AT&T phone directories the Real McCoy -so they say

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AT&T Real Yellow PagesAccording to a new ad campaign for AT&T’s yellow pages directories, all other directories are poseurs. “The Real Yellow Pages” campaign breaks next month. Themed “Your World Delivered,” the campaign will hit radio and tv stations in the top 100 U.S. markets.

While online search engines are cutting into printed phone directories revenues, the yellow page books commanded 13.4 billion searches last year, says the Yellow Pages Association, a directory trade group.

It’s no secret that directory publishers are steadily migrating their directories online and on to other emerging technologies. According to Mike Bierne at Brandweek, AT&T has forged partnerships with “major search engines” and acquired an ad tech firm to get ready for the day when YellowPages.com will convert from charging advertisers a monthly ad fee to charging clients based on the number of calls their ad generates.

But printed directories, the association is saying, is far from dead. According to the YPA, 87 percent of consumers still use print phone directories.

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“Must-Knows” about Yellow Pages advertising

“Yellow Page Advertising: 4 Need-to-knows” is a helpful and to-the-point article from Chris Mitchell at 25-8 Marketing, Inc., who divulges four very useful tricks concerning yellow pages. For instance, says Chris, ” Most people are right-handed. They hold the phone book in their right hand, and use their left hand thumb to flip through from back to front. So what’s so great about having the biggest ad in the front — when most people see the smaller ones in the back of the section first?”

He also suggests making a plan to scale back on your Yellow Pages ads, and gradually diverting your directory budget to online advertising. “It’s headed that way.” Read more.

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Seven Ways to Waste Your Money on Yellow Pages Advertising

Guest Article by Dr. Greg Chapman

Each year there’s is a Yellow Pages Race where competitors in each category are encouraged to outspend each other. There is only one winner in this race, and it is not you! Too many advertisers waste their money on Yellow Pages advertising without first considering their marketing strategy. Here are seven ways you can waste your money.

1. Attempting to outspend your competitor

As soon as Yellow Pages has convinced you to increase the prominence of your ad, they get your competitors to match or outbid you. This becomes an annual auction, with some categories containing pages of half and full page ads. A buyer can be overwhelmed with choice and may make their decision before they even get to your ad. Priority in listing is given to those who have advertised the longest in a category for a given ad size. You can only get closer to the front by upsizing your ad or if someone else closer to the front ceases advertising.

2. Putting all your eggs in the Yellow Pages basket
An advertising decision is something you should only make after you have developed a marketing strategy. Many businesses rush into advertising in the Yellow Pages, just because that’s what everyone else does. You don’t become a leader by following the herd. You need to consider your payback for your investment in this marketing channel. Ask your Yellow Pages consultant how many leads a particular size ad generates in your category. Then ask yourself how many of these leads will you convert into sales, and then decide whether this is a good investment.

3. Engaging in destructive Head to Head Competition
When you advertise in the Yellow Pages, not only can potential customers see your ad and your offer, so can your competitors. This can result in price competition that can turn your product or service into a commodity. Yellow Pages make comparison shopping easy for buyers and market research easy for competitors.

4. Spending too much on prominence
When spending on a Yellow Pages ad, you can invest in size and colour. Size is important, but what you put in the ad, your copy, is far more important. It is better to go down a size and spend the money you save on a copywriter. Good copy can generate up to 20 times the response as poor copy. Colour is also important, but not as important as size, so go up a size rather than go to colour, which is expensive for its return. If your category is cluttered with large ads, investing in your copy is essential.

5. Relying on Yellow Pages free design service

Ad design is important. Yellow Pages do offer a free design service, but its worth what you pay. The typical design is done in 15 minutes. As they are designing tens of thousands of ads you can’t really expect any special attention- especially as there is no charge for the service! When they design your ad, they will appeal to your vanity rather than to your customers. So they will put “Joe’s Plumbing” in the headline. But buyers don’t care who Joe is, and are far more interested in why they should use Joe. This requires some marketing analysis of your points of difference and ultimate service benefits, which won’t happen in 15 minutes!

6. Putting your ad in the wrong category
If you are a plumber, the decision of where to place your ad is easy. But if your business is in a fairly specialised market such as oil refinery plumbing, there probably isn’t a good category for you. In fact, for many B2B businesses Yellow Pages is a poor marketing tool. Ask yourself the question, where would a buyer look to find out about your business- it might not even be in the Yellow Pages.

7. Depending on old technology advertising
Every year Internet advertising increases, with less being spent on print advertising. Yellow Pages is now available online and for certain businesses this is a better option, particularly with a link to their website. When being sold paper Yellow Pages ads, you may be offered complimentary online advertising. However, unless your ad is near the front, you will be invisible to buyers who rarely will browse further than three pages. It is also worth paying for a link to your website.

The Yellow Pages consultants are on commission to sell you advertising. They only interested in getting you to spend as much as possible, not on providing the best marketing solution for your business. Advertising is not the same as marketing! Good marketing advice on whether and how you should advertise is money well spent. Not only can this increase sales, but it can save you thousands of dollars in advertising.

Before making a decision on Yellow Pages advertising, you should consider all your marketing channels, and make decisions on how much you invest in each dependent on their ability to attract leads. Having determined how much you will invest in Yellow Pages, do some market analysis and invest in your ad copy. This is particularly important for larger ad sizes. Yellow Pages advertising can be rewarding, but should only be considered as just one part of your overall marketing strategy.

Dr Greg Chapman assists small to medium sized businesses with business planning, business systems and marketing strategy. For a free “Online Business Medical Checkup,” visit his Empower Business Solutions website.

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“Decline in yellow pages ad sales hurts Donnelley”

R. H. Donnelley is the country’s third-largest yellow pages publisher.From the Raleigh, NC News & Observer: R.H. Donnelley said it would start paying a dividend next year — a move investors have been clamoring for — but the announcement was overshadowed by disappointing third-quarter advertising sales for its yellow pages business. Donnelley shares fell 12 percent Tuesday after the Cary-based company reported a 2.2 percent decline in yellow pages advertising sales. Shares of Donnelley, the nation’s third-largest yellow pages publisher, are down 15 percent so far this year.

“There continue to be challenges with this business,” said Signal Hill analyst Maurice McKenzie. “My sense is that trumped the dividend.”

Ad sales were dragged down by the Florida and Nevada markets, which are suffering acutely from the housing slump. Ad sales in those two states were down 7 percent, CEO David Swanson said during a conference call with analysts. Sales in the other 26 states where the company publishes directories fell “just over a percent.” Donnelley’s revenue in the third quarter totaled $669.9 million, up only slightly from a year ago. Cash flow from operations totaled $156 million, down from $161.9 million a year ago. Donnelley reaffirmed its guidance for the year. That includes a projection that ad sales will range between flat and 1 percent growth.

“We remain optimistic that the yellow pages business is a valuable, long-term business,” McKenzie said. “We are encouraged by the actions the company has taken, over the past year or so, in terms of strengthening its position online, which we see as a critical growth engine going forward.”

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