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Where Should You Invest Your Marketing Budget?

When you talk about investing marketing dollars, you should be looking for the best Return On Investment (ROI), in other words, looking for the marketing tool that is going to bring you the most bang for your buck.

According to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising," interactive advertising revenues will increase significantly from US$45 billion in 2007 to US$147 billion globally in 2012, representing a 23.4 percent CAGR. In other words, the firm expects global ad revenues to grow at a compound annual growth rate (CAGR) of 2.7 percent and reach US$707 billion in 2012, propelled in large part by considerable growth in the interactive segment.

Interactive advertising, which comprises search (including local search), display advertising, classifieds and other interactive ad products, grew its share of global advertising revenues from 6.1 percent in 2006 to 7.4 percent in 2007. By 2012 Kelsey Group analysts expect the interactive share of global ad spending will reach 21 percent.

The Kelsey Group is the leading provider of research, data and strategic analysis on directories, small-business advertising, online local media, vertical market advertising and mobile advertising. Founded in 1986, the company has built a reputation as the premier analyst firm covering the directory publishing community and the emerging local search marketplace, providing advisory services (The Kelsey Report®, Interactive Local Media and Marketplaces), publishing (Global Yellow Pages™), consulting (more than 400 individual assignments) and conferences (71 events).

The global outlook for each of the three key segments of the directional media market during the forecast period (2007-2012) is as follows:

  • Local search revenues will grow from US$2.1 billion to US$6.6 billion (25.5 percent CAGR).
  • Print Yellow Pages revenues will decline from US$27.5 billion to US$25.6 billion (-1.4 percent CAGR).
  • IYP revenues will grow from US$3.7 billion to US$9.2 billion (20.1 percent CAGR).

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. Can you get trackable result? Do you know how many people visited your Yellow Pages ad? You will know through a website – you can track number of visitors, where they went in your website and even how long they stayed.
  2. Is your business searchable under relevant search terms – for example, if someone knew that they wanted a specific service that only you and a few others offered, could they search for that service through the Yellow Pages? Of course they could do that through an online search.
  3. Can you get an ad big enough to tell the public about every aspect of your business? You can with a website. What contact options are available to your clients? With a website they could subscribe to site, use the online tools, sign up for a newsletter, use your web resources, bookmark your site, print your web page or use your contact information to call or visit.
  4. Can you use your current clients' testimonials to brag about your business? (A highly effective marketing tool.) Well, in an ad, you might be able to use one – on your website you can use many and keep adding them as you get them.
  5. Which brings up another interesting point – how often can you modify your Yellow Pages ad? Only once a year – while you can constantly update your website with new information.
  6. How far does your Yellow Pages ad reach? Well, unless someone specifically asks – only as far as the local metro area. Your website is viewed by people all over the world.

The best Return On Your Investment is getting your message in front of the most potential customers. We understand that many people still use the Yellow Pages to look up a phone number or address, but a website clearly allows you to differentiate yourself from your competitors and not just limit yourself to being one of many on a long list of names and phone numbers.

To learn more about how Beyond Indigo can help you gain a greater return on your marketing dollars, please contact us at
Terri Reid, Executive Director of Marketing: Terri@beyondindigo.com or
Kelly Baltzell, President and Owner: Kelly@beyondindigo.com .

Princeton, NJ (Feb. 25, 2008)

The global advertising market grew to just over US$600 billion in 2007, according to The Kelsey Group, the leading provider of research, data and strategic analysis on directional and interactive local media. The firm expects global ad revenues to grow at a compound annual growth rate (CAGR) of 2.7 percent and reach US$707 billion in 2012, propelled in large part by considerable growth in the interactive segment.

According to "The Kelsey Group's Annual Forecast (2007-2012): Outlook for Directional and Interactive Advertising," interactive advertising revenues will increase significantly from US$45 billion in 2007 to US$147 billion globally in 2012, representing a 23.4 percent CAGR.

"It's no surprise that the global advertising industry is experiencing a full-scale shift to mixed-media platforms, with interactive driving a significant share of overall industry growth," said Matt Booth, senior vice president, Interactive Local Media, The Kelsey Group. "We see Internet development—including increased subscriber/user access and broadband penetration—as a driver of both interactive advertising revenue as well as migration of traditional ad spending to new media platforms."

During the forecast period (2007-2012), the United States will see interactive advertising revenues grow from US$22.5 billion to US$62.4 billion (22.6 percent CAGR), with interactive revenues in Canada increasing from US$1.3 billion to US$3.3 billion (21.3 percent CAGR).

The Outlook for Directional Advertising

The Kelsey Group forecasts directional advertising, which comprises local search, print Yellow Pages and Internet Yellow Pages (IYP), will grow from US$33.3 billion in 2007 to US$41.4 billion globally in 2012 (4.5 percent CAGR). The global outlook for each of the three key segments of the directional media market during the forecast period (2007-2012) is as follows:

  • Local search revenues will grow from US$2.1 billion to US$6.6 billion (25.5 percent CAGR).
  • Print Yellow Pages revenues will decline from US$27.5 billion to US$25.6 billion (-1.4 percent CAGR).
  • IYP revenues will grow from US$3.7 billion to US$9.2 billion (20.1 percent CAGR).

"We expect printed directory revenues to decline in most global markets over the forecast period, though print will remain the most important source of leads for small businesses," said Charles Laughlin, senior vice president and program director, The Kelsey Report®, and managing editor, The Kelsey Group. "For directory publishers to succeed, they will need to invest time, energy and resources in both channels to minimize the decline in print and maximize the opportunity online."

During the forecast period (2007-2012), the United States will see directional advertising revenues grow from US$16.4 billion to US$18.8 billion (2.8 percent CAGR), with directional revenues in Canada increasing from US$1.4 billion to US$1.9 billion (5.8 percent CAGR). Canada is one of the markets in which The Kelsey Group expects growth in the print Yellow Pages segment, forecasting a 1.8 percent CAGR for print directories in Canada during the forecast period.

About The Kelsey Group’s Annual Forecast

The Kelsey Group has published a five-year forecast covering the broadly defined directional and Internet media market annually since 2003. The firm draws from its proprietary data, primarily the Local Commerce Monitor, User View and Global View studies, as well as from company, industry and country information in the public domain. Further, Kelsey Group analysts engage clients and non-clients in numerous discussions about the direction and pace of development in the local media marketplace. The Kelsey Group’s Annual Forecast is available to clients of the firm’s continuous advisory services. This forecast does not include mobile ad platforms. The Kelsey Group’s mobile forecast, released in September 2007, will be updated later in 2008. Visit www.KelseyGroup.com for more information.

About The Kelsey Group

The Kelsey Group is the leading provider of research, data and strategic analysis on directories, small-business advertising, online local media, vertical market advertising and mobile advertising. Founded in 1986, the company has built a reputation as the premier analyst firm covering the directory publishing community and the emerging local search marketplace, providing advisory services (The Kelsey Report®, Interactive Local Media and Marketplaces), publishing (Global Yellow Pages™), consulting (more than 400 individual assignments) and conferences (71 events).