Archive for September, 2009

« Older Entries
Newer Entries »

Global Yellow Pages Leadership Forum Raises Tough but Important Questions for Industry Leaders

Wednesday, September 23, 2009

kelseydmslogo

Things got interesting right from the start of the DMS ’09 panel of “global leadership,” where moderators Neal Polachek and Charles Laughlin presented the panel with a series of predictive statements and asked the experts to weigh in with their views.

The first discussion revolved around the question of value: Neal and Charles presented the panel with a list of metrics  they proposed the Yellow Pages industry would be measured against by the year 2014.  These included:

  • Media platforms per advertiser
  • Leads delivered per advertiser
  • Paying customers versus the number of SMBs
  • Cash flow per advertiser
  • Advertiser satisfaction

Jim Smith, senior advisor with Yellow Pages Group, New Zealand, was the first to say that while he agrees with the new set of metrics, its important to note that we’re not waiting until 2014.  The industry is already incorporating these metrics.  Matt Stover, CEO LocalMatters, and several other panelists agreed.

Eric Webb, president of Marquette Group went further to say that the industry needs to compare their sales representatives not just against other Yellow Pages sales representatives, but against ALL other reps calling on that small business.

In Eric’s opinion, the key to demonstrating value is ROI metrics that the industry can provide.  “Our goal is to get our customers addicted to data,” he said, “That’s how we will succeed.”

Another discussion-provoking forecast presented by Neal and Charles was that: “In 2014, 95% of global Yellow Pages revenues would be controlled by 5 companies.”

Nick Veronis, the managing director of private equity firm Veronis Suhler Stevenson, disagreed by commenting about the nimbleness of smaller, entrepreneurial companies also adding that The User Friendly Phone Book is performing far and away the best of all VSS’s consumer-facing advertising holdings.

Veronis also noted that his company predicts the large incumbent’s global market share would actually go down while the independent market share is predicted to increase. Nick Matt Stover was more blunt in his response to the statement saying, “No possible way.”

Judging by the full room, the attendees were clearly looking for leadership and relevant takeaways from this panel. And it appears the panel delivered.

September 23, 2009 | Leave a Comment
Tags: , , ,

Vertical Panel Tells of Big Opportunity for Yellow Pages Publishers

Wednesday, September 23, 2009

kelseydmslogo

In his remarks this morning, Dave Swanson talked about the importance of breaking down our business and remembering that we’re “not one homogenous search business.” So it was appropriate to follow his remarks with some vertical case studies.

EveryCarList.com

The first panelist was Darrell Campbell, CEO of EveryCarList.com. EveryCarListed is the automotive listing service run for Idearc (it has a tab on Superpages.com). Today, there are over two million vehicles on the site and one million videos of individual cars, all as more people than ever are going online to look for cars.

Darrell talked about the vast opportunity in this space, despite a tough year for the auto industry and dealerships. It’s a highly used headings category, easily bundled with other Yellow Pages solutions, and is growing rapidly – from $1.1 billion in 2006 to $8.5 billion this year. The site offers trackable leads to dealers – enabling consumers to send their contact information directly to dealers to enquire about a specific vehicle.

ServiceMagic

You may have seen commercials for ServiceMagic (if you haven’t, see below), which has built a “trusted” place for consumers to find home service professionals. CEO Craig Smith said there was 27% growth in service requests between 2007 and 2008. And with a lot of discussion here at Kelsey focused on ratings and reviews, it’s worth noting that ServiceMagic houses 600,000 verified ratings and reviews for its advertisers.

Craig said that 79% of ServiceMagic’s customers have never spent money on Yellow Pages, so a whole new market is being tapped. In fact, 73% have five or fewer employees, 60% don’t have a Web site and 34% spend less than $1,000 on advertising.  In that way, ServiceMagic is able to help level the playing field for these very small businesses.

Healthcare.com

Certainly a relevant panelist given the current political debate, Howeard Yeh, vice president of corporate development, introduced this site that helps people find various types of health insurance. It’s a 100% performance-based model – the pay-per-click approach that many advertisers are looking for.

