Monthly Archives: July 2012

Why Marketers Shouldn’t Ignore Baby Boomers

Finally, someone else is saying what the Yellow Page has known for years — baby boomers are where marketers should be focusing their advertising dollars, and that then means Yellow Pages are the medium marketers should be using if they want to capture those boomer buyers as they are making a buying decision.

At the recent Nielsen’s Consumer 360 Conference, the well-known media and consumer research company said three key consumer groups are rapidly changing for marketers:

  • baby boomers,
  • moms,
  • lower income consumers.

But it is the baby boomers that really have the biggest prize — disposable income (aka money to spend). Beth Brady, Nielsen’s leader for marketing effectiveness, warned that if advertising dollars are funneled elsewhere: “….It’s a missed opportunity.”

Here are some of the numbers behind these comments:  Nielsen indicated that there are 100 million baby boomers — a number which will climb by a third in 2030. Most are growing out of the key 18-49 demographic into the 50+ number.  More importantly, they control $230 billion in sales or about half of the total for the entire U.S.  And they are not done yet — in five years, they will control 70% of disposable income.  Yet by and large, this key core demographic is ignored by marketers who seemed smitten want to reach 18 – 25-year-olds with far less disposable income and needs (as in they don’t have much money to spend).

So why should marketers then consider Yellow Pages to reach this core demographic group?  How about this list of key characteristics of heavy Yellow Page users from Dr. Dennis Fromholtzer of CRM Associates:

  •  Informed & smart shoppers
  •  Information gatherers
  •  Adventurous / enjoy taking risks / pursuing challenge, change, novelty
  •  Culturally sophisticated
  •  Fashion/style conscious
  •  Keep up with changes
  •  Like to stand out in a crowd
  •  Change brands for variety & novelty
  •  Outspoken
  •  Leaders
  •  Influencers – others come to them for advice

Shouldn’t this be the part of the market that businesses are clamoring for?  Then Yellow Pages is the most efficient way to reach it 24 hours a day, 7 days a week, 365 days a year…

 

 

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News U Can Use – July

These news items are brought to you by Kuk & Baldwin:

MOVING IN.     According to research commissioned by the US Postal Service, some 30 million US households change residences every year – and for their new digs, they can be counted on to make a variety of purchases within the first few months.   In general, new homeowners spend over $9000 within the first six months and renters spend nearly $4000.   For example, 60% of homeowners and 40% of renters buy furniture; 35% of new movers purchase bedding; 33% of new homeowners buy lawn equipment, tools, and hardware; and 15% buy computers, home security devices, and autos.   Overall, new movers establish an average of 71 new business relationships in the first few months (Deliver Magazine, 5/12).

REAL ESTATE.     A trend in the tough real estate market opens up business potential for various service providers.   Basically, the advice now offered to sellers by many real estate brokers is to invest (up to 3% of the list price) in “staging” the property.   Staging can mean anything from making repairs or upgrades, to hiring a landscaper, to bringing in a pro stager to rearrange the décor.   It can also include hiring a home inspector to do a “pre-inspection” ($300-$400) that identifies any issues that could mess up a deal – as well as a pest controller (also $300-$400) to inspect for termites and other pests that could cause a bank to deny financing.   “Pre-inspections” can be a key advertising copy point (Kiplinger’s, 6/12).

WEDDING BREAKDOWN.     Even with an 11% drop from the pre-recession high, the average US formal wedding still cost families a whopping $25,600 in 2011 – and a total of $54 billion was spent.   So where does the money go?   About 41% goes for the reception; 30% is for “other,” which may reflect in part the fact that many weddings now take place in exotic or offbeat locations; 13% is spent on a photographer and/or videographer; 6% on rings; 5% on a wedding dress; and 5% on flowers and decorations.   Localizing the market value and converting the % shares to dollars can help you sell (Smart Money, 6/12)

Find out how to be at the top of your sales performance by clicking on www.kukbaldwin.com.

