Local search kills online yellow pages

The online yellow pages sites: SuperPages, YellowPages, and CitySearch depend on user reach for their livelihood. In contract to social engines like Yelp which strive for page views; yellow page business advertisers expect high degree of reach, meaning exposure to a wide audience.

The problem is that the daily reach of internet yellow page sites has been consistently decreasing for over the past year.

Slow Death

As I found before, the term yellow pages is dying in terms of consumer awareness. As well, the actual traffic to the internet yellow page sites is suffering. The writing was on the wall when Google Local first was launch, but the downward took effect when Google Local Ads were made available - allowing our company to place over 1,200 local business listings nearly overnight. The death nail was delivered with the inclusion of local business information in Google search results. Since Google introduced these features, a progressive downward slope has continued. It seems that as users have found the local business information in their search engine, the have weaned off of the traditional yellow page sites. Considering that over 81% of users start their internet experience at the search engine, I would expect to see the IYPs this pattern to continue.

Am I Stuck?
If you are a yellow pages advertiser, consider this like you would a stock ticker. There will not be a rebound or a valuable acquisition, so take a deep breath, get out of those contracts and get out while you can! If they try to hold your feet to the fire on a contract, I would be quick to point out that their product has lost over 50% of its reach in one year; perhaps you should even get a refund.

While there are multiple outlets for online advertising, search is the most effective and delivers the highest return on investment. The sooner you focus on Google, the better - having a long-standing history is beneficial for getting a tri-fecta, placed with higher ranking in Google Maps, Web results as well as Sponsored Placement.


About the Author
David Rodecker is President of RelevantAds, a service that gets local businesses online through local search. RelevantAds provides highly targeted search placement and advertising packages for small to medium size businesses and franchises across the United States.

Google Maps vs. Yellow pages, users have decided

The writing has been on the wall for years, Yellow pages is loosing place in the market. There have been surveys, speculations and studies, but here is a clear indication that users are taking notice.

Yellow Pages Loosing Brand Identification
If you haven't used it already, Google Trends is a nifty tool to view and compare the historical popularity of search terms. Here is a comparison of Google Maps (blue), Yellow pages (orange) and SuperPages (red):


Keep in mind that Google Maps was rebranded in April 2006 (from Google Local) and users shouldn't really need to search for the term anyway since it is already linked in the local results as well as above the Google search box.
Yellow pages could as well be entered into the URL, but we know that 41% of internet users typing in a query to locate a website, rather than entering that name into the address bar (from DoubleClick/Harris Interactive).
Nevertheless, the trend is clear users Google Maps is taken over in brand penetration over Yellow pages. The yellow page brands such as Yellow book and Superpages aren't even close and moving in the same downward direction as the general term "yellow pages".

Search is Key Distribution

Yellow page companies are not receiving enough user visible for their product make the jump online, however they still have a chance to deliver a viable product to their customers. How? Distribution through search engines. Google Maps is the largest growing section within the Google properties, growing over 20% in the last month according to Hitwise internet traffic sampling. Rather than spiting the competition, they will have to embrace, partner, and resell sponsored coverage in order to get results.

Advertising End Game
If only it as simple as writing a check to Google. Equally impressive as the Google Search algorithm is the AdWords marketplace. There are many dimensions in tailoring campaigns, monitoring and managing them to deliver effectively. Individual businesses either hire an online advertising specialist or spend hours managing it themselves; it takes uber technology powerhouse to properly manage 1000's of search marketing campaigns in scale.

RHDonneley has already acquired a search optimization/marketing firm specializing in local listing and I'd expect to see others taking similar courses of action. Print media companies are concerned that buy working closely with Google that they will be ultimately marginalized by the advertising giant. Ultimately, though, they provide something that Google doesn't: reach. While Google is the brand name of users, advertisers are much more aware and trusting of their local newspaper, Chamber of Commerce, network or organization. Packaging, selling and delivering a simplified online advertising service to offline companies is the land grab opportunity at stake.