Healthcare.com seems to be breaking new ground here. Health insurance hasn’t found much traction online yet, given that it’s highly regulated by state and the product nature is inherently complex. This all makes selling health insurance very local.

As a side note, Matt Booth from Kelsey opened the session with an anecdote about a recent visit with some network TV executives. They told him they wished they were where the Yellow Pages is today. They view Yellow Pages and Internet Yellow Pages several years ahead of where they are, because our industry has invested so much in emerging media over the last five years.

September 23, 2009 | 1 Comment

RHD’s Dave Swanson: You Have to Make Mistakes to Learn

Wednesday, September 23, 2009

kelseydmslogo

In an “extremely passionate and brutally honest” address at DMS ‘09 this morning, R.H. Donnelley CEO Dave Swanson gave an insider’s view of what’s happened and what’s ahead for the Yellow Pages industry.

It was a fascinating address as Sawnson combined his personal investment in the business with an objective, almost surgical, analysis of the last few years.

Regarding “what happened”: Dave rejected the naysayers’ argument that “It’s not the economy – it’s the Internet , Stupid.”

Yes, the Internet presented a disruptive change to the industry, but he emphasized that we must acknowledge the unprecedented financial crisis that ended the days of easy financing, prompted 20 consecutive quarters of employment contraction nationwide, and caused aggregate sales across the entire S&P 50 to decline by16% in 2Q09 according to Goldman Sachs.

In this environment, the major industry players “did not act as irresponsibly as some have charged,” said Dave. In fact, he felt that the industry’s response has been inspiring, in some cases. “The Yellow Pages industry is absorbing an unprecedented amount of change,” he said – taking on simultaneous market consolidation, investment in innovation and digital R&D, and new integrated enterprise operations systems.

“In the midst of an evolution, you have to make mistakes to learn what to do in the future,” he said. And looking to the future, Dave is upbeat about the industry’s ability to thrive and deliver unmatched value to small businesses.

Here are some of his key takeaways on the keys to future growth:

  • The Yellow Pages’ Greatest Asset: Industry relevance is all about our channel, and our unique ability to package the largest bundle of tools and services for clients in the widest range of geographic regions.
  • Rethinking Innovation: To succeed, the industry will need to innovate, innovate, innovate – and be willing to think in new ways about proprietary systems. “Do we all need our own IYP platforms? I don’t think so.”
  • Expanding Horizons: Success will come from investing in technologies that tap into new places where consumers start their searches – outside of Yellow Pages platforms and properties – and understanding the quality of the leads they attract.
  • It’s All About Qualified Leads: We will create value by acknowledging “the hardest lesson: all traffic is not created equal.” To act on this, YPs will need to reconsider pricing models and retention strategies.
  • A New Role for the Sales Force: YP reps have a huge advantage to provide directional marketing services to small businesses because they understand depth and breadth of their needs. Success will come from transitioning their role from sales people to marketing consultants that can help small businesses create messages, distribute them, and manage their presence.
  • Hidden Opportunities: Winners will microtarget the thousands of geovertical opportunities that exist in small pockets across the country.

September 23, 2009 | 1 Comment
Tags: , , , ,

YPA and Kelsey Dialogue About Day One Takeaways

Wednesday, September 23, 2009

kelseydmslogo

Day two of DMS ’09 got an early start this morning with a discussion about key takeaways from the first day of the conference. The dialogue was led by Neg Norton, president of YPA, and John Kelsey, Cofounder and Chairman of The Kelsey Group.

Here’s a recap of what they said:

Neg: Liked Chris Cumming’s concept of co-opetition and the complexities it can help solve. Mentioned the irony that back-end processing of orders for print directories is transmitted through electronic systems while Internet Yellow Pages orders are still transmitted through manual systems.

John: Was interested in the research that showed only 14% of small businesses felt they get enough info from their sales representatives. He asked Neg how we can expect our sales reps to be trusted advisors if only 14% feel they get enough information.

