You Sell Online Advertising, But Do You Have a Sales Plan?

With all of the recent news about job cuts and ad spending declines, even with online, how can an online sales person stand out?

In the fall of 2006 during a job interview the CEO of a new, well funded, online media company asked me if I ever read the book “Hope is Not a Strategy”. This guy had founded, and sold several software companies, and made lots of money from them. He wanted to know what type of sales strategies online sales people used.

His former heads of sales it turns out all had very elaborate systems for their teams. My initial comment was that when an RFP comes in at 3pm on a Friday and is due by 5pm the same day it can be tough to map out a full strategy. He knew that I was referring to a very short sales cycle with online, versus a very long sales cycle for software that could be a year or more.

However, as we started talking about quarterly and annual planning that most online businesses do, he jumped in again and asked, “but what planning do the sellers do to” ? At the end of the conversation he gave me a homework assignment to read the book “Hope is Not a Strategy” I read the book, wrote a report, believe it or not, and had a new view on how to better sell.

At the end is a link to the report, and below are a few thoughts from this book as it can apply to online ad sales. More importantly, this blog post is meant to be a motivator for any online sales person looking for an edge right now. Additionally, anyone on the ad agency side, who pitch new business as frequently as ad sales people do, may find this valuable too.

1) It is almost impossible to give a tailored, focused presentation if you haven’t spent time face to face with the client before the presentation.

2) Did you have a team strategy session prior to the presentation?

3) Selling ad solutions (Or agency solutions) means reducing risk for the client by taking responsibility for account management, custom ad integration, and deal optimization.

After weeks of back and forth during this long job interview, and conversations about sales strategy, I received a call that I was the finalist, and then presented with the offer. It seemed that not only did no one else read the book, but no one else put in as much time to create a relationship with the CEO. By putting in the time to learn about this person, my customer in many ways, I was able to understand his view of what online advertising was, and could be for his business. In the end I chose to join a different company, and not because of him or the process, that only made it much more difficult to say no. However, this process reinforced that taking the time to get to know someone, their views, and never giving up when you need to fight can go a long way.

hope-is-not-a-strategy

Execute on That Idea

All of us over the past few weeks have been in conversations about how the economy has negatively affected online advertising.  While there are companies that have let go of employees, or have wound down, there are some looking to get started, there just has to be. The entrepreneurial spirit is very contagious. Anyone out there that has an idea for a business that generates revenue from online ad sales, keep fighting. And of course, anyone looking to get started with an idea, fight through to execute on that as well. While I’m sure you already have a great business plan format, here is one I came across online from Sequoia Capital.

 

http://www.sequoiacap.com/ideas/

 

Writing A Business Plan

Business plans that present a lot of information in as few words as possible are the best. The following format, within 15-20 slides comes from Sequoia Capital:

Company Purpose

• Define the company/business in a single declarative sentence.

Problem

• Describe the pain of the customer (or the customer’s customer).
• Outline how the customer addresses the issue today.

Solution

• Demonstrate your company’s value proposition to make the customer’s life better.
• Show where your product physically sits.
• Provide use cases.

Why Now

• Set-up the historical evolution of your category.
• Define recent trends that make your solution possible.

Market Size

• Identify/profile the customer you cater to.
• Calculate the TAM (top down), SAM (bottoms up) and SOM.

Competition

• List competitors
• List competitive advantages

Product

• Product line-up (form factor, functionality, features, architecture, intellectual property).
• Development roadmap.

Business Model

• Revenue model
• Pricing
• Average account size and/or lifetime value
• Sales & distribution model
• Customer/pipeline list

Team

• Founders & Management
• Board of Directors/Board of Advisors

Financials

• P&L
• Balance sheet
• Cash flow
• Cap table
• The deal

http://www.sequoiacap.com/ideas/

 

 

 

 

 

 

Elements of Sustainable Companies

Start-ups with these characteristics often foretells the success of a business and the likelihood of it becoming a sustainable, enduring company. We like to partner with companies that have:

Clarity of Purpose

Summarize the company’s business on the back of a business card.

Large Markets

Address existing markets poised for rapid growth or change. A market on the path to a $1B potential allows for error and time for real margins to develop.

Rich Customers

Target customers who will move fast and pay a premium for a unique offering.

Focus

Customers will only buy a simple product with a singular value proposition.

