Yellow Pages Still Going Strong

Yellow Pages – Still Going STRONG!!!

November 2010Dennis R. Fromholzer, PhD

CRM Associates

CRM AssociatesCRM Associates

What Do Advertisers Want?

Advertisers are “hungry” for good advice.

They want someone who: They can trust Is credible Is knowledgeable Understands their challenges Has the confidence to help them Cares about them and their business Will do the work to get it right for them


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Print – reduced a bit, but ANYTHING but dead or dying.

12 billion references in 2009 to print (4.9 billion to IYP) 35% of adults use print in an average week (20% use

IYP) Of the top 660 headings with 1 million or more references

in 2008: 43% of headings received at least as many references

as 10 yrs ago (58% for PYP+IYP). 33% received 20% or more references (47% for PYP

+ IYP)Sources: YPA 1998-2010 Usage Studies; CRM Associates

Observation: YP is a dynamic medium – at any given point in time, some headings grow in usage, while others decline. Changes are reflective of changes in technology, market behaviors, economic conditions, demographics, and social behaviors.


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Tattoos 7.9x Fingernail Salons 2.7xEar Piercing Service 6.7xVideo Game Dealers 4.7xYoga Instruction 6.7xDance Companies 24xTutoring 16xParty Supplies & Rentals 14xTents-Renting 4.8xMobile Telephone Svc 6.4x

Real Estate Mgmt 7.8xWallpaper Removing 1.6xUpholstery Fabric 11x

Plumbing Drain/Sewer Clean 15xPatio & Deck Builders 17x

Home Centers 4.1xTrailer Rentals 3.0xWedding Supplies 3.8x

Hot Tubs-Dlrs 6.5xResorts 6.9xRecreational Vehicles 2.0xAudiologists 12xRetirement Homes 3.4xPharmacies 1.2xFuneral Directors 2.1xCrematories 7.5xMortuary 3.1xMonuments 2.0x

Farm Equip Repair/Parts 13x Waste Disposal & Recycling 4.7x

Over 220 headings have seen significant increases in usage in the past 10 years. Examples:

Source: YP Industry Usage Study 2009, KN/SRI


Yellow Pages Still a Significantly Used Local Shopping Resource

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Percent of consumers 18 years old and older who used sources

to look up local business information within the past month.

Burke 2010 Local Media Tracking Study ; Yellow Pages Association (YPA). Print reach was 50%; IYP reach was 36%.


Yellow Pages reach Increased throughout 2009!

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Print: Entering a Period of Stability and/or Increase

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Source: Simmons Spring 2010 2 Studies Show Stability for 2010:

1)TNS Intermedia Shopping Study Yr-to-date usage same as in 2008 study.

2)Burke YP Industry Usage Study: 2010 references around 11.9 to 12.0 billion.


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Calls Are on the Increase

Source: CRM Associates, 2010Metered Ad Study

Roughly half of top headings saw an increase in print display calls in 2009 compared with 2008.

Observation: Increase in calls corresponds to the increase in usage. Both are signs of YP’s relation to consumer spending. Both suggest decline from 2005-08 not Internet-driven as much as economy-driven.


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Calls Are on the Increase: Select Dex Market Examples

Source: CRM Associates, 2010Metered Ad Study


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Calls are only part of the response to the ad.

Calls represent only about 50-60% of total ad response.

AD

Call

In-Person Visit

Web Site

100

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50-70

Sources: Burke 2010, KN/SRI 2009, CRM Associates 2010


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“Print PLUS Online,” NOT “Print vs. Online”

Source: Simmons Spring 2010

“Leading-Edge” electronic products customers use print YP more than average:

Friends ask me for advice +46% First among friends +33% Pay anything for product wanted +31% Love to buy new gadgets & appliances +20%

Usage Level: PYP IYP

Heavy Internet Users:

Heaviest Internet Users (hrs per week) 126% 110%

“It’s safe to make purchases online” 110% 110%

“I like to hear about products/svcs by email” 148% 118%

“I like websites that show me local info” 118% 102%

Observation: some of the most “tech-savvy” consumers are also among the heaviest users of both Print and Internet YP. They have not “abandoned” print, contrary to popular belief.


YP Value Estimates by Product Type

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Specific Estimates of Sales ROI (U.S.)Median

Local Display $ 12 to $1National Display $ 17 to $1Companion Display $ 34 to $1Local Space $ 33 to $1National Trademark $ 56 to $1Internet YP $116 to $1@50% of posted rates; 2010 Metered Ad Study by CRM Associates; based on roughly 50,000 metered ads;

Observation: YP delivers STRONG value – higher than almost any other advertising alternative. For example, direct marketing SROI is 11.5 to 1.


Yellow Pages and “Search”

“All leads are not created equal”


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Fundamental differences: YP vs. Online Search

Print & IYP Users look at 5 ads and call 2.1 businesses 40-50% sales conversion rate from calls

Search Engines 3.2% clickthrough rate 1-3% “conversion” rate

Key Comparison Ratios: A “call” from a YP ad is worth at least 15-25

“click-throughs” from search engines.

