Small Biz Embraces IYP

New research from The Kelsey Group and ConStat, Inc. indicates that Internet yellow pages are gaining ground among small- and medium-sized business (SMB) advertisers.

According to the Local Commerce Monitor, an ongoing study of SMB advertisers co-sponsored by the two firms, 24 percent of SMBs are using Internet yellow pages as part of their advertising and promotion mix -- a 60 percent increase over last year.

“This finding is a clear indication that advertisers are increasingly interested in online advertising solutions,” says Charles Laughlin, program director for the Kelsey Report(R). “It also suggests that yellow pages publishers have made good progress in leveraging their sales channel to sell online yellow pages.”

The finding is in line with Internet yellow pages usage by consumers. A study done for the Yellow Pages Integrated Media Association in April indicated that Internet yellow pages references were approximately 1.6 billion in 2003. The study also found that 62 percent of users looked at more than one ad and that 86 percent of users made a purchase or intended to make a purchase after consulting the yellow pages.

“Now that publishers appear to be making strides in getting advertisers to consider Internet yellow pages as a key component of their ad mix, the publishers must also focus on ways to drive user traffic to their sites," says Kelsey Group senior vice president Neal Polachek. "The pressure to deliver traffic will only increase now that the publishers are solving the sales channel challenges.”

Analysts from The Kelsey Group and ConStat, Inc. will present complete findings from Wave VII of the Local Commerce Monitor at DDC2004, The Kelsey Group’s Directory Driven Commerce conference, taking place July 21-23, 2004, at the Omni Hotel at CNN Center, Atlanta, Georgia.

Additional findings from Wave VII of the Local Commerce Monitor include:

  • Broadband connectivity among SMBs has seen a significant increase over the past year -- from 43 percent in 2003 to 53 percent in 2004.
  • Although not statistically different from a year ago, the number of SMBs with a Web site advanced from 48 percent to 52 percent.
  • Thirty percent of businesses that do not have a Web site today indicate that they intend to have one within 12 months.
 

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