Global print, online directory revenues to fall from US$23.4B in 2011 to US$22.0B in 2015 where print revenues will see a CAGR drop of 11%; by 2015, 53% of global Yellow Pages revenues will be digital: BIA/Kelsey

Kendall Sinclair

CHANTILLY, Virginia , December 6, 2011 (press release) – Yellow Pages publishers worldwide are gaining traction with new digital products, slightly offsetting declines from the traditional print versions, according to the newly released sixth edition of BIA/Kelsey's "Global Yellow Pages™" report. BIA/Kelsey expects revenues from print and online directories to decline globally from $23.4 billion in 2011 to $22.0 billion in 2015, representing a compound annual growth rate of -1.5 percent.

Print revenues will continue a steady decline for the forecast period, with an expected -11.0 percent CAGR, which equates to US$6.2 billion in lost revenues. However, a growing number of global Yellow Pages operators are approaching an inflection point where digital growth can offset declines in the traditional product set. BIA/Kelsey believes newer services (websites, video, social, mobile, SEM) rather than established Internet Yellow Pages platforms will be the primary digital growth drivers for directory publishers in the coming years.

"A noteworthy factor of this forecast is the moderating of print declines," said Global Yellow Pages coauthor Charles Laughlin, senior vice president, program director, BIA/Kelsey. "As print declines flatten out, a shift to digital will be a key to any return to growth. Recent stock market gains by publishers may indicate increasing confidence in publishers' ability to turn the corner with new digital products."

By 2015, 53 percent of global Yellow Pages revenues will be digital, compared with 29 percent in 2011. Some of the world's largest directory organizations, including Yell Group and Seat Pagine Gialle, are setting a much more aggressive course, projecting roughly an 80/20 balance of revenues favoring digital by 2015. Markets that are currently or will be majority digital by the end of 2011 include Denmark, Finland, France, Italy, Norway and Sweden.

BIA/Kelsey will present highlights from the new Global Yellow Pages report and forecast during a free webinar on Wednesday, Dec. 21. For more information and online registration, go to https://www1.gotomeeting.com/register/135269760.

BIA/Kelsey's Global Yellow Pages report is a comprehensive examination of the markets and companies that comprise the global Yellow Pages industry. The report captures key metrics, including revenues, growth rates, titles and distribution, employees, size of sales force, online and mobile products, prominent executives, advertisers, and major developments and challenges.

Global Yellow Pages is the result of six months of research by BIA/Kelsey analysts. It is designed as a benchmarking and strategic planning tool for directory publishers, investors, industry suppliers and Yellow Pages agencies that need a complete understanding of the state of the industry, its key players and the direction the business is moving. For more information regarding Global Yellow Pages, contact Jill Angle at (650) 948-5776 or jangle@biakelsey.com, or visit http://www.biakelsey.com/GlobalYellowPages.

Methodology

The five-year forecast, which is included in the Global Yellow Pages report, reflects all relevant revenues generated by companies in the Yellow Pages industry. Revenues from pure-play companies are not included in this forecast. Wherever possible, non-core revenues are subtracted from this forecast. This includes such lines of business as directory assistance and the sale of marketing lists. Digital Yellow Pages revenue figures comprise all non-print advertising and digital marketing revenues. This includes Internet Yellow Pages, websites, sponsored links, SEM/SEO, video, mobile and other items. This forecast is built on a foundation of actual revenues, gathered through public records, surveys and direct conversations. Revenues are forecast based on an analysis of future trends and company guidance where available.


About BIA/Kelsey

BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983, BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey's annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company's Local Media Watch blog, Twitter (http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey).

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