I actually thought I had missread the story when I received the alert in my email this morning. I was skimming stories at the airport headed to Silicon Valley, and when I mentioned it in passing to a steely eyed VC type today he leapt gazelle like to his Blackberry and indeed confirmed that the mighty Idearc had filled for chapter 11. I’m a huge audio book fan, I get to fly a lot and I fill in the spots where my laptop is out of juice with the spoken word. When the narrator starts a section with “Chapter Eleven” a shiver runs down my spine. I wish the good folks at Idearc nothing but the very best, they are a very smart hard working bunch and we are already working with them successfully on several projects. I look forwards to them emerging stronger moving forwards.

What this story, and the pending possible restructuring of several other Yellow Pages giants, points to is the perfect storm of bad news which has swamped the decks of many fine companies. The economy is famously bad, sales are down, the Yellow Page print product has been hemorrhaging cash for years and the increasing stampede of local advertisers from print yellow pages to online offerings which generate track-able local results is becoming overwhelming.

Newspapers have been beset by many of the same issues, my own local Metro the mighty Boston Globe may stop publishing in the near future. Both the Yellow Pages and newspapers have been unable to completely replace the revenue lost from the high priced print products sold by humans on a face to face basis with much lower cost online products sold online or over the phone.

In the old days the purveyors of print ad products never had to prove that their products delivered value for money….over a hundred years or so they emerged as part of the landscape…a must have for any local business. Indeed in many, perhaps all cases the “dead tree products” proved highly effective as a way to deliver customers to advertisers. There is an advertising truism that “half of all advertising is wasted…the problem is nobody can tell which half.” Since the late 90’s print advertising products have been pecked away at by the pure play verticals. When was the last time you sold an exercise bike, bought a car or found a soul mate through a print product? Of course it still happens but it happens less often than it used to.

Even given those changes some sections have remained robust print advertisers. However increasingly local advertisers have an alternative to print products across all segments; they can count the clicks and measure the calls generated by their online advertising and those ad products don’t have to be bought on an annual basis.

Here at eLocal we see the impact of these changes every day. Our advertisers are looking to get on the front page of search results and they count every click, lead and call which we generate. They rightly hold us to a very high “what have you done for me lately” standard. If we aren’t effective we apply more effort to get them to where they need to be. The print equivalent would be a yellow pages company delivering more and more books, burying entire city blocks in paper, until each advertiser was satisfied with their results. It’s a tough standard and we are happy to deliver against it every day.

You can read the entire story here.