Effective Advertising Seminars






Effective Advertising Seminars Newsletter
Issue 8, Volume 2
August 2008
In This Issue
 
 

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Greetings!

Welcome to our August issue.

There have been several recent articles about yellow pages and we thought it best to bring them to your attention.

We will be adding more testimonials to our web site. Look up your business and see how we have helped businesses grow in other markets.

Effective Advertising Seminars

Yellow Pages - Up or Down?
 


Effective Advertising Seminars - NewslettersIt has been a fixture on kitchen counters, refrigerator tops and junk drawers for decades. But today, the Yellow Pages is a bit too ubiquitous for some, with phone books published annually in the U.S. outnumbering the population two to one.

While the $17 billion-a-year industry is showing remarkable resilience as other advertising driven businesses suffer, it has become a familiar target in state legislatures, where lawmakers have tried, unsuccessfully so far, to place limits on the distribution of phone books.

The Yellow Pages Association, a trade group, calls 2008 the industry's "most challenging year to date with regard to efforts at the state level to restrict directory publishers' ability to freely deliver phone books."

Recent legislation that would empower residents to opt out of receiving phone books has failed or stalled in at least seven states.

The association has paid outside lobbyists about $50,000 this year to defend it in communities across the country.

Two main points the group tries to get across are that phone books help promote local businesses and that they are made almost entirely from wood scraps and recycled paper.

Some residents in Seattle and other communities in King County, Wash., receive phone books from as many as four publishers, said Tom Watson, a waste prevention specialist for the the region. "There hasn't been a good way to opt out," he said.

Phone book publishers acknowledge that many households and businesses receive more phone directories than they need. But they call it a sign of competition in a healthy business and argue that the marketplace, not the government, should determine the number of phone books distributed.

"The ones that get used will remain, and the ones that don't will go away," said Joe Walsh, president and chief executive officer of YellowBook USA Inc., the nation's largest independent yellow pages publisher, with a circulation of about 128 million phone books in 48 states.

For years, the phone companies dominated the directory business, and published the only phone book available in many markets.

Federal rules enacted in the late 1990s required phone companies to provide listings to independent publishers at a reasonable cost and ignited an explosion of competition.

Why? "Because there's money in those yellow pages," said David Goddard, senior analyst of the Yellow-Pages group for Simba Information, a Stamford, Conn.-based media research company.

Last year, Yellow Pages publishers had revenue of about $16.8 billion.

YellowBook, for example, received $406.1 million in revenue in the three months that ended in June, up 9.3 percent from the same period last year. During the same period, Idearc, Verizon's former yellow pages business that it spun off in 2006, reported that its revenue fell 5.1 percent to $1.5 billion.

While other advertising driven businesses, particularly newspapers and magazines, have been struggling as their readers and advertisers migrate to the Internet, the old fashioned printed copy remains king in the Yellow Pages business.

You would expect the Yellow Page Association to paint a rosy picture. But there is no question that yellow page usage has dropped over 20% in the last five years solely due to the internet. Contrary to some claims, the internet is ahead of yellow pages as far as a directory.

Note the flowing article which is not going the make the Yellow Page folks happy.


The Bible Stays...
 

More Hotels are Evicting Phone Books Find guests don't use them with smartphones, Internet available

Phone books, like tube TVs, are starting to disappear from hotel rooms.

Omni Hotels, citing Effective Advertising Seminars - Newslettersenvironmental concerns, announced Wednesday that it will eliminate phone books in its 45 hotels. The current stock of 30,000 phone books will be recycled, the Irving, Texas based company says.

"We found that no one uses them anymore," spokeswoman Caryn Kboudi says. "They just collect dust and take up drawer space."

While a vast majority of hotels in the USA continue to stock phone books, Omni joins a growing list of hotel chains that are eliminating them to cut down on paper waste and present clutter-free rooms. Hyatt Hotels, Hyatt Place, Kimpton Hotels and several chains operated by Starwood Hotels - Westin, Sheraton, Aloft and Element - no longer carry phone books in their rooms (although they are available at the front desks).

Hilton and Inter-Continental Hotels' Indigo have dropped phone books as "a brand standard," or an item that must be stocked, and left the decision to individual hotel owners.

Omni's Kboudi says travelers mostly use the Internet access on their laptop computers or smartphones such as BlackBerry to obtain local information.

Along with the Bible, phone books have been staples in hotels for years. But citing environmental and cost concerns, the industry has been more aggressive about eliminating certain items and services that may not be needed daily, if at all. Many hotels change bed sheets daily only on request. Logo towels, shoehorns and toilet seat sanitation bands have largely disappeared.

