Since I hold 16% of my non registered portfolio in Yellow Pages Income Fund (YLO.UN), I am quite pleased with the following announcement which I view a genuinely good news for Yellow Pages Group:
NEW YORK (Reuters) - The Yellow Pages Group, Canada's largest phone book publisher, said on Tuesday said it had a deal with Google Inc. to market its customer advertisements on-line through Google AdWords.
AdWords will allow Yellow Pages customers to be associated with certain keywords so that their adverts will appear beside search results for Google and Google Maps Internet searches.
Montreal-based Yellow Pages said it will be the first Canadian-based reseller of Google AdWords adverts.
"Under the agreement, YPG will be able to provide its approximately 425,000 advertisers an enhanced advertising offering," said Yellow Pages, which publishes more than 340 Yellow Pages and residential phone directories, in addition to operating YellowPages.ca and Canada411.ca Web sites.
Teaming up with dominant online force, Google, in this way is a great value added feature for Yellow Pages to offer advertisers. Google is essentially tapping into Yellow Pages enormous database of advertisers by offering up their AdWords product. Yellow Pages is really acting as a broker for Google AdWords. In a way, they are turning a potential competitor into a partner. In Canada, 86% of Internet users are Google users. This move should bolster Yellow Pages earnings in their online segment, while enabling them to please more customers with diversity of ad coverage.
Since this announcement units of Yellow Pages Income Fund (YLO.UN) which owns 97% of Yellow Pages group are up 1.5%.
On another note, Yellow Pages Group was also named as one of Canada's Top 100 Employers for 2008 in a list published by Maclean's magazine. This was the second consecutive year they received the honour.
As long as Yellow Pages continues to pay me my 8.1% yield in monthly increments I will remain one happy investor.