The case for Buyers Guides and directories (and do you need one?)

At a recent roundtable, publishers shared how they use directories and “what keeps them up at night” when solving directory issues.

All found directories valuable both as a support for advertising sales, and as a way to connect the audience with the right resources.

For publishers considering this option, the case to be made only starts with direct revenues.

Only 16%  of niche publishers have directories

That’s not a lot – out of a statistically relevant group of 130 niche publishers, it is fewer than those who sell other kinds of e-commerce stores, but more than those who sell exclusive newsletter sends.

For B2B and all smaller-sized niche publishers who have directories, it is their 3rd or 4th largest source of revenues

For B2B niche publishers, however, directories ranked in the top four highest sources of revenues. For companies with fewer than 10 employee, the rank was third.

36% of publishers with directories get more than 10% of revenues from this source

Part of the good news is that there are significant revenues to be made in this category.

Why, then, are Buyer’s Guides relatively under-utilized?

Buyers’ Guides also pose challenges. On a recent NPB Roundtable, publishers mentioned a few:

1. Technology. Cookie-cutter CMS systems and WordPress plug-ins were not always designed for upsells that publishers want, such as a tagging system that would place listings into or next to related content.  Publishers who did not have a background in tech often fell behind those who did. No-code AI tools like Replit are helping to solve the problem, but still in the early stages.
2. Going from free to paid. Several publishers who have published directories for years felt that free-to-paid, along with other innovations, had stalled. They wanted ideas to jump-start the free-to-play engine.
3. Creating simple packages for advertising tiers.  With so many products that could be sold together – web ads, newsletters, events, and print – simple packages that include Buyer’s Guides with tiers for additional products are still challenging to create.

Buyers’ guides have many other talents

How directories drive revenue isn’t always a straight-line value proposition. Directories play other important roles both in the sales process and in connecting audiences with advertisers.

These are the top five benefits noted during the roundtable discussion:

1. Directories provide recurring revenues (no seller needed)

Advertisers who do not buy large campaigns have an affordable alternative, which is also recurring, extending the lifetime value of an advertiser.  As an example, a flat rate of $1000 a year, but one that does not have to be “resold” by the sales rep, equals  $10,000 over ten years with no additional work.

2. The claim-a-listing verification process can include a phone call that jumpstarts larger sales

Publisher approval of the listing can include a validation call. Sellers who make these calls almost always are able to make a personal contact with the customer – a warm phone call that is almost always answered. They have an opportunity to ask qualifying questions and show other products.

3. The audience needs credible information on resources, and publishers need to cover this base to compete with AI

While every niche is different,  niche audiences invariably prefer to get recommendations from a trusted source, a news brand they know. Parents may not want the Google AI overview selecting their children’s private school. Tourists may want a credible source for “what to do on the weekend” that does not put them into an unsafe neighborhood.  The dairy farmer reading about innovative robotic milking devices is more likely to click on a link from the article to a page about a vetted supplier.

The more times the audience finds resources they need on the publisher’s website, the more they are “trained” to look on their community’s website, rather than AI for the answer, or at least to kick off their research.

4. Basic listings anchor advertiser’s presence

As a benefit of larger sales, such as event packages or advertising campaigns, advertisers have an ongoing presence on the website. All the content that is created for the advertisers, such as content marketing and video, also has a place to live on the media’s website.

5. Provides the most valuable bottom of the funnel  – and just read an article – traffic

While advertising campaigns for niche media often use educational at the top of the funnel, the directory identifies users who are already in the research mode of making a purchase.

So keeping these benefits mind, a directory that includes a free – to – paid model, with paid listings that start with an enhanced page and layer on other products, seems like a great way to increase and monetize share of the market for a niche.

For B2C local niche publishers,  we recommend starting with guides that are even more niche, such as parenting, tourism guides, and Top (fill in the blank) guides to what most people are interested in, such as local restaurants, shopping, and activities.