Ad Sales Blog

Selling with the "relationship calculator"

This is a great web tool on the Relationship Marketing Inc. website. This "Relationship Calculator" helps marketers calculate the ROI of that results when customers are retained over time. You can use it to show that just a slight increase in customer retention, over time, results in huge financial gain.

Use it on a sales call:

First, plug numbers into the calculator from Yahoo Finance or just from your own estimations. You don't have to be completely accurate. Initially, your goal is to get your client interested in evaluating this the ROI of customer retention, not delivering a completely accurate picture. Then hit the "click to calculate" button to see the results. Share them. If your client does not like your estimates tell them you will redo them to their specifications. This is a terrific tool for demonstrating that keeping just a few extra existing customers, over a few extra years or adding just a few new ones can make a big difference in the bottom line.

Now ask them, "If you could dramatically increase your advertising do you think you could win/retain 2% more customers? If so here is what the financial result would be for the next 10 years."

Use the calculator yourself

 

Targeting the...crotch not blogs!

In early January www.ShapingYouth.org, a blog on marketing to children, complained to mass retailer Target about a new ad campaign that depicted a woman positioned on a target pattern with the bull’s-eye seemingly targeting her crotch.

What gives Target? A subliminal sexual message? A lapse into bad taste? Publicity through controversy?  Or, did their art director, so wrapped up in the "snow angel" theme, miss the obvious innuendo?

Mistakes happen, but Target's response to the criticism was a showstopper that enraged the blogosphere.

In an e-mail response published in today's News York Times Target replied:

“Unfortunately we are unable to respond to your inquiry because Target does not participate with nontraditional media outlets.”

“This practice,” the public relations person added, “is in place to allow us to focus on publications that reach our core guest,” as Target refers to its shoppers.

The Times covered the response:

Word of the exchange quickly spread and the blogosphere did not appreciate the slight. “Target doesn’t participate in new media channels?” asked the Web site for the Word of Mouth Marketing Association. Target “dismisses bloggers” commented the blog for Parents for Ethical Marketing. “Ahem! So bloggers don’t count!” Ms. Jussel chimed in on ShapingYouth."

How long the issue will rage in the blogosphere is hard to say. But a lot of people who held a fine opinion of Target think less so because Target did not offer a simple response to a blogger.

On your next call:

If you have a blog product to sell. Remind your client that while blogs often deliver small numbers, the readers can be extremely influential and able to quickly muster armies of like minded individuals that can do great harm. As Target may now be learning, ignore blogs at your peril.

Read the article in today's NY Times

B-to-B digital ad revenue to top print by 2009

Burlingame, Calif.—B-to-b digital advertising revenue will outpace print ad revenue by 2009, according to a new report from market research company Outsell.

According to the report print accounted for 44.7% of the $20 billion b-to-b media revenue in 2006, compared with 28.3% for digital products and 27.0% for events. But by 2009 the roles will reverse.

B to B print revenue will account for 34.3%, 38.6% share for digital products and events 27.1%.

Read the news item on the B to B website:

http://www.btobonline.com/apps/pbcs.dll/article?AID=/20071022/FREE/71022037/1078

The magazine engagement story

The MPA has a terrific booklet that compares the "engagement" qualities of magazines against other media. In a variety of comparisons magazines do extremely well. For me the most sales call friendly parts came on page 14 in the section entitled, "Qualitative dimensions of engagement". Research shows the ads that run in magazines are seen by readers as offering value, not an intrusion (first two charts shown below).

Use it on a sales call: First off, download the 35 page PDF at the link below. On the call, the trick is to shift the conversation. When many advertisers/marketers talk about engagement they are referring to measurable engagements such reader click throughs, contest entries, getting readers to contribute content or become involved in some way. This great resource from the MPA helps you shift the dialog from this "mechanical" view of engagement into a psychological one where the relationship between magazine and reader take center stage.

You don't have to explain all this on a call. Just explain the magazine engagement story. The story that says, unlike many other media that provide more functionality along along with a lot of distractions (third chart posted below), magazines engage your customers minds and bring the ad message along in in a positive way. Very powerful stuff!      

