recently announced its first foray south of the U.S.-Canadian border via its relationship with U.S. independent Phone Directories Corp., where PDC will rebrand its PDC Pages IYP as Ziplocal.com (which is owned by Canpages) and rebrand itself as Ziplocal. This move is similar to Hearst’s decision to rebrand its independent directory property White Directory Publishers as LocalEdge Media. Ziplocal was a Canadian local search platform acquired by Canpages in 2009. This arrangement certainly begs the question of whether some deeper connection between Canpages and PDC looms in the future. PDC once owned Canpages’ predecessor company in Canada and the two are both Hicks Capital (formerly Hicks Muse) portfolio companies.

CM Capture 1

On the year-end earnings call, YPG CEO Marc Tellier said the company plans to make changes to its brand to keep pace with the changing media environment. ”We’re going to look at repositioning our brand, repositioning the logo to be more representative of this new digital universe,” Tellier said.

For the full year 2009, YPG’s directories division grew .9 percent to C$1.4 billion. Fourth-quarter revenues were down 2.6 percent to C$345 million. The company’s vertical media division had a very tough year, dropping 22.8 percent to C$248 million.

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Blog: Global Yellow Pages, Local Media Blog, Newspapers
Posted by: Charles Laughlin at 8:53 am - Comments (0)




February 10, 2010

Yell Goes All In on Small Print Format

ScreenHunter_05 Jun. 10 12.56Yell, the U.K.’s largest directory publisher, announced today that it will move 100 percent of its print directories onto a compact print format by the end of June this year. Yell bills the announcement as the “biggest design revamp for more than 40 years.”

Yell’s decision furthers a global trend to reduce the footprint of print directories, with the primary stated objective of increasing possession and usage, particularly in large markets. Reducing the size of the book also lowers costs and improves the environmental friendliness of the book, or at least enhances the product’s green image.

In the United States, Yellowbook (a division of Yell) has converted several of its directory titles to a compact format, with the tagline “new eco-friendly size.” While today’s announcement does not reference Yellowbook, BIA/Kelsey would expect that Yellowbook will soon follow Yell’s lead and covert most or all of its print directories to the smaller format.

Other publishers that are widely using the compact format for their main Yellow Pages directories include Eniro and PagesJaunes.

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Blog: Global Yellow Pages, Local Media Blog, Yellow Pages, Print
Posted by: Charles Laughlin at 2:44 pm - Comments (0)




January 25, 2010

Consultative Selling: Reality or Local Media Fantasy?

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Having been in the trenches for the past year talking about multiproduct selling and how a consultative or collaborative sales process is a key component for selling multiple media, I keep hearing over and over again “I’ve been training on consultative selling for years so why should we rely on it to take us into the next era of selling?” Having been involved in local media sales for more than 10 years, I’m going to take the unpopular stand and say that the current local media sales process is transactional product selling in consultative selling clothes. In short, many sales organizations have embraced aspects of consultative selling but in large it is being used as a sales tacticto get in the door and keep the advertiser talking in order to sell specific media options.

BNET recently featured Harvard Business School professor Ranjay Gulati, who wrote a new book titled “Reorganize for Resilience: Putting Customers at the Center of Your Business.” In his book, Gulati points out:

In a marketplace like today, customers have more choices and more information, and services start to look like each other, in what we call a sea of sameness. If you don’t have an ability to transcend beyond the features and functionality of my product versus yours, then you have a problem.”

Gulati points out the fallacy of the notion that media companies are currently consultative and customer focused. Many media sales teams feel if they are asking a few questions about the business and their expected ROI from their marketing efforts that somehow this constitutes consultative selling. Put simply, salespeople are saying “I’ll talk about your needs so long as it leads to you only buying my portfolio of solutions.” Gulati’s point of view is “Most organizations believe they are customer centric when they are asking questions, but they’re communicating with customers through a product lens (with a pre-determined end in mind).” Instead, Gulati says “companies must ask deeper questions such as what problems they are dealing with and what issues are happening in the life of my customers regardless of the solutions the sales person is offering.” The goal in asking probing questions is to help the advertiser better articulate his or her needs so sales can get them met.

Consultative or collaborative selling is about transparency and building solutions that fit the customer’s needs and not necessarily the media company’s balance sheet. If a salesperson is aiming to sell a specific product set, and is willing to un-sell other potential solutions, then this version of consultative selling is merely disguised as the same transactional selling of old — all paths lead to a limited solution. Media consultants recognize there are many media options available to advertisers and that at times their portfolio of media offerings has to co-exist or complement other media and at other times they must fight to win budget from media that may not be as effective or is receiving too large of a share of an advertiser’s budget. Being able to counsel local advertisers on media strengths and weaknesses means salespeople must learn about all types of local media to be effective in selling their own portfolio of media options.

Local advertisers are much smarter about where they spend their marketing dollars because they have access to more information than ever before and have tighter ties to peers through social networks who can offer additional guidance. Salespeople used to be the source of information about what was happening in the local marketplace but now they are one of many sources available. If a salesperson cannot deliver value beyond what an advertiser can access on his or her own, then he or she has very little to offer. True media consultancy is the path where more peer-to-peer relationships are developed. Based on BIA/Kelsey’s Local Commerce Monitor study, 48 percent of SMBs want their media rep to help them understand their media options and make the best choice for their budget among the confusing array of new media choices.

While many media sales organizations are looking at incremental changes to their sales processes, those that are savvy and understand that local advertisers have changed and that the sales role must change are the ones that will thrive. The reality is the market has already changed and it is up to each media company to understand how to recraft its sales strategy and put together a consultative media sales team that understands local media and can be the media guide local advertisers are seeking. It’s time to stop making consultative selling a sales tactic for getting the advertiser to talk and use it as a means for building a relationship, creating value and developing media plans that work for the benefit of the advertiser and leverage their existing marketing activities. If consultative selling fantasy can be turned into reality, media outlets stand to make significant revenue gains and gain a larger, more loyal base of advertisers.

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January 13, 2010

Yell Launches Proprietary Mapping Service

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Yell.com has decided to forgo partnering on maps with Google, Microsoft or other potential competitors in favor of building its own propriety map product. The U.K.’s largest directory publisher unveiled a beta version of the Yell Maps product this week.

Yell is positioning its map product as designed for the specific purpose of finding local businesses. Here is a video that offers some color on the new product. Yell contends its new product is faster and easier to use than the previous incarnation, thanks in part to more up-to-date content and improved geocoding.

Yell used the French firm Tridoo to build the Yell Maps product. Tridoo already provides the maps on Yell’s mobile search products. The company is also using Navteq to provide quarterly updates to ensure that business location and directions are kept up to date. Yell describes Tridoo as a “small specialist company that has spent the last 10 years at the forefront of mapping and geospatial development.”

Yell “map master” Djamila Fernana-Ritchie says, “This is the first of a number of planned releases designed to make Yell Maps the premier mapping solution for local business search in the U.K.”

It seems clear that Yell, which had taken a more cooperative view toward Google in recent months, has decided that maps is a strategic piece of its future business, and owning its platform makes more sense that outsourcing it to a key competitor. The challenge for Yell will be making its maps compelling enough to divert usage from Google.

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