12th Jul 2007
AT&T 1-800-YellowPages Launch
Yesterday AT&T launched a new directory assistance service called AT&T 1-800-YellowPages. Consumers looking for a particular product can call the directory service and get a business number or be connected directly if the listen to a audio ads. The ads 5-10s long and advertise other businesses to the consumer. Its not clear if the audio ads are directly competitive with the heading that the consumer is calling about.
The Yellowpages Group in Canada runs as similar service called YELO, at 310-YELO but they provide the service exclusively to Yellowpages advertisers so the service is funded as part of the business’s advertising purchase. There are no audio ads or delay except for the businesses that the consumer is trying to connect with.
Looking at the AT&T approach I can see a few problems with competitor conflict and it seems to decrease the value to the AT&T Yellowpages advertiser. Especially consumer’s have a harder time finding them through the directory assistance or have to wait through numerous audio ads.
The AT&T product strategy reminds me of the double-dip situation you see in many Classified sites where the consumer is charged to see the ads and the advertiser is charged to advertise. These double-dip situations are very difficult to pull off with low cost of the internet and level of competitive classified solutions. Eventually the advertiser and consumer will find a more available method to connect.
Yesterday AT&T launched a new directory assistance service called AT&T 1-800-YellowPages. Consumers looking for a particular product can call the directory service and get a business number or be connected directly if the listen to a audio ads. The ads 5-10s long and advertise other businesses to the consumer. Its not clear if the audio ads are directly competitive with the heading that the consumer is calling about.
The Yellowpages Group in Canada runs as similar service called YELO, at 310-YELO but they provide the service exclusively to Yellowpages advertisers so the service is funded as part of the business’s advertising purchase. There are no audio ads or delay except for the businesses that the consumer is trying to connect with.
Looking at the AT&T approach I can see a few problems with competitor conflict and it seems to decrease the value to the AT&T Yellowpages advertiser. Especially consumer’s have a harder time finding them through the directory assistance or have to wait through numerous audio ads.
The AT&T product strategy reminds me of the double-dip situation you see in many Classified sites where the consumer is charged to see the ads and the advertiser is charged to advertise. These double-dip situations are very difficult to pull off with low cost of the internet and level of competitive classified solutions. Eventually the advertiser and consumer will find a more available method to connect.
Posted by colin under 
Business Model, Directory, Pricing 
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