The new 10 step Advertiser development process

jim.chisholm@futureofthenewspaper.com

Shaping the Future of the Newspaper

Shaping the Future of the Newspaper

Advertiser development process

This ten step advertiser development process was created by examining the best practice in advertising sales across a range of leading European newspaper companies. Whether implemented in whole or in part this process can help your company to overcome the current downturn in advertising, make your advertisers’ investment work harder for them, and make each advertiser more loyal to your newspaper.

Shaping the Future of the Newspaper

Advertiser development process

A ten step plan built on success from four European leaders.

Shaping the Future of the Newspaper

Advertiser development process 1. Everyone in the newspaper is involved in ADP
• Advertisers are readers
• They appear in stories • They contribute stories • They (usually) pay the majority of the wages

• While the editorial content must be above influence…….
• Editorial design has a critical impact on advertising readership (and vice versa); • Advertiser’s attitudes to the newspaper affect their loyalty and perceived value;

• “Newspapers must have a coherent approach between editorial and advertising” (Bain & Co); • Advertising off-take must be a determinant of readership development.
Shaping the Future of the Newspaper

Advertiser development process 2. Understand each advertiser’s objectives, needs and attitudes
• Understand what each advertiser is trying to achieve: • Targeting • Nature of transactions • Objectives from different marketing channels • Measure their use of the newspaper relative to other media channels they use: • Response • Responsiveness • Value • Share of marketing budget • Identify and prioritise their core concerns and barriers

Shaping the Future of the Newspaper

Advertiser development process 2. Understand each advertiser’s objectives, needs and attitudes
• Rolling methodology • Ongoing tracking • Total number of ledger accounts / 50 • Identify emerging problems • Track advertiser confidence • All transient advertisers on invoice • Match sample with group of non-advertisers • Integral part of advertising function • Funded through results • Linked to appraisals • Interaction with sales people (and rest of company)
Shaping the Future • Means of the Newspaper

of identifying ideas and new strategies.

Advertiser development process 3. Build customer knowledge – account by account
• AttitudesValue Response • Service scoreSales After sales • Loyalty and share Frequency Commitment • Relative substitutionRelative positions of other media Reasons for substitution • NeedBusiness objectives Business ambitions
Shaping the Future of the Newspaper

Advertiser development process 4. Classify the prospect base
• Non customer those who have never advertised.

• Newthose who have advertised for the first time within the last 3 months • Activethose who have advertised in the last 6 months.

• Inactive those who have advertised 6-12 months previously

• Passive those who have not advertised for over 1 year.

Shaping the Future of the Newspaper

One client analysis revealed that non-repeat business accounted for 35% of revenue and 65% of annual customer base.

Advertising growth through ADP 4. Classify the prospect base
High

Value index

Secure through service

Value management

Low-cost ad-hoc
Shaping the Future of the Newspaper

Revenue development

Low

Loyalty index

Advertiser development process 4. Classify the prospect base Track points of growth and churn within segments of the advertiser base which are either • Identify the prospect base.
excessively vulnerable or showing exceptional growth: • Value of spend • Company profile • Category • Geography • Attitude • Sales person

• Patterns of growth and churn may not be obvious.

Shaping the Future of the Newspaper

Advertiser development process 5. Build the sales organisation around the advertisers - Too many advertising departments reflect the structure of the • Structure
newspaper, rather than the needs of the advertisers; • Most of the effort goes into 10% - 15% of business at the margin, rather than concentrating on levering those customers with the greatest potential. • Too much time is devoted to marginal needs and competitive pressures; • Identify what advertisers are driven by and sell to them accordingly; • Some products require forced selling; • Portfolio selling must account for the products that are harder to sell.
Shaping the Future of the Newspaper

Advertiser development process 5. Build the sales organisation around the advertisers - Structure (Sanoma Corporation)

Shaping the Future of the Newspaper

Source: Helsingen Sanomat

Advertiser development process 5. Build the sales organisation around the advertisers “b 2 c” “b 2 b” -Cost Structure by market, not product line per contact (Axel Springer)
“Face to face” “Ear to ear”

“Bit to bit”
Average value order Source: asdirekt

Shaping the Future of the Newspaper

Advertiser development process 5. Build the sales organisation around the advertisers • ChannelAlign sales force - Implementation according to client value and
allocationpotential. • ManagementEnsure appropriate appraisal systems track sales systemsperformance against new measurements. Provide appropriate award systems against value creators, not short term targets. • TrainingEstablish training needs against appraisal analysis and customer feedback, by sales person and teams. • CreativityInvest in creative solutions to meet measured needs of customers.