Stephanie Hobbs of Yellow Pages Association says the move will upset many guests. "You have to ask what your customers want, not what's easier for hotels," she says, adding that phone books are referenced 13.4 billion times a year in the USA. "Sometimes it's much quicker than logging on and doing the search online."

Yellow Page usuage is low for many products and services. Please note the following chart:


KOHL'S, JCPENNEY LOOK TO REDUCE NEWPAPER ADVERTISING
 


  In today's market, every advertising purchase must be examined. Don't keep adding additional media to your budget until you have been able to brand yourself with one. The term "media mix" only applies to larger national and regional advertisers with six figure budgets.

Retailers Aim to Do More With Online, Direct Mail and Mobile

In the face of a tough economic environment, Kohl's and JCPenney are evaluating their newspaper-circular strategy.

Kohl's said that due to higher overall media costs, it will invest in what it views as the more productive media, and that print insertion will decline as a percent of expenditures.

Retailers of all stripes are looking for more effective ways to stretch their advertising budgets, and for many that includes looking instead to cheaper online programs, as well as more measurable direct mail strategies.

Choosing carefully
In reporting its second-quarter earnings, Kohl's said that due to higher overall media costs, it will invest in what it views as more productive media. "Chief among those are direct mail and online marketing," said Kevin Mansell, President of Kohl's. "Print insertion will decline as a percent of our expenditures."

Similarly, JCPenney noted during its second-quarter conference call with analysts that it is being "very aggressive" in using online, in-cinema and mobile messaging. Also last week, the retailer sent a "Pre Print Receiver Survey" to its customers about newspaper readership. The survey queries customers about whether they subscribe to a newspaper, as well as which newspapers they read and how often. If customers don't subscribe to a newspaper, they are asked how they find out about sales events.

"Data from this survey, as well as from other sources, will allow us to determine the best way to reach our customers," said a JCPenney spokeswoman. "As [Chief Marketing Officer] Mike Boylson has mentioned several times, we continue to move more and more online advertising and promotion of jcp.com as the hub of JCPenney."

The bankruptcy of some regional department store chains is likely only exacerbating the retail pullback on newspaper circulars. Goody's and Mervyn's have both entered bankruptcy protection this summer. California-based Mervyn's counts 177 stores in seven Western and Southwestern states, while Goody's counts 355 stores in 20 states, primarily throughout the Southeast and Midwest. Traditionally, circulars have been a key component of the marketing mix for each.

Wal-Mart still sold on circulars
Wal-Mart, on the other hand, said last week that its spending on circular advertising during the second quarter was up "significantly" over the last year. The strategy and message, which focuses on value, have apparently been successful, as the company continues to be one of the few bright spots in retail.

The second-quarter picture painted by media-company reports isn't a pretty one, however, Tribune Co. saw a 9% decrease in preprint revenue during the second quarter, while McClatchy Co. said its preprint distribution fell 9%. McClatchy does not break out preprint revenue, making it unclear whether the company has lost circulation or is selling fewer inserts.

Neither Gannett Co. nor New York Times Co. breaks out free-standing insert data.

TIPS FOR COUPON CLIPPING
 


  The following article may be of help if you are having some success with direct mail or other coupons. Print this up and make it available to your customers.

Here are 10 tips for novice couponers from Stephanie Nelson, a former Marriott International sales and marketing executive who operates the "CouponMom" Web site (www.couponmom.com)

  • Know how your stores' coupon policies work. Ask if they double coupons
  • Wait to use grocery coupons when the item is on sale. You might get the item free.
  • Buy two to three copies of the Sunday newspaper to load up on grocery coupons.
  • Print free coupons from coupon Web sites. Also download electronic coupons to your loyalty card from store sites such as Kroger.com
  • Be brand-flexible. Buy the brand that's on sale with a coupon, or get the store brand if it is less expensive.
  • If you don't mind giving away personal information, sign up for your store's loyalty card and provide complete mailing information. You'll get special store coupons.
  • Know the usual prices for your regular items and stock up when they are discounted.
  • Shop once a week or less to reduce impulse shopping. Plan your week's meals around your store's sale items.
  • Be flexible about your store choices. Check ads for area stores and shop at the one with the best deals on your items that week.
  • Use drugstore savings programs. Combine sale prices, store coupons and automatic rebates to get free merchandise every week.
Courtesy Associated Press

 


Our seminars will continue through the fall. We hope to see you in Eastern Kentucky, Lincoln NE, Lexington, KY and Orlando. Feel free to contact us at any time to answer your branding questions.
Sincerely, 

Larry Kirby
Effective Advertising Workshops
Charleston, SC
843-552-0702
larrykirbyincharleston@yahoo.com
Visit our website: www.effectiveadvertisingseminars.com