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Archive for October, 2011

Read All About It: Coupons!

Monday, October 31st, 2011

Every Sunday at the grocery store I walk past a rack containing my local daily newspaper.  As I wheel my cart by, I glance at the front-page headline – something that’s supposed to scream out and say, “pick me up!”  It never happens – that is, until this weekend.

The newspaper is The Virginian-Pilot, a 170,000-circulation daily where I spent a dozen formative years as a reporter and editor.  When I was a copy editor, a colleague once told me how to write a great headline.  “Imagine a kid selling newspapers on the street, yelling out the headline.”  That bit of advice helped me win a dozen headline-writing awards.

But on this past Sunday it wasn’t the headline that grabbed me.  The front page (which looks like it was designed by committee) had two headlines:  “Ghouls Rule!” and “Our New National Park.”  Those are about as likely to get me buy the paper as the sign on the potato rack that says, “Russet potatoes.”

The headline that captured me was bigger and more colorful than anything on the front page.  It also held greater creativity and news value than anyone on the copy desk apparently had the energy to think of the night before.  The headline:  “$240 in Coupons This $unday!”

It was both sad and heartening.  Heartening because at least someone was thinking about how to sell newspapers.   Sad because it wasn’t the people responsible for making the product compelling to the community every single day.

Like many newspapers, the once-formidable brand of The Virginian-Pilot is no longer strong enough to sell newspapers on its own.  That power was lost many years ago with the proliferation of local news and information both on TV and the Internet, as well as many years of newsroom downsizing.  At this particular paper, Page 1 reflects the diminished brand of a longstanding, two-time Pulitzer-winning product:  The front-page flag is small, pushed off to the left and crowded out by things above, below and to the right of it.

The same is not true of all newspapers. Many have held fast to what they do best in print. I was in Little Rock a few weeks ago and found The Arkansas Democrat Gazette chock full of news. (This Sunday’s top headlines: “Arkansas 31, Vanderbilt 28” and “Kabul bus bombing kills 12 Americans.”)  I read the entire paper on the flight home and got a robust slice of life about what’s important to the people of Little Rock.  A few months ago I visited Colorado and found much the same with The Durango Herald, a small newspaper that remains the voice of the community.

I guess I should be glad that marketing departments can take charge and find at least something of value to help sell the paper.  After all, the same percentage of people read the advertisements in Sunday’s paper as read the news.  The Internet can’t touch the newspaper when it comes to delivering the most comprehensive package of what’s for sale in a local community on that particular day.  Try to Google that.

Things are changing, however.  Three industry efforts are pushing out newspaper circulars and other local advertising that might just usurp the daily newspaper’s stronghold on that more valuable breaking news of the day:  Where all the big sales are.  Those efforts include Gannett Co.’s ShopLocal.com, Suburban Newspapers of America’s Zip2Save.com, McClatchy Corp.’s FindnSave.com, and The Associated Press’s iCircular.com.   I’m not certain these efforts will ever replace the daily newspaper as the No. 1 source for current sales information for local markets, but they certainly hold the promise of doing so.

In this tough economy, I suppose that shelling out $1.50 on the prospect of saving $240 is as good a way to sell a newspaper as any.   At the rate things are going at some newspapers, they’d do better to fold the paper so the advertisements could become the front page.

 

 

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Hey, I Found A Fact!

Thursday, October 13th, 2011

I ran across an interesting “fact” the other day in a sales-trainer’s blog that was as much humorous as it was scary.  It suggested – no, stated as fact with the flair of a “duh” at the end as if to squelch any doubt – that salespeople provide your best market research.  To wit:

“Fact: Your sales force with those direct relationships with local business should be your #1 source of market research. Reps should always be doing CNA’s (client needs analysis) to uncover clues to help point your Newspaper web sales model in the right direction. If anybody should have high levels of market intelligence and know the spending habits of local business, it should be your local feet on the street …. NOT an expensive research firm. Duh.” (Moneyball: Fixing Newspaper Web Sales, posted Sept. 30, 2011, by Mel Taylor Media)

I suppose we could write this off as a sales trainer trying to sell training and a market researcher (yours truly) defending the power of research.  But since I deal in facts, I reel when I see one mislabeled as such.  I am reminded of Homer Simpson, the puzzled cartoon naïf who makes us laugh by connecting the dots exactly the wrong way. His typical response, when things go awry, is “D’oh!,” first cousin to “Duh.”