Shaping the Future of the Newspaper

Advertiser development process 5. Build the sales organisation around the advertisers - Recognise drivers of growth as much as current performers • Reward
• Contracts • Improved measures of loyalty and commitment • Growing share of advertiser spend • Penalties for excessive churn • Reward sales people for the quality of their advertising business not simply its value.

Shaping the Future of the Newspaper

Advertiser development process 6. Provide a single view of the advertiser relationship
• Accounts and spending record • Payment history • Customer knowledge • Attitudes • Service score • Loyalty and share • Relative substitution • Need • Know the advertiser’s measure of performance • Share the single view. Share the ownership of the advertiser.
Shaping the Future of the Newspaper

Advertiser development process 7. Track, measure, react, track, measure, react, track, measure react, track, a process of continuous improvement: Introduce measure, react, track, measure, • Operational issues react, track, meas
• Tracking and removal of weaknesses and errors • Product and service issues • Creativity and advertising effectiveness for them • Service quality and effectiveness for us • Productivity issues • Revenue • Frequency • Cost per order • Retained revenue per order • Record, report, share
Shaping the Future of the Newspaper

Advertiser development process 8. Maximise the efficiency of the advertisers’ message
• Better ad positioning • Pagination • Section • Rotation • Better ad design • Offer of additional services • Added value products and services • Process benefits such as fulfilment

Shaping the Future of the Newspaper

Advertiser development process 9. Maximise prices and yields
• Continually adjust prices to meet the needs of the market • What does the advertiser value? • Lack of data is driving prices down – • Early right hand pages are worth more • Position targeting will justify higher prices • Ensure sales staff and managers are fully aware of the profit implications of yield and are fully trained in negotiating and presenting price.

Shaping the Future of the Newspaper

Advertiser development process 9. Maximise prices and yields

Aware Sales Executives Team leaders Line managers 82% 93% 100%

Understood 12% 22% 73%

Shaping the Future of the Newspaper

Source: The Byrne Partnership

Advertiser development process 10. Build the business from the knowledge
Markets Current New New Market Experience

Current

Products

Market Penetration

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New product Experience

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Evolved new product/service /market

Shaping the Future of the Newspaper

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Advertiser development process 10. Build the business from the knowledge
Markets Current New

Products

Current

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Shaping the Future of the Newspaper

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Advertiser development process 10. Build the business from the knowledge
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Shaping the Future of the Newspaper

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Advertiser development process 10. Build the business from the business Advertisement Operational Business
effectiveness • Creative value • Relevant positions • Pricing effectiveness • Perceived value • Loyalty factors • Competitive position • Service scores
reorganisation: • Exploiting new technologies • Channels to niche • New organisation

Customer service programme •Sales training •Creativity seminars •Advertiser development process

Customer response Listening to customers Creating new products and channels Incremental services

Shaping the Future of the Newspaper

Growth through old and new.

Added value advertising Issues of implementation
• Establish communication process prior to definition and implementation of the ADP process: • In advertising • Across the company • Among the advertisers • Process of improvement is achieved through people and not through technology: • Clearly define the hurdles • Operational • Economic • Cultural
Shaping the Future of the Newspaper

Added value advertising Issues of culture

?
Shaping the Future of the Newspaper

Advertiser development process In summary
• 1. Everyone in the newspaper is involved in ADP • 2. Understand advertisers’ objectives, needs and attitudes • 3. Build customer knowledge – account by account • 4. Classify the prospect base • 5. Build the sales organisation around the advertisers • 6. Provide a single view of the advertiser relationship • 7. Track, measure, react, track, measure, react, track • 8. Maximise the efficiency of the advertisers’ message • 9. Maximise prices and yields • 10. Build the business from the knowledge
Shaping the Future of the Newspaper

Added value advertising In conclusion
• Substitute shortfalls in ad revenue through added value: • Making the advertising budget work harder • Extended products and services • Seeking new customers for our customers • Working with advertisers on diversified products • Growth opportunities lie below-the-line as much as in broadcast or new media; • We must reflect the move by media consumers and communicators toward more relevance and less wastage. • Advertiser development process is the big, fast hit. It is working for many of Europe’s leading media companies. • Implement it all or part, but implement Monday.
Shaping the Future of the Newspaper

Click here to order a copy of the SFN report on added value adverti Click here to contact the Click here to order a copy of the SFN report on added value advert Director of the SFN Project, Jim Chisholm

Shaping the Future of the Newspaper

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