Date post: | 11-Nov-2014 |
Category: |
Business |
Upload: | mediadevelopmentloanfund |
View: | 848 times |
Download: | 0 times |
Growing Online Revenue:Advertising, Sales and Classifieds
Moscow, Russia27 – 28 September 2012
2
TopicPresenter
Online Advertising Market Overview Ross
Sales Teams: Organization & Motivation Ross
Advertising Networks Ross
Online Classifieds: Local Opportunities Ross
Social Media: Building Audience & Revenue Kevin
Agenda
3
Sales Teams: Organization & MotivationIt’s all about people solving problems for people…
… using your products and audience at a price they are willing to pay.
4
Sales Teams: Organization & MotivationIn order to organize the most profitable sales effort, the first step is to define the universe of potential advertisers.
How many advertising accounts do you estimate are available?- Locally, regionally, nationally- Currently advertising; not advertising- Current clients, past clients, non-clients
Why do they need you? What products can they use to achieve their goals?
What are their business goals for their advertising?- Brand awareness?- Store traffic?- Product sales?- Other?
What are the costs of serving each group of clients?
5
Sales Teams: Organization & MotivationThe first step in organizing sales is looking for groups of advertising with common needs.
Few
Very large
Occasional
Brand Awareness
High
High
Moderate
Large
Regular/Frequent
Store Visits/Awareness
Moderate
High - Moderate
Many
Moderate/Small
Occasional
Store Visits
Low
Low - None
Very Many
Small
Infrequent
Sales
None
None
Advertiser #
Budget Size
Ad Frequency
Need
Agency Role
Online Experience
Advertiser GroupsNational Major Regional Local Small Business Individuals
For Example
6
Sales Teams: Organization & MotivationOur example sales channels might have the following characteristics.
National Major Regional Local Small Business IndividualsStrategic
Investment: Low High High - Moderate Moderate - Low
Staffing: - Online Experience - Online Experience - Online Experience - Online experience- Agency Experience- Occasional/
Infrequent Contacts
- Ability to articulate package online needs
- Frequent, regular contact
- Ability to identify online opportunity
- Ability to train/coach online tools
- Occasional contact/seasonal
- Ability to describe standard online packages
- Infrequent individual contact
Compensation: - Mostly Commission - High base, some commission
- High commission; liveable base - Balance between commission & base
- Commission grows over certain sales quota
- Commission on sales increase on previous year
- Commission on new accounts
- Commission on revenue/new accounts
- Commission on sales revenue and new account creation
Marketing Needs:
- Standard materials (brochure, media kit, website)
- Creative proposals- Ad Design
- Account identification (Lead Sheets)
- Call centre- Online self-service platform
- National Rate Card- Network of sites
- Online training/support for advertisers
- Online training/coaching
- Respond to RFP's
For Example
7
Sales Teams: Organization & MotivationBased on these example characteristics, sales channels might look like the chart below.
National Advertising Representative Agency
Ad Network
Standard Product
High Price
Sales ChannelsNational Major Regional Local Small Business Individuals
For Example
Account-based Sales Force
Custom Advertising Packages & Prices
Region or Industry-based Sales Force
Standard Ad Prices &Packages
Limited Customization
Call centre
Self Service Online
Standard Ad Prices & Packages
Sale
sCh
anne
lsPr
oduc
t/Pr
icin
g
8
Sales Teams: Organization & MotivationLet’s look at an example if how sales, product and marketing work together to make some money in print and online.
Advertiser Group: Travel/Real Estate Category – Resident HotelsAdvertiser Need: Increase rental inquiries
Solution:Product: - Created a new online directory of residence hotels for the city. - Quarterly print update of the directory
+ Distributed to HR Directors/ Executive Search Firms+ Mailed on request
Marketing:- Seminar on online marketing (annually)Sales Effort:- Large Clients Direct Sales Call- Single Hotel Seminar invite/sales- Small Occasional Clients Direct Mail/email; follow-up call
9
Sales Teams: Organization & MotivationThe example – At Your Service – from the South China Morning Post, Hong Kong continues to deliver profits and expands each year.
“At Your Service” - OverviewAverage Annual Revenue = Over $ 1 million
Direct Margin = Over 50%
Annual expansion to other cities/countries:- China (12 cities)- India (9 cities)- Thailand (7 cities)- Australia (5 cities)- Singapore- Malaysia
10
Sales Teams: Organization & MotivationMotivating sales is a constant effort that requires a continuing investment in :
Training: Sales training continually upgrades the quality and effectiveness of your sales force. One of the most important assets at a local media operation is the local sales force.
Incentives: Incentives includes more than just commissions. Depending the goals or challenges facing the sales team, incentives may include:- Sales Contests- Instant Bonuses- Awards
Advancement: As the company’s revenues grow looking for organizational ways to give sales people more responsibility.
Recognition: Providing for company and external awards and contests.
11
Sales Teams: Organization & MotivationSpecial Issues: How to organize online sales?
Three models for online sales organization in a larger traditional media company. Separate, Stand-alone: Create a special, independent online sales team.Pro: Creates focus and expertise for online salesCon: Creates an internal tension and competition with traditional sales
Outcome: May see early gains in online sales; but creates strong internal friction.
Combined/Integrated: Existing sales is trained and expected to sell online advertising in addition to traditional advertising.Pro: Develops/trains the existing sales force in the techniques of onlineCon: Traditional sales may see no value in selling low-priced online ads without a special commission.
Outcome: Online ads sold occasionally, but often included as bundled “bonus” buys.
12
Sales Teams: Organization & MotivationSpecial Issues: How to organize online sales?
Three models for online sales organization in a larger traditional media company.
Hybrid – Integrated with SupportIntegrate sales with existing sales selling both traditional and digital. Create a special incentive program to reward the sale of low-priced online ads. Add internal online advertising specialist(s) to support with internal training, online advertising development.
Pro: Reduces internal conflict. Develops internal staff. Con: Requires more staff than simple integrated sales effort.
13
Sales Teams: Organization & MotivationSales organization has to start with the advertisers’ needs and then continually evaluate the costs of sale and the effectiveness of the organization.
Advertisers: What types of advertisers are you serving and what do they need?.
Sales People: What skills do they need to have to cultivate the advertiser account?
What type of compensation do you need to balance the needs to provide customer service for regular advertisers while also bringing in new advertisers.
Go to Market: How to best reflect the needs of the advertiser in what the advertising opportunity is (the product), the sales and marketing team that makes the sale and the price that is charged.