To paraphrase Mark Twain "The rumors of Yellow Pages\' death is greatly exaggerated

1. Yellow Pages – Still Going STRONG!!! November 2010 Dennis R. Fromholzer, PhD CRM Associates

2. What Do Advertisers Want? Advertisers are “hungry” for good advice. They want someone who: They can trust Is credible Is knowledgeable Understands their challenges Has the confidence to help them Cares about them and their business Will do the work to get it right for them

3. 3 Print – reduced a bit, but ANYTHING but dead or dying. 12 billion references in 2009 to print (4.9 billion to IYP) 35% of adults use print in an average week (20% use IYP) Of the top 660 headings with 1 million or more references in 2008: 43% of headings received at least as many references as 10 yrs ago (58% for PYP+IYP). 33% received 20% or more references (47% for PYP + IYP) Sources: YPA 1998-2010 Usage Studies; CRM Associates Observation: YP is a dynamic medium – at any given point in time, some headings grow in usage, while others decline. Changes are reflective of changes in technology, market behaviors, economic conditions, demographics, and social behaviors.

4. 4 Over 220 headings have seen significant increases in usage in the past 10 years. Examples: Home Centers 4.1x Trailer Rentals 3.0x Wedding Supplies 3.8x Hot Tubs-Dlrs6.5x Resorts 6.9x Recreational Vehicles 2.0x Audiologists 12x Retirement Homes 3.4x Pharmacies 1.2x Funeral Directors 2.1x Crematories 7.5x Mortuary 3.1x Monuments 2.0x Farm Equip Repair/Parts 13x Waste Disposal & Recycling 4.7x Tattoos 7.9x Fingernail Salons 2.7x Ear Piercing Service 6.7x Video Game Dealers 4.7x Yoga Instruction 6.7x Dance Companies 24x Tutoring 16x Party Supplies & Rentals 14x Tents-Renting 4.8x Mobile Telephone Svc 6.4x Real Estate Mgmt 7.8x Wallpaper Removing 1.6x Upholstery Fabric 11x Plumbing Drain/Sewer Clean15x Patio & Deck Builders 17x Source: YP Industry Usage Study 2009, KN/SRI 4

5. Yellow Pages Still a Significantly Used Local Shopping Resource 5 Burke 2010 Local Media Tracking Study ; Yellow Pages Association (YPA). Print reach was 50%; IYP reach was 36%.

6. Yellow Pages reach Increased throughout 2009! 6

7. Print: Entering a Period of Stability and/or Increase 7 Source: Simmons Spring 2010 2 Studies Show Stability for 2010: TNS Intermedia Shopping Study Yr-to-date usage same as in 2008 study. Burke YP Industry Usage Study: 2010 references around 11.9 to 12.0 billion.

8. 8 Calls Are on the Increase Roughly half of top headings saw an increase in print display calls in 2009 compared with 2008. Source: CRM Associates, 2010Metered Ad Study Observation: Increase in calls corresponds to the increase in usage. Both are signs of YP’s relation to consumer spending. Both suggest decline from 2005-08 not Internet-driven as much as economy-driven. 8

9. 9 Calls Are on the Increase: Select Dex Market Examples 9 Source: CRM Associates, 2010Metered Ad Study

10. Calls are only part of the response to the ad. Call 100 30 AD In-Person Visit 50-70 Web Site Calls represent only about 50-60% of total ad response. 10 Sources: Burke 2010, KN/SRI 2009, CRM Associates 2010

11. “Print PLUS Online,” NOT“Print vs. Online” “Leading-Edge” electronic products customers use print YP more than average: Friends ask me for advice +46% First among friends +33% Pay anything for product wanted +31% Love to buy new gadgets & appliances +20% Usage Level: PYP IYP Heavy Internet Users: Heaviest Internet Users (hrs per week) 126% 110% “It’s safe to make purchases online” 110% 110% “I like to hear about products/svcs by email” 148% 118% “I like websites that show me local info” 118% 102% Observation: some of the most “tech-savvy” consumers are also among the heaviest users of both Print and Internet YP. They have not “abandoned” print, contrary to popular belief. 11 Source: Simmons Spring 2010

12. YP Value Estimates by Product Type 12 Specific Estimates of Sales ROI (U.S.) Median Local Display$ 12 to $1 National Display $ 17 to $1 Companion Display $ 34 to $1 Local Space $ 33 to $1 National Trademark $ 56 to $1 Internet YP $116 to $1 @50% of posted rates; 2010 Metered Ad Study by CRM Associates; based on roughly 50,000 metered ads; Observation: YP delivers STRONG value – higher than almost any other advertising alternative. For example, direct marketing SROI is 11.5 to 1.