Local Business is Different Everywhere

Local businesses have to do a lot to be found online. Users have many options: SuperPages, Yahoo, Google, MSN, Local.com and dozens of IYPs that make up the majority of local search. Businesses are lucky to be accurately found, and even then they're not likely to have their preferred information presented. The problem and is real.

In order to get the most exposure to online consumers, businesses need to be well published on as many channels as possible. Unfortunately there is not silver bullet, meaning, you can't rely on any single destination or data provider alone. Even if your business record is verified and enhanced with InfoUSA, that information won't make it everywhere. It is up to the the business owner to provide information to every local business website out there.

If business owners publish information to destination on their own, the process is seemingly similar. Each requires a business name, phone number, category, description, hours of operation, etc. Now just repeat the process dozens of times to each valuable destination and local directory. At the very least it's time consuming, furthermore, if its not completed right or to the right sites, your might not get any response.

The chaos has prompted some to called for the standardization of local search information. A standard way to input and output business data. In it's ultimate incarnation, a standard might allow a local business to promote their deals to the whole internet from one place. Unfortunately it's not likely to happen any time soon, if ever.

Why? None of the heavyweight information providers will get behind it. Destinations such as Yahoo, Google, SuperPages, which have a large, growing databases of business content are not interested in bulk re-publishing. The destinations are very interested in user submitted information, but bulk publishing leaves the door open for spam. Unless there is substantial lead generation or other financial benefit, we won't find support from the search giants.

This leave the data conglomerates: InfoUSA, Acxiom, and Amacai. Supporting a standard would only be done if their clients asked for it. This might ultimately minimize their differentiation of data. Their customers are more interested in the mass amount and quality of data, not unification of data fields.

Besides lack of corporate support, there are technical issues why local search can't be standardized.

We have seen the search gorillas unite on some causes like sitemaps and anti-spam. While it's reasonable for a local business owner to supply their own data, they already did when purchasing their domain. A deeper look or revamp of the whois system should perhaps be considered. Given that whois information is already used in search, it is reasonable to expect that the basic local business information already exists there.

We will sooner see information alliances in other internet content services such as video… it's hard to see YouTube, Joost and the myriad of online video service supporting an open import/export of their content; don’t expect the same from the IYP’s.

Disclaimer:

The good news is that a few agencies focus on data syndication rather than privatizing your information. I am behind RelevantAds, which provides a service that provides rich information to a number of local search destinations and social networks. A key difference with the RelevantYellow versus other services is the inclusion of social networks such as Yelp, CraigsList and InsiderPages. In short, it ensures that local businesses get online.

Classifications of commercial websites

Web 1.0:
Sites = News/Articles/Entertainment
Advertising = Banners.

Web 2.0
BUSINESS
Sites which advertisers like because they have a perceived or actual value.
Search Engine, Internet yellow page site, Directory, Lead gen-site, Classifieds

CONSUMER
I've created a site which people like to use:
Email, Social Network, Online Game

Note that there is not a 3rd option: Mixed.
Only the top, well executed sites can pull off being both a consumer and business oriented site (ala Google, Craigslist). You cannot be "a social site that combines users and advertisers in a unique way..." as so many business plans these days content.

Sites which try to be Business and Consumer oriented generally fail at doing either effectively. History has shown, if you can build the users, advertising revenue will come. Pick your audience, love them and stick with them. Once you turn around and start pushing your users off to other sites (via ad feeds and sponsored links), it will lessen your value to users. Afterall, if the purpose of your consumer site to keep users satisfied on your site? If a sponsored ad is more engaging than your content, you've got a loosing strategy long-term.

