Ad Sales Blog

If you had seen the "media correction" of 2009 coming what would it have looked like?

If you were in media sales for print media,television, or radio 2009 was a miserable year. What would it have looked like if you could have predicted it? It might have looked like the following blog post. Based on events that had just happened in the financial industry my June 22, 2007 blog post, describes the "inevitable correction" that ad based media will be going through. It looks like the end of 2009 to me! 

Here's the post:   

A recent "follow the money" analysis of the advertising industry by Dow Jones' "MarketWatch" should serve as a shrill wake up call to anyone in the ad sales business who thinks that online products will not be the biggest part of their portfolio in the future. I also see this article as a great sales tool to show any advertiser who feels the same.

The article looks at the recent spate of acquisitions among online ad giants with eye popping billion (with a "B") dollar signs; Google buys DoubleClick for $3.1 billion, Microsoft buys aQuantive--for $6 billion, etc. MarketWatch concludes, they make perfect sense because of the "inevitable correction" coming to the ad industry as a whole.

MarketWatch lays out the case:
"Last year, U.S. consumers spent nearly a third of their total media-consumption time engaged with online or interactive media, a dramatic increase from just two or three years ago. At the same time, Fortune 500 companies allocated only 6 percent of their marketing budgets to online media in 2006, up from 5 percent in 2005...they're spending ever more money where, increasingly, consumers aren't."

The prediction:
"The inevitable correction is upon us. That's why online adverting in the U.S. market is growing seven times faster than other advertising media: Online was up 35% year over year, while the overall ad market grew only 4 percent. Whether dollar allocation percentages ever match consumer usage numbers is academic; it's clear that the gap between consumer behavior and corporate marketing budgets must close."

If it's anxiety producing to hear financial types apply the word "correction" to the industry where you currently earn a living, take heart. Now that you know what is "inevitable" you can take advantage.

Read the full article on MarketWatch

Free sales training videos on selling through a recession

Josh Gordon, is interviewed by Susanna Pollack, Sr.VP at BBC worldwide.

In a series of three interviews Gordon reveals how to rethink, reorganize, and redevelop persuasion for effective recession selling.  

Part 1(Time 10:46)

A recession is mo or so re than just selling in a slow time of sales, it is a highly strategic time where sellers who understand the patterns can gain advantage.  

Part 2 (Time 10:38)

Reorganizing and refocusing for recession selling

Part 3: (Time 15:46) Persuasion in a time of recession.

See all the training videos

Also, download Josh's award-winning report, "What is Your Recession Sales Strategy"

The series was produced by The Customer Collectiveand is sponsored by Oracle. Free registration for the Customer Collective gets acess to both the videos and white paper. 

Study: Reduced recession advertising = negative consumer perception

More than 48% of U.S. adults believe that a lack of advertising by a retail store, bank, or auto dealership during a recession indicates the business must be struggling. Likewise, a vast majority perceives businesses that continue to advertise are competitive or committed to doing business.

The latest Ad-ology Research study, “Advertising’s Impact in a Soft Economy,” analyzes consumer perception about businesses that continue to advertise, and those that do not, in the current economy.

The study finds advertising appears to play a key role in consumers’ view of how a business is doing, and by not advertising, businesses may be sending a warning signal to current and potential customers.

“It is critical to advertise in the current economic climate, to maintain long-term positive consumer perception of your brand,” said C. Lee Smith, president and CEO of Ad-ology Research. “Advertising not only assures consumers of a business’ reliability in a soft economy, but it can influence where and what they buy, especially when the ads address concerns about value,” Smith said.

This is a great study to take on our next call to help a potential advertisers see that just because customers are not buying, the are still creating perceptions about the products and services they will eventually buy.

Read about the study

Has the recession bottomed out?

 Last weeks often contrarian Economist made a cautiously optimistic case that the US Economy is improving. The article ticked through housing, economic data, and stocks to find positive signs in each. I recommend printing out and sharing this article with all your clients. There has been plenty of bad economic news, as sales professionals our mission must be to bring forward the positive. 

Here are highlights from those three areas: 

The housing bubble:

 "The current recession has broken many of the rules of business cycles, but not this one: when something gets cheap enough, buyers emerge.