Neg: 14% felt like a pretty low number to him. It’s lower than we’d all like it to be because we’ve spent too much time product selling instead of solution selling. Still believes Yellow Pages are best positioned to win in the long run because of access to small businesses – better position than anyone else. Noted that there are some really terrific measurement tools that publishers are presenting to clients to show were leads are coming from and operational issues as well.

John: Wanted to hear more about multi-products.

Neg: Many Yellow Pages companies are now doing deals with other media partners, like Google and search engines. They’re moving to a sales lead model that’s platform agnostic. Between the companies, the tactical approaches are all a little different but going in the same direction. Publishers are now selling objectivity and unbiased information, and the publisher sales force starts to look a little like a CMRs.

John: What about Internet Yellow Pages? It appears that Internet Yellow Pages seems to be falling further behind the search engines. What’s going on?

Neg: The issue there is you can’t just look at traffic, you have to look at what people are doing on the sites. It’s been proven time and time again that Internet Yellow Pages searchers are ready to buy compared to other Internet sites. Our challenge is getting that message across better than we have.

John: Reminded the group of yesterday’s stat that 44%of business from an SMB comes from new customers.

Neg: This certainly highlights the importance of high-quality leads. Neal Polachek, CEO of The Kelsey Group, brought up an interesting point: we have an opportunity doing a better job of helping small businesses retain customers and creating “permanence” – like ratings and reviews. We need to explore that a lot further.

September 23, 2009 | Leave a Comment
Tags: , ,

Top Tweets: #DMS09 Day One

Wednesday, September 23, 2009

kelseydmslogo

The #DMS09 hash tag came alive yesterday on Twitter as conference participants shared key quotes, facts and real-time feedback from the opening sessions.

Here are a few of our favorite tweets from Day one of DMS ’09:

Best Conference Theme Tweet

matterslocal: the terms print and online should be replaced by directional marketing services… /gg #DMS09

 

Best Forecast of the Day

vikc: If only I could fast forward #DMS09 5 years and see what the topics of conversations would be….The future is all about mobile and social.

 

Best Tweets About Mobile Yellow Pages

matterslocal: types of businesses searched on mobile restaurants 47% , movies 37% , retail 35% , banks 32% , hotels 27% .. /gg #DMS09

localseoguide: 16% of consumers use social networking sites for shopping info #DMS09

sebprovencher: Shooger uses the “following” functionality like a “favorite/bookmark” feature. http://www.shooger.com/#dms09

matterslocal: consumers only use social networking site ratings 17% of the time to make a purchase decision, this was flat year over year. /gg #DMS09

 

Best New Trend Spotting Tweets

TheKelseyGroup: #DMS09 : 9% of SMBs using Twitter according to survey data. http://bit.ly/4zc4En

sebprovencher: Interesting. Berry is using advertiser segmentation (by major categories) to figure out which products to include in the multi-bundle #dms09

golander59: “YP is about partnerships-no one can swim alone in this space” #DMS09 3Ps of SMB Marketing-Presence Performance & Permanence Neal Polachek

September 23, 2009 | Leave a Comment
Tags: , , ,

Kelsey to SMBs: Think Like the Customer to Get Customers

Tuesday, September 22, 2009

kelseydmslogo

Just attended a session entitled “Understanding Users and Advertisers” conducted by Charles Laughlin and Steve Marshall. The data discussed came from wave 13 of the local Commerce Monitor and the goal was to understand trends that are important for small businesses looking at Web 2.0 strategies.

The stakes are high.  “If small businesses do not get new customers, they die.”  Small businesses are constantly trying to attract new customers because that’s where 44% of their business comes from.  And to find new customers, they are anticipating large increases in spending on Web 2.0 sources.

