Research firm Borrell Associates has released a new report that underscores the dramatic shift of traditional media to the Internet. This time the forecast for extremely stormy weather is directed at the ubiquitous phonebook Yellow Pages that have long been cash cows in the print world. Borrell said that "Over the next five years, we are expecting 39% of the ad spending on print yellow pages to vanish. After 12 years as an advertising medium, the Internet has finally reached small-business owners with viable marketing opportunities in the form of keyword

advertising, interactive directories and low-priced online video commercials. The recession appears to be triggering the shift. Borrell offers a download of a free executive summary of the full report here. 

In another interesting finding Borrell reported that "there are now more than 34,000 local sales reps peddling online products - more than for any other medium.  The chart at right shows that 84% of these reps are being fielded by newspaper and yellow pages companies, 

all cross-training sales reps to rush toward their most-promising growth opportunity (online). To date, and in the foreseeable future, directory companies have fared better than any other legacy media at this strategy, garnering about 14% of their total gross revenues from online sales."

Borrell's report also details how online video commercials have emerged as the fastest-growing online ad format for small businesses. "By 2012, we expect streaming video advertising to surpass all other formats, including banners and paid search," Borrell said.

In a related note, Moniker is now accepting submissions for their live domain auction at T.R.A.F.F.I.C. New York. More information on that process is available here.
(Posted July 30, 2008)