 Other recent media/advertising news:

Following a weak 2011, U.S. saw ad spending growth in Q1
According to market research firm Kantar, first-quarter U.S. ad spending rose 2.6% to $32.9 billion.  Kantar Chief Research Officer Jon Swallen said that after a slow January the pace of spending increased significantly. For the second quarter, Swallen predicts “modest growth with improvement trickling down to media that have been lagging the overall advertising market.” (Source)

Print is still viable with unique advantages over digital
How’s this for a change — although many companies are devoting more of their ad budgets to digital, print media (in this case newspapers and magazines, but one could certainly add Yellow Pages) retains some key and unique advantages, according to this commentary. Among them are permanence, credibility and deeper reader engagement (88% of those who do use print Yellow Pages will make a purchase). To bridge the gap with digital, the article suggests things like QR codes can be incorporated in print campaigns. (Source)

BIA/Kelsey’s ‘SMB Digital Marketing 2012’ Conference Coming Up Soon

Once again, the BIA/Kelsey group is gathering top digital media and marketing leaders at SMB Digital Marketing 2012, Sept. 17-19 in Chicago, to examine the latest business models, technological developments and adoption trends in digital marketing solutions for small businesses. The speaker lineup is a blend of leading innovators in traditional SMB marketing and entrepreneurs who have taken the space by storm.

Keynote speakers for the event include Gail Goodman, CEO of the leading email and engagement marketing platform for small business, Constant Contact; Patrick Barry, CMO of Demandforce, recently acquired by Intuit; Alfred Mockett, CEO of leading directional media company Dex One; and Nathan Hanks, president of ReachLocal, a top provider of local online marketing solutions to SMBs.

“With some 20 million small businesses in the U.S. alone, SMBs represent the biggest opportunity for the next generation of digital marketing solutions,” said Conference Cochair Charles Laughlin, senior VP and program director, BIA/Kelsey. “At SMB Digital Marketing 2012, we’ll showcase the leading edge of innovation in this space and examine how solutions providers and small businesses are leveraging the latest trends.”

Recent additions to the speaker lineup include Logan LaHive, founder and CEO Belly; David Kerr, GM, eCommerce, Angie’s List; Gordon Henry, VP and GM, SMBs, Deluxe Corp.; Pamela Springer, CEO, Manta; Dick Larkin, executive VP, American Marketing & Publishing; Shawn Riegsecker, founder and CEO, Centro; Mary Beth Brendza, CEO, App Express; Marc Caltabiano, senior VP, marketing and products, Cartera Commerce; Darnell Holloway, manager, local business outreach, Yelp; and John Pletz, senior reporter, Crain’s Chicago Business.

The conference program will cover key aspects of digital marketing, including mobile, social and deals, and will examine what’s working for sales teams, agencies and resellers. Sessions include:

  • Precon Workshop: Building a Winning SMB Sales Organization
  • The Agencies on SMB Digital Marketing
  • SMB Franchise Leaders: Perspectives on the New Online Marketing
  • Sales Insights: Leveraging Resellers
  • Google and SMBs: The Special Relationship
  • Building an SMB Marketing Platform
  • Social Media: Focus on Business Models
  • Deals 2.0: The SMB Applications
  • Performance Marketing for SMBs
  • Making Sense of Mobile Advertising for SMBs
  • Inside Chicago’s SMB Tech Scene: Mega Hitters and Startups

Conference details, including speaker and agenda updates, sponsorship information, venue information and online registration, are available at www.biakelsey.com/SMBDigital.

Hearst Magazines to launch a private ad marketplace
Hearst Magazines is preparing to launch a private ad exchange for its digital unit, “Hearst Digital Media”, including ads on mobile sites for publications such as Seventeen, Elle and Good Housekeeping. The exchange won’t change Hearst’s relationship with the display and video networks currently selling Hearst’s surplus inventory, but will instead seek to provide automated programmatic audience-targeting services to upfront ad buyers. “We definitely recognize the growing need for efficiency,” says Chief Revenue Officer Kristine Welker.  (Source)

Juniper:  App-based ad spending to reach $7 billion by 2015
Advertisers will spend $2.4 billion on in-application advertising this year, according to a Juniper Research study. That figure will balloon to $7.1 billion by 2015, Juniper’s analysts predict, thanks to a global boom in mobile-device and mobile-app usage. “Mobile advertising gives marketers the chance to reach consumers on a more personal level than any other type of advertising,” says Juniper’s Charlotte Miller. (Source)

Twitter:  Expands ad offerings, expects $1 billion in ad rev by 2014
Twitter is expanding its advertising program to 50 more countries to improve global revenue and lessen the company’s dependence on the U.S. market, according to CEO Dick Costolo, who recently spoke at the Cannes Lions festival. Sources said the company is expected to draw $1 billion in ad revenue by 2014. (Source)

How digital agencies are riding the online ad boom
Ad agencies are ongoing as much change as publishers are in this industry.  Boutique digital agencies such as Blitz, Ignited and Omelet are making big bucks as major brands seek to ramp up their online marketing. Omelet should make more than $60 million this year, triple its 2011 revenues, serving clients such as AT&T, Harley-Davidson and Microsoft, while Ignited has built a $140 million business by focusing on display-ad services. “The dollars are clearly shifting this way,” says Eric Johnson, Ignited’s founder. “There has been a fundamental shift in behavior that is shaking the underpinnings of the whole media and marketing industry.” (Source)

How much of your TV advertising is wasted?  A lot….