Kelsey presented research that gives some interesting insight into consumer adoption of digital media that is relevant to advertisers:

  • We’ve talked quite a bit about the potential for local search with social networks. Although the ratings for social networks as a source of local shopping information is low at 16% in 2009 (and flat from 17% in 2008), the Kelsey group felt this number would increase since 68% of respondents said they had membership in at least one social network – up from 60% in 2008.
  • There has been an increase in the importance of customer testimonials. In 2007, 40% of consumers relied on testimonials. In 2008, that had grown to 42 percent, and 2009 it was 47 percent. Kelsey Group expects this to pick up going forward. Also, in the 2009 survey – 9% said they had written a review, and 18% they had submitted a numeric rating of a business.
  • As mobile search grows, the research shows that the top mobile search categories used in the past six months were restaurants, movies/entertainment, retail stores, banks/ATMs, and hotels/lodging.
  • Also in the mobile category, the capabilities consumer say they most desire in their next wireless device: text message features, ability to take and share photos and videos, features to access the Internet more easily, ability to keep up with nearby friends, and tv/video viewing features.

A key piece of advice from the presentation: “To get new customers, you have to think like the customer.” Understanding consumer usage and desires when it comes to digital media can help advertisers identify the right approach for their marketing.

September 22, 2009 | Leave a Comment
Tags:

Yellow Pages Mobile Apps Help Locals on the Go

Tuesday, September 22, 2009

kelseydmslogo

Apps have quickly becoming a way of life. Clear evidence of this is that 2 billion applications have been downloaded since launch of iPhone app store. In this afternoon’s session focused on Yellow Pages smart phone applications, moderator Michael Boland of Kelsey Group led a discussion on the secrets to successful Yellow Pages phone apps.

The panelists agreed that it’s all about one thing: the user experience. For true adoption, the app needs to be designed from the ground up for the mobile interface and not just an IYP converted to a mobile platform.

According to Dannie Francis of Cellcity, for example, the value provided from Geolocation/GPS features are invaluable. Dannie took the audience on a spin though a pilot GoOrlando app as well as a Portuguesa app for Brazil local search, demonstrating that a functional overlay and simple interface translates across all mobile users.

Founder of YellowBot Erron Silverstein said that he focused on the user, rather than the technology to design his app. “You have to assume that your average user is on foot or in a car,” he said. “They need something that is easy, fast, and simple to understand without needing to scroll through menu after menu after menu.”

Erron also shared some insights into his users’ needs: “There are a limited number of headings searched in the mobile space in comparison to online IYPs. On-the-go users are not searching for lawyers, medical services, are household services. They are mostly looking for entertainment, sales, vacation, and transportation, so comments, store hours, rankings, maps, coupons and pictures are important.”

Some of the neat functionalities that YellowBot offers include a “quick swipe” to call, map or make a favorite. YellowBot also boils down customer ratings to a quick “loved it” and “hate it” vote – requiring just one screen tap. Saved votes and favorites impacts your search results over time.

Matt Myers, whose Shooger app provides a mobile local couponing network, found a similar need in his target users. Shooger has started with the South Florida market, and Matt says his users share a common interest in value and saving money. “Everyone likes a deal,” he said. Shooger is a mobile coupon app that provides discounts in real time that can be redeemed online, in-person, or by phone.

These were just four apps showcased today, but I’ve seen a lot of innovation in the app space with Yellow Pages companies. The key takeaway seems to be creating a user experience that solves the searchers need in an interface designed specifically for the mobile platform they’ve chosen.

September 22, 2009 | Leave a Comment
Tags: , ,

Multiproduct Selling: It’s All in the Rep’s Bag

Tuesday, September 22, 2009

kelseydmslogo

This just in from Kathy Roush, vice president of operations for YPA:

What does it really take to push multiproduct selling? Well, according to Chuck Lee, executive director of Internet Marketing for AT&T Advertising Solutions, Gayle Jones, director of strategy and business at The Berry Company, and Michael Taylor, business development of Kelsey Group … “It’s all in the rep’s bag.”

The “Moving Multiproduct Selling Beyond Bundles” presentation, moderated by Matt Booth from Kelsey Group, focused on how our business is generating leads and helping advertisers understand the multiple products available to them. This is done from transitioning the sales reps from transactional selling to consultative selling.

