When we think of advertising media, many of us overlook one of the most popular forms in existence—the Yellow Pages. While most of us use the Yellow Pages frequently, we tend to forget they are advertising. Over 200 publishers produce more than 6,500 Yellow Pages throughout the United States, generating $13.6 billion in advertising expenditures. This makes the Yellow Pages the fifth-largest medium (just behind radio).
More than 90 percent of the industry’s ad revenues are accounted for by nine big operators: the seven regional Bell companies, the Donnelley Directory, and GTE Directories.21 Local advertisers constitute the bulk of the ads in these directories (about 90 percent), though national advertisers such as U-Haul, Sears, and General Motors use them as well.
Interestingly, there are several forms of Yellow Pages. (Because AT&T never copyrighted the term, any publisher can use it.) They include the following:
• Specialized directories. Directories are targeted at select markets such as Hispanics, blacks, Asians, and women. Also included in this category are toll-free directories, Christian directories, and many others.
• Audiotex. The “talking Yellow Pages” offer oral information on advertisers.
• Interactive. Consumers search the database for specific types of information. Advertisers can update their listings frequently.
• Internet directories.Anumber of websites provide some form of Internet-based Yellow Pages.
These directories include national directories which provide a nationwide database of business listings; local and regional directories, which provide information on a local or regional basis; and “shared” directories, in which local companies join together to form a national database.
• Other services. Some Yellow Pages directories offer coupons and freestanding inserts. In Orange County, California, telephone subscribers received samples of Golden Grahams and Cinnamon Toast Crunch cereals when their Yellow Pages were delivered.
The Yellow Pages are often referred to as a directional medium because the ads do not create awareness or demand for products or services; rather, once consumers have decided to buy, the Yellow Pages point them in the direction where their purchases can be made. The Yellow Pages are thus considered the final link in the buying cycle.
Advantages and Disadvantages of Yellow Pages
The Yellow Pages offer the following advantages to advertisers:
1. Wide availability.Avariety of directories are published. According to the Yellow Pages Publishers Association, consumers refer to the Yellow Pages more than 19.4 billion times yearly.
2. Action orientation. Consumers use the Yellow Pages when they are considering, or have decided to take, action.
3. Costs. Ad space and production costs are relatively low compared to other media.
4. Frequency. Because of their longevity (Yellow Pages are published yearly), consumers return to the directories time and again. The average adult refers to the Yellow Pages about 1.4 times a week, and 56 percent of U.S. households use the Yellow Pages weekly, and 76 percent monthly.
5. Nonintrusiveness. Because consumers choose to use the Yellow Pages, they are not considered an intrusion. Studies show that most consumers rate the Yellow Pages very favorably.26 Among users, 79 percent agree that the Yellow Pages are an important source of information, and 76 percent report that the books are helpful for learning about new products.
Disadvantages of the Yellow Pages include the following:
1. Market fragmentation. Since Yellow Pages are essentially local media, they tend to be very localized. Add to this the increasing number of specialized directories, and the net result is a very specific offering.
2. Timeliness. Because Yellow Pages are printed only once a year, they become outdated. Companies may relocate, go out of business, or change phone numbers in the period between editions.