A new Pew Internet and American Life study finds that half of all cell phone users are using their cell phones while watching television.  Nearly 40% of those use their phones to entertain themselves during commercial breaks, including by reading e-books.

“Clearly a number of those people who say they use their phones to keep themselves occupied while watching TV are reading books, news articles or other long form content,” said Aaron Smith, a senior research specialist at Pew and co-author of the report, adding that Pew didn’t have space in the survey to ask specifically about e-books.

Smith’s assertion is based on the findings of an earlier Pew report that showed more people were using their smartphones as e-reading devices.

According to the study, smartphone users, who would be the only group of cell phone users able to read e-books on their phones, are much more likely to use their phones during television watching. Nearly three-quarters of smartphone users incorporate their phone into their television watching compared with just a quarter of regular cell phone users.  (Source)

  • 23% used their phone to exchange text messages with someone else who was watching the same program in a different location
  • 22% used their phone to check whether something they heard on television was true
  • 20% used their phone to visit a website that was mentioned on television
  • 11% used their phone to see what other people were saying online about a program they were watching, and 11% posted their own comments online about a program they were watching using their mobile phone
  • 6% used their phone to vote for a reality show contestant

 

Success is a .07% Click Thru Rate??

Facebook, the current darling of Wall Street, is being hammered in the stock market today, down some 10%+ based on their earnings just released.  Why?  Simply put — because their sales were lower than expected.  I think I know why.

In a recent article on Mediapost titled: “Is Clickthrough Rate Still A Good Measure For Success?”, in the body of the article is the punch line from recent Facebook Ads engagement data:

“More statistics emerging on Facebook advertising statistics. I still am baffled that marketers are so lathered up about them. POINT-ZERO-SEVEN percent CTRs?”

I have to admit I am too. The writer went on to talk about “a program last year that generated a 14% conversion rate” (now that’s not bad). The friend/experts response was even better:

“…Don’t doubt there are some instances. But when the CTRs are on average that low, I can’t fathom why a medium or small business would even try…..”

What is interesting about this remark is that in their recent earnings call, Facebook COO Sheryl Sandberg offered that sales to local SMB’s were “… the holy grail of the Internet” and that Facebook is uniquely positioned to capitalize because of the 7 million businesses that market from their Pages each month.

I turned to the fountain of all knowledge on the web for another comparison point, Wikipedia, to get this gem about CTR’s in general:

The average click-through rate of 3% in the 1990s declined to 0.1%-0.3% by 2011.  Since advertisers typically pay more for a high click-through rate, getting many click-throughs with few purchases is undesirable to advertisers….”

Gee, you think so?

Someone help me out here.  If CTR’s are less than half a percent, why would any SMB spend money on Facebook when even a direct mail campaign would bring better responses for the targeted area that business is after???  Has a sub-one percent response rate become the new definition of an “effective” advertising campaign on the Internet?

And people say print Yellow Pages is irrelevant these days?  Seriously?

 

News Briefs – 7/24/12

We are excited to be rolling out this newest category on YP Talk.  In our hyper-intensive news world, here are some recent Yellow Page relevant news items you may have missed. 

We also provide an every-other day subscription based news service to our readers.  For more information, contact me at Ken@yptalk.com.

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Publisher news:

SunShine Pages changes name to Sunshine Media, launches small business initiative.

Metairie, LA based print directories company, The SunShine Pages, has announced it has undergone a rebrand and renaming, the group will now be called Sunshine Media. “The new name is more reflective of our expanded online offerings, coupled with our highly successful print directories, providing our clients a diverse directional marketing tactical lineup,” said Joshua Descant, General Manager.  One of the first business moves Sunshine Media has completed is the creation of “We Are Local,” a fully integrated community campaign to bring awareness to local small businesses in each of the communities they serve. “We’re building a stronger local economy through small business education and awareness,” said Descant. The new business-to-business community campaign has a microsite www.WeAreLocal.com where businesses will be able to find resources, stories of local success, and learn more about directional marketing.

Yellow Media announces plans to reduce debt, shares surge 100%

Proactive Investors USA & Canada … plans to reduce debt, shares surge 100% Phone book publisher Yellow Media (TSE:YLO) Monday announced it plans to cut its debt and make some major board changes as the company moves to transform its busines, sending its shares up 100 per cent.