Download the entire survey     

Predicting the next President...by sales skills

Sales lessons from the campaign trail #1

As a student of sales, I love Presidential elections!

I have a theory that has successfully predicted the winner of the Presidential election for the past 30 years.

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My formula is simple:

Forget the polls

Forget the platforms

Forget the issues

Forget the political parties...

if you objectively evaluate the selling skills of the candidates...

the better salesperson won every election.

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Skeptical?

Here is my proof:

2004 Bush wins over Kerry

2000 Bush wins over Gore

1996 Clinton wins over Dole

1992 Clinton wins over Bush Sr.

1988 Bush Sr. wins over Dukakis

1984 Reagan wins over Mondale

1980 Reagan wins over Carter

1976 Carter wins over Ford

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I didn't vote for all of the winners but, in my opinion, the better salesperson won every contest.

Think about it on your next sales call!

Recession fighter promo letter

Not a recession!
In the last few weeks I have heard of several ad programs being cut back or put on hold because of concerns that a recession is coming. During the 2002 ad recession I wrote and distributed this letter with great effect. It shows how advertisers who maintain exposure during the slow times move ahead of competitors who don't and gives a great example of a product that benefited from this exposure, Kellogg's Corn flakes. Here is the introductory copy:

Should You Advertise During a Recession?

Consider this ad from 1935 and how it affects buying today.

Advertising dollars spent during slow times are the best investment a company can make.

In 1929, rival cereal makers Kellogg’s and Post were in a close race to win the breakfast cereal market. When the Great Depression started, Kellogg’s maintained their advertising spending while rival Post cut back.

At the end of the Depression, Kellogg’s had achieved a category dominance that they maintain to this day.

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On your next call:
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Download and print out the memo. Show them the old Kellogg's ad that ran at the height of the American Depression and remind them that it was during The Depression, when Post cereals cut their ad budget and Kellogg's did not, that Kellogg's became the category leader.
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Now ask, "How many more boxes of Kellogg's product have been sold long after The Depression ended because someone had the vision to see a time of economic slowdown as the time to pull ahead of competition?"

Download cornflakes_promo.doc

Digital media buyers want you to remember what business you are in

As media moves from being intangible to measured the details become more important, and lunch--the core tool of intangible sales-- less so. Along these lines, Ed Kelly executive vice president, digital media at KSL Media, offered sobering advice in a post last week on "Online Publishing Insider:"

"We're not in the lunch business. We're in the advertising business. The publishers that heed this charge will outrun their competitors every time, even if their sites aren't quite as robust."

Kelly offers these guidelines for reps wanting to make the most of the new sales environment:

Respond to the full RFP. This sounds a lot easier than many major publishers evidently find it. Publishers can't pick and choose which questions to answer; it's an all or nothing proposition. If you're not going to address an issue, you have to tell the agency why.

Take it to the top. Senior management involvement is always appreciated. RGM chief Kamran Razavi managed JustLuxe's response personally, and at one point he had us collaborating directly with the JustLuxe publisher.

Prove the numbers. RGM provided Media Metrix runs, site surveys and anecdotal information without being prompted. That might seem ordinary, but it's not. Far too many publishers either don't have audited audience breakouts or refuse to divulge them.

Weave a program, not a buy. RGM bested the competition in several areas: the number of travel packages, the robust content and functionality of the program micro site, the variety of high-impact ad units promoting the program, and pricing that was aggressive in light of the demonstrated value.

Make pricing simple. The more complex the program, the more important it is to have clear pricing guidelines for CPM-based, fixed-fee and value-add program elements. RGM actually provided rates and pricing for three scenarios, with clear rules on what was included in each. Just as important: All of the scenarios synced perfectly.

Sound advice. 