Sources: Yellow Pages Association, CRM Associates, DMA 2010, MarketingSherpa 2010


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Compare (Search vs YP): Search:

$2-$4/click @ 1-3% conversion rate = $50 to $200/”lead”

U.S. YP Ads: 1 call* = 1 “lead”

Local IYP $/call = $15Local PYP $/call = $18 (display)

Local PYP $/call = $ 7 (space)

Sources: 2010 Yellow Book Metered Ad Study, CRM Associates, Direct Marketing Association, 2010 YP Industry Metered Ad Study


What About Usage by the Younger Generation? Answer 1: Who Cares? 14.7% unemployment rate among 18-24 yr-olds. 17% for 18-24

yr-old men. Average income of $28,127 vs $63,563 for all adults. 85% are renters (vs. 34% for total population) Majority move back in with mom & dad after college Consider:

All consumer units <25 age group

Household Operations $1,010 $322

HH Furnishings, equip $1,615 $938

Auto Maint/repairs/insur $2,625 $685

Life & other Insurance $ 303 $ 29Source: 2008 Consumer Expenditure Survey

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Sources: CRM Associates; Simmons Spring 2010


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Usage by the Younger Generation? Answer 2: Majority Use PYP and Use it More than Average.


YP Usage Index 18-24 Yr-olds vs All Adults

123%111%

121%

138%130% 127% 126% 129% 123%

0%

20%

40%

60%

80%

100%

120%

140%

160%

Spring2001

Spring2002

Spring2003

Spring2004

Spring2005

Spring2006

Spring2007

Spring2008

Spring2009

54% of 18-24 yr olds, and

66% of 25-29 yr olds use print YP.

Those experiencing life events use PYP 2.4x more than those with no events, and are 84% more likely to be IYP users.


Those with the Most $$ to Spend Use YP the Most

18Sources: CRM Associates; Simmons Spring 2010

“I spend what I have to to look younger” PYP use: 184% IYP use: 116%


Non-Users of Print YP: Interesting Story

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Total Population:75% use Print Yellow Pages25% do not use PYP



Hispanics: 37% are non-users; however, the 63% that use PYP use it 25% MORE than average.

Singles: 27% are non-users; however the 73% that use PYP use it 20% MORE than average.

Renters: 30% are non-users; however the 70% that use PYP use it 40% MORE than average.

Heaviest Internet Users: 33% are non-users, however the 67% that use PYP use it 26% MORE than average.

Single Males, renting in A-counties: 60% are non-users, however the 40% that use PYP use it 77% MORE than average.

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General Story for groups most likely to not use YP: 33% are non-users The 67% that DO use PYP use it 7% MORE than

average.

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We appear to have only lost the “marginal” users.


Environmentally Conscious Consumers

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Environment: Strongly agree:

Print Usage Level

Would pay more for environmentally friendly products 147%

Eco-friendly products are higher quality products 142%

I buy recycled paper products 130%

I tell companies to stop sending me catalogs 129%

Ban products that pollute 128%

It is important for others to see me as environmentally conscious 117%



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Why Do People Use YP?

Life Events/Life StagesAnd

“Out-of-the-Ordinary Situations”

Shopping Events

YP Usage


Life Events Drive Higher Usage

80-90% of personal usage by people experiencing major life events.

Source: Simmons 2010

Event / Life Situation

Print Usage vs

No-Events

IYP Usage vs No-Events

Separated / Divorced 3.3 x 1.4 xFirst Time Financial Investment 3.1 x 2.2 xChange Job - Lower Level/Pay 2.9 x 2.1 xYoungest Daughter Get Married 2.9 x 1.6 xBuy First Home 2.9 x 2.0 xMake Last Home Mortgage Payment 2.7 x 1.6 xOldest Child Enters School 2.6 x 2.0 xYoungest Son Get Married 2.6 x 1.6 xYoungest Child Graduates College 2.5 x 1.4 xFirst Child is Born 2.5 x 2.0 xChange Job - Same Level/Pay 2.4 x 2.3 xYoungest Child Leaves Home 2.4 x 1.7 xGet Married 2.4 x 1.4 xSecond Child is Born 2.4 x 1.9 xCollect from Pension/ Savings/ Stock Plan 2.4 x 1.5 xGraduation from School 2.2 x 1.4 xMover 2.1 x 1.4 xRetire or Take Early Retirement 2.1 x 1.8 xSell or Change Home 2.0 x 2.4 xLose Job - Laid off / Out of business 1.9 x 1.8 xChange Job to Better Job 1.9 x 2.1 xBuy New Home (not first home) 1.9 x 2.2 xBuy a Used Car or Light Truck 1.8 x 1.8 xChild Enters College 1.8 x 1.8 xGrandchild is Born 1.8 x 0.9 xRefinancing Your Home 1.5 x 2.0 xMake Major Home Improvement 1.4 x 1.9 x


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YP Users Spend More

25% more than the average customer:Books 15%Building Contractors 60%Carpet Dealers 78%Cruises 36%Fences 36%Furniture 34%Lighting Fixtures 24%

