The Kelsey Group Looks Back at 2004 and Releases Predictions for 2005 for Global Yellow Pages Industry

The Kelsey Group Looks Back at 2004 and Releases Predictions for 2005 for Global Yellow Pages Industry

PRINCETON, N.J., Jan. 6 /PRNewswire/ -- The Kelsey Group, the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories, small-business advertising and local search, has identified five key global Yellow Pages developments in 2004, a year in which the industry continued to undergo significant infrastructure evolution.

* IPO fever continued as Dex Media, PagesJaunes and Findexa joined the
ranks of listed companies.
* Existing businesses changed hands. Verizon Corp. sold its Hawaiian
assets, including directories; VNU disposed of its far-flung Yellow
Pages business, SBC dispensed of its share of DonTech and White was
sold to the newspaper division of Hearst.
* Interactive Yellow Pages made a comeback. Verizon, Findexa, Yell and
others came out with new or modified Internet Yellow Pages (IYP)
products that emulate search in an effort to head off impact from local
search. BellSouth and SBC acquired YellowPages.com. Sensis went deep.
* Industry cooperation led to acceptance of syndicated research.
Publishers and trade associations pulled together to develop a real
plan to implement syndicated usage.
* Incumbents retreated from expansion markets. Several companies
discontinued efforts to expand outside their territory, especially
incumbents used to defending, not attacking, markets.



"The key question is what will separate the publishers that thrive from those that merely survive, or even fade away," said Charles Laughlin, program director for The Kelsey Report(R) and editor of The Kelsey Group's Local Media Journal(TM). "Execution is more important than ever before."

Laughlin expects several important developments in 2005.
* At least one more major phone company will offer its directory division
for sale. Already, Telstra in Australia has hinted it will spin off its
highly regarded Sensis division. The Kelsey Group also expects to see
at least one U.S. telecom takes steps toward selling its directory
unit.
* The shakeout in the U.S. competitive directory publishing industry will
accelerate, as third and fourth players in some markets will drop out
as advertisers consolidate their spending with the top one or two
publishers.
* A clear distinction between customer-driven and product-driven
companies will emerge, as the more progressive organizations recognize
that longevity in directories requires a new attitude toward the
customer.
* More cross-media deals among newspaper and classifieds and Yellow Pages
will occur, as the two media seek to broaden their base of content as
well as customers.
* Competition between search engines and directory publishers will
increase, as search engines accelerate efforts to define themselves as
a medium for SMEs to reach local customers. While directories strive to
emulate search engines, they will leverage their own strengths in local
content and sales coverage.

About The Kelsey Group


The Kelsey Group is the leading provider of strategic research and analysis, data and competitive metrics on Yellow Pages, electronic directories, small-business advertising and local search. Beginning in 1986, the company has built a reputation as the leading analyst firm covering the directory publishing community, providing advisory (The Kelsey Report(R) and Interactive Local Media), publishing (Global Yellow Pages(TM) and Local Media Journal(TM)), consulting (more than 300 individual assignments) and conference services (60 events).


Source: The Kelsey Group

CONTACT: Eileen Pacheco of The Kelsey Group, +1-781-556-1026,
eileen@tango-group.com

Web site: http://www.kelseygroup.com/


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