Growing Online Revenue:Advertising, Sales and Classifieds

Moscow, Russia27 – 28 September 2012

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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

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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.

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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?

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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

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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

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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

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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

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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

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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.

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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.

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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.

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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.