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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by aclcmcon Jun 30, 2011 8:58am
270 Views
Post# 18783656

RE: RE: RE: RE: Potential Fast Double

RE: RE: RE: RE: Potential Fast DoubleMy take on the digital vs. directories margin issue is essentially this: That purely on its face, digital's margins should easily be able to surpass those of directories because the input costs of digital are so much lower. No ink, no paper, no distribution, no press, no pre-press (though digital ad creation does carry labour costs similar to those of directories). And so, on that basis, I am optimistic that Yellow's transition into digital will be successful; heck, that is very clearly where the future lies, and not only for Yellow. The trick, the key, is to find ways to get ad and search clients to "pay up" for digital – right now, digital tends to be sold as a low-price add-on to the ink-on-paper product. Over time, that will change – and Yellow should be able to ratchet up its rates appropriately to make the digital margins sing – or, at the very least, hum. GLTA. aclcmc
Bullboard Posts