Self Generated Content Threatens Traditional Media

Those familiar with internet publishing are well aware of the power of user generated content. Media and entertainment executives are now recognizing that the ability and eagerness of proprietors and individual users to create their own content as one of the biggest threats to their business. According to a new survey by Accenture, 57% of the respondents identified the rapid growth of user-generated content as one of the top three challenges they face today. And, 70% of respondents said they believe that social media, one of the largest segments of user-generated content, will continue to grow. The content comes from custom web sites, wikis, social-media blogs, amateur digital videos, podcasts, mobile phone photography and wikis.

According to the study:

• 68% of the respondents said they believe that within three years their businesses will be making money on user-generated content
• 62% said they believe their companies will make money through advertising and sponsorships of social media
• 21% anticipate improved profits from subscriptions
• 18% expect profits from pay-per-play offerings
• 24% of respondents said they do not yet know how their businesses will profit from user-generated content.

End-users prefer to consume content that is organically originated from other users. Economic usage patterns show a purchase preference for this information as opposed to the traditional media.

Why is this happening:

Internet destinations are rapidly expanding and this includes custom websites, social networks and directories. Search engines, such as Google and Yahoo do a fantastic job of identifying the pertinent information. just about anyone with a valuable and distinctive message can have their content found online.

Getting Business Owners Online:

This study is further evidence that proprietors and individuals need to take control of their public marketing. Businesses can take that information directly to consumers, bypassing the media giants completely. Businesses are recommended to utilizing a variety of websites such as Yahoo Local, Craigslist, SuperPages, Google, Yelp, business directories and a business profile page to regularly publish information such as to company information, current events and special offers and promote coupons.

(source: IQ Reports)

Top 10 Problems with Donald Trumps Wealth Expo

I'm up late product developing, TV's on in the background. IT was 30 minutes of banter and fake testimonials, here is one snip from DT himself. Being too lazy to flip the channel, after hearing for about 20 minutes people saying how easy it is to become a millionaire and that they are now living care free and working less, I decided to rant...

While the concept of a learning to make money expo is great, these guys are trying to make it out like they have the secret formula that can easily be learned. Sorry, people, but all of these guys who built wealth did it with unique creativity, luck, skill and yes, knowledge. Here is my beef with the deceptive Wealth Expo marketing:

1. Truth. Are these actors for real, "ANYONE" can do this? Even if that were true, the implication would then be that tens-of-thousands who attend would then be in competition with Trump, et al., afterall, they all just shelled out $100 to follow after him.
   
2. Catch. True, knowledge based trade secrets are never given away. Indeed, the presenters do get paid well I'm sure, but the amount is still minor as compared to their wealth. No, they're not going to give away a coveted secret to repeatable income. The fact is, they're selling you well established, old knowledge.
3. RISK. Unless Trump cosigns your loan, there is a risk in getting into real estate. Real Estate investors that were around 30 years ago are not doing the same things now as they did then. Trump has changed his investment portfolio significantly over the years and continues to. Is he able to teach you how to constantly adjust your investment portfolio.
   
4. Help Needed. "I now have 2 or 3 investment properties and making a passive income", was a quick testimonial from a prior attendee. Do you really believe Trump is buying "a" condo these days or even 2 or 3? No, he's building and maybe managing them! And guess what, you're buying them! It sustains an artificial demand where there wasn't before and raises the price. We are still in a real estate bubble, they are of course interested in seeing new recruits to keep it going.
5. Expensive Movie. Cost is shown $499 then reduced to $99 "if you act quickly". Who are they kidding? Only nationwide conference charge that level of pricing. These are metro conferences for 10,000's persons should cost a fraction of that... clearly the profit margin is huge.
6. Lazy Americans. One of the presenters said: "I don't work anymore and I can tell you how to do the same thing..." If that we're even theoretically true; wouldn't that mean that all of America would become a lazy bunch of people, with nobody actually doing the work.
   
