Amused that my spellchecker thinks it is a misspelling to type Facebook into my Facebook status. (Is it a FB thing or a Firefox thing?)
My take on the collision of technology, relationships and business along with a dose of opinion.
Empowering consumers to directly ask companies for what they want and to vocalize when they see something they do not agree with has certainly become the “norm” today. Bloggers have become citizen journalists, Web sites are “community owned” and supported, and brands are allowing consumers to direct new TV ads – all indications that major companies have understood the change in the marketing rules. Time Magazine in fact named “you” as the person of the year.
According to the Time article: “It’s about the many wresting power from the few … and how that will not only change the world, but change the way the world changes. In other words, ‘you’ have the power, and brands and its institutions must get ready for the changes that ‘you’ will demand.”
The Yellow Page brand continues to remain closed to consumers, and consumers are showing their displeasure by refusing to accept or keep the print book and opting for local search options on the major search engines rather than going to publisher sites.
The Yellow Pages industry has yet to fully embrace and understand that its advertiser base and content is currently less of a strategic advantage in the age of the consumer.
Consumers are in charge and they are vocal about what they want and who they support. Yellow Pages as a group has done a mediocre job of telling consumers why the print and online directories are relevant products in their lives, how they are changing to meet new demands, and how consumers can continue to benefit from the most comprehensive database of local businesses available.
In this age of “empowered consumers,” what can publishers do to understand what consumers want and how they want to interact with the massive local database Yellow Pages offers? Does the industry really have a grasp on how the way people search for local information has changed and how can this understanding change the way the print product is formatted and produced?
The goal should be to listen and learn from consumers about what makes for a great local search experience, then delivering it in real, differentiated, meaningful features and benefits.
The empowered consumer shift is well under way and now is the time for the Yellow Pages industry to use its considerable local advantage while it can to swing the pendulum back toward viewing the directory product line as the most comprehensive source of local business information whenever and wherever people need it.
My Take
It ain't never gonna happen.
The Yellow Pages will not change - at least not until they are forced to. Nor can they - their functionally obsolete printed medium is so far out of the consciousness of 20-something's making their first major purchases - homes, appliances - that it would require past life regression therapy to resurrect.The yellow tome will soon be amusing history. "Hey kids, when I was young the coal man delivered house-to-house in a horse-drawn wagon" will become "Hey kids, when I was young they dropped big yellow phone directories on my driveway that we used to use to find phone numbers. Isn't that unbelievable?"
Also participating was prior investor Bessemer Venture Partners, which led a $3 million first round in 2006.
Yodle competes against the many print and online Yellow Pages companies as well as Los Angeles-based ReachLocal, which in October closed a $55.2 million fourth round of venture capital led by Rho Ventures. The Kelsey Group, a Princeton, New Jersey, research house, forecasts that global local search revenue from Internet Yellow Pages, local search, and wireless will climb to $13 billion in 2010 from $3.4 billion in 2005.
Andreas Stavropoulos, managing director at Draper Fisher Jurvetson, said New York City-based Yodle tackles “the unsolved problem” of using the web to generate sales leads for local businesses.
“Of all the companies I’ve seen, it’s the closest to having a scalable model,” he said. “It’s a huge market and one that’s very difficult to crack in a scalable way.”
Yodle Chief Executive Court Cunningham, said the company, founded as Natpal in 2005, plans to ramp up to 10,000 customers from the current 1,000 within 20 months.
Despite the web’s frantic growth, historically, local businesses like the neighborhood locksmith would never consider advertising on the web, Mr. Cunningham acknowledged. But with more local content migrating online, the web has become an important source for finding consumers.
“We’ve hit that tipping point,” he said.
The company, which expects to expand its work force from 70 now to about 200 within a year, helps local businesses buy keywords on the major search engines and guide web surfers who click on the link to a Yodle-designed web site set up for the client. Should a potential customer call, the message is delivered through the Yodle phone monitoring system, which provides statistical analysis.
Yodle reaches local businesses by advertising on the web and through a direct sales force, Mr. Cunningham said. The company offers service in New York, Boston, Philadelphia, Atlanta, and Washington, D.C., and plans to launch in up to 10 additional cities next year.
Mr. Cunningham, a former executive at online advertising company Doubleclick, said Yodle is growing revenue at a rate of 350-400 percent per year and that the new cash infusion is expected to bring the company to profitability.
My Take
Here at the end of 2007, it's painfully obvious that the local search advertising market remains highly fragmented. Numerous local search experts attending the recent SMX Local & Mobile Conference reiterated the observation that businesses seeking to target local audiences have a plethora of options, and identifying and selecting the right locally-focused sites can be an overwhelming task for small business people who have limited time to devote to the task.