Pain Killers

Pick the one thing that is of burning importance to the customer then delight them with a compelling solution.

Think Differently

Constantly challenge conventional wisdom. Take the contrarian route. Create novel solutions. Outwit the competition.

Team DNA

A company’s DNA is set in the first 90 days. All team members are the smartest or most clever in their domain. “A” level founders attract an “A” level team.

Agility

Stealth and speed will usually help beat-out large companies.

Frugality

Focus spending on what’s critical. Spend only on the priorities and maximize profitability.

Inferno

Start with only a little money. It forces discipline and focus. A huge market with customers yearning for a product developed by great engineers requires very little firepower.

 

http://www.sequoiacap.com/ideas/

Web Ad Growth Falls Off — and So Do the Salaries

Article Source: http://adage.com

Article Link: http://adage.com/digital/article?article_id=132032

Article Author: Michael Learmonth

Article Date: 28-Oct-08

NEW YORK (AdAge.com) — The $23 billion online ad market is slowing down, and so is the once white-hot market for online-ad talent.

Five years of double-digit growth fueled a scramble for talent unseen since the last boom, as hundreds of ad networks and venture-funded start-ups competed with the portals, agencies and marketers to hire anyone who knew — or agreed to learn — how to sell or buy and online advertising.

Aside from the burst of another asset bubble, there are few similarities between the internet bust of 2000 and the slowdown occurring today. First, most believe we’re looking at a few years of single-digit growth, not negative growth, as occurred between 2000 and 2002. In 2000, online advertising was still experimental for most marketers; today it’s part of the mainstream.

CLICK HERE TO VIEW FULL ARTICLE

Making Great Online Ad Creative

Article Source: http://www.davechaffey.com

Article Link: http://www.davechaffey.com/Internet-Marketing/C8-Communications/E-tools/Interactive-Advertising/online-advertising-creative-tips/

Article Author: Dave Chaffey

The questions to ask are … Is the ad…

A. Consistently branded?

• Is every frame in the advert branded?
• Is the product name clearly referenced?
• Would the branding be consistent without the logo?
• What interest or value does it offer? Particularly effective are:
  • Time limited offers (this week only, final week)
  • Unique web offers – only available online
  • Surveys / polls / questions

B. Clear? With a…

• Clear primary offer / message ?
• Clear secondary offer / message ?
• Have you communicated message in 3-4 frames or less?

C. Response driven

Will the advert drive response?

• Is the call to action in every/most frames?
• Which product / theme is the ad about
• Which search would it prompt : “Brand” + ??
• Does it include URL (www.domain.com) if creating awareness of a newly launched site?

D.Interactive

Is the ad interactive:

• Prompting rollover if it is an expandable banner (the example below doesn’t do this)
• Encouraging interaction through mouse rollovers – those it give a feedback loop
• Encouraging interaction through data entry or slider controls.

CLICK TO VIEW FULL ARTICLE

Rough Seas Ahead? Digital shops ride the waves of uncertainty

Article Source: http://www.adweek.com

Article Link: http://www.adweek.com/aw/content_display/news/digital/e3ie08aadb553c2ade9d24ae2ea45ce6bf6

Article Author: Brian Morrissey 

Like all shops, digital agencies are focused on solidifying client relationships in tough times. The focus on driving business results will only grow in a downturn. Unproven tactics — think viral videos with views as the only success measure — are passe. What’s in is unsexy stuff like customer-relationship management. This will tend to favor not only direct-response agencies, but digital shops that can prove their programs are more than just entertaining experiences.

The good news, however, is that unlike the dot-com era, when agencies grew fat on venture-fueled startup clients and the Internet was unproven, digital is here to stay. “Digital has proven itself,” said Kokich. “When the market crashed in 2001, a lot of traditional companies said we don’t have to worry about that. That’s not happening. Every brand knows that digital is an important part of their marketing mix.”

CLICK HERE TO READ FULL ARTICLE

Where Are All the Good Online Ad Sales People?

