 |
||
| Understanding Yellow Pages Monograph |
2010-2011 Yellow Pages Advertising Challenge |
Yellow Pages Advertising Challenge Winners |
|
|
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
As you can see, some headings, such as "Restaurants," have broad demographic appeal while others tend to differentially attract specific age, income or other demographic segments.
Implications for Advertisers
Advertisers recognize that their media buying is more efficient when the audience demographics delivered by a particular media vehicle closely matches the demographics of their target audience. This is why television and radio program demographics and magazine audience analyses are such an important part of the media buying process.
The print yellow pages directory is in nearly everyone's home and, as a result, many think that the directory is therefore only appropriate for reaching a very broad, undifferentiated group of consumers. The demographic variation across headings suggests, however, that this is not the case. Similar to other media, different demographic profiles across directory headings allows advertisers to match media delivery to target audience characteristics. Just as different television programs deliver different audiences, different directory headings also deliver different audiences. The focused audience delivery by heading lets advertisers determine how and to what extent a yellow pages heading delivers their desired demographic audience.
Yellow Pages User Demographics - Internet
The demographics of Internet yellow pages differ than those of print directory users. Internet yellow pages users are more likely to be:
- aged 18 to 34,
- college educated,
- with an annual income of $40,000 or more.
Psychographics
"Psychographics is the art of determining the perceptions, attitudes, drives, feelings and preferences of customers. It's understanding what they think, what motivates them, and what determines their behavior in their purchase decision process." (Source: Holt Business Solutions)
Just as the demographics of yellow pages users in general and by heading differ from the population as a whole, the psychographics - the attitudes, outlook and beliefs - of yellow pages print directory users also differ. Heavy users of the yellow pages print directories display three important psychographic traits:
- They consider themselves to be smart, spontaneous shoppers who enjoy shopping.
- They are more "adventurous" shoppers. Heavy users are more likely to visit multiple stores; are willing to travel longer to reach a favorite store; and like to be the first among their friends to find and shop at a new store.
-
They are "risk takers." Heavy users are more likely to agree that they are experimenters who change brands often; enjoy taking risks; and like to spend money without thinking.
(Source: CRM Associates using data collected by Simmons Market Research Bureau)
Additionally, as we discuss later in this section, yellow pages users are driven by life events. Since these events change over time, there is an ever changing group of heavy users depending upon the specific life event they are currently experiencing.
Purchase Behaviors
Section 2 discussed how different media, including the yellow pages, conduct research to demonstrate the unique value of their specific medium. Value was discussed in terms of audience delivery, audience influence and return on investment.
An additional way to discuss media value is in the context of "quality" of audience delivered. This approach takes the perspective that while two different media may reach and deliver the advertising to the same number of individuals for the same cost, differences in the behaviors of the delivered audience may make one medium a better advertising vehicle than the other.
One key behavior typically examined in "quality of audience" analyses is amount spent once exposed to the advertising. Imagine, for example, that members of Coke's target audience are exposed to ads for the cola. Some see the ads exclusively on television while others see the ads exclusively in magazines. In the month after ad exposure, those who saw the ads on television buy an average of six cans of Coke per week while those who saw the ads in magazines buy an average of twelve cans per week. Clearly, in this example, magazines are delivering a better "quality" audience for Coke.
The Yellow Pages Association has taken this approach to determine the quality of the audience delivered by print yellow pages directories, where "quality" is defined in terms of dollars spent on the purchase of products or services.
The analysis performed by CRM Associates (using data collected by Simmons Market Research Bureau) first identified individuals who made a purchase in a particular product category (such as furniture). Then category buyers were divided into those who used the yellow pages and those who did not, and the average amount spent by both groups was compared.
|
The analysis found that, on average, yellow pages users spend 25% more than the average customer for a given heading category. More specifically, out of 65 heading categories:
Data for specific categories is shown in the table on the right. As can be seen, the tendency for Yellow Pages customers to spend more than the average customer applies to both products and services. The data suggest that the reason for the higher level of spending is either that the users buy more items or they buy more expensive items. |
|
The tendency for yellow pages users to spend more than the average consumer brings into question the stereotype of yellow pages users being "price driven shoppers," that is, individuals who call around to find the absolute lowest price. Rather, yellow pages users' higher incomes coupled with their psychographics, indicate that these individuals are not adverse to spending money, but that they demand high "value" for their purchase.
Attitudinal Reasons for Yellow Pages Usage
Usage and Gratifications
Blumler and Katz's uses and gratification theory suggests that individuals take an active role in choosing and using different media. A specific medium, from among a range of options, is chosen at a particular time because it best responds to and fulfills an individual's unique needs. Uses and gratification theory has been used to explain why individuals select different genres of entertainment, different media types and different media forms (see Angleman; Rahman). This, and other uses and gratifications research, shows that while media selection is guided by the needs and gratifications sought, specific needs and gratifications vary across media and media types. An individual might, for example, watch a soap opera because the content provides a basis for conversing with others (the need for social interaction) or for identification and involvement with characters (need for positive self-image). An individual might watch a quiz show due to the need to feel smart (need for self-esteem).
While specific needs and gratifications vary across media and media types, the prior examples illustrate an important commonality across media: needs and gratifications typically relate to media content.
An important implication of the relationship between media content and media selection is that advertising exposure is typically a by-product of media selection. Individuals select a media vehicle such as a television program for its content and during exposure to the program they are also exposed to advertising. But the program content (and the gratifications received from that content) and not the advertising is what motivates the person to select the medium or media vehicle. (One exception to this might be the Super Bowl, which many watch just for the advertising.)
In this respect, the yellow pages are distinctly different than other media that carry advertising because the medium is advertising. And, information is the key to yellow pages advertising; it is the key to how the yellow pages responds to individuals' needs and gratifications sought.
