• by Larry Dobrow , March 12, 2004

Evaluating the first conference he presided over as president of the Yellow Pages Integrated Media Association (YPIMA), Neg Norton said Wednesday that directory publishers both online and off have reason to be optimistic about the state of their business.

Pointing to a sunnier overall economic outlook as well as to the continued strong ROI that marketers are getting from the Yellow Pages, Norton commended the industry for embracing change while at the same time tending to its core strengths. "We're not just paper anymore," he noted. "Most of the paper companies are online now, plus some of them have CD-ROMs and some are moving into wireless. Publishers are doing a good job of getting information to consumers wherever and whenever they want it."

Of course, bullish forecasts from Deutsche Bank Securities and Kohlberg Kravis Roberts & Co. analysts on Tuesday likely lifted attendees' spirits as well. "[The analysts] feel that the valuations of Yellow Pages publishers still have some upside potential, especially relative to other media," Norton noted. "They talked about intramedia competition--one Yellow Pages company against another. If there's room for multiple competitors in a market, that's usually an indication of a healthy industry."

Another encouraging sign is that Yellow Pages publishers generally agree about the role of Yellow Pages directories in the media mix: it has evolved into a complementary medium. "We're not going to compete against the creative nature of TV," Norton emphasized. "The main goal for us is to continue to demonstrate our value."

He added that proving ROI plays right to the strengths of the Yellow Pages business, pointing to 55,000 tests in the YPIMA database that show exactly what its products deliver--by heading, by ad size, by national or local, etc. "We can tell [advertisers] exactly what to expect," Norton boasted. Research will remain a YPIMA priority in the months ahead; the organization recently floated an RFP for syndicated usage research, which has long been sought after by national Yellow Pages advertisers.

To his credit, Norton avoided the everything-is-wonderful chirping often heard from association execs. He described local-search efforts by non- directory online giants like Google and Yahoo! as "both a threat and an opportunity," noting how their incursion will require Yellow Pages publishers with a strong online presence to hone their offerings. That said, he was quick to stress the continued hold that paper directories have over consumers. "Paper product usage has been steady for the last four years. Everybody thinks people just use the Internet for everything now, but that's not the case."

Norton also noted attendees' concern about wireline-to-wireless shifts (e.g., when a business ditches its land line in favor of a cell number). "Let's say you have a plumber, a guy who's on the go all the time. He might very well only want a portable number," Norton explained. "If he switches numbers and the listing isn't handled right, his business is going to suffer." YPIMA officials recently met with members of the Cellular Telecommunications Industry Association, and Norton is optimistic that an accommodation can eventually be reached.

As for the conference sessions, a handful evaluated specific markets--in particular, the need for specificity in communicating with them. During "Harnessing the Power of Global Marketing: The Power and the Pitfalls of Reaching Asian, African-American, Hispanic and Other Ethnic Markets," panelists emphasized once again the importance of creating specific campaigns for specific populations, rather than merely hoping that mass-market programs will reach them.

Panel moderator Bill Imada, chairman and chief executive officer of IW Group, acknowledged how challenging it can be to do this in a way that is both relevant and culturally sensitive, and suggested that viral marketing techniques could well prove most effective. "The Yellow Pages industry will need to incorporate more online strategies and viral marketing tactics to stay in touch with these audiences in the future," he said. BellSouth Director of Hispanic Marketing Frank Bolaños, on the other hand, noted that only 3 percent of spending is apportioned to in-language media, as opposed to a suggested 13 percent. "Hispanics' ability to understand an advertising message and their propensity to act upon it increase when the message is in Spanish," he explained.

For his part, Norton believes that Yellow Pages publishers are "ahead of the curve" when it comes to servicing specific communities. "I'm not sure how other media is doing in this regard, but I'm seeing Korean, Russian, gay and lesbian, and so many other directories."

The keynote address, given by Just Ask a Woman founder and Chief Executive Officer Mary Lou Quinlan, touted the sustained appeal of Yellow Pages directories to women. "As CFOs of their households, women are tremendous researchers," she noted. "The Yellow Pages is viewed as a member of a woman's board of directors for trusted information." Still, she cautioned attendees not to take this respect for granted: "It is essential to capture womens' loyalty... that loyalty is gained by involving females as partners in marketing."

Also at the conference, Dex Media President and Chief Executive Officer George Burnett succeeded BellSouth Advertising and Publishing Group President Elmer Smith as chairman of the YPIMA board of directors. Around 530 people attended, a jump of 50 percent over last year's show.