California joins Colorado and other states that are rejecting the notion that government regulation of private advertising media is good for small business and a smart use of state resources.

We have worked over the past several weeks to educate lawmakers and others in the community about how this unnecessary government regulation not only unfairly targeted directory publishers among many advertising media, but also risked jobs and tax revenue at a time when the state of California could not afford it.

Directory publishers – many who work to provide information to niche communities like LGBT, Spanish-speaking and Chinese speaking residents – employ thousands of Californians and contribute millions in tax revenue to the state budget.  They also perform a valuable service by providing a way for consumers and local businesses to connect.

As the legislators learned more about the service we offer to small businesses, and the steps we’ve taken to put in place programs that allow consumers to stop directory delivery if they choose, it became clear that passing this bill into law was not worth the risks it presented.  While in many ways the opportunity to talk to so many Senators about our value has been extremely rewarding, it was also disheartening to encounter the bill’s sponsor resorting to name calling and spreading untruthful claims and erroneous statistics to try to pass this legislation for his own political gain.

Having said all that, it’s important to reiterate again that we strongly believe it doesn’t benefit anyone to deliver a directory to someone who doesn’t want one.  In California, and across the United States, directory publishers remain committed to sustainability and good environmental stewardship.  Our website, www.yellowpagesoptout.com, provides a central and convenient resource for residents who would like to limit or stop delivery to their residence.  And to learn more about the efforts we’re making to reduce our environmental footprint,  read our full 2010 Sustainability Report.

Over the past several weeks, I’ve been talking to many small and independent publishers in California about this legislation.  Some of them publish listings oriented to Spanish-speaking, LGBT, and other specialized communities.  Others deliver directories that are very local in nature, which help consumers and small businesses in a very specific area connect with one another

What I keep hearing is that while there is a time and place for government regulation of certain industries, this is not one of them.  The Yellow Pages industry has existed for more than 100 years and will continue to exist as long as small businesses see value from the advertisements they place and consumers believe that our directories are a useful source of local business information.  California publishers feel their state government should not interfere with those natural market forces.

In California, the YPA and local publishers oppose Senate bill 920 introduced by state Sen. Leeland Yee of San Francisco.  Here’s why we think the bill is bad for Californians:

• We already offer opt-out programs in California.  Anyone who would like to reduce or stop directory delivery can visit www.yellowpagesoptout.com to start that process.  The state’s government does not need to spend its very limited resources on creating new programs when they already exist.
• Regulation puts our industry – and our advertisers – at a disadvantage.  We are part of the larger advertising industry that caters to small businesses, which includes radio, newspapers, and the Internet.  It is anticompetitive and unfair to legislate one form of advertising but not others.
• The proposed legislation includes very specific language that regulates how information is displayed on our very own products.  Directory publishers have made phenomenal progress over the last year in making opt-out information more prominent and easily accessible in the directory and on covers.  But the directory cover remains a coveted place for advertisers and community groups, and the state government should not diminish the opportunities for them to secure space there.
• Once someone opts out, how long should that address be on our do-not-deliver lists?  This bill says forever, and we disagree with that.  Given the turnover in real estate, we think it’s appropriate for a publisher to have an opportunity to re-deliver to an address after a certain number of years.  The opportunity for new residents to opt-out will always be available.
• Sen. Yee represents urban San Francisco with a young, digitally-savvy population that may feel print directories are no longer useful.  But as research continues to show, this is an oversimplification of today’s fragmented media market.  Usage of print directories across many demographics is quite high, but especially among rural and suburban dwellers, older consumers (who have high disposable income), and for life events and certain emergency situations.
• Yellow Pages publishers employ thousands of Californians and contribute significant taxes to the state budget.  Any legislation that puts that in jeopardy through unnecessary and anticompetitive regulation is bad for California.

The bill’s intentions may be good.  We understand the natural inclination to look for ways to help consumers and protect the environment.  That’s why our industry has done so much on these fronts already – the progress is real and tangible. But this bill presents risks and costs to the state, to small businesses, and to long-time California employers  that we simply cannot afford.

Currently, thousands of California businesses advertise in the Yellow Pages, generating a high level of new business leads and revenue across numerous industries from ready-to-buy consumers.