Read Kelly's entire post on Online Publishing Insider

Free teleseminar "Selling Interactive Products"

I'll be running a FREE teleseminar for the National Association of Publishers Reps

Anyone selling media is welcome to join in. The topic is:

"SELLING INTERACTIVE PRODUCTS"

It's kind of dull sounding subject but one that I take very seriously. With online advertising selling the "interactivity" part of the media is the key to success. A lot of print media reps who are migrating over to selling interactive fail to realize what this one element does to change the game. Ultimately it is not our expectation about what matters but those of our advertisers. I plan on talking about the changing expectations of marketers that must be reflected in how we go to market.

Join us on January 24. It's free!

Date: Thursday, January 24, 2008. 4:00 EST

Call in at 712-421-8465; follow prompts, password is '4321'

Read my newsletter that went out this past Wed announcing this and other things:

Download sms_1_9_08.htm

Download march_14_2008_smarter_media_sales_newsletter.htm

Don't be an engagement dinosaur!

The buzz in marketing circles is about "customer engagement," ways of interacting with customers to advance marketing goals. cScape, a London based digital agency, has released a survey of

1000 "Customer experience professionals, showing the level of interest in programs that move customer engagement along. There is lots of it.

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Here's the catch.

The creators of the study are not big on "traditional advertising" and have not included even interactive advertising as part of the the study.

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This is instructive for media sales people to see just how far this "engagement" concept can go without ever mentioning advertising.

From the study:      

"Traditional marketing communications is almost an “us and them” situation. The logic is that if we say it loud and often enough, some of our message will stick! Modern web-based businesses need to deploy a much more subtle of our message will stick! Modern web-based businesses need to deploy a much more subtle line of interactive communications. One that’s all about mutual interests. People coming to a site want it to work and to work well. A site that achieves this is one that gets the business and generates the kind of “feel-good” factor that brand marketers strive for."

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On your next call:

Don't bring this study. But do think about the part of the "non advertising" dialog our advertisers are having about engagement that this study represents, and think about the marketing dollars that will drain away if you cannot make the point stick that interactive and magazine advertising can be extremely engaging. We sell many media that engage customers in many ways. On your next call think about how you can bring that point foreword.   

Download the entire study (registration required) 

http://www.cscape.com/services/Pages/Customer-Engagement-2008-Highlights.aspx

"Dear NBC your ad stinks"

As an interactive evangelist you have to get tough with advertisers who send you lousy ad copy. In interactive media there is no place to hide when an ad does not perform. If an ad tanks on your blog, or website the advertiser will more often blame your media than their message.

B.L. Ochman, publisher of What's Next Blog, was faced with this situation and posts about the tough love she dished out to NBC who submitted poor ad creative for her blog: 

"Dear NBC - Please don't get me wrong: I love you for advertising on my blog. But I want you to get results so you'll keep coming back, and this ad sucks...

So I'd like to give you a little free advice about how to make your blog advertising more effective.

- The job of a blog ad is not to tell your story. Blog ads need to be intriguing, interesting or entertaining enough to get us to a convincing landing page where you have lots of room to tell us what you've got for us.

- Talk about us, not about you. Don't take this personally, but we don't care about you. All we care about is what you can do for us.

- What's the ROI? Tell us about what advertisers got in the last Olympics. All advertisers care about is ROI, either in orders or awareness. Give us stats. We don't care how many days are left before your Olympic coverage starts. We want you to tell us, in the headline, why we should care.

- Be topical, timely, edgy, and fun. Blog readers are inured to traditional advertising. They're here, and on other top blogs, looking for something new and interesting.

- Be clear! You want to get brands to advertise on NBC during the Olympics. Tell me in the headline why I should bring my clients to you

- Don't make your ad a black hole. When that dreadful flashing stops in the ad, you're left with what is basically a black hole.

- White space is your friend in blog ads. You're competing with lots of copy that my readers came here - by choice - to get. What you have is basically a blob of copy, and since it's not easy to read at a glance, it's pretty much invisible. Less is more in blog ads.

- Don't scream in blog ads. You need to be clever.- Have a sense of humor.

- Don't be boring.

Read all of B.L. Ochman's story on her blog