13. Yellow Pages and “Search”“All leads are not created equal”

14. 14 14 Fundamental differences: YP vs. Online Search Print & IYP Users look at 5 ads and call 2.1 businesses 40-50% sales conversion rate from calls Search Engines 3.2%clickthrough rate 1-3% “conversion” rate Key Comparison Ratios: A “call” from a YP ad is worth at least 15-25 “click-throughs” from search engines. Sources: Yellow Pages Association, CRM Associates, DMA 2010, MarketingSherpa 2010

15. 15 Compare (Search vs YP): Search: $2-$4/click @ 1-3% conversion rate = $50 to $200/”lead” U.S. YP Ads: 1 call* = 1 “lead” Local IYP $/call = $15 Local PYP $/call = $18 (display) Local PYP $/call = $ 7 (space) Sources: 2010 Yellow Book Metered Ad Study, CRM Associates, Direct Marketing Association, 2010 YP Industry Metered Ad Study

16. What About Usage by the Younger Generation? Answer 1: Who Cares? 14.7% unemployment rate among 18-24 yr-olds. 17% for 18-24 yr-old men. Average income of $28,127 vs $63,563 for all adults. 85% are renters (vs. 34% for total population) Majority move back in with mom & dad after college Consider: All consumer units<25 age group Household Operations $1,010 $322 HH Furnishings, equip $1,615 $938 Auto Maint/repairs/insur $2,625 $685 Life & other Insurance $ 303 $ 29 Source: 2008 Consumer Expenditure Survey 16 Sources: CRM Associates; Simmons Spring 2010 16

17. 17 Usage by the Younger Generation? Answer 2: Majority Use PYP and Use it More than Average. 54%of 18-24 yr olds, and 66%of 25-29 yr olds use print YP. Those experiencing life events use PYP 2.4x more than those with no events, and are 84% more likely to be IYP users. Sources: CRM Associates; Simmons Spring 2010 17

18. Those with the Most $$ to Spend Use YP the Most 18 “I spend what I have to to look younger” PYP use: 184% IYP use: 116% Sources: CRM Associates; Simmons Spring 2010

19. Non-Users of Print YP: Interesting Story 19 Total Population: 75% use Print Yellow Pages 25% do not use PYP

20. Non-Users of Print YP: Interesting Story Hispanics: 37% are non-users; however, the 63% that use PYP use it 25% MORE than average. Singles: 27% are non-users; however the 73% that use PYP use it 20% MORE than average. Renters: 30% are non-users; however the 70% that use PYP use it 40% MORE than average. Heaviest Internet Users: 33% are non-users, however the 67% that use PYP use it 26% MORE than average. Single Males, renting in A-counties: 60% are non-users, however the 40% that use PYP use it 77% MORE than average. 20 Sources: CRM Associates; Simmons Spring 2010

21. Non-Users of Print YP: Interesting Story General Story for groups most likely to not use YP: 33% are non-users The 67% that DO use PYP use it 7% MORE than average. 21 We appear to have only lost the “marginal” users. Sources: CRM Associates; Simmons Spring 2010

22. Environmentally Conscious Consumers 22 Sources: CRM Associates; Simmons Spring 2010

23. 23 Why Do People Use YP? Life Events/Life Stages And “Out-of-the-Ordinary Situations” Shopping Events YP Usage

24. Life Events Drive Higher Usage 80-90% of personal usage by people experiencing major life events. Source: Simmons 2010

25. YP Users Spend More 25% more than the average customer: Books 15% Building Contractors 60% Carpet Dealers 78% Cruises 36% Fences 36% Furniture 34% Lighting Fixtures 24% Office Furniture 30% Pizza 30% Roofing Contractors 21% Travel Agencies 25% Source: Simmons 2010 25 Sources: CRM Associates; Simmons Spring 2010

26. 26 Who Uses Yellow Pages Most? Take the User Trivia Quiz

27. 27 Who Uses Yellow Pages Most? Take the User Trivia Quiz

28. 28 Who Uses Yellow Pages Most? Take the User Trivia Quiz

29. 29 Who Uses Yellow Pages Most? Take the User Trivia Quiz

30. Questions: What do these data mean to: A) the advertiser and their business B) the ads and ad content C) the value of Yellow Pages D) your discussions with the advertisers? 30

31. 9 Key YP Facts: Usage is episodic; driven by life events. 80% will make a purchase 54% will be new customers 56% start out as shoppers; 70% consider multiple businesses Look at 5 ads Call 2.1 businesses: 40-50% conversion rate Spend 25% more than average. More likely to influence other people’s buying decisions SROI of over 12 to 1 for display; higher for other products 31

32. 32 The Sales Rep Makes a HUGE Difference!!! “I used to hate the Yellow Pages. But, in my 20 years of doing business with Yellow Pages, my current rep, Jennifer, is the first rep that has worked to get me good results. She cares, she’s on my side, she’s not just ‘selling me something’” - Quote from a Limousine advertiser - Same quote from a Garage Door advertiser 32

33. 33 “Selling is the transfer of confidence” “Great selling has been said to be at least 50% a transfer of enthusiasm.” 33 The secret of good selling….

34. Challenge GET EXCITED!!! And be Confident! 34