The good old days of selling one product – print – are over. The sales rep must now sell a variety of print and online products. Therefore, the sales reps job is very important because he or she must help the advertiser understand how the variety of yellow pages products fit with the other advertising choices available to the advertiser.

For the sales rep to be successful, he must be trained well and continue to be re-trained well. The sales rep must understand the multitude of products and the ROI associated with each. Offering the products that best fit the opportunity for leads will translate into more sales for the rep. Additionally, helping the advertiser build knowledge about the products available will build understanding and prevent buyer’s remorse.

In summary, the sales rep must have an understanding of the all the print and online products available. The sales rep must be assisted by a support team back at the office so that he or she can provide the ROI value to the customer. Being able to suggest ways to help the advertiser generate leads and turn those leads in to revenue is consultative selling and that is a win-win situation for all.

September 22, 2009 | Leave a Comment
Tags: , , , , ,

Marquette CEO Chris Cummings: Avoid Running with the Squirrels

Tuesday, September 22, 2009

kelseydmslogo

Chris Cummings, CEO of Marquette Group and chairman of YPA and ADM, was the first guest speaker after the official open of Kelsey DMS ‘09.

Chris talked about the importance of focusing on the real issues we face and not getting bogged down in nuisances and distractions. He pointed to a popular EDS Super Bowl commercial that illustrates overreaction through the running of the squirrels.

So what are the real issues?

One is co-opetition – where competitors share common costs and work together where it makes sense, while maintaining clearly defined boundaries where there is competition. Finding a common Internet Yellow Pages platform could be one area where co-opetition would bring benefits to companies and advertisers.

Another is demonstrating value. It’s all about data and our ability to demonstrate value down to the local agent, dealer or franchisee. Using metrics to show value is critical. He noted that we still have some work do on the Internet Yellow Pages side.

Chris also counseled that we need to focus on keeping relationships with advertisers vibrant. They will go to advertising solutions they trust and can count on to deliver results. Stating, “Everyone, including Google, would kill to have the access and relationships that Yellow Pages has with small businesses.” Chris also predicted that Google will hit a plateau soon and will need help selling its services to advertisers who don’t understand the variety of options being offered.

Chris warned that our complexity as an industry will be our demise if we’re not careful. We need to streamline our product offerings to be more relevant and easy to understand. We also need compensation plans for our sales team to incent them to deliver integrated, multiplatform solutions. Chris admitted that “some of us have been slow” to adapt, but that now transformational changes are well underway at Yellow Pages companies.

September 22, 2009 | Leave a Comment
Tags: , ,

BIA/Kelsey’s Neal Polachek: Industry Has Entered Age of ‘Directional Marketing Services’

Tuesday, September 22, 2009

kelseydmslogo

Opening up DMS ’09 this afternoon, Neal Polachek of BIA/Kelsey talked about the dramatic transformation that the Yellow Pages industry has seen in just the last five years.

According to Neal, Yellow Pages spent nearly 100 years strictly as a print media industry, before evolving into a “print+online” industry from 1985 to 1999 into the current age, dawning in 2000, as the age of “Directional Marketing Services” (DMS).

The age of DMS is characterized by its rapidly transforming multiplatform environment where there is increasing demand for interactive, mobile content. To meet the evolving needs of customers and advertisers in this space, Polachek anticipates increased growth in local search solutions that can provide:

  • Data and analysis: offering not just data, but interpretation that adds depth and context.
  • An evolved sales force: that redefines the way that the industry serves and engages clients.
  • Partnerships: offering mash-ups of data, platforms and communities that ultimately benefit the end-user experience.
  • New business models: that redefine the role and frameworks of local business search providers.
  • Consumer “Permanence”: meaning those enhanced functionalities that will create life-long users such as user-generated ratings, reviews, online booking, reminders, updates, membership benefits and customer training benefits.

Reinforcing the changing nature of the Yellow Pages, Neal mentioned the blogs and social media outlets that will be covering DMS ’09, including InsideYP. Thanks for the shout out, Neal!

September 22, 2009 | Leave a Comment
Tags: , , , ,

« Older Entries
Newer Entries »