The Decline of the Yellow Pages

This is an up to date report on the state of the yellow pages industry. The inference is that their struggles are due to lack of usage, particularly among the younger demographic, and low sales volume due to search localization. It represents HUGE opportunity for the SEO industry as billions of dollars that were previously spent on the yellow pages for local marketing are being freed up.

With its widespread distribution and cost-effectiveness, the Internet has and is displacing a number of old line businesses (fancy word for it – disintermediation). The impact on the economy in the United States has been mixed: many companies are struggling and going out of business – but the consumer is the ultimate beneficiary. The yellow pages is no exception.

There is plenty of anecdotal evidence as to decline in usage of the yellow pages. The younger demographics seem to almost 100% ignore them, while the older demographics still use them to some extent. We are making an honest effort to research actual usage of the yellow pages but it’s proving to be difficult as the yellow pages companies understandably strive to present as positive picture as possible. However, occasionally we come across an informative document. Of particular value are filings of publicly held companies. Here are two recent ones:

Super Pages Filing

SuperMedia Inc. is one of the large yellow pages companies, producers of the Super Pages version of the yellow pages. Here is their public filing for nine months ending September 30, 2010 as compared to the same period from 2009:

Their Results

  • Revenue decreased from $1,936 million in 2009 to $750 million in 2010, a decrease of 61.3%.
  • Net Profit/Loss went from breakeven in 2009 to a loss of $16.83 million in 2010. (note: In the footnotes they note a one time non-recurring expense deduction of $40 million in general and administrative expenses). Without that, their loss would have totaled $56.83 million.


They just brought on a new and highly capable CEO, but he must feel like the captain of the Titanic.

Dex One 10Q Filing

Dex One (formerly R.H. Donnelly), the producer of the dex and dex plus yellow pages, is facing some challenges, most likely due to increased Internet usage and decreased yellow pages usage (and sales). According the the 10-Q filing pictured here:

Their Results

  • Revenue Down From $1.7 billion in 2009 to $634 million, a 63% Drop
  • Net Loss Increased from $435 million in 2009 to $903 million in 2010
  • They defaulted on $6.9 billion in loans
  • They still have $6.3 billion in debt

It’s sad to see a company that was almost an American institution be so impacted by technological change, but change as inevitable when something as revolutionary as the Internet comes along.

Some People Are Finding the Yellow Pages to be a Nuisance – And Not Very Green


Other News & Commentary About the Yellow Pages Industry

  • 12/12/2010 – Shareholders at Yellow Pages Group Face Loss of All or Most of Their InvestmentShareholders in Yellow Pages Group face the loss of all, or most, of their investment under a restructuring plan that may be completed before Christmas, or early in the new year. A syndicate of over 40 bankers, collectively owed $1.3 billion in senior debt, are calling the shots, but they too will take a haircut on their loans as a transaction involving a debt-for-equity swap, and a new board of directors representing lenders, takes shape.
  • 11/14/2010 – The Phone Book is DeadFrankly, that is the future. Businesses would be better off taking the money they normally spend annually on Yellow Pages advertising and move it to digital advertising such as Place Pages. The pages are free, but paying someone to set them up and drum up some testimonials for your business would be money well spent. The chances of being seen by customers is much greater than an ad in the Yellow Pages.
  • 10/11/2010 – Seattle City Council Votes to Allow Opt-Out of Yellow PagesTired of phone books piling up on your doorstep? The Seattle City council voted Monday on a yellow pages “opt-out” ordinance that would get rid of those phone books. Seattle becomes the first city in the country to set up an opt-out registry if you don’t want to receive yellow pages.
  • 5/5/2010 – Death of the PhonebookAlas, another “end-of-an-era” event in my lifetime. The phonebook is on its way out…. Some staggering facts: Before the presses stop, calculations estimate the number of phonebooks printed each year equal three (yes, 3) books for every single American – man, woman, and child. (406 note: That’s *a lot* of trees!)
  • 3/29/2010 – Yellow Pages Are Becoming an Obsolete ConceptSearchEngineLand Article – March 29, 2010
  • 2/23/2009 – Study: Consumers now use search engines over Yellow Pages“As consumer local search grows with online and offline resources, national advertisers must develop strategic plans for integrating the various mediums into their national programs,” said Gregg Stewart, senior vice president of interactive, TMPDM, in a recent announcement.”
  • 1/5/2009 – What Could Save the Yellow Pages?Wall Street has abruptly lost its love for the venerable old companies in the last year, causing their stock prices to fall through the floor — Idearc Media got delisted from the NYSE a few weeks back, and R.H. Donnelley appears to be about to follow them. The car industry can expect major bailout dollars to buoy them through these stormy economic waters, but the venerable old yellow pages cannot.


For better or worse (depending on whether you’re a yellow pages company or a local business), it appears that the long arm of the Internet is eliminating another long-time traditional industry in the United States. This can result in huge cost savings for local businesses – and huge opportunity for SEO’s to serve local businesses.

The Internet is finally going local!