<http://www.proactiveinvestors.com/companies/news/32320/yellow-media-announces-plans-to-reduce-debt-shares-surge-100-32320.html>

SuperMedia to Report Second Quarter 2012 Results on July 27

SuperMedia (NASDAQ:  SPMD) will report second quarter 2012 earnings on Friday July 27 … SuperMedia welcomes investors media and other interested parties to join …

<http://www.istockanalyst.com/business/news/5954725/supermedia-to-report-second-quarter-2012-results-on-july-27>

SuperMedia, Inc. (SPMD) New Ad Campaign ‘Reinvents The Wheel …

SuperMedia recently introduced “The Wheel,” a new advertising campaign highlighting the award-winning Superpages Mobile App. The company’s new …

<http://seekingalpha.com/instablog/783255-missionir/884081-supermedia-inc-spmd-new-ad-campaign-reinvents-the-wheel>

Recycling/Environmental:

Hot Springs Village Voice  — Phone book recycling begins July 9

The Hot Springs Village Property Owners’ Association will begin accepting telephone books for recycling on July 9 through Aug. 31.

<http://www.hsvvoice.com/news/2012-07-04/News/News_briefs.html>

Hawaiian Telcom Yellow Pages Collects Over 29 Thousand lbs of Directories Recycled…

Review seeker … July 2, 2012 (GLOBE NEWSWIRE) – Hawaiian Telcom Yellow Pages in conjunction with its … were able to recycle more than 29119 lbs of outdated telephone directories…

<http://www.reviewseeker.com/article/Hawaiian-Telcom-Yellow-Pages-Collects-Over-29-Thousand-lbs-of-Directories-for-Recycling-2089209>

AT&T 2011 Sustainability Report

The AT&T Sustainability Report demonstrates ways in which AT&T is committed … Students can click on their digital backpack to complete interactive math and …

<http://www.att.com/gen/landing-pages?pid=22872>

Recycle those old phone books

Winnipeg Free Press – Have you got old phone books sitting around? The City of Winnipeg wants to remind you to recycle…. – Local – Winnipeg Free Press.

<http://www.winnipegfreepress.com/local/Recycle-those-old-phone-books-153676205.html>

Miscellaneous:

Study Shows Oswego County Residents Still Rely on Local Yellow Pages…

July 02, 2012:  A recent study shows that 65% of residents in Oswego County use the print yellow pages first when looking for local business information.

<http://www.allvoices.com/news/12506289-study-shows-oswego-county-residents-still-rely-on-local-yellow-pages>

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In our “Feel the Love” section, we provide a couple of links to those who trash the Yellow Pages, mostly in an effort to steal market share.  Most are grossly inaccurate, some are just digital bourgeoisie, and a few are even comical.  You decide….

They’re baaaack – Yellowbook Phone Books landing on doorsteps …

Thudding onto doorsteps in Northeast Minneapolis as we speak. Shelley Leeson Northeast Minneapolis.

<http://forums.e-democracy.org/groups/mpls/messages/topic/6Z5LormTEIa4JVMFk7JxB6>

The Death of the Phone Book

Capital Overlook — There sat two giant yellow books. For those of you who are youngsters, these items were phone …

<http://capitaloverlook.com/2012/07/the-death-of-the-phone-book.html>

For Jim Belosic, the key to online business success is creativity

Truckee Times — Change with the times: “I see a lot of businesses, mom-and-pop shops, with ads in the Yellow Pages. Their demographics will remain the same.  Business has gone from Yellow Pages to online and now mobile.” • Think big: “My idea was, if I could be a great …

<http://www.rgj.com/article/20120701/BIZ/307010019/For-Jim-Belosic-key-online-business-success-creativity>

What is the deal with all the phone books?

The Franklin News Post — Let’s change the subject for a moment from Dr. Charles Lackey, the school board and snakes. What is the deal with all the phone books that the residents of …

<http://www.thefranklinnewspost.com/article.cfm?ID=22444>

People – July

It has been a while since we updated our regular blog sponsored by Hawthorne Executive Search .   It is all about people in the Yellow Pages industry. If you have news you want to share about someone that is involved in the Yellow Pages industry (including retirees) that we should all know about, drop us a line and tell us how they are doing. Send your submissions to ken@yptalk.com.

Larry Angove:

The Association of Directory Publishers (ADP) has announced that Larry Angove, their President and Chief Executive Officer since 1997, is planning to retire on or after June 30, 2013.