It’s clear that any effort to limit local businesses from reaching consumers not only hurts businesses, but negatively impacts the state economy. In times like these, we can’t afford to place an undue burden on local business owners trying to make ends meet.

These days, Californians  access local business information in a variety of new ways, including  online directories and mobile apps. But studies from both Burke and Simmons show that 70% of Californians continue to use print Yellow Pages to find neighborhood businesses.

Over the years, our industry has made concerted efforts to design consumer choice programs that let consumers manage their Yellow Pages experience, as well as introduced a variety of environmental initiatives that further limit our impact on the environment.

Last year, the Yellow Pages Association launched www.yellowpagesoptout.com, a one-stop destination for consumers across the country to reduce or stop directory delivery.

And through advancements in paper production, it is no longer necessary to use new trees to make directory paper. In fact, most publishers now use a mix of recycled directories and leftover woodchips from the lumber industry to create Yellow Pages paper. Read more about our sustainability programs.

Additionally, Yellow Pages companies are proud members of the California economy, employing thousands of local residents and paying local and state taxes.

We hope the California state legislature will take into account the value our industry brings to the State when considering this bill and the negative impact its passage will have on local businesses and publishers. In short, we believe the bill is unnecessary in light of industry programs that are in place, working well and getting better.

So far, a number of key constituents in the State are standing up against the bill, including small and large business publishers, LGBT and minority publishers, advertising agencies, and local and regional suppliers.

To let your voice be heard, contact any member of the California Senate Appropriations Committee by clicking here.

As you may already know, today marks an important day to encourage environmental awareness and appreciation of our natural surroundings.  Earth Day turns 40 today and we thought there was no better time to issue our first-ever Yellow Pages industry sustainability report.

Leading the development of this report has been a big, but rewarding job.  I am pleased to work with so many Yellow Pages companies that are making great progress on the sustainability front.  We’ve come a long way since we launched our environmental guidelines in 2007, but unfortunately many of the efforts aren’t widely known or publicized.  I’m hopeful this report helps us get the word out and clears up common misperceptions about our industry’s environmental impact.

Yellow Pages industry successes include:

• Launch of consumer choice programs (www.yellowpagesoptout.com) to give consumers a choice to reduce or stop directory delivery.
• Use of directory paper that contains recycled content and fiber derived from lumber byproducts – making it unnecessary to use new trees to produce Yellow Pages.
• A 29% reduction in the use of directory paper since 2006, as a result of programs to reduce the size of directories, use of more efficient pagination systems, and expansion of digital and mobile search products.
• Implementation of soy-based inks and nontoxic dyes that pose little threat to soil or groundwater supplies and adhesives in the binding process that are eco-friendly and non-toxic.
• Support of recycling and up-cycling programs that ensure directories have a life after use.

Of course, this effort isn’t only about celebrating our progress but also setting the stage for where we need to go.  While we’ve made good progress, we must focus on continuous improvement and have outlined our vision and goals for the year ahead.

Click here to read the full 2010 Sustainability Report.

In the spirit of today, I would also encourage you to check out the Earth Day Action Center website to find out what green events are going on in your area.

A key reason that the legislation was overturned in a bipartisan vote is that Yellow Pages companies – both collectively and individually – have already introduced consumer choice programs aimed at helping consumers manage their print deliveries.

As we told the Denver Post, our industry has no economic incentive to deliver a phone book to someone who doesn’t want one.   That’s why we launched www.YellowPagesOptOut.com to make it easy for consumers to find information about stopping delivery of directories they don’t want.

We’re working on a number of fronts to educate the public about the industry’s efforts.  Generally, when we can have a conversation with a concerned individual about what we’ve done so far and what we are dedicated to doing going forward, we’re able to demonstrate that the industry is working to be responsive to consumers.

One topic that comes up often is how we are impacting the environment – specifically, how many trees are cut down to make directory paper.  One thing that shocks people most is that it is not necessary to use new trees to produce print Yellow Pages.  Directories today are produced from recycled materials (mostly old newspapers and old directories) and byproducts of the lumber industry. Along with recycle fiber, the waste wood chips generated from converting a round tree into square lumber is used to make our paper.

