Media companies next move might be as a service provider / consultant

I must confess, the headline grabbed my attention. "We're all in the advertising now" sort of speaks to me since I, well....I'm in the advertising business!

The article went into detail on how many consulting companies are adding marketing and advertising to their portfolio. It is the classic product extension move by companies such as IBM and Deloitte, and totally makes sense. Take an existing relationship and continue to offer more products and services. It isn't rocket science, and it is working.

Why are media companies not doing the same thing? I think any media company has the opportunity to leverage current customers and extend into new and different product lines. Newspapers might actually have a leg up on other media outlets; often deeper relationships plus a distribution network that is still an untapped resource at many newspaper locations.

I actually tweeted a story over a month ago from Ray Chelstowski from mediavillage.com titled "A Possible New Path for Newspapers" which outlined this very concept. The potential product offerings are substantial, and have enough potential to provide solid profits to have a stable business plan and could help supplement the continued tough model of modern journalism.

This new media outlet has at its fingertips all the media sales it does including its legacy product line and the full range of digital offerings. Additional opportunities could include:

--public relations
--native content for websites
--market research
--distribution
--billing
--collections

As is always the case, it will take some initial money invested to get a business model like this going. But it is a viable path for media companies struggling to find their way in this age.

Not all audits are painful. Auditing what rates you charge for advertising can be very revealing

Tax season is upon us, with the April 15^th deadline quickly approaching. One of the tasks at my household over the past few days has been gathering the necessary documentation so that we can visit our tax preparer in the coming days.

                Many people I know do their own taxes. It does save them money, but we pay the fee to obtain peace of mind. Early in our marriage, my wife and I did our own taxes. One year, we awaited a $545 refund check (this was long before the miracle of direct deposit!). When the brown envelop arrived from the IRS, the check was for $45 with an explanation that we had made an adding error and this reflected the proper amount. Devastating! That marked the last time we did our own taxes at my household.

                There are other reasons for having someone else do them. Most notably, we have a trained professional do them to reduce our risk and likelihood of an audit. After all, who likes an audit?

                While audits are generally considered a negative, there are good things that can come from an audit, and something I suggest you consider with your advertising department. When was the last time you audited your advertising rates?

                For me, it is an annual ritual. Right there with gathering up my Goodwill receipts and W-2s. Every year, this practice generates revenue for my operation.

                The old school approach was to draw up a new rate card every year, with anywhere from a 1 to 5% rate increase. While that might still happen in some markets, it is no longer the common practice. Often times, the traditional newspaper rates are steady and a newspaper is working on packages and other incentives combined with print to get additional spending. While I would love to tell you that we can steadily raise rates and enjoy the bountiful harvest, it is just not the reality we live in anymore. And that is OK.

                You can still look at the rates you’re charging and look for opportunities to tweak rates. The audit process will expose those rates, especially the very first time you do such an audit. In an advertising department rate audit, every rate is subject to review. Every rate—the published rate card, various service charges and special deals.

                Just because you do the audit, does not mean you have to raise the rates. But what I have found from past experience is that there are rates that your newspaper is charging now that have not changed in years. Last year in my audit, I found a rate that had been overlooked for over a decade and I adjusted. It was a sizeable increase for 2015 revenue. It was like having a nice medium sized advertiser open up in my market, and all I did was adjust slightly a rate.

                There are a few specific areas that I would review to see if there might be opportunities to change pricing and how you are doing business:

·         Premium positions – For most newspapers, premium positions have been a standard offering since the early 2000’s. But have you changed your pricing during that time?

·         Obituary pricing – It is fairly standard to charge for obituaries at most newspapers. While it is vital content for our newspapers, it is also a strong revenue line. A quick examination of your obit rates, rate structure and what levels are being used is very revealing.

·         Legal notices – I always ask and verify the legal advertising rates at a newspaper. There are state regulated rates for some categories, and it is very important to verify that you are charging those designated rates. Charging more than is allowed is an obvious problem, but charging less than the stated rates is leaving money on the table.

·         Auto / Real Estate deals – Remember that special package you set up with the local auto dealer, if he agreed to increase his spending over prior year spending a few years ago? If it is still in place, make sure they are still holding up their end of the bargain.

·         Post it notes – Some newspapers can add the post it notes to the front of their publication. This is a highly valued marketing opportunity, which has increased in value in recent years. Has the rate changed?

·         Any flat charge or sponsorship program – These programs often are set in place and quickly forgotten. After all, the squeaky wheel gets the grease. These programs are often times good programs with good advertisers, so they never get attention. It is always a good idea to take a look and make sure we are still priced properly.

Thankfully I’ve never been audited by the IRS (knocking on wood as I type this!). That can be a grueling process I’m told. In the case of a rate audit at your newspaper, it shouldn’t be a taxing experience for your or others involved. More often than not, I believe you’ll find additional revenue opportunities. 

A better understanding of your sales team means better sales performance for your company

There is a tradition in my house every February that dates back a few decades that signifies that spring is coming. It’s not Groundhog’s Day, but rather the Westminster Kennel Club championships from Madison Square Gardens in New York.

