By: Bill Duggan
The ANA Telephone Directory Committee recently released an open letter to the Yellow Pages industry, citing “a lack of fundamental accountability metrics and other questionable practices” on four key issues.
Syndicated Audience Measurement Research
In July 2002, the ANA Telephone Directory Committee and AAAA Yellow Pages Committee coauthored “The Need for Third-Party Telephone Directory Usage Research,” a white paper urging restoration of syndicated audience measurement research. The white paper noted that Yellow Pages is the only major advertising medium that does not provide syndicated audience measurement research. Such research provides the “currency” for buyers and sellers in other media; for example, Nielsen for television, Arbitron for radio, and MRI for print. The white paper stated, “It is unthinkable that investment decisions for television and magazines would ever be made without the benefit of audience research. Why should the Yellow Pages advertising medium be any different?”
The committees were pleased when syndicated audience measurement research was finally reintroduced in the marketplace, via Knowledge Networks/SRI, in January 2005. While that introduction was only in markets representing 28 percent of the U.S., (versus the 90 percent-plus coverage of such research for other media), at least it represented a start. However, three years later this initiative is now in peril as the Yellow Pages publishers have dramatically cut back support to only 18 percent of the U.S. population.
Circulation Auditing
In August 2005, the ANA Telephone Directory Committee and AAAA Directory Advertising Committee released another white paper titled, “The Need for Third-Party Circulation Auditing.” Circulation auditing would confirm the number of directories that are actually delivered, protecting advertising investments from inflated and misstated circulation claims. That white paper noted, “Currently Yellow Pages is the only major medium that does not provide independent, third-party circulation auditing. Such auditing has been a best practice in other media for many years.
The white paper helped influence one major publisher to begin circulation auditing and other publishers to consider it. Again, a good start. However, today that one major publisher is rumored to be reducing its commitment to circulation auditing and no other major publisher has participated.
Directory Extensions
While the normal life of a Yellow Pages directory is a year (12 months), it is not uncommon for a new book to be published 13 or 14 months later. Hence, the life of the older directory is “extended” by a month or two. When such instances occur (quite frequently), the publisher bills the advertiser for the media cost of the extra month(s). This, of course, is ludicrous. Imagine a monthly magazine that publishes in March and then decides to take April off and then sends an additional invoice to advertisers! In addition to the extra costs—which are often not budgeted—directory extensions further hurt advertisers as incorrect and outdated numbers are given longer life, and new listings (e.g., agents, franchisees, etc.) cannot be included.
Companion Books
Major Yellow Pages publishers have recently begun offering a second, usually smaller, version of the standard directory. These “companion books” are positioned for use in home offices and other rooms in the house beyond the kitchen. Most publishers mandate that national advertisers purchase both the primary directory and the companion book. Meanwhile, local advertisers are not required to buy the companion book. National advertisers as well as publishers refer to this as “forced bundling.” National advertisers are upset with the fact that they are not provided the option of a la carte purchasing.
ACCOUNTABILITY, CREDIBILITY, INTEGRITY
Yellow Pages is a $15-billion industry, with national advertisers accounting for $2.3 billion of total spend; it’s a mature medium with growth slowing. The ANA Telephone Directory Committee’s perspective is that not addressing the issues outlined in this open letter contributes to the limited growth potential of the medium. The committee has called on the Yellow Pages industry to:
1. Make a serious commitment to syndicated audience measurement research, and specifically, reinstate KN/SRI YPMR coverage by 2009 to at least those levels as in 2006 (about one-third of the U.S. population).
2. Make a serious commitment to circulation auditing, and specifically, audit the circulation of at least one-third of all directories by 2009 (the same coverage requested for syndicated audience measurement research).
3. Stop the practice of directory extensions by keeping to a 12 month publishing cycle. In instances where books are indeed extended, reconsider charging advertisers incremental media costs.
4. Reconsider the practice of forced-bundling of companion books and ideally offer them as an optional purchase to national advertisers.
The current environment provides a tremendous opportunity for Yellow Pages. Marketing accountability and ROI are senior management imperatives—all marketing and advertising expenditures require justification. Yellow Pages already provides a unique level of accountability as marketers can track the calls resulting from their ads. However, without the fundamental metrics of syndicated audience measurement research and circulation auditing, the Yellow Pages medium simply won’t maximize its potential. Meanwhile, questionable practices regarding directory extensions and companion books hurt the medium’s integrity with advertisers.
The Yellow Pages medium is approaching a crossroads as it relates to national advertisers. Which road will the medium take? Stay tuned.
