Yell Group’s CEO Mike Pocock said a strategy overhaul is coming this summer and imparted at length the logic behind his current digital plan, as the group reported another quarter of lower revenue…
Q3 highlights…
— Digital revenue up 10.4 percent to £342.2 million.
— But print revenue down 18.4 percent to £936.6 million.
— So group revenue fell 11.8 percent to £1.35 billion.
The problem with Pocock’s argument that “general search is consolidated, local search is not”, is that many people no longer see a difference between Googling for info on a web page and Googling for their local hairdresser’s phone number. Supplying the search engines its local business data likely cannibalises Yell’s main raison d’etre, leaving it to search for other income streams.
The company says it’s making 5,000 websites a week for its advertisers, and says it recently hooked up with group buying site Weforia and reputation management tool Chatterhub.
Pocock’s hints about the new strategy point to cost cuts – but Yell already made £19.2 million in savings. On Yell.com and YellowBook.com as well as in the printed Yellow Pages, Yell’s advertiser count is falling, though it is managing to extract more digital spend from fewer advertisers.