When Yellow Gives You the Blues

When you’re looking to make some budget cuts as you figure out how to spend your marketing dollars, here’s the first place to start: the Yellow Pages.

I have a client who has been spending nearly $1000 a month on Yellow Pages ads for the past few years. They are in a highly competitive local business category and need as much exposure as they can get. But they realize this is money they are throwing away, so they are ready to make some major cuts. Large ads in multiple categories in the yellow page directories of various phone companies just add up. And the return on investment? Not that good.

This business is such that they require a lot of information from new customers upon their first visit, and they take the time to ask them how they chose my client’s business as opposed to any other business. Over the past few years, not surprisingly, the number one reason? Word-of-mouth or referral. Number two? “We drive by your business all the time and now have need of your services.

So how often does someone credit the Yellow Pages for bringing them there? Never. Not once.

So even if you’re only spending $500 a month, and the average client spends about $100…you would need FIVE Yellow Pages clients a month to even break even.

Think about it: When’s the last time you used the Yellow Pages? Do you even know where they are in your house?

Now, of course the phone companies that publish these directs are in the Internet marketing game. They promise you good placement in their online Yellow Pages as part of your buy.

Think about it: when’s the last time you used the online Yellow Pages? When all you have to do is open up Google to search for a business or a business category, why take that extra step? Check out your Google Analytics on your web site. How much of your traffic is coming as referrals from Yellowpages.com?

Most independent online studies seem to indicate that Yellow Pages usage has dipped below 30%. You might find higher numbers, but those are usually in studies sponsored by the Yellow Pages Association.

So do yourself a favor. Save some money. Go green (all those old Yellow Pages directories have to go somewhere when they’re thrown out!) and spend some time and money helping yourself get found online. Local SEO will give you much more bang for your buck.

So here’s why you should at least seriously slash your Yellow Pages budget, if not eliminate it entirely:

1. High cost

2. Low return

3. Clutter – They get you to pay more so you stand out, but they are telling all of your competitors the same thing

4. Go green

5. Your customers live their lives online and on the road

6. Your customers use Google, Bing, and other search engines, not the online version of the Yellow Pages.

Don’t take my word for it, talk to your customers! Find out what it is that brought them through your doors. I ask every prospective client this, and the number one answer is always word-of-mouth/referrals. Always. If that’s the case, why not build on what you know already works?

And if you need some more ammunition, check out this post on 40 Reasons Why the CEO Still Uses the Yellow Pages and Not Social Media that I just found.

Tagged as: Directories, Google, Google Analytics, Internet Marketing, Marketing, Social Media, Web search engine, Yellow Page, Yellowpages.com