Of this there’s NO doubt. When WAS the last time you glanced at the Yellow Pages? If you are like me, you probably threw them in the trash when they came.
This hasn’t helped Yellows status or finances, with them recently announcing one of the biggest corporate losses in New Zealand history. (Story below). Some doubt they’ll survive the year…
But how cost-effective is Yellow for business? For the last few years, the only place most of us look for information or to find new suppliers is Google.
Yet in spite of consumers like me largely ignoring Yellow, too many small businesses today are still persisting, often spending thousands of dollars a year with the yellow pages for just a handful of sales leads. Leads which on average, cost 3-5 times more than those from Googles pay-per-click Adwords (read more).
It’s like continuing to pay someone to do a job each month, even though they seldom turn up. We’ve just got into the habit of believing that running a business required an expensive listing in the Yellow Pages and print ads. That was true once, but no more. As commented on in a recent NBR article:
“Google Places/Maps, especially after last months [October] upgrade is ten times better for businesses than yellow in terms of generating leads. I know of a dozen small companies that ditched the Yellow pages and put half of what they saved each month into SEO and Google. They’re now getting many times the sales leads…”
Signs of Desperation
To prove how desperate Yellow has become and the difficulty they’re having getting their customers listed online, 
we’ve seen them paying for premium Google Adwords! (example show). i.e. Yellow is paying Google to advertise their own listings! Every time you click on these Yellow.co.nz links is more money in Googles bank account. I love the irony of it all.
Yellow has started to do this a lot recently, and it’s just another huge embarrassment and added financial overhead they’ll have to suffer to keep in the game. In Auzzie, the Yellow pages owner Sensis, has already surrendered, recently signing up as a Google Adwords reseller. Yikes!
But the bottom line is, why would anyone click on these Yellow links and then another 3-4 links on the Yellow page to get a result? Google has already kindly provided exactly what’s needed with one click, on the same page? It’s a losing battle for Yellow. Their ship is sinking and they’re baling out the water with a teacup…
So, how much business are you missing out on by staying loyal to Yellow?
P.S. Yellows Financial Mess – Will they even survive 2011?
It’s not just their technology that’s not producing results. Yellow NZ has been in serious financial trouble for several years (news report 2009). In 2010 they were reported running at a huge $338m loss (ref NBR). At what point will the banks pull the plug and close them down? Where will this leave their existing customers, and the fees they’ve paid?
The latest reports on TVNZ and the NZH 20th Jan shows it’s actually much worse than NBR and others reported earlier. Yellow Pages NZ is really struggling and many are quietly wondering if they’ll survive the year. A reported $1.44b loss last year, one of the biggest corporate losses in NZ history. Purchased for $2.4b in 2007, their current valuation today is just $750m!
P.S. Read also Lance Wiggs blog from Feb 2009. The writing for this tragedy has been on the wall a long time… Yellows ship is sinking rapidly. Time to climb aboard Google.