Article Source: http://www.clickz.com

Article Link: http://www.clickz.com/showPage.html?page=3601766

Article Author: Heidi Cohen

Being a Good Online Salesperson: Advertisers and sales managers differ on what it takes to be a good online ad salesperson in today’s marketplace. Advertisers believe ad salespeople must appreciate their goals and needs. Marketers want salespeople to:

• Understand their brand. This includes knowing where the product’s sold and the current online activity. Julie Barile of Lancome.com notes, “Sales representatives rarely do this research effectively.”
• Know the performance metrics to be optimized. Understand advertisers’ need to deliver return on their ad investment and media’s contribution to it.
• Listen to their needs and address them. Don’t make the advertiser fit the salesperson’s offering and available inventory.
• Partner with marketers to meet their objectives. Continue to service the account after the sale.

CLICK HERE TO READ FULL ARTICLE

NBC Local Media Targets ‘Locals Only’ with New Website Launch

New approach will provide content for the true city insider.

nbcuni.com – October 13, 2008

(PRNewsChannel) / New York, N.Y. / Embracing a new business strategy, NBC Local Media will launch websites targeting “Locals Only,” providing news, entertainment and information for the true city insider. No longer an adjunct to its local television station, the new sites will feature content from a wide variety of sources — including print, online publications, bloggers, individuals and NBC’s local television stations — to provide a new destination for local consumers who are looking to stay ahead of the curve and get plugged in to all their city has to offer.  

The sites will roll out in four phases throughout the month, beginning with Chicago in the afternoon of October 13; followed by Los Angeles, San Diego and San Francisco on October 16; then Dallas, Philadelphia and Washington, D.C. on October 20; and New York and Hartford on October 27. The web properties, which replace the current station marketing sites, will also change their URLs to better highlight the name of each city. (A complete list of new URLs is attached).

“These sites are a departure from what we’ve done in the past and the next step in our mission to provide truly relevant local content to consumers on the media platform of their choice,” said John Wallace, President, NBC Local Media. “Our goal was to create a new type of user experience that’s less an extension of our TV stations and more of an online destination for the latest local news, information and entertainment. These sites are about putting consumers first and giving them the content they’re looking for from the best available sources.”

The new websites target a specific online community that wants to know more about their local cities – whether they live in them or not. They are highly social, digitally savvy and extremely interested in staying on top of the latest local news and information. They also enjoy the trappings of urban life – such as music, food, fashion, and museums – and have an interest in creating, experimenting, sharing and critiquing all they experience.

Brian Buchwald, Senior Vice President of NBC Local Integrated Media, added, “When we decided to change the focus of our business, we specifically set out to target people who loved their cities, embrace change and have a huge appetite for local news and information. What we found is the group we’re calling ‘Social Capitalists,’ who are less about a specific demo and more about a state of mind. They’re passionate, like to stay ahead of the curve and influence others in their peer groups. We’re confident these new sites will deliver what they’re looking for as we experiment and learn together.”

Each site will have an entirely new look and feel with easy to use navigation features. Content will be aggregated from the best available sources – in many cases linking to outside content providers or contributed by the audience itself – in order to provide consumers with the best and most informed user experience. The online features will also be created with a more integrated approach, using text, videos, blogs, or whatever medium is appropriate, to tell the full story.

The new online approach is part of NBC Local Media’s continuing effort to transform its business and become a full-service multi-platform content provider for the local marketplace. The website launch is one of many efforts made recently by the group to better reflect today’s media environment. These include the recent acquisition of LX.TV and Skycastle Entertainment; continued investment in NBC Everywhere, the group’s growing out-of-home media division; and the soon-to-launch 24/7 news and information channel at the flagship television station, WNBC.

New domain names (in order of launch):

WMAQ: nbcchicago.com
KNBC: nbclosangeles.com
KNSD: nbcsandiego.com
KNTV: nbcbayarea.com
KXAS: nbcdfw.com
WCAU: nbcphiladelphia.com
WRC: nbcwashington.com
WVIT: nbcconnecticut.com
WNBC: nbcnewyork.com

About NBC Local Media:
NBC Local Media is comprised of ten NBC owned-and-operated television stations reaching 27% of US TV households; the NBC Everywhere operation focusing on the growing Out of Home digital market; LX.TV, a content production company that produces lifestyle and cultural programming; and Skycastle Entertainment, an award-winning entertainment marketing and promotion company. Together, the NBC Local Media properties distribute NBC Universal content and produce local content for broadcast television, broadband networks, digital channels and numerous media outlets outside of the home. NBC Local Media is a division of NBC Universal.

Media Contact:
Liz Fischer, NBC Universal, 212-664-4825, liz.fischer@nbcuni.com