Spend a few minutes
talking to the executives running the top Internet Yellow Pages (IYP)
companies and it quickly becomes evident that the battle for eyeballs
in the online directory space is as fierce as ever. Spend a few minutes
looking over the most recent traffic data for the IYP sites and it's
immediately apparent why.
The IYP industry
is so balkanized that no one player has been able to amass a critical
share of Internet traffic. To make matters worse, traffic to several
of the major IYP sites actually declined in 2000.
puts the IYPs in a tough position - particularly given current market
conditions. After all, gone are the days when an Internet company could
spend outrageous amounts of money investing in portal deals or brand-building
campaigns simply to drive users to their site.
Still, that doesn't
mean the IYPs have stopped investing millions of dollars to increase
their traffic. In 2000, IYPs continued to invest in high-cost distribution
deals, affiliate programs and brand building through online and offline
advertising and promotions.
In this paper, The
Kelsey Group (TKG) takes a close look at the numbers and strategies
behind the IYPs' most recent efforts to increase distribution. The areas
we discuss are as follows:
- Current IYP traffic
- The cost and
effectiveness of the distribution deals forged between the IYPs and
the major Internet portals;
- The cost and
effectiveness of IYP affiliate programs; and
- The most effective
ways the IYP companies are attempting to generate more "organic" traffic
to their sites.