1. Yellow Pages Training
Building a better understanding of the Yellow Pages industry to achieve greater success in Newspaper Sales

2. The History of Yellow Pages
The first business directory appeared in
New Haven, Connecticut in 1878,
and five years later the first Yellow Pages was developed in Cheyenne Wyoming.
For decades there was little change in the Yellow Page industry due to telephone monopoly. However, after the breakup of the Bell System in 1983, a new era of competitive pressure began.

3. Pros of Yellow Pages
The Yellow Pages are widely distributed with almost every home in America (96.9%) and business has at least one copy.
Usage: Almost three out of five (58%) of all adults say they check the Yellow Pages for a phone number and/or address at least once per week, with 77% using the book monthly.
Reference Tool: The Yellow Pages serve as a directional reference for consumers who already have decided to purchase a product or service; of the consumers who use the Yellow Pages, 57% do not know from which store or business they will buy prior to looking in the directory.
Emergency Reference: Consumers often rely on the Yellow Pages during emergency situations. For example plumbers, electricians and window repairs are all trades that frequently have emergency calls.
Available 24 hours a day, 365 days a year.

4. Cons of Yellow Pages
Limited Exposure: Just over half of the adults 18+ refer to the Yellow Pages in the average week. The other 42% will not see an ad at all. Ads are rarely seen unless users actively seek information on a specific business.
Minimal Consumer Awareness: Since the Yellow Pages are typically used after the decision to buy has been made, top of mind awareness must be built through other methods. As products continue to proliferate and the retail market becomes saturated, you need to create demand for your products before the buying decision has been made. Research shows that 52% of the people referencing the Yellow Pages already have a name in mind, Ad size and color is not a factor.
Inconvenient: Phone books tend to be big! They are bulky, hard to store, and not readily available to consumers outside the home or office – which is where most purchases are made.
Inflexible: Most directories are published once a year, and advertising must be purchased well in advance of the publication date to due to a long production process which is usually six to eight months in advance of the publication. Also, the ads can not be changed or corrected for more than a year. Thus business can not respond to market changes.
Market Saturation: In many communities there are several different directories. This can be very costly to advertise in all of them. Then you have decide what book is most used and take a chance on the consumers picking up your directory. Who reads all them? Who needs all them?
Employee Turnover: The Yellow Page industry has a high churn ratio for its staffs. There is no customer relationship building and consequently the ability to be a consultant in clients business is greatly diminished.

5. Understanding Yellow Page Sales Tactics
Yellow Page sales staff is paid on growth of their client list from the previous year. This is achieved by telling the client that to stay competitive in the market they must increase there ad size to retain a high call count.
The use of metered call count in certain categories (usually high referenced areas such as attorneys and plumbers) is highly used when making presentations to demonstrate usage. Testimonials are also a highly effective tool used by sales staff.
The funnel strategy is used many times when presenting ad sizes to a client by comparing there ads to a funnel. The bigger the opening (the ad) the more business or calls you will receive off your Yellow Pages ad. The smaller the less calls and the less ROI for the client.
In larger markets the cost to decrease ad size is more costly to the advertiser in some instances due to the price structure discount for new advertisers. Usually the client is given a 40% discount on rates year 1. The next year that price will increase % year after year until the open rate is achieved usually in year 5 of the program, then the whole process start again at the higher rate. So every year the advertisers gets a nice increase in the cost of their ad while the ROI diminishes.

6. The Bottom Line
Advertisers need an active, creative medium that not only tells, but sells. Newspapers offer distinct advantages to advertisers. It permits daily contact with a market that is constantly changing. Newspapers also provide detailed up to date information that consumers need to make informed buying decisions. Yellow pages cannot show current department store fashions or this weeks specials at local supermarkets.
Yellow Page listings are typically set to run without change for a minimum of 12 months. Newspapers advertising schedules have short lead times for insertions. This is a major benefit to advertisers who need to move fast or test a product.
So while your ad is walking in the yellow Pages it could be running in the newspaper!