I’ve been thinking recently that yellow pages providers increasingly should think of themselves as “local holding companies,” with a portfolio of sites and brands to address different audience segments and/or advertiser needs. The “yellow pages” will be an effective tool for some consumers and advertisers but not everyone — one size doesn’t fit all anymore.
There are going to need to be other brands and sites that publishers operate in order to reach audiences and advertisers for whom “yellow pages” is no longer as meaningful or effective a tool. This is the concept in part behind AT&T’s Buzz.com
YPG appears to be moving in this general direction having recently acquired a restaurant vertical Restaurantica. And today the company announced that it had acquired RedFlagDeals.com, “a leader in providing online promotions and shopping tools to Canadians. With 2.2 million unique visitors every month.”
YPG also said it was buying the 411.ca brand and making an investment in the company that previously owned it:
Yellow Pages Group (YPG) and 411 Local Search Corp., operator of 411.ca™, announced today that they have signed an agreement under which terms YPG will purchase the 411.ca brand and domain names and acquire an ownership interest in 411 Local Search Corp. The agreement will further enable both companies to leverage the online traffic between YPG’s leading Canada411.ca™ and YellowPages.ca™ properties, and 411.ca, a fast-growing online directory. This agreement that unites two of Canada’s largest local search engines will provide enhanced online reach for advertisers and a greater experience for users.
The deals site acquisition is particularly timely because coupons and offers are very hot (extending into mobile). There are two other shopping-related destinations that come with that deal according to the release:
- RedFlagDeals.com, the largest aggregator of discounts and coupons on the web and mobile with hundreds of new deals posted every week.
- PriceCanada.com, a price comparison engine, allowing users to search dozens of online retailers, compare product features and make informed purchases.
- Scarlett Lounge, the leading source for deals in fashion and beauty for women.
As an aside, YPG has a site with great potential in Answers (from Praized), but it’s currently underdeveloped. It could morph into a FourSquare or Aardvark-like site in mobile.
But what do you think of the general idea I’m asserting above: that YP publishers should operate a range of brands and sites in the local segment rather than relying on a single YP-branded site or more than one, similar YP-like sites?
Screenwerk 
February 22, 2010 at 5:26 pm
I agree that YP publishers need to look beyond a single YP-branded site. It’s critical to first provide a range of local options for content, conversations and community. This will create an engaged audience that has maximum value for advertisers.
The second key piece is to have enough aggregated ad impressions at the hyper-local level to make local digital advertising and the incumbent digital business models work for the YP companies and advertisers. As such, having a range of sites and possibly extending into a local ad network model will be critical to aggregate local content, advertisers, and impressions into a viable ecosystem.
February 22, 2010 at 6:31 pm
The challenge for Yellow Pages publisers is the ability of its sales force to execute (i.e. something else than the Yellow Pages)
February 22, 2010 at 7:00 pm
Well, it’s quite obvious that carriers charge quite a lot for such services. Fortunately there are quite a few competing search providers out there. Recently I stumbled upon a much cheaper < href=”reverse mobile phone lookup”> service</a> alternative that worked great for me. The thing I liked about them, is that their support staff helped me when I failed to find results for the number I was searching for on the first try. They traced it down from their extra database. So the the service is great and cheaper
February 22, 2010 at 8:55 pm
[…] YPG Buys Deals Sites, 411 Brand « Screenwerk […]
February 23, 2010 at 12:25 am
Congrats to Derek on his success.
March 23, 2010 at 11:39 am
[…] The new homepage also integrates content from the recently acquired RedFlagDeals site. […]
March 30, 2010 at 2:16 pm
[…] in a series of transactions for YPG that has seen the acquisition of sites like Restaurantica and several shopping-related destinations such as RedFlagDeals. The company now has a broad portfolio of local digital assets beyond its […]
June 15, 2010 at 4:40 pm
[…] It also promotes other YPG properties, such as its Urbanizer iPhone app and Restaurantica and its deals site, […]