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The Kelsey Report® White Paper

Core Product Innovation in the Yellow Pages Industry
Carlotta Mast , 2/25/2002

EXECUTIVE SUMMARY:

The question that directory publishers all over the world most often ask The Kelsey Group (TKG) is: "How can we generate more value from the print product?" Even publishers investing heavily in their online directories are still looking for ways to draw more revenue from their core product and rightly so.

As one European publisher noted during a recent interview, in the current economic climate companies must focus on the bottom line. For the directory industry, right now, that means focusing on the time-tested, advertiser-approved print book.

Fortunately despite a troubling slide in references the print directory continues to work for millions and provide a growing (albeit slowly) source of revenues for publishers. But with more and more users turning to other resources to find information on local and national businesses, how long will publishers be able to use price hikes as the primary fuel for revenue growth? The answer is, of course, not for very much longer. And herein lies the dilemma facing today's print-directory publishers.

Many advertisers will still say yes to a publisher's latest offering whether process four-color or advertising on the spine because they know their return on investment (ROI) will likely far exceed the advertising costs. But a growing number of local and national businesses are questioning the value they derive from print directory advertising. Many of these businesses are simply grousing, but others are reducing their directory ad spending or dropping out of the book altogether.

So what can publishers do? How can they stem the decline in usage and grow their existing advertiser relationships and revenues through more than just rate increases? How can they bring new advertisers into the book?

This White Paper takes aim at those difficult questions by offering TKG's analysis of valuable directory-product innovations and by showcasing the specific efforts of publishers around the globe to generate more value and more revenue from their print directory products.

Copyright � 2005 The Kelsey Group. All Rights Reserved.
This published material is for internal client use only. It may not be duplicated or distributed in any manner not permitted by contract. Any unauthorized distribution could result in termination of the client relationship, fines and other civil or criminal penalties under Federal law. The Kelsey Group disclaims all warranties regarding the accuracy of the information herein and similarly disclaims any liability for direct, indirect or consequential damages that may result from the use or interpretation of this information.

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Copyright© 2006 The Kelsey Group. All Rights Reserved.