Based on our experience with Web marketing, and as Web searchers, here are a few common answers to that question:

For Consumer products:

It's convenient.
I don't know where my Yellow book is, I think I threw it out.
I'm looking for something very specific.
I like to research my needs before talking to a sales person.
I'm shopping from work - it's easier to use the Web than a phone from cube land.
I can't find out about the product/service I'm interested in through the phone book and
Nobody would help me if I called a company to find out more about this product/service (aka. Phone-tree black hole)

For Business to Business products and services:

It's convenient.
I like to research my company's needs before talking to a sales person.
I don't know where my yellow page book is, I think I threw it out.
I'm looking for something very specific.
I'm putting together an RFP (request for proposal) list and I'm researching who to send it out to.
I can't find out about the product/service I'm interested in through the phone book

While any advertising source delivering a positive return on investment for your business is worth pursuing, there is a definite trend toward online research for both consumer and business to business purchases.  Here are a few things to consider when deciding how your marketing budget should be divided:

1.  Ease of Use - People do what is easy. Access to the Internet via work, home or any library has made getting online easy. According to Jupiter Media, over 64% of people who are looking for information online, use search engines. If I can type my problem or what I want into a search engine and find what I need, I don't need to go through the 100 pages of ads in the yellow pages. Search engines are getting more precise down to an industry specialty and geographic focus, while also continuing to be easier to use.

2. Cost Model of Yellow Pages vs. Search Engine - In reviewing these two models we need to compare the traits and cost basis of each media.

	Yellow pages	Search Engine
a. Printing Costs	Yes	No
b. Mailing/Distribution Costs	Yes	No
c. Sales rep Cost Model	Yes	No
d. Per click or Per Action Model	No	Yes
e. Commitment level	1 year	None
f. Flexibility of Ad	once/yr.	anytime

Clearly, the Yellow Pages model is more expensive while also being significantly less flexible and scalable than online search engines.

3. Differentiation vs. Directory - As a business owner, the last thing I would do is give my prospects a detailed list of my competitors, including addresses and phone numbers. But that is exactly what the Yellow Pages do. Using search engines, you can differentiate yourself from everyone else. So when the ideal client is looking for what you do, they find you, not all your competitors.

The Yellow Pages industry is over 100 years old and according to the Direct Marketing Association is a 12 Billion plus market. It is not going away. Yellow Pages Online and many industry specific directories are now being aggressively marketed. In our studies, we have seen very little traffic or lead generation coming from these online directories. If you are approached to be in an online directory, ask if you can pay for it by the number of visitors and/or leads to your site. You won't get many takers on that offer.

4. The Future Big Winner in Search ... Local Firms! The traditional success model for winning online has been the ability to sell your product or service nationally or internationally. However, local or regional firms could not leverage the national and international traffic that search engines brought because they were only licensed or had services available in a specific city, state or region.

Good news ... the search engines now have the ability to determine where the search is coming from. What that means to you is you can target all the way down to a city, zip or area code. If you have a firm that has a defined geographic area, you have an incredible opportunity to be the top firm that comes up when people use a search engine for services in your area.

Based on these trends there are five things you need to do today to differentiate you from your competition. We suggest that you change your strategy and reallocate your budget as follows:

1. Look at your Yellow Page investment - What did it cost you last year and what business came directly from it? If the numbers work, keep doing it. However if the answer to this question is "I don't know", we have a suggestion. Keep the yellow pages ad, just make it smaller. Take the 50% you save on your budgeted yellow page fees and use it to directly drive online prospects to your company. If you are satisfied with your results with yellow pages, take 20-30% of your current budget to be online. As phone books and directories continue to diminish in value, you will be ahead of the curve.

2. Have your own website - If you are in a directory and it has created a simple site for you, don't worry about tracking traffic, you probably aren't getting any. Make sure you have your site set up as your own, and that people can find you through normal search engines, not just through the directory. Also, remember that if clients find you through directories, you are introducing them to all your competitors. Be careful.

3. Measure - Look at your website. You should install a counter to know how many people come to your site. If you are signed up with an online or directory service, get your numbers from them. You will probably be surprised with the low amount of visitors and leads you get. If the directory provider can't (or doesn't want to) get you your performance numbers, fire them!

4. Add Relevant Location Text to your Site - People today are using search engines to find what you do in your city. Make sure that the search engines can easily know your address, city, state, zip, and even area code. If you have areas that you specialize in, make sure location info are on those pages too.

Effective advertising is largely based on getting your message in front of your potential customers when they're willing to listen. Both forms of advertising do that, but the Web clearly allows you to say a lot more to those customers and to say it more frequently.

We think the anonymity of online shopping and research should not be ignored. Consumers prefer being informed before talking to a sales person, even if they plan on making their purchase off-line. For example, car buyers are researching the fair price for the car they're interested in purchasing/leasing before they go to a dealership. If your website ranks high enough in search engines to be found by your potential customers, then it proves to your customer that you can handle their business, you'll generate well-qualified and cost effective leads for your business.