Why is information so important?
Individuals come to the yellow pages with a specific need, a problem to solve. Information is important because it is the source that provides the gratifications sought, i.e., a successful resolution of the problem. The use of the yellow pages to solve a problem explains why greater than 83% of those who use the yellow pages make contact with a relevant business or service after turning to the yellow pages.
Permission Marketing
Permission marketing occurs when consumers provide marketers with permission to send them promotional messages. In this approach to marketing and advertising, consumers control what advertising they see and the circumstances in which that advertising is sent and received. (For one of the earliest and best discussions of Permission Marketing see Seth Godin, Permission Marketing.") The yellow pages may be the ultimate permission marketing advertising medium because consumers come to the yellow pages with the intention of being exposed to and reading the advertising. They know that the medium and the advertising it presents are one and the same and, as a result, they give the medium "permission" to communicate the advertising. Consumers' granting of permission results in a very positive mindset as they read through the ads. Permission Marketing is typically discussed in the context of the Internet and e-mail campaigns. Atad et. al. (What is Permission Marketing?) points out these advantages of e-mail permission marketing:
- Delivers Receptive Audiences - The offer reaches an audience that has already expressed an interest in the topic.
- Low Cost - Compared to other forms of direct marketing, e-mail marketing is significantly less expensive.
- Easy to Test, Track and Evaluate - E-mail is an ideal testing medium, offering a range of trackable events. E-mail enables marketers to test different list sources, combinations of interest categories, various creative approaches, and even elements of timing.
- High Response - Typically, permission e-mail campaigns result in better response rates than traditional direct marketing or other types of online advertising.
What is interesting about this list is that beyond the Internet, of all major advertising media, only the yellow pages satisfy the criteria enumerated by Atad, further demonstrating the strengths of this medium when evaluated within the context of permission marketing. Below we've revised Atad's focus, moving from e-mail to the yellow pages. (Our revisions and additions are shown in green.)
- Delivers Receptive Audiences - The offer reaches an audience that has already expressed an interest in the topic. There is no wasted yellow pages audience exposure. All who come to a heading have a need or a problem to solve, and are attempting to solve the need or problem through use of the heading's advertising. This may be why more than 75% of consumers believe that the yellow pages are "a helpful source of information" that "helps them learn more about products and services."
- Low Cost - Compared to other forms of direct marketing, e-mail marketing is significantly less expensive. As is the yellow pages. CRM Associates estimates that the cost per influenced consumer is lower in the yellow pages (print = $12.60; Internet = $8.90) versus newspaper ($36.20), magazines ($53.50), radio ($91.30) and television ($83.70).
- Easy to Test, Track and Evaluate - E-mail is an ideal testing medium, offering a range of trackable events. E-mail enables marketers to test different list sources, combinations of interest categories, various creative approaches, and even elements of timing. As discussed in Section 2, instead of an advertiser's regular business telephone number, a special telephone number can be placed in a yellow pages ad. When a customer dials this number, it passes through a meter that records the call placed, and then forwards the call to the advertised business. This process is instantaneous and the caller is unaware that it ever happened. As a result, yellow pages advertisers can track the number of calls generated by an ad and then, through the use of a ROI calculator, determine the ROI on their yellow pages advertising.
- High Response - Typically, permission e-mail campaigns result in better response rates than traditional direct marketing or other types of online advertising. Yellow pages also provide high levels of response. Across all categories 83% of consumers make contact after viewing the yellow pages and more importantly 87% end up making a purchase.
Lifestyle Reasons for Yellow Pages Usage
Two types of lifestyle-related events appear to underlay yellow pages usage. These are needs and problems that are related to commonly occurring events and and those associated with infrequently occurring life events.
Commonly Occurring Events
Commonly occurring events fall into two groups: anticipated and unanticipated.
-
Anticipated events are those that occur without surprise in the normal course of daily activities. These events may occur frequently, such as having a car's oil changed or ordering office supplies, or they may occur less frequently, such as the decision to build a fence or order flowers.
- Unanticipated events are those that take one by surprise, for example, the need to repair a roof or respond to flood damage.
Clearly, anticipated and unanticipated common events motivate individuals to use both print and Internet yellow pages. Further, because directory users are "value" shoppers, they tend (on average) to read about five ads before making contact.
Infrequently Occurring Events
In any given year, many individuals and families undergo a major life event, such as marriage, birth of children or change in jobs. Regardless of the nature of the event, the presence of the event itself causes a need for assistance or information, and the yellow pages are one source of information individuals turn to in an attempt to satisfy problems that arise as a result of a life-related event. In the context of uses and gratifications theory, the presence of the life event causes a unique set of needs (problems to be solved) to arise, and the yellow pages provide the information that can be used to address this need (by providing the gratification of a successfully solved problem).
| This table shows the percentage increase in yellow pages usage for different types of actual or anticipated life events. Note that in all cases, yellow pages usage increases in the presence of a life event. |
|
Given that these events occur only once (or a few times) in an individual's life, the yellow pages provide an opportunity to reach consumers who have an immediate need to satisfy, but who have not yet developed strong loyalty to businesses or services that can be used to satisfy their need.
This trend in usage helps to explain why (as discussed in Section 3 and Section 4) certain types and content of yellow pages ads tend to work better than others. Directory users are looking for information about what to buy, which brand to buy, or where to buy so that they can best satisfy the specific need rising out of a rarely occurring life event.
(Source for Life Events section: CRM Associates using data collected by Simmons Market Research Bureau)
Sources
Many sources are noted in the text. Sources for referenced journal articles are shown below.
Blumler J.G. & Katz, E. (1974). The uses of mass communications: Current perspectives on gratifications research. Beverly Hills, CA: Sage.