Office Furniture 30%Pizza 30%Roofing Contractors 21%Travel Agencies 25%

Source: Simmons 2010



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Who Uses Yellow Pages Most? Take the User Trivia Quiz

Strongly Agree with Following Statements:Self-Concept1. I am egocentric, vain, self-centered, narcissistic I am kind, good-hearted, warmhearted, sincere

2. I am dominating, authoritarian, demanding, aggressive I am amicable, amiable, affable, benevolent

3. I am a workaholic I prefer to spend a quiet evening at home

4. I want to get to the very top in my career I am happy with my current standard of living

Financial5. I tend to spend money without thinking I'm careful with my money

6. I will pay any price for good financial advice I am very good at managing money

7) I like other people to think I'm a financial success a) Heavy user b) average or below user

8) I'm no good at saving money I don't like the idea of being in debt

9) Money is the best measure of success How I spend time is more important than money


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Shopping10) I go shopping frequently; I really enjoy it.I rarely go shopping. I get what I need and leave when I do shop.

11) I'm drawn to stores - I don't shop by sales For expensive items, I shop different stores for the best price

12) I often buy on the spur of the moment I plan ahead for expensive purchases

Apparal / Fashion13) I no longer wear clothes I wore a year ago; every season I buy the latest fashions I stick with styles that have stood the test of time - I make my clothes last a long time

14) Fashion magazines help determine the clothes I buy Function is the most important factor in the clothes I buy

Automotive 15) I choose a car mainly on looksTrue value is how long a car lasts

16) My car should catch people's attention A used car is just as good as a new car

17) Video games are my main source of entertainment a) Heavy user b) average or below user

18) My cell phone is an expression of who I am I only use my cell phone for basic calling


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Strongly Agree with Following Statements:Print

Usage IYP

Usage

Self-Concept1. I am egocentric, vain, self-centered, narcissistic 166% 142%

I am kind, good-hearted, warmhearted, sincere 97% 102%

2. I am dominating, authoritarian, demanding, aggressive 151% 117%

I am amicable, amiable, affable, benevolent 100% 100%

3. I am a workaholic 145% 117%

I prefer to spend a quiet evening at home 99% 103%

4. I want to get to the very top in my career 133% 111%

I am happy with my current standard of living 99% 94%

Financial5. I tend to spend money without thinking 150% 96%

I'm careful with my money 95% 96%

6. I will pay any price for good financial advice 173% 123%

I am very good at managing money 95% 111%

7) I like other people to think I'm a financial success 145% 127%

a) Heavy user b) average or below user

8) I'm no good at saving money 146% 107%

I don't like the idea of being in debt 87% 95%

9) Money is the best measure of success 152% 93%

How I spend time is more important than money 101% 91%


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Shopping

Print Usage Level

IYP Usage Level

10) I go shopping frequently; I really enjoy it. 143% 107%

I rarely go shopping. I get what I need and leave when I do shop. 91% 100%

11) I'm drawn to stores - I don't shop by sales 149% 133%

For expensive items, I shop different stores for the best price 103% 93%

12) I often buy on the spur of the moment 132% 97%

I plan ahead for expensive purchases 92% 100%

Apparal / Fashion13) I no longer wear clothes I wore a year ago; every season I buy the latest fashions 225% 120%

I stick with styles that have stood the test of time - I make my clothes last a long time 98% 97%

14) Fashion magazines help determine the clothes I buy 202% 124%

Function is the most important factor in the clothes I buy 94% 105%

Automotive 15) I choose a car mainly on looks 146% 118%

True value is how long a car lasts 98% 94%

16) My car should catch people's attention 123% 93%

A used car is just as good as a new car 96% 78%

17) Video games are my main source of entertainment 151% 125%

a) Heavy user b) average or below user

18) My cell phone is an expression of who I am 167% 157%

I only use my cell phone for basic calling 93% 88%


Questions:

What do these data mean to: A) the advertiser and their business B) the ads and ad content C) the value of Yellow Pages D) your discussions with the advertisers?

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9 Key YP Facts:

Usage is episodic; driven by life events. 80% will make a purchase 54% will be new customers 56% start out as shoppers; 70% consider multiple

businesses Look at 5 ads Call 2.1 businesses: 40-50% conversion rate Spend 25% more than average. More likely to influence other people’s buying decisions SROI of over 12 to 1 for display; higher for other

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The Sales Rep Makes a HUGE Difference!!!“I used to hate the Yellow Pages. But, in my 20

years of doing business with Yellow Pages, my current rep, Jennifer, is the first rep that has worked to get me good results. She cares, she’s on my side, she’s not just ‘selling me something’”

- Quote from a Limousine advertiser

- Same quote from a Garage Door advertiser


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The secret of good selling….

“Selling is the transfer of confidence”

“Great selling has been said to be at least 50% a transfer of

enthusiasm.”


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Challenge

GET EXCITED!!!

And be Confident!

Documents

Yellow Pages Still Going Strong