The amount of time spent on training and grooming of these beautiful dogs is enormous, and the payoff shows when they make the WKC finals in New York. My favorite session is their grand finale, where the winning dog from each division is brought in to crown the top dog of the year. Such a wide variety of dogs, from little lap dogs to hunting and working dogs and one person has to judge the full spectrum of dog traits to determine the very best. I would think that is a tough job!

Being that final judge at Westminster has similarities to working with your sales staff. Each member has their own personality, and to see the very best of each one you have to know the type of personality they have.

I was having dinner with a former sales rep, and she had me read an article on SuccessResources titled “The 5 Breeds of Sales Dogs, Which One Are You?” In the article Blair Singer suggests that sales people can be categorized into five types, which have similar characteristics to dog breeds. Sales people are either Pitbulls, Golden Retrievers, Poodles, Chihuahuas or Bassett Hounds.

A Pitbull is aggressive, and the stereotypical sales person. This sales rep is ultra-aggressive and shows no fear. This type of sales person will make more calls and deal with the rejection than the other breeds.

Golden Retriever sales types are the loyal, over the top customer service sales reps. The success of this sales person comes from understanding the needs of prospects and current customers. They get lots of customer referrals for being so responsive to their customer’s needs.

Highly intelligent and keenly aware of their personal appearance reps are Poodles. This type looks good and wouldn’t think of getting dirty to get the sale. Poodles do a good job of networking, and are up on the latest trends.

Sales reps that are tech savvy are Chihuahuas. They have a keen awareness of product knowledge and are very process oriented. But as we know, Chihuahuas are high energy and yappy dogs that can bark and bark and bark!

The final sales rep type is Bassett Hounds. They are the most faithful dogs, with a very humble sales approach. They play upon your heart and sympathy, and very willing to beg and say “please” to get the sale.

Do any of these hit home and describe you or your sales staff? For me, I found this to be a very easy way to better understand sales reps. My former employee who introduced this to me was a cross between a Golden Retriever and Poodle. She provided extraordinary customer service, was highly intelligent and always wanted to look good throughout the entire sales process.

Better understanding the type of sales person you have is something more than just categorizing them by dog breed. The successful handler at the Westminster Kennel Club championship handles a Chihuahua much differently than a Pitbull. Different breeds have different needs, as well as different strengths, weaknesses and ways to be motivated.

Would you have a Bassett Hound type be in charge of your new business development program? Maybe not. That type of sales rep might not have enough sense of urgency to get things done as quickly as you’d like. You might find that working with auto dealers could be best suited for the Pitbull on staff, able to handle the wheeling and dealing that can sometimes be associated with that industry.

By doing some quick analysis on your team, and the needs of your sales organization, you can quickly learn a lot. Having a better understanding of your sales rep’s personality will help you to become a better manager.

In an article by Susan M. Heathfield titled “Top 10 Reasons Why Employees Quit TheirJob”, the first reason was an employee’s relationship with their boss. Often times that relationship is strained due to poor communication. Knowing the strengths and weaknesses of your team, understanding why they do what they do because of their underlying personality are key to better communication and better motivation.

Better motivations leads to a higher degree of goal achievement and revenue generated. That makes us all happy!

Confessions of a Salvation Army bell ringer

Yesterday I was awarded the privilege of ringing a Salvation Army bell for two hour. It was probably two of the best hours I've spent in some time, giving me a chance to help out a great cause, meet dozens of people and had a chance to reflect on the season and humanity. It was a very busy two hours.

The holidays are special for all of us for a variety of reasons. The clang, clang, clang of a bell and a red kettle are apart of the tapestry of memories that make up the Christmas season for me. Now after the two hours of standing out in front of a Walgreen's in Elkhart, Indiana I have more vivid images to associate with the holiday season.

My favorite image was one of my first donors of my shift. The biggest obligation of being a father is teaching your child, and I had a front row seat. Across the parking lot, I watched a dad grab change from his pocket and place in the hand of his son, probably around 4 years old. Side by side, they walked towards my station, and I could see the excitement of the son as he drew closer and closer. I'm not sure who's smile was bigger; dad, mine or the little boy as the change slid off his hand and settled in the bottom of the kettle. The boy had donated pennies, but it was the teaching of giving to others that I have to believe has the potential to pay off with a lifetime of generosity taught by this dad.

Other images of the day were skewed by my marketing mind, as I found myself analyzing the customers and demographic profiles of my donors. The older and more beat up the pick up truck, the more likely the donation from the driver. Worn denim and work boots were also a good sign for a folded dollar or some change making its way into the bucket.

There were additional benefits for me by ringing the bell. That included a chance to say thank you to total strangers that dug deep into their wallets to give a dollar, when they themselves might be trying to figure out how to make their ends meet. I don't know for sure, but I'm pretty well convinced I saw that scenario played out more than once during my shift.

