Speaking Sensis

It’s a strange irony, but Sensis’ long history in print products and the strong position of our business can sometimes work against us. Especially when the media is looking for headlines.

Yesterday, a story by Michael Evans in The Age and Sydney Morning Herald reported the challenges he believes Sensis and Yellow Pages® is facing. He claimed we are “battling on several fronts” due to our half-year financial results showing our first-ever revenue decline, the days of print directories being numbered and that a “rampant gorilla” named Google is set to take all before it in the world of online advertising.

Without a deep understanding of the business, the article focused heavily on our print products and shed little light on the value of our multi-channel network.

On a positive note, it did mention the global financial crisis as one factor influencing our half-year financial result. However it stopped well short of explaining our revenue result was achieved in the peak of the global financial crisis, a time when other advertising businesses were experiencing declines as high as 20%.

Our result in the first-half also saw us increase our overall share of the Australian advertising market. This is an achievement that shows in tough times, advertisers stay with us as we continue to deliver them strong value and return on investment.
 
Through its focus on Yellow Pages® as just a print business, the article glosses over the key role Yellow Pages® has played in Sensis’ evolution as the largest locally-owned online advertising business in Australia. This digital business provides customers with the perfect complement to our successful print directories, as well as exciting opportunities for future growth.

Yellow Pages® print products continue to be a core part of our business and revenue base. But on top of this, we’re creating further value for customers through new and exciting print, online and mobile bundles to extend their reach into the market. These are in addition to initiatives that are already driving extra value such as Yellow Pages® Mobile on iPhone, our SEO program for Yellow Pages® Online content and Yellow Pages® listings being available on Google Mapsⁱ and Bing Maps to name a few.

This strategy is driving value as well as diversifying our revenue base. In three years, the proportion of Sensis’ total revenue from digital products has grown from 18% in 1H07 to almost 33% in 1H10. Digital products are now an integral part our overall network and rather than pose a threat to our print business, they are providing strong growth opportunities.

For example, usage of Yellow Pages® Mobile grew by 89% in the December 2009 quarter compared to the previous year. Similarly, our agreement to have Yellow Pages® listings available on Google Maps is another way we are delivering more value via digital media.

The value Sensis and Yellow Pages® are providing customers and the opportunities for future growth are best highlighted by the 4.6 million people that let their fingers do the walking more than 13 million times a week on averageⁱⁱ. Only now, it’s not just in print, but across a powerful combination of print, online and mobile products.

• ⁱGoogle maps is a trade mark of Google Inc.

• ⁱⁱRoy Morgan Single Source Australia, 14 years and above, last 7 day average, July 2008-June 2009.