What’s hot: Digital Agency ModelSeptember 2014

Shannon Kinney

shannon@dreamlocal.com

@dreamlocal, @shannonkin

Digital Feet on the Street

The rules of marketingHAVE CHANGED.

Online Marketing Landscape• SMBs Digital Marketing spend to outpace Digital

Advertising by 2.5x this year *

• $97billion projected in PR and Social Media Marketing

consulting services (each more than radio and

newspaper combined) *

• SEO projected spending $40billion, Email

management $43billion *

• 80% of companies will participate in social media

marketing this year, nearly double from last year **

• Mobile and Video Marketing rapidly growing

Sources: * Borrell Associates, **eMarketer

Newspaper: Five-Year Forecast

Source: BIA/Kelsey, 2014

Print Decline (2013-2017): $4.5B (22%) Digital Growth (2013-2017): $765M (13%)

$18.0$16.8 $15.7 $15.2 $14.3 $13.5

$3.2$3.3

$3.4 $3.5$3.6 $4.0

$0.0

$5.0

$10.0

$15.0

$20.0

$25.0

2013 2014 2015 2016 2017 2018

Print Online

US

$ B

illio

ns

$ 21.2$20.1 $19.1 $18.7 $ 17.9 $17.5

Note: Numbers are rounded.

Who is your REAL competition?

Source: Borrell© 2014 Borrell

Legacy Media’s ‘Spindly’ Digital Legs

Share of Local Digital Advertising

Source: Borrell© 2014 Borrell

Legacy Media’s ‘Spindly’ Digital Legs

Share of Local Digital Advertising

Your Customers’ Needs Are

Changing

The customer: Local businesses• Increasingly, cannot afford traditional

marketing, but don’t understand options

• View online marketing, and Facebook in

particular, as an affordable and important

option

• Are too busy to keep up with managing their

marketing and their businesses, seek assistance

• Are hungry for solutions

• Social media can bring significant results

Media Used: Newspaper SMBs

63.9%

48.6%

42.6%38.3% 37.7% 36.6% 35.5% 34.4%

32.8% 32.2%

0%

10%

20%

30%

40%

50%

60%

70%

“Newspaper SMBs” over-index in usage of Facebook, E-Mail, Google, Twitter, Video

Source: BIA/Kelsey, LCM Wave 17, Q3/2013 (and prior waves, if relevant). Methodology: Online panels. Sample: SMBs Who Advertise with Newspapers.

Your Clients’ Needs Are Changing

• Newspaper SMBs use digital media heavily – and

plan to do more. And they’re also more selective.

• They’re ramping up their online presence, and how

much they spend to maintain it and engage across it.

• Digital fragmentation presents tough challenges –

like measuring ROI for “owned” and “earned” media.

• Newspapers are still well-positioned to serve this

marketplace.

What does this mean?

• Local businesses are seeking online marketing

solutions are overwhelmed with options, and trust you

• Your competition is NOT other media companies

• As print slowly erodes, digital marketing services grow

rapidly

• Marketing services vs. advertising: where growth

opportunities lie, requires different kind of sale

• Need teams to be able to sell audience, understand

the advertiser problems to solve and identify solutions

What does it mean to your sales effort?

• Does NOT have to be a separate group or

“agency”, BUT does need digital sales acumen

and dedicated sales resources

• An entirely different level of service

• Non-product or platform specific

• Client-focused vs. product-focused

• Non-biased

• Solution-oriented

What does it take?

Think like a startup

Being able to sell a

SERVICE vs. SPACE…

…this is what builds lasting

advertiser relationships and trust!

Selling Differently: Solutions

• NO space selling, NO individual

product selling

• YES: ongoing campaigns based

on CLIENT NEEDS

• How this sales process helps

you sell more of everything

else & builds trust

• How these products are GLUE

Vs.

• Create a process and formula for needs-based

selling that includes:

– Needs assessments

– Ask probing questions to understand ALL business

needs

– Sell PLANS not days, runs, short campaigns

– Regular “check ups”

– Prescribe best ways to use all of your tools for

them – even advertisers that have run for years!

• Intense sales training

• Accountability!

Needs-based selling for REAL

Understanding

and selling

Marketing vs. Advertising

Keys to Success

• Hiring digital native or young won’t fix it – skills

development needed

• Basic sales skills

• Marketing

• You lead by how you set your team’s priorities –

reinforce in your

• Culture

• Focus

• Incentives, goals

• Accountability

For NYPA Members:

A free evaluation of your options

shannon@dreamlocal.comwww.dreamlocal.com

@shannonkin, @dreamlocalwww.facebook.com/dreamlocal

207-593-7665

http://Publishers.dreamlocal.com