An Entrepreneur's Life

The personal blog of Michael Cage on Business, Marketing and what it means to choose An Entrepreneur's Life.

Yellow Pages Advertising for Small Businesses

by Michael Cage on September 14, 2004

in Uncategorized

For longer than I’ve been alive, the Yellow Pages has been stop one for many small businesses wanting to promote their “stuff” to potential shoppers. Recently, much ado has been made about Internet-based alternatives to Yellow Pages advertising: things like the local search program on Google, and assorted Internet directories like BigYellow.com.

The argument usually goes something like this: the print Yellow Pages are too expensive, and now that alternatives are popping up small businesses don’t have to stick with them any longer.

There are a few things wrong with this kind of thinking, today I’ll highlight two.

First, the whole “either/or” proposition is way off. Smart small business owners are thinking: “How many ways can I buy a new customer relationship?” They dollar-cost-average customer aquisition costs, and structure their businesses to make the economics work. Loser thinking is: “What is the cheapest way I can buy a customer?” The Yellow Pages, when used properly, are a very effective ad media for many different kinds of local businesses. Predicating a marketing strategy on being cheap is rarely effective, and should only be used as a stop-gap measure to get to a point where a real customer aquisition plan can be run.

Second, I’ve done more than my fair share of yellow pages ad consulting. And I can state, for the record, that less than 1% of all yellow pages advertisers actually understand how to use the media. Far less. Even worse, most ads in the yellow pages are designed with heavy input from… THE YELLOW PAGES AD SALESPERSON. Lemme put this in plain English: if the guy selling the ad understood how to make advertising pay, he’d be doing ads for a living, not selling them. Basing the effectiveness of yellow page advertising on the mass of advertisers is laughable. Fact is, most businesses advertising in the yellow pages, aside from doing it wrong, aren’t tracking response so they have no idea what results are being generated.

Sometime next week I’ll talk about how to make yellow pages advertising pay. I just ran a class on it, so much of the yummy stuff is top-of-mind and ready to come out.

P.S. My posting has been non-existant for a bit, and will get back to normal in the next 10 days. Thanks for sticking around. grin

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Tagged as: marketing

  • Lori
    Michael, I just discovered your site in search of some information about print advertising vs online advertising. It's always nice to read the positives about yellow page advertising. I work for a local yellow page phone directory. I guess you could call me the "THE YELLOW PAGES AD SALESPERSON.

    I really enjoyed the fact that you stated that "less than 1% of all yellow pages advertisers actually understand how to use the media". However, I have to say that I was taken back a little by the comment about " if the guy selling the ad understood how to make advertising pay, he’d be doing ads for a living, not selling them". I guess someone has to do it, besides I really love my job. I on the other hand I do create and design my own ads based on what I like to call the Rascil Factors. R= Riliability, A= Authorized Sales and Service, S= Special Features, C= Completeness of Service, I= Illustration, Logos, or Emblems, and L= Locations and Areas Served. We also have a a method of tracking sales calls. Advertisers actually have the option of placing a RCF (Return Call Forwading), placing a phone number, different from theirs in our directory that forwads to their number. Thus allowing our customers to view name, phone numbers, addresses, times of calls, answered calls, unanswered calls, time spent on phone etc.

    So, you see I just wanted to set the record straight. Some Yellow Page Ad Sales Persons, may not really handle or know the right way to build and effective add, but that doesn't speak well for thosed of us that do. Know what I mean?

    I really did enjoy reading this article and I found it "laughable" As a matter of fact I just saved you to my favorites and my Twitter so that I may follow you and your advice, I find it very nice reading.

    Lori "The Yellow Pages Ad Sales Person"
  • Anonymous

    Hello Michael,

      I have not had any luck finding statistics on what percentage of businesses advertise in printed YP and in IYP and what percentage doesn’t. It would also be interesting to know why businesses don’t advertise in the YP and IYP.


    Thank you for your time and help,


    Norman

  • Anonymous

    To many people/companies have either or thinking - you HAVE TO Advertise Everywhere.  I think people are just trying to convince themselves that if they use one or the other, they are reaching everyone.  There are too many people that only use one or the other, if you want to mazimize traffic and sales you have to “advertise everywhere”

  • Anonymous

    Jeff,


    I must disagree with you, here at Top Yellow Pages, we are finding that the yellow pages are alive and growing.  While our service is to provide our clients with the best possible stand out and make a difference yellow page ad, we have learned by listening to our clients, that by large the yellow page industry is not going anywhere.  Believe me when I say if people weren’t using their yellow pages, businesses would not be advertising in tham and we would not be in business.
    ——-

  • Anonymous

    Jeff,


    Based on what evidence? We are a long way still from universal adoption of the Internet for day-to-day searching. There are pockets, for sure, but we are far from mass adoption.


    Michael

  • Anonymous

    I believe the yellow pages are on their out.

  • Anonymous

    You should check out http://www.judysbook.com

    This is a smart way for people to get trusted local listing and recommendations.  Big benefit to both users and small local businesses alike.

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