America’s housing bubble seems mostly deflated. According to the S&P/Case-Shiller 20-city index, house prices through January were down 29% from their all-time peak. Relative to incomes, houses are now 10% undervalued, and relative to rents they are fairly valued, thinks Paul Dales of Capital Economics, a consultancy... "

A variety of financial statistics: 

"In March factory purchasing managers were their least gloomy about new orders since last August. Vehicle sales rose 8% in March from February. New claims for unemployment insurance have stopped rising. Gross domestic product, which shrank at a 6.3% annual rate in the fourth quarter, probably shrank at a similar rate in the first, but the composition of the drop was more encouraging; it was driven not by the collapse in consumer spending, but by sinking output as businesses sought to bring inventories into line with lower sales. Second-quarter growth “has a good chance of being positive”, according to Ian Morris and Ryan Wang, economists at HSBC, though “the risks…are still huge.”

The stock market:

"As investors have shifted their economic outlook from catastrophic to merely grim, the stock market has shot higher, by 19% on April 1st from its 12-year low on March 9th. Like houses, stocks look cheap."

Read the entire article, "A faint sound of applause,"from last week's Economist.

Ad Sales Bible Version II FREE for download

Selling in the recession??

Here is a 25 page PDF that can help you sell more media in the recession.If you attended my presentation earlier this week in New York, this was the leave behind. I hope this helps. It's tough out there.

Click here:

Download Recession-ad-sales-bible-2

 

Top recession white paper helps sell advertising

For several weeks now, Josh Gordon's white paper written for the Customer Collective, "What Is Your Recession Sales Strategy?" has been one of the top ranked white papers on the web. This is great news for media sales people because it is a great media sales tool. The white paper is based on a research study that challenges assumptions of how selling should be done in a recession and can open conversations that lead to a media sale. 

 There are six findings in the white paper and each can can help sell ads. Here are the first two:

Number 1: In a recession, the most common sales direction is to go after new categories of customers. Instead, focus on selling more products to your current customers. This will be more profitable, less difficult, and when the recession ends you will be tighter with your client base.

Selling point: A client who embraces this strategy will be releasing new products, configurations, programs, and packages to their existing client base. Ads can help carry the message.

Number 2: As a result of the recession, 26 percent of sales organizations are working more closely with their marketing departments.

Selling point: The bad news is that three out of four are not. The panel of experts insists that in a recession sales and marketing must work together. Marketing needs to refocus to help the sales staff. Image advertising can be diminished, and more emphasis placed on the kind of promotion that attracts people looking for solutions. This is a golden opportunity for you to sell advertising and online programs that generate sales leads, or attract people looking for solutions. Webinars, e-blasts, and direct response advertising are appropriate here.

Now, Read all six points in the Folio magazine article "What “Do You Have A Recession Sales Strategy” Means for Content Publishers."

This white paper is not just a great media media sales tool it also happens to be the top downloaded white paper on this subject.  

ZDNet.com boasts the "Web's largest library of free technical white papers." Unique to the German portal (ZDNet.de), is a system that rates the popularity of white papers posted by editorial category. For several weeks "What Is Your Recession Sales Strategy?" has been the #1 ranked white paper in the "Finanzmamagement" (Finance management) category, as it still is today. In addition, the white paper is #3 in the "Financial Planning" category.     

   

If you read the Folio article and review the importance of the study you should be ready for a great sales call.

See a list of over 100 websites including Business Week, Inc., Forbes, and Fast Company where "What Is Your Recession Sales Strategy?" can be downloaded

See the list of the top 100 top rated Finanzmanagement (Finance management) white papers on the ZDNet.de site

I addition, the white paper has been in the top 10 for the category of Financial Planning  

Download the white paper on the Customer Collective Website

Read the Folio article on using the study

Recession clients who most buy webinars, white papers, and social media

When selling media in a recession, results matter. So. sponsorships that generate sales leads can be among the most recession resistant you will sell. A new research report I did for the Customer Collective, “What is Your Recession Sales Strategy.” finds that different kinds of companies buy depending on the kind of company they are. 

