What’s hot: Digital Agency ModelSeptember 2014
Shannon Kinney
@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
@shannonkin, @dreamlocalwww.facebook.com/dreamlocal
207-593-7665
http://Publishers.dreamlocal.com