When it comes to market intelligence, connecting the dots accurately is vitally important. Brilliant sales strategists know that a single customer’s observations are anecdotal and that formulating strategies around them is as dangerous as gauging an iceberg’s size by its visible part. If two customers say the same thing, the importance of the observation begins to build. (Throw in a Duh at this point and you can stop the research right there.)  So, how many customers does a sales person have to interview before an observation becomes reportable? The answer is a lot – and that’s presupposing that advertisers tell their reps the unvarnished truth in every instance. “Will you spend more on radio next year?” coming from the mouth of a radio rep will likely get a different response than when a newspaper rep asks the same question.

The truth is, “feet on the street” have a mediocre record when it comes to market intelligence. The proof is the accuracy of the sales forecasts they provide, when pressured by their managers to do so. These forecasts are usually very similar to current year results, or maybe just a little better. Reps live in a year-over-year world. If this year is an improvement over last, they are rewarded. If it’s worse, the opposite occurs. That’s hardly the best atmosphere for keen observation and critical thinking.

Great salespeople are as horrible at research as great research people are at sales.

On the other hand, reps are very good at proving whether or not market intelligence is valid. If they try it and it works, they’ll use it again and again – and they’ll come to depend on it as an important part of their toolkit. If it doesn’t work, they’ll drop it like a hot rock and let management know in a hurry that it failed.

Expecting your reps to tell you about market trends is like expecting young children to tell you whether the carpet’s clean. After all, they’re closer to it than anybody else in the house. Without good market share and competitive intelligence, those “feet on the street” won’t find the best places to walk. Good market intelligence and good ad share measurement are like advertising. Poor business managers see it as expensive.  Good ones view it as an investment. Valid market research saves media companies from a lot of bad assumptions and wasted time.  It also helps them figure out what’s really happening in their specific markets.

“Duh” shouldn’t be in any sales organizations’ vernacular.  But “Aha” should.

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5 Things To Do in Mobile

Friday, October 7th, 2011

Our 2011 Local Mobile Advertising Conference in Chicago Oct. 2-4 was packed with statistics on mobile usage both by consumers and advertisers, as well as real-world examples from more than two dozen media companies in the newspaper, yellow pages, TV, radio and Internet pure-play space.

It was easy to be overwhelmed with ideas and opportunities. So Borrell Associates President Colby Atwood and I sat down at the end of the 2½-day meeting and summarized the most important observations in a session entitled “Five Things to Do Next.”

  1. Because the opportunities today seem to be yielding relatively small dollars, know the size of the market you’re chasing.  It’s easy to put way too much effort into a market segment that might deliver far less revenue than the expenses required to cover it. Our research shows that the total local mobile advertising expenditure for 2011 will be in the neighborhood of $788 million, and the majority of local markets are seeing less than a half-million dollars each. That will grow 103% next year, but it’s always best to get realistic first about the underlying dollars that support your mobile efforts.  Note:  to see my opening statement with our 2012 local advertising forecast, which includes this data, click here.
  2. Take a very close look at mobile marketing’s geofencing capabilities.  We believe that this may hold the biggest promise for local media companies.  The presentation by Placecast CEO Alistair Goodman highlighted case studies showing businesses that sent text messages to people within the vicinity of their store, getting 73% of them to actually come in and 65% of them to purchase something.  Even more interesting was the fact that 49% of those who responded to the opt-in text by coming into the store hadn’t planned on coming in.  That’s extremely powerful, and hints of an entirely new method of “push” marketing based on consumers’ proximity to a store location.
  3. Participate in mobile ad networks like those offered by AT&T Interactive, xAd, Where.com, Verve and others.  With mobile inventory growing exponentially, local sales forces may not be able to keep pace.  So it makes perfect sense to link into the mobile networks, which are reporting significantly higher CPMs than traditional online ad networks.
  4. Invest in training, especially with sales forces.  Our surveys indicate that 48% of smaller local advertisers surveyed intend on participating in mobile marketing this year.  That’s very high.  Sales reps should be tuned into this interest and adequately trained to answer their questions.  In addition, the consultative sales approach — or “agency approach” — to selling is going to be vital.  We heard four local advertisers tell us during the conference that the “best” sales rep they ever encountered was trustworthy, honest, and helpful.  Not pushy, persistent and persuasive.
  5. Don’t forget that mobile devices are rapidly becoming video-centric.  We heard stories about pre-roll inventory on TV websites being sold out, and being sold at CPMs north of $70. With the rapid transition of video viewing over to mobile devices, there is likely to be a great deal of opportunity for 10-second pre-roll and post-roll on video programming.   The CPMs alone should be enough to commit a fair amount of resources to building out video programming.
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