So, where should you choose to devote your time and budget? What's the minimum number of sites you should appear in and which are the best for you? This article is geared towards businesses targeting local audiences, rather than businesses who do nationwide advertising—and specifically, how to choose the best internet yellow pages ("IYPs") for your ads and those where it's important to spend time optimizing your free listings.
This might seem ironic, considering that I've suggested that sites which are little more than online yellow pages might follow the expected decline of traditional print yellow pages. But, internet yellow pages overall continue to enjoy very high traffic according to independent reporting agencies, and IYPs are evolving to stay relevant in a post-print era. Also, there's fairly solid industry research that shows that true conversion rates (sales) are higher associated with referrals from internet yellow pages compared with many other channels, including major search engines.
Yellow pages sales reps who show up on your doorstep may blast you with tons of statistics on why you should buy their company's ads versus those of competitors or other media. The stats always sound good, but you've been in business long enough it's hard to trust anything coming out of a sales rep's lips. So, what do you do? If you live in a major metro area, the whole thing is compounded by the fact that you likely get jabbered at by sales reps from a few different yellow pages companies who all have books in the same area, and who all have online business directory products as well. They all spout different numbers at you, and they can't all be the best, most-used, and most-worthwhile can they?
This is nothing new—Yellow Pages sales reps have historically loved to play tricks like making you believe that you should choose to advertise in their books over the competition's because their books are bigger/fatter. The premise is that if more people are advertising in one book, it might be bigger, and if more people are advertising in one book over another, maybe they all know something you don't, right? Wrong! Unfortunately, a classic con job when starting to distribute books in a new territory involves the company printing books on thicker paper, making their books appear to be bigger than their competition's. Even if they had more ads, all that means is that the particular company sold more ads than the other—not that more people actually would see those ads, necessarily.
Chris "Silver" Smith is Lead Strategist at Netconcepts. The Locals Only column appears on Mondays at Search Engine Land.
My Take
Doesn't it seem crazy that there are so many choices for local advertising? Especially when you consider that all business owners know where their best leads come from. They just don't have the tool to connect with them.
Here comes YouGottaCall.com. Please hang in for just another month or so.
Thank you, - - Tim
Posted by Bob at 00:47
My Take
Word-of-Mouth Marketing On The Upswing
by Mark Walsh, Friday, Nov 16, 2007 7:00 AM ET
WORD-OF-MOUTH MARKETING IS EXPECTED TO surpass $1 billion in 2007, making it one of the fastest-growing alternative media formats. In a new research report, PQ Media also predicts that spending on word-of-mouth marketing will grow at an annual rate of 30.4%, and will hit $3.7 billion by 2011.
Helping drive the growth of WoM marketing are Web 2.0 technologies such as social networks, blogs that allow consumers to share information, and opinions about brands and products. While 90% of WoM activity is estimated to take place offline, marketers are shifting more spending to online vehicles that can provide more measurable results. Findings of the PQ Media study were presented Thursday at the Word-of Mouth Marketing Summit 2007 in Las Vegas.
What exactly is WoM marketing? PQ Media defines it as an alternative marketing strategy that uses online and offline tactics involving peer "influencers," WoM communities and brand advocates to encourage consumer dialogue about products and services.
The category doesn't include what are considered unethical tactics such as spam, "sock puppeting," (assuming a false identity online to promote a product or company online), or paying someone to talk about a brand without disclosing that they work for the company.
Also not counted in WoM estimates were spending on activities like in-store product sampling, coupons and loyalty programs, and advertising on social networks and blogs. So Facebook's new social ads, which let marketers attach messages to the communications of members who have identified themselves as "fans" of a particular brand, would not be included.
Only marketing through fully disclosed brand advocates on blogs or other online outlets would be included. "The brand advocates or agents have to state that 'We are hired by this particular company,' or 'we were given a sample of a product,'" explained Leo Kivijarv, vice president of research for PQ Media.
Wal-Mart and Sony both ran into trouble last year when they used paid writers to create authentic-seeming blogs evangelizing their brands.
Kivijarv says 2006 was a turning point for WoM marketing, when it went from being an experimental media buy to becoming "increasingly included in fully integrated marketing campaigns." Marketers are no longer just monitoring WoM efforts, but expecting to see a return on investment in increased sales or buzz surrounding a product.
That trend is expected to continue in 2007, when WoM will grow an estimated 37.7% to $1.35 billion. Overall, however, WoM remains the smallest marketing segment, capturing less than 1% of industry dollars. Direct marketing, branded entertainment, and business-to-business promotions garner the lion's share of spending.
Kivijarv estimates that there are about 200 agencies and technology companies that either specialize in WoM marketing or have units dedicated to it.
While no specific data is yet available on WoM spending by product category, food and beverage, media and entertainment, and sports and recreation are among the most active in employing WoM strategies.
Mark Walsh can be reached at walsh@mediapost.com