RefreshClassifieds

The Kelsey group released on the overall growth of the advertising market.   One of the most interesting aspects was the projection that Yellow Pages advertising would grow to $41.4 B, with a combination of the print and online sales.

Through 2007 to 2012 The Kelsey group predicts we will see the following:

• Local search revenues will grow from US$2.1 billion to US$6.6 billion (25.5 percent CAGR).
• Print Yellow Pages revenues will decline from US$27.5 billion to US$25.6 billion (-1.4 percent CAGR).
• Internet Yellow Pages revenues will grow from US$3.7 billion to US$9.2 billion (20.1 percent CAGR).

We don’t think there’s any surprise here in regards to the overall trends with print advertising declining and online advertising increasing.   Over a 5 year spread we would have though the divide would be greater though, with many consumers moving away from the print based directories.

One area of surprise was the Kelsey prediction that Yellow Pages print revenue in Canada would actually increase at 1.5%.  We have a hard time understanding this trend and suspect it might just be a revenue reporting issue with the Yellow Pages group in Canada that is distorting the values.

BusinessDirectoriez.com launched today with a focus on providing SEO links related to key topics to business sites.  While directories have long been a good source for quality SEO links we haven’t seen such an aggressive SEO focus before.  The sites lets business purchase links related to specific keywords.  For example “Motorcycle Trader” is one of the top links and actually links off to “www.usedmotorcycleforsale.ca”.

Pricing for links seems to be flat rates right now at $2 per link but the site pricing uses a bidding system.   Businesses will be expected to bid on popular keywords.  The Site also features deep links to increase your keyword ranking in search engines.

While the site is fairly well designed its not clear  how they hope to maintain any user traffic with the SEO business model.  Without some user traffic we don’t think it will be too long before search engines start to decrease the relevance of these links and the entire Business Directoriez.com site.

Gannett Co., Hearst Corp., The New York Times Co., and Tribune Co. announced this morning the arrival of quadrantONE. quadrantONE is a new joint venture to sell national online advertising inventory across all of the web properties belonging to each of the participating publishers. The online market reach of Gannett, Hearst, NYT and Trib.’s new online network will be 50 million monthly unique visitors, across 27 US markets. Dana Haye, Interim CEO, quadrantONE, and senior vice president for sales of Tribune Interactive explained the benefit to advertisers by saying “Imagine placing the same ad across hundreds of local Web sites on the same day with one buy-that’s the power of this network.”

quadrantONE is undoubtedly the publishers push at retaining market relevance and combined dominance in the wake of pure play online competitors. If advertisers gravitate to the quadrantONE network and if managed accordingly by the publishers, it just might work.

According to the Newspaper Association of America (NAA), the average number of unique monthly visitors (UMV’s) to newspaper websites grew by more than 3.6 million in 2007, making it a record year for the industry. The 2007 UMV figure is an increase of more than 6% over 2006 numbers.

Monthly unique visitors to newspaper websites averaged 62.8 million in Q4’ of 2007 and it was the largest quarter reported, since the NAA began tracking online usage in 2004.

Additional findings in the Nielsen Online report created for the NAA state that:

• Heading into the holiday season, newspaper websites experienced a record in October 2007. More than 63.2 million people visited newspaper websites that month, more than any month on record - and an 8% increase from the same period a year ago
• For the year’s fourth quarter, 39% of all active Web users visited newspaper websites, with visits averaging 44 minutes a month
• In the fourth quarter, users generated more than three billion page impressions on average, a 7.3% increase over the same period a year ago

Just this past weekend I accompanied my brother to the dealership to pick up his new car and having just bought a new car myself two years ago, I assumed it would be as uneventful now as it was then. Surprisingly, what I experienced this time was nothing like the last, as I ventured down the path of Dealership Nouveau (that’s what I like to call it). While sitting with my brothers sales rep, here are a few of the things I found positively interesting, hence my need to blog about them:

Great Idea #1

You may or may not know this, but dealerships make their greatest margin from the service side of the business, and then used car sales and lastly new car sales. Recognizing this, this dealership invited my brother to come back to a ‘how to care for your vehicle’ workshop, hosted by none other than the dealerships service team. What a neat way to get you to feel valued by the dealership. That evening will also give the customer a chance to get to know the service team. We all agree that once you meet someone and they feed you, your affinity to that person increases. The event in its entirety, between staff OT and food for the guests, will probably cost that dealership less than $200. (One customers Type B maintenance on their car will more than pay for that.)

Source: NADA

Great Idea #2

The other thing that impressed me about this dealership was that they offered free WiFi to their customers. No more feeling as if you are missing those important emails at the office, while waiting for your car to have its oil changed. And, if your laptop is not WiFi enabled, no worries, the dealership also has Ethernet cables that will get you online.

Aside from the car clinic and free WiFi, the dealership was clean, bright and nicely furnished. The sales people were friendly and attentive – while we were waiting for our sales rep, we must have had three people ask if they could get us anything in the meantime.

All of this to say that this is what a dealership should be like. Providing a positive customer experience breeds further referral traffic. If your publishing product services auto dealers, a great idea would be to hold a dealer-training session covering lead sources, customer retention and the customer experience. If training is difficult to do because of the geography of your dealers, then create a white paper that is circulated to your dealers. Perhaps it goes out with their invoices or is downloadable from your site. No matter how you deliver it, this value ad from you will show that you not only know the business of selling cars, but that you also care about your dealers (customers) business.