According to the survey, which queried a national sample of sales and marketing managers, entrepreneurial companies have dramatically embraced the use of social media for sales prospecting, mid-sized companies and multinationals lead in the use of webinars, while mid-sized companies lead in the use of white papers. Here are the results in detail: 

 

Social media:

According the study, 74.1% of self described entrepreneurial companies report that as a result of the recession they will be using social media for prospecting more often. In addition, 67.3% of small businesses, 49.3% of mid-sized companies, while only 45.9% of multinational corporations will do the same.

 

Webinars:

 Mid-sized companies and multinational corporations lead in the use of webinars sales lead generation.

The study found that 38.8% of mid-sized companies and 36.1% of multinational corporations will use more webinars to generate sales leads because of the recession. Only 28.4% of entrepreneurial companies and 24.5% of small businesses will do the same.

 

White papers:

When it comes to using white papers, mid-sized companies lead the way.

38.8% of mid-sized companies report they will use white papers more often to generate sales leads as a result of a recession while only 24.5% of small businesses, 23.5% of entrepreneurial companies, and 19.7% of multinational corporations plan on doing the same.

 

 

The recession will mean a growth in the use of webinars by multinational corporations and mid-sized companies, growth in the use of social media for prospecting among entrepreneurial companies, and growth in the use of white papers for lead generation among mid-sized companies.

As you look to your own media territories to generate sales leads, factor this in!

More about the Free Customer Collective white paper/survey

Download the study for free 

Recession fighting question: Do you sell more than just products?

   All companies sell products, but great companies sell more. Their organizations and products are based on an idea, mission, calling, philosophy or set of values.

During a webinar sponsored by The Customer Collective, David Bonnette, Group VP of North America Sales at Oracle shared the story on how his division worked through the sales slump caused by the 2001 dot-com crash by creating a series of social networks. 

As Silicon Valley's business went south, Bonnette's monthly events offered his customers a chance to network among themselves and share ideas on how to cope with the downturn. Oracle offered a valuable service to customers and assumed a thought leadership position during the events. When the slump ended these customers emerged more successful and more loyal. 

Bonnette described his motivation as wanting to "do the right thing" but also to keep a habit of consumption going among his customers, "If we are not going to be able to charge for our product leadership, we want them consuming our thought leadership."

On you next call

If your advertisers cut back and tell you the reason is their customers are not buying products, ask what else they are selling. How can they continue to be perceived as a thought leader in their market if they are silent during a time when many of their customers are in a phase of product, expense, and general business revaluation?

Ask them if their product or company is based on an idea, a mission, or philosophy? If not ask if their customers think of them as only a place to buy stuff from.  

Using this approach you won't sell a media schedule for product advertising. But you might  sell a web based media product that offers your client a way to interact with their customers in a thought provoking way. White papers, social networking, "ask the expert" programs, and webinars all can continue the ongoing consumption of your clients thought leadership to their customers. 

New York Times to media buyers: "Haggle. Haggle. Haggle."

Do my eyes decisive me? Is he New York Times egging on media price grinders and rate card bashers? Last week's Times had a small business column advising business owners to take advantage of the down economy by haggling with media sales reps...hey that's us!

  According th the article:

"Now Is the Time to Bargain. If you are hurting, rest assured -- so are the local newspaper, TV station, and radio station. Now is a perfect time to bargain for ad space, both in price and position. In most cases the more advertising space you buy, the more it is discounted. So if you're a landscaper and you're looking to place seasonal ads twice a week in your local newspaper for six months, ask for the 12-month price. The economy will go back up again and advertising prices will rise, so see what you can do to lock in the prices for the long term."

The Times also recommends asking for premium placement:

"If you're placing an ad in a magazine, ask which "premium" pages are open and see if you can get those at a discount. Premium pages include the inside front cover, the centerfold, the back cover, and the "front of book," which means the first third of the publication...But more important is to advertise when and where it makes sense for your business. If you offer tax services to small businesses, check into the costs of a "sponsorship" during a public radio station's "marketplace" show. If you own a sports store, make sure your ad is in the sports section of the newspaper or runs during the sports segment of your local news. Haggle. Haggle. Haggle."

