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January 10, 2008
The Kelsey Group Identifies
Key Local Media Trends to Watch in 2008 as Ad Dollars Continue the
Shift to New Media Platforms
The firm’s
predictions include radical changes to print Yellow Pages in major
metros, increased importance of user-generated content and more
verticalization of ‘local’
Princeton, NJ (Jan. 10, 2008) --
The Kelsey Group, the leading provider of research, data and strategic
analysis on directories, small-business advertising, online local
media, vertical market and mobile advertising, has identified more
than two dozen key trends to watch in 2008 in the global Yellow
Pages, local search, interactive local media, vertical directories
and classified media markets.
“In many ways 2007 was a bit of a watershed
year as offline media companies more fully acknowledged the threat
of the Internet while online media companies sought to exploit ever-widening
opportunities,” Neal Polachek, chief executive officer, The
Kelsey Group. “Through this lens, our analyst team has laid
out its expectations for the coming year. We will be researching
and watching the marketplace closely to determine the impact of
the continued shift of advertising dollars from traditional to new
media platforms.”
Global Yellow Pages in 2008
With most economists predicting a slowdown in the general economy,
Kelsey Group analysts believe 2008 will be a pivotal year for the
global Yellow Pages industry.
“For Yellow Pages, the key question is whether
the print product will emerge as healthily as it has after previous
downturns,” said Charles Laughlin, senior vice president and
program director, The Kelsey Report® and managing editor, The
Kelsey Group. “In the past, small and medium-sized businesses
have protected their print Yellow Pages investment at the expense
of other media. Given the structural changes in the local ad market,
we believe the next downturn will favor media choices that are more
flexible and provide a lower cost per lead than print directories,
which would signal a profound shift.”
Among The Kelsey Group’s predictions for the
global Yellow Pages business are:
- Major Metro Markets Lead the Revolution: More publishers operating
in large metro markets will proactively institute opt-out plans
for consumers to reduce distribution to the ones who really want
the print directory, something publishers have historically resisted.
Also look for initiatives to radically rescope major metro books
or introduce new formats.
- Expanding Online-Only Expansion: In the coming year, we expect
to see more publishers using their Internet offerings to expand
into new markets. In some cases this will lead to new print directories,
but more often we expect to see publishers establishing a sales
presence outside their home markets or franchise territory with
no intention of launching a print book.
Interactive Local Media in 2008
The Kelsey Group’s Interactive Local Media analyst
team anticipates a number of substantial trends and developments
in the local online marketplace in 2008, including rapid development
in the online auto and real estate verticals, big increases in local
search inventory, more search through specialized devices, and a
big leap forward in the importance of user-generated content in
consumer decision making.
“This year products that aim to bring the
merchants into the consumer review process will begin to become
more widely available,” said Matt Booth, senior vice president
and program director, Interactive Local Media, The Kelsey Group.
“These products will give merchants a voice in the feedback
about their businesses by allowing them to contact review writers
and offer to fix any problems.”
In addition, the Interactive Local Media analyst
team predicts:
- Multi-channel Selling and Performance Management: The introduction
of print Yellow Pages advertising products with call-tracking
numbers that allow for variable pricing. These merchants and their
call tracking numbers will be pushed across media channels to
increase call volume.
- Rise of Vertical Sellers; Vertical Sales Effort Saturation
in High Ad Spend Categories: In a word, noise. This will include
SEO/SEM solutions offered from newspaper groups; Internet and
vertical resellers targeting auto and real estate via SEO/SEM;
numerous start-ups announcing plans to enter these categories.
On the content side, we expect to see MLS listings creeping into
non-Realtor.com sites; and, finally, higher AutoTrader consumer
engagement.
Verticals, Classifieds and E-Commerce in
2008
Among the trends Kelsey Group analysts anticipate for verticals,
classifieds and e-commerce in 2008 are an acceleration in the print
“fade rate” of Yellow Pages and newspaper circulation;
the untethering of print and online usage; an uphill struggle to
build independent local sales channels; more localization of national;
and more use of robust ad reporting.
“In the long term, we remain bullish that
online and mobile products will bring in better than one-to-one
conversion rates because of their superior return on investment,”
said Peter Krasilovsky, program director, Marketplaces, The Kelsey
Group. “But it won’t happen for some time. For now,
local advertisers will continue to use the rise of online marketing
to spend less on advertising rather than more.”
The Kelsey Group’s 2008 predictions for the
verticals, classifieds and e-commerce arenas include:
- Higher Cannibalization of Traditional Media Sales: The promising
growth of search engine click packages suggests one-to-one conversion
will be sooner rather than later. Look for sales results, especially
from Yellow Pages.
- Cautious Additions of Video, Mobile and Outdoor: Video is where
the immediate action is. Start counting ads, and look for penetration
above 5 percent in some categories.
About The Kelsey Group
The Kelsey Group is the leading provider of research, data and strategic
analysis on directories, small-business advertising, online local
media, vertical market advertising and mobile advertising. Founded
in 1986, the company has built a reputation as the premier analyst
firm covering the directory publishing community and the emerging
local search marketplace, providing advisory services (The Kelsey
Report®, Interactive Local Media and Marketplaces), publishing
(Global Yellow Pages™), consulting (more than 400 individual
assignments) and conferences (70 events).
For more information contact:
Eileen Pacheco
eileen@tango-group.com
(781) 556-1026
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