Lucky for me the temperatures for early December were above normal. I had prepared for frosty conditions, but was treated with near 50 degree weather. More than a few hearts were melted by a simple "hello", "have a great day" and "Merry Christmas" which I offered up to all that passed by. During my interactions with passer-bys, you get the sense sometimes that saying have a nice day to someone is the only positive words and interaction some are having in their life.

Ringing a bell and filling the kettle has deep trandition for the Salvation Army, dating back to 1891. According to the Salvation Army, the typical kettle raises $30 per hour with an active bell ringer. The money raised helps people within your community that otherwise might not have a hot meal, a warm bed or an opportunity to rise up from their situation.

For the rest of the holiday season, I think one of the saddest things I will see will be an unmanned red kettle stand in front of a store. No bell to grab your attention, no opportunity to donate and someone missing out on the chance to watch the residents of your community at their very best, donating their hard earned money and creating smiles, memories and a sense of community for all.

I'm sure every Salvation Army still needs bell ringers. For a large section of the US, you can visit http://www.ringbells.org and get signed up. For those reading in Elkhart where I was lucky enough to volunteer, visit http://elkhartin.volunteerfirst.org.

Merry Christmas!

Black Friday stressing you out? Then check out this fake Black Friday ad for a laugh or two

A little fun in the midst of Black Friday craziness, thanks to Jeff Wysaski of Pleated Jeans. Holiday inserts have become as much a part of the Thanksgiving holiday as turkey and football to some people. Wysaski is just doing his part to have a little fun and provide a smile.

Thanks to his skills in Photoshop, Wysaski has created his own Target ad and posted at a Target store. While I'm sure the store manager didn't see the humor, I certainly do. Where do I go to buy a gift that they will only use once? Target has just the thing! Did Skittles branch out from candy to TV maker? According to this Target, the answer is yes!

Mashable has the full details on the fake Black Friday ads. Tired of family stress, of shopping or possibly eat turkey, then check out this Target ad.

The tale of the quickly vanishing family owned media company

It was a bit of a nostalgic week for me on a couple fronts. First off on Tuesday, I celebrated my one  year anniversary in my current role with my current organization. Then on Wednesday, it was announced that the first newspaper I worked for full time was sold. Both events caused me to reflect.

The very first newspaper I worked for full time was the Greenfield (Indiana) Daily Reporter, owned by the Brown family and Home News Enterprises for over 100 years. Their headquarters, and frankly the main focus of their company was the newspaper in nearby Columbus, Indiana. But still, it was very obvious that this was a family business. Profits were important but being active and contributing members to the community were highly valued as well. As a result, Greenfield, Columbus and the other communities that HNE operated in benefited. http://www.therepublic.com/view/local_story/The-Republic-other-HNE-propert_1446645932

The community that is the newspaper industry also benefited from HNE. They encouraged active participation in industry groups, like state and local press association. Because they cared about more than the bottom-line, their employees, their industry and their communities were all better as a result.

As I said, Tuesday marked my one year anniversary at my current position. Federated Media is also a family owned operation. The Dille family in Northern Indiana, like the Brown family in Central and Southern Indiana have operated their business for generations. The same traits that I respected in how HNE operates are very evident with my current employer. Profits are important, but being a good corporate citizen is a driving force of the organization.

Federated is a radio focused company today, though its roots are in the newspaper business. The newspaper that I work at is their only newspaper in the organization today. Federated and HNE have adapted to the changing tides of media in this digital era. Both would say that they are communications / multi-media companies today with a focus on audience no matter what the platform. But any media company can say that.

I would suggest that what sets them apart is that they would say that they are an employee focused company that finds ways to connect the community with advertisers. That connection with the employees and the community is what makes family owned media companies unique.

The new owners of HNE say that they will remain strong in the community. I truly hope that is the case; for the community and the employees. Big corporations in the media business is far from new, and their are some good corporations out there running TV, radio and newspapers. But more often, the bottom-line wins out, people get forgotten, corporate citizenship is lost and the product suffers.

New York Times has more subscribers than ever and how that can translate to other publishers

Tis the season for statement of ownership ads running in newspapers and magazines across the country. It is the chance to see the numbers behind the numbers when it comes to circulation numbers.

Frankly it isn't the most exciting ad that will run in the publication, especially if you are the publisher trying to make the numbers tell a good story. One of the exception might be the New York Times, who announced today that they have more subscribers now than they have at any time in their history.

http://www.nytimes.com/2015/10/05/business/the-new-york-times-reaches-a-milestone-thanks-to-our-readers.html?_r=1

The New York Times has reached the 1 million mark for digital only subscribers. Add in the 1.1 million print / digital subscribers and the audience opportunity is stronger than it ever has been in the 164 years of Times publications. Pretty impressive, but not terribly easy to replicate.

Unique content is the key to publishing's future; print and digital. The Times by its very nature has that type of content, and there are others including the Wall Street Journal. Every publisher has the opportunity to find their unique content. As it was described to me recently at the Deseret News in Salt Lake City, you have to determine what content you can provide that is the best in the world. In many cases, publishers are the best in the world at covering their local market. But what else? The key to success is finding those additional niches, especially since local broadcasters and internet only sites are also trying to fill the local information market.