Is this a sell out?  

Times are tough in media an everyone knows it. The Times provided a constructive road map to getting concessions. They did not mention more severe concession driving tactics that involve all or nothing threats and the strangulation of small kittens and puppies.     

I would rather talk to a client willing to haggle for business over one who just closes the door with no discussion about advertising until after the recession has passed. 

Read the Times piece:

http://www.nytimes.com/allbusiness/AB11648323_primary.html?ref=smallbusiness

Recession fighting rationales from Nigel

What is we love about the British? The accent? The Beatles? The Queen? Their command of their language?

 It is this last point that motivates me to post content from leading British research company Millward Brown. In a FREE, down-loadable, very tight, 4 page PDF, Nigel Hollis, their Chief Global Analyst, lays out the case for advertising in a recession with uncommon, common sense.

Although many of the points made have been made elsewhere, I recommend you download and share their report with your advertisers because Nigel simply states them all in a more convincing way. From the report:

" 1. The relationship between share of market and share of voice The connection between share of market (SOM) and share of voice (SOV) has been proven. The higher your share of voice compared to your actual market share, the more likely your brand is to grow its market share in the subsequent year. So, if you increase your marketing investment at a time when competitors are reducing theirs, you should substantially increase the saliency of your brand...

2. The relationship between brand size and profit margins. Because they enjoy advantages of scale, big brands enjoy an advantage over smaller ones in terms of attracting repeat purchase and recouping their marketing investments. Therefore, a brand that increases share during a recession stands to benefit from this multiplier once the economy rebounds.

3. Reduced “noise” during recession provides opportunities. A new product launch may actually have greater impact during a recession than at other times, for several reasons. A product that is unique or demonstrably better than others should be able to command a higher price, even among price conscious shoppers. Competitors who are running scared may be late in countering a new product with their “me-too” offerings. And, because media costs are likely to be lower, advertisers should get more bang for their buck. These savings may be compounded by the relative ease of cutting through in a less cluttered atmosphere. 

Overall, competing in a recession is like running a marathon. A smart front runner will seize the lead and work to increase it while others are flagging. If the other runners allow the gap to widen, it will be really tough for them to regain the lost ground when the pace picks up again."

Then again, maybe it's the accent!

Free download of the report

http://www.mb-blog.com/Images/Recession_POV1_Final.pdf

 It is this last point that motivates me to post content from leading British research company Millward Brown. In a FREE, down-loadable, very tight, 4 page PDF, Nigel Hollis, their Chief Global Analyst, lays out the case for advertising in a recession with uncommon, common sense.

Although many of the points made have been made elsewhere, I recommend you download and share their report with your advertisers because Nigel simply states them all in a more convincing way. From the report:

" 1. The relationship between share of market and share of voice The connection between share of market (SOM) and share of voice (SOV) has been proven. The higher your share of voice compared to your actual market share, the more likely your brand is to grow its market share in the subsequent year. So, if you increase your marketing investment at a time when competitors are reducing theirs, you should substantially increase the saliency of your brand...

2. The relationship between brand size and profit margins. Because they enjoy advantages of scale, big brands enjoy an advantage over smaller ones in terms of attracting repeat purchase and recouping their marketing investments. Therefore, a brand that increases share during a recession stands to benefit from this multiplier once the economy rebounds.

3. Reduced “noise” during recession provides opportunities. A new product launch may actually have greater impact during a recession than at other times, for several reasons. A product that is unique or demonstrably better than others should be able to command a higher price, even among price conscious shoppers. Competitors who are running scared may be late in countering a new product with their “me-too” offerings. And, because media costs are likely to be lower, advertisers should get more bang for their buck. These savings may be compounded by the relative ease of cutting through in a less cluttered atmosphere. 

Overall, competing in a recession is like running a marathon. A smart front runner will seize the lead and work to increase it while others are flagging. If the other runners allow the gap to widen, it will be really tough for them to regain the lost ground when the pace picks up again."

Then again, maybe it's the accent!

Free download of the report

http://www.mb-blog.com/Images/Recession_POV1_Final.pdf