As a result, a Presidential Search Committee consisting of independent publisher leaders — Danny Bills, Wally Downey, Jim Hail, Steve Skinner, and Vernon Smith has been formed to coordinate the search for Larry’s successor.

Recommendations/expressions of interest are being directed to Danny Bills at dang452@aol.com. All recommendations and applications will be kept confidential by the Committee.

David Krantz:

David Krantz, former CEO and president of AT&T Interactive, has been named CEO of YP Holdings. Krantz will lead YP’s overall strategy and operations. The new leadership team includes executives from AT&T Advertising Solutions, AT&T Interactive and Cerberus Operations, as well as executives recruited from outside of AT&T. The company will be headquartered in Tucker, Georgia. AT&T still has a 47% equity interest in YP Holdings.

“We have a great future in front us,” said Krantz. “We also have an extensive customer base, the largest local sales organization, an unmatched product portfolio, industry-leading platforms across the web, mobile and print ecosystems, and a great brand. We are ready to invest in this business, innovate and provide excellent service to our customers.”

ZipLocal:

The online local search business Ziplocal has made several Board and management appointments:  Owen B. Menzel, Elaine Kunda and Timothy M. Gould have resigned as directors.  John Albright, Perry N. Dellelce, and Sheldon Inwentash were appointed as directors; Kevin Dane as president; and Paul Van Damme as chief financial officer.

Albright is co-founder and managing partner of Relay Ventures, an early stage venture fund exclusively focused on mobile software. He also founded JLA Ventures in 1996. Dellelce is a founder and managing partner of Wildeboer Dellelce, a Canadian law firm.  Inwentash is chairman and CEO of Canadian investment firm Pinetree Capital.

Alan Schultz

Schultz has been names thenew chairman of the board of directors for yellow pages publisher Dex One.  Schultz replaces Eugene Davis, who resigned from the board.

Schultz has been a member of the Dex One board since 2005. He also is non-executive chairman of the board at Valassis Communications. He retired as CEO of that firm in December, 2011.

Davis had served as non-executive chair of the board since August 2011. He has been a member of the board since January 2010.

Scott Klein:

As reported in The Goddard Report, Scott Klein who led Idearc/SuperMedia out of bankruptcy and resigned in 2010, has been named president and CEO of Language Line Services. Language Line is a language solutions provider specializing in more than 170 languages focusing on clients in government, healthcare, telecommunications, financial services and other industries worldwide.

“I know the Language Line team is going to enjoy working with Scott Klein as their new leader,” said Language Line board chairman Dennis Dracup in a prepared statement. “His diverse background, leadership experience, and emphasis on customer coupled with his high energy approach will drive the growth of our business.”

Klein joined Idearc from Symphony Technology Group (Palo Alto, CA) where he was an operating partner. He was previously president and CEO of Information Resources (Chicago), a global provider of information solutions, analytics and performance technology.

 

Dane Madsen

LocalBlox, has announced that Dane Madsen has joined the firm as an advisor.

Madsen and two partners purchased the YellowPages.com domain in 1996 and began with a small hosting package which evolved in to YellowPages.com.  In November 2004, SBC and BellSouth purchased the domain name and company YellowPages.com for a reported  $100 million.

The addition of Madsen as an advisor is expected to “…provide the firm with the experience, expertise and knowledge of a world-class entrepreneur who understands the unique business environment of today’s market and the special challenges facing small business owners in the new economy…”

LocalBlox features two distinct facets. One is a community-based platform that provides the means for community members to share information, plan special events and keep each other advised of news to promote neighborhood safety. The other aspect of LocalBlox supports businesses and entrepreneurs in their endeavors through business tools, apps, software and a comprehensive array of business services.

LocalBlox serves over 60,000 neighborhoods across the U.S and is dedicated to providing businesses with sound solutions and cost effective ways of conducting commerce to build financially strong neighborhoods.

Julie Winbun

Has accepted a new position as Vice President of Business Development Offline & Print with Ring 2 Media.  Voted by Inc 500 in 2011 as one of the fasted growing privately held companies, it helps drive live calls to top call centers.

 

Larry Angove, President of ADP to Retire

The Association of Directory Publishers (ADP) has announced that Larry Angove, their President and Chief Executive Officer since 1997, is planning to retire on or after June 30, 2013.

As a result, a Presidential Search Committee consisting of independent publisher leaders — Danny Bills, Wally Downey, Jim Hail, Steve Skinner, and Vernon Smith has been formed to  coordinate the search for Larry’s successor.

Recommendations/expressions of interest are being directed to Danny Bills at  dang452@aol.com.  All recommendations and applications will be kept confidential by the Committee.