Borrell’s annual 2010 study that compares revenue of media players who specialize in local market advertising was recently released. The data is compiled from nearly 4,600 local media websites and offers insights into revenue at local newspaper, TV, radio and pure-play Internet operations. The ‘pure-play’ category includes sites where advertising is the dominant service of the site such as Groupon, Craigslist, Autotrader and others.

According to the study, directory publishers remain strong players in local media marketing. Why? Directory publishers are now selling comprehensive solutions instead of just selling banners on their own sites. They have a dedicated sales force that is focused on local merchants who generate significant leads for their advertisers. This focus differs from other local marketing players who look to increase awareness, content and buzz.

AT&T Interactive/YP.com is the most successful local online media company. However, Yellow Pages Group/Yellow Media (Canada) receives the highest percentage of gross revenues from digital (25.5%) of any of the North American companies examined in the report. In that category AT&T is second, the NY Times third, Yellowbook fourth and McClatchy fifth. Yellow Pages publishers are now getting at least 20% of their revenues from digital properties.

Directories remain an essential component of the lead generation vocabulary that integrated marketing agency, DAC group, uses. As one of the largest directional media agencies in North America, DAC Group’s ROI emphasis ensures that clients are perpetually focused on the bottom line results. As DAC’s strategic allocation methodology implies results in the Print and IYP directory realm are very category specific and, like all media used in lead generation, they are subject to tests to ensure that client marketing goals are met. These goals are often surpassed.

It is clear that the days of Publishers just offering print or banner ads are gone. As mobile and social becomes more dominant, local businesses will also need to adopt these platforms if they hope to successfully compete with large national businesses.

Directory remains a viable option when marketing budgets are modest and when your focus is on the local market.

- Sandy Scopa, Director of Marketing and Research