One other important factor that I think many on the Colorado legislative committee considered is the role Yellow Pages companies play in the local economy.

We work directly with nearly three million small business advertisers to help generate local leads for their products and services.  Given the difficultly small businesses face in this difficult environment, it isn’t a good time to legislate one of their best marketing tools.

Plus, Yellow Pages companies themselves are an economic engine by employing thousands of people and paying tax revenue to state and local governments.

I’m hopeful that Colorado’s decision will help increase dialogue about the continued importance of the Yellow Pages industry to communities and all our efforts to be responsive to consumers.

In what Sensis describes as a world-first for a major directory publisher, the company’s Yellow Pages and White Pages directories have been certified carbon neutral through the Australian Government’s Greenhouse Friendly program.

In short, this means that Sensis will offset emissions generated throughout the complete lifecycle of its Yellow Pages and White Pages print and online directories—including their production, use, disposal, and distribution—by taking part in Greenhouse Friendly accredited programs and projects in Australia.

The company will also work to identify and reduce its largest areas of environmental impact. According to Sensis CEO Bruce Akhurst, the company is also hoping to cut its operational greenhouse gas footprint by 5% annually.

Here on the Western Hemisphere, Yellow Pages companies have also introduced various programs and changes to help improve the environmental impact of their directories. Here are just a few:

• Earlier today, the UK’s Yell Group announced what it’s calling the most significant revamp of its directory in more than 40 years: the introduction of a smaller compact version to replace its traditional larger format.
• Last year, we announced YellowPagesOptOut.com, a site that helps consumers simply and effectively stop directory delivery or adjust the number of directories they receive. All major publishers have also  introduced their own opt-out programs.
• SuperMedia and DexOne have launched efforts to put consumer choice and recycling information on the covers of their print directories. They are also sponsoring recycling programs in their local areas.
• No new trees are necessary to produce Yellow Pages. Publishers use recycled newspapers, telephone books and leftover woodchips from the lumber industry.
• The basis weight of directory paper has been reduced by 11% over the past five years.
• Yellow Pages are printed with vegetable-based ink that poses no danger to ground water.

Our members are constantly looking for additional ways to reduce our environmental footprint. Sensis’ announcement is another step in the right direction for our industry.

It was great to have so many industry representatives join the discussion. While the number of publishers that participate in consumer choice programs continues to grow, I believe the webinar was especially helpful in answering questions around the need for self-regulation and perceived impacts on advertising.

We know that delivering a directory to someone who doesn’t want one does not make much business sense. Providing people an opportunity to manage delivery is beneficial for both consumers and the environment. And given the dramatic growth in Internet Yellow Pages usage and our other digital tools, a consumer who opts-out of a printed directory still has plenty of access to the local information that we provide.

We’ve seen a number of announcements this year from large Yellow Pages companies announcing consumer choice programs. Idearc recently unveiled its program, which includes printing a toll-free number with opt-out information on all Verizon Yellow Pages’ covers. Idearc is also in the process of developing an online sitelet for consumer choice. Consumers will see a new, clearly marked tab on idearc.com by the end of this year for stopping delivery of printed directories.

In case you missed the webinar, you can view the slides.

The Atlanta Journal Constitution yesterday covered AT&T’s plan for opt-in residential white pages in parts of Georgia.

That news followed on the heels of a survey from the online residential information provider WhitePages.com that found the majority of consumers embrace opt-in residential white pages programs.

The WhitePages.com survey prompted some people to ask if the same applied to Yellow Pages. WhitePages.com CEO Alex Algard responded quickly with a guest post on Greg Sterling’s blog that clarifies his thinking on the issue.

In his opinion, Algard does not believe Yellow Pages “will or should” embrace opt-in for the following reasons:

• Yellow Pages are a proven means of local advertising for small businesses across the country.
• Without access to Yellow Pages, a small business’ ability to attract new customers suffers, thus greatly impacting their ability to generate revenue.
• Yellow Pages play a useful role for consumers, as there is rich content (sometimes richer than what is available online), the listings are generally up-to-date, and the coverage of listings is generally comprehensive.
• There is a viable financial model for Yellow Pages that supports an entire industry.

