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Donnelley Hunts Revenue in Online Advertising
Friday, August 28, 2009 11:01 AM


(Source: The News & Observer)trackingBy David Ranii, The News & Observer, Raleigh, N.C.

Aug. 28--Yellow pages publisher R.H. Donnelley, which is restructuring its business after filing for bankruptcy in May, continues to beef up its online offerings as it fights for advertising dollars.

This week the Cary-based company, which publishes directories under the Dex brand name in 28 states, introduced two new features to its online yellow pages, DexKnows.com.

Donnelley expects to emerge from bankruptcy early next year, and the moves signal that the company is forging ahead with efforts to boost revenue in the interim.

"It's business as usual," spokesman Peter Larmey said. "We are still moving forward with product development and enhancement."

The company gets the bulk of its revenue from its print directories, but its online offering is becoming increasingly important as advertisers shift their advertising away from traditional media.

On Wednesday, Donnelley announced that it was making it easy for advertisers to respond online to ratings and reviews posted by consumers. The advertiser responses, which could range from thanking consumers for positive reviews to clarifying issues raised in negative assessments, will feature the heading "Response From Business" to highlight that it is an official company response.

"What we want to do is facilitate communication between businesses and their customers," Larmey said.

A day earlier, Donnelley said it was teaming up with Tribune Media Services of Chicago to offer movie data -- show times, reviews and other information -- for films shown at more than 6,000 theaters nationwide. And thanks to Tribune's partnership with online ticket purveyor Fandango, users also can click through and purchase movie tickets.

Last month Donnelley expanded the availability of online replicas of its paper telephone directories -- for consumers who prefer the look, if not the feel, of traditional directories -- to all of its markets across the country.

All of the major yellow pages publishers are enhancing their nonprint offerings as they try to position themselves as "general media consultants" that can work with local advertisers regardless of their media preference, said Ken Clark, publisher of YP Talk, an online industry newsletter based in Holly Springs. Clark said Donnelley "has not been innovative in this area. ... I think they are trying hard to catch up."

AT&T even has expanded into offering direct-mail advertising to its customers, Clark said, as well as selling ad time on its TV service in markets where it is available.

Donnelley promotes its "triple play" to its customers -- selling ads in print and online, as well as helping companies enhance their visibility on the Internet by boosting their rankings on Web searches.

Donnelley publishes Dex directories in 42 cities and towns across North Carolina, including Wake Forest, Fuquay-Varina, Hillsborough, Fayetteville, Rocky Mount and Wilson. The company has about 3,800 employees, including 450 in the Triangle.

Last month Donnelley, which had more than $9 billion in debt when it filed for bankruptcy, filed a restructuring plan in bankruptcy court that calls for cutting its debt by about $6.4billion. The plan, negotiated with creditors before Donnelley filed for bankruptcy, would eliminate about $500million in annual interest payments.

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