We downgraded this year from a display ad to a simple in-column bold listing, as did all but one of our competitors. (it went from 3 pages of framing display ads, to just a single ad - which I assume will be gone next year) The shop's YTD Gross receipts for 2009 are about 20% above 2008, so I'm no longer concerned that it was a bad decision. Last year, we pulled out of YELLOWBOOK completely, with no regrets. (just a free listing)
We ask every new customer how they found us, and less than 1% say the yellow pages. 8 out of 10, however, mention the website.
Just like newspapers, I think it has become obsolete. Our primary YP provider is currently in receivership
In some markets and demographics, I imagine they still carry weight.
Personally, when I see a big flashy display ad that costs 1-4k per month, I assume the advertiser will be overcharging me to cover these expenses. But that's me
For our first year (7 years ago), we had a small display ad with a white background at about $900/month. We have scaled back slightly each year since, due to weak results.
There are a LOT of big boxes in our market area that offer framing, but I've never seen an ad for any of them in the YP. That alone, says a lot to me
Investing in a web site, like others suggested, is probably a good choice.
Mike