7. Hire Immigrants. (With all the lazy Americans, we might need to). If these real estate professional think that can easily teach their methods, why wouldn't they reduce the ticket price and hire the best attendees!
8. Apprentice. Trump hangs out for 60 minutes afterward. It would be really cool if he visited the exhibition hall, talking to the emerging companies; in fact I would have my company be a sponsor! In reality, he patronizes the audience for an hour (remember they shelled $100 for a ticket) and probably half the questions are "How do I get on The Apprentice"... Here's a hint; if you're at this conference, your probably not his ideal candidate!
9. Scale. Are we going to see tens-of-thousands of new people in Real Estate every year these guys come to town... opps, I forgot, we already do! But probably a fraction of the new agents, loan officers, etc. got their credential after attending this.
10. Learn Real Estate and Ebay. Wow; quite the diversity in wealth formulas. I didn't hear about it in the 30 minute TV ad, but the Wealth Expo website said "Become an eBay entrepreneur"

Anyway all that being said, I'd like to jump in and speak at the event. I have a great product for stay-at-homers to sell! Coincidentally, we're waiting to hear back from LearningAnnex if there are any sponsorship opportunities available.

MEDIA EXECS REJECT THE REBUNDLING SERVICES

A half-dozen top media agency executives put the ongoing debate of a creative-media agency rebundling in no uncertain terms: "no way".

“The conversation about rebundling doesn’t make much sense to me,” said Mr. Klues, whose group includes Starcom MediaVest Group and ZenithOptimedia. “You’re not going to see us become the media department of a full-service agency.”

Publishing and media companies don't want to advertising to become a commodity; big surprise.

Fragmentation of publishing outlets is what empowers agencies to be the hub of ad provisioning. Connecting the dots between an advertiser and many publishers would eliminate the agencies job as a middle-man.

Although the report doesn't call out who is uniting media, the culprits are clear: Google, Yahoo, MSN, and perhaps eBay.

Google; the online search engine is certainly poised to be the network which unifies the media world. Google has made acquisitions and buyouts in traditional advertising media: TV, Radio, Magazine, and Newspaper. Google's intentions are clear: offer businesses advertising real estate in any publishing outlet.

eBay is also a formidable contender with its proposed eBiz Media Auction Service. In contrast to Google monopolistic tactic of buying out and reselling ad space, eBay would likely offer a more transparent marketplace where publishers would list specific ad units they're willing to auction. Publishers would feel more comfortable knowing that they are still in control of the price and sale, however it would still be brokered through eBay.

(portions taken from AdAge: AAR47E)

MEDIA MOGULS SPEAK THEIR ACQUISITION FANTASIES OUT LOUD

Excerpts taken from AdAge (AAR47F )

Comcast, Hearst, AOL, ABC, and Google execs recently made acquisition wishes:

Comcast COO Stephen Burke wants more content, and specifically called out Disney as a desired target.

Yawn...

Hearst Magazines president Cathleen Black wants to own all of ESPN, instead of their lousy position of just 20%.

Okay, so you really don't have any idea where else to grow.

Michael Kelly, president of AOL Media Networks, says AOL is expected to sell pieces of their business, not buy more.

Good thinking after the whole Time Warner debacle. If AOL even suggested a large acquisition, their stock would probably tumble.

Mike Shaw, ABC Television, admits they need a search engine strategy and regrets the fold of Go.com.

Me too, me too! Can I get an operating system to go with that?

Google's own VP-Advertising Sales Tim Armstrong wants to buy either a grocery store or a car dealership: “Just to see how they work.”

Sounds ridiculous, but what do you expect from the Sales VP regarding M&A? Even if Armstrong had a good M&A thought; I'm sure he withheld it after Google CFO Reyes made a comment which sparked a 13% gap down in Googles stock price.
On the otherhand, I'm sure we'll be seeing "Ads served by Google" in grocery store aisles, digital displays, the back of cashier receipts, and in the dashboards of our navigation systems... so perhaps Armstrong is poised to close the loop by actually owning these ad distribution outlets.