Restaurants is the top usage category in both print and online yellow pages, though it’s far from a top revenue heading. But that may become even more true if a survey out today is representative of how restaurants feel more generally about print YP advertising.
A survey of US restaurants (n=214) conducted by RestaurantMarketing.com found that a majority were cutting their print yellow pages spend. According the verbatim findings in the press release out today:
- 60% of restaurants said they have decreased their Yellow Pages directory spending over the past two years
- 69% of respondents who decreased their Yellow Pages expenditures over the past 2 years, eliminated their directory expenses altogether by going to a free listing.
- 42% of restaurants indicated when decreasing their directory expenditures, “the Yellow page [sic] reps applied more sales pressure than usual and sometimes even threatening scare tactics.”
- 80% of the restaurants surveyed said they didn’t feel that the various Yellow Page [sic] directories are successful in getting them new guests.
- Over the next two to three years, 44% of the restaurants do not see the Yellow Pages as being part of their advertising budget, with 36% projecting it to be extremely minimal.
Caveats:
This is a survey for an organization that has a vested interest in restaurants scaling back YP spending and the survey sample size is quite small. In addition, restaurants aren’t a big revenue category for print YP. But these views and attitudes are not good news for the industry nonetheless.
November 4, 2008 at 5:23 am |
From the last print YP data I saw, Restaurants were by far the largest category in number of advertisers, so they provide a good amount of the content and breadth in a YP book. News such as some hotels removing books from their rooms cannot create a positive distribution impression for restaurants, especially in tourist/travel areas. At the same time, we’ve not yet seen broad adoption from restaurants in spending money online, although many are benefiting from listings on the many online directory and consumer review sites. Since most restaurants don’t spend as much as other core YP advertisers, though, finding the right paid products that deliver measurable value, and that can be cost-effectively sold, delivered and supported, are the challenge.
November 4, 2008 at 12:02 pm |
You can have a bunch of free listings even if all restaurants pull their ads and consumers still get some value.
Re products, yes . . . restaurants don’t want to pay for much because their average sale may not justify it. And you can’t really tell them about “lifetime value.”
But see:http://gesterling.wordpress.com/2008/06/02/boorahs-new-online-offline-model/
November 4, 2008 at 5:24 pm |
The key stat here is: “80% …. feel Yellow Page directories …. don’t get them new guests.”
In my experience, it’s not that restaurants are “cheap”, it’s that they want to see tangibly how spending money actually fills tables. And, it’s clear that the Yellow Pages has not demonstrated that effectively for restaurants… of course, tying a broad marketing expenditure (print OR online) directly to a visit is tremendously difficult.
What’s interesting is what IS working for restaurants – especially in this economy – NPD Group claims that over the summer, 25% of consumers were driven by a restaurant deal (excerpt on my blog here: http://onlinerestaurantmarketing.wordpress.com/2008/10/30/deals-drive-restaurant-visits/ ). Discounts, in the form of a coupon, gift card, or loyalty program are very track-able – just what the restaurant owner wants to see.
November 4, 2008 at 5:59 pm |
Makes sense. Restaurants also have more options than most other local businesses and services to consider when they are looking at how to spread their advertising dollar around. I know in my neighborhood we constantly get restaurant printed guides, coupon books, etc. And agree, they probably are having a hard time justifying the ROI against their GCAs.