I applaud Algard for clarifying this position on Greg’s blog. Residential white pages and Yellow Pages are fundamentally different tools that serve different purposes. And the reasons for falling usage of residential white pages – namely, the increase in unlisted cell phone numbers and the information storage capabilities of mobile phones and handsets – don’t necessarily translate to Yellow Pages.

That said, we recognize consumer behaviors are changing and the challenges small businesses face are getting tougher.

For our advertisers, we continue to generate one of the best return on investments of any advertising medium and have tools in place to help measure that, such as our metered ad program. Yellow Pages advertising offers businesses more for their money by generating an average sales ROI of 27:1 for national display advertisers and nearly 13:1 for local display advertisers. No other advertising medium can offer this unmatched ROI for display advertising.

To address changing local search preferences, we offer digital and mobile search platforms, in addition to print. We also have launched www.yellowpagesoptout.com to make it easy and effective for consumers to manage the delivery of Yellow Pages to their doorsteps. But even as we’re focusing more than ever on consumer choice, we think it’s important to recognize that the value of print Yellow Pages directories to both businesses and consumers is still very, very high.

Yellowpagesoptout.com aggregates delivery information for Yellow Pages publishers in one place. Users type in their zip code and receive a list of local publishers with the appropriate steps to stop delivery or adjust the number of directory products they receive. We had a soft launch of the site in January. Since then, we have been making improvements to the interface and further building out the publisher database.

The launch of this site is an important step forward in our effort to meet consumer interest in customizing what gets delivered to their doorsteps. Our research shows that the vast majority of households want to receive at least one print directory – no surprise, since print usage is still strong. With that in mind, a critical objective of yellowpagesoptout.com is to let consumers decide to continue receiving all directory products available in their area, keep some but not others, or stop all directory deliveries.

Over the past year or so, a number of third-party Web sites not affiliated with Yellow Pages or telephone companies have begun offering to add consumers to do not deliver lists on their behalf. We suggest using caution when providing personal information to these Web sites. Consumers should work directly with publishers to stop delivery of print directories, and yellowpagesoptout.com is an easy starting point in that process.

On a related note, we also recently reorganized our environmental Web site. It’s critical that we tell our sustainability story better. There is too much misconception among consumers about how print directories are made. It’s important that people know that directory production is done in a sustainable way and that no trees are cut down for the sole purpose of publishing directories. In addition to our site, Yellow Pages companies also offer on their sites good data on the sustainable production process.

Even with the launch of yellowpagesoptout.com, our work is not done. The site will evolve – we will continue adding publisher information and new features over time. We will also continue to work with publishers to ensure that stop delivery requests are consistently honored. There’s more to do, but I’m very excited by the progress we’re making.

As the sole processing system for national orders, YPA ELITE^® executes over 6.1 million transactions each year. Just 15 years ago, this was a completely paper process – requiring prints, Veloxes, faxes, mailing and myriad labor-intensive steps to go from sales and design to final ad placements.  But with the help of GXS, we have gradually digitized the transaction process over the years, increasing the efficiency, accuracy and environmental safety of the system. This might sound small, but the migration to a paperless system has really added up.

According to the latest data from GXS, the Yellow Pages Association eliminated 55.39 metric tons of paper usage in 2008 through the YPA ELITE® System.   This translates to a significant reduction in the carbon footprint of the Association.  By migrating to a totally electronic system, the YPA ELITE^® system in 2008 succeeding in:

• Saving 201 tons of wood, or the equivalent of about 1,391 trees.
• Cutting consumption of 2,292 million BTUs of energy which is the equivalent of the energy used by 25 homes each year.
• Eliminating 341,141 lbs (170 tons) CO2 equivalent, which is the amount of CO2 emitted by approximately 31 cars yearly.
• Avoiding the creation of 135,630 pounds of solid waste, the equivalent of 4.85 full garbage trucks.

Partnering with GXS has really paid off in savings and quality.  And this is just one small part of bigger steps the Yellow Pages have taken to reduce the environmental impact of the industry.