How Agencies Plan and Buy Today

Kantar Media SRDS & James G. Elliott Study: First in a Series

from Issue #1, 2014

President’s Letter

by Jim Elliott

We are very excited to introduce the results of market research designed to help people with responsibilities for advertising sales better understand and meet the information needs of media planners and buyers at agencies today. The first study was conducted jointly by Kantar Media SRDS & the James G. Elliott Co., Inc. in the fourth quarter of 2013, and follow-up studies are in progress. We believe that the insights gained will have a big impact on sellers and buyers alike, as well as advertisers.

SRDS was a perfect partner to conduct this research, because their online services and printed books provide basic media rate and data service for all major magazines. All major agencies use SRDS when they begin to evaluate magazines. To our knowledge, it is the first study to approach media planners and buyers directly, through their own individual email addresses. The questionnaire and methodology were designed by Susan Weiss, Research Director of the Elliott Co., and Angie Wright, Research & Analytics Director, SRDS.

Having served more than 250 publications in a wide variety of markets over 30 years, Elliott Co. salespeople have observed a sea change in the way planners and buyers work, which has affected how sales are made. Historically, leisurely relationship-building entertainment and thoughtful deliberation were customary. Today, buyers are so frazzled and frantic that sellers are often required on very short notice to provide major proposals to planners and buyers the sellers may have met only once or twice, if ever.  

Number of Brands Worked OnThese days it is very tough for a salesperson to get a planner or buyer out to lunch more than once a year. Why? The workload carried by media planners and buyers is staggering. In the 1970s and ’80s, there were armies of media people. Most were available to discuss good ideas whenever they arose. Media people cultivated relationships with salespeople because they were essential links in the information supply chain. Lunches and dinners were welcome diversions; opportunities to build knowledge, foster connections, and enjoy getting away from the office.

Now, there is no time to develop more than the most casual relationships. Far fewer people have far more responsibility to evaluate, recommend and buy media. Very few people are available to evaluate and buy print, television and radio, not to mention new digital, social and mobile media. Here’s what the study found:

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Out of Sight, Out of Mind

from Issue #1, 2014

by Craig Miller

In an interview conducted by James Fallows of The Atlantic, productivity expert David Allen of GTD fame made a comment that has broad implications for all of us in the magazine world. Speaking of his reasons for keeping real, on-paper notes, he says, “The problem with all this digital stuff is ‘out of sight, out of mind.’ That’s the bad news about the computer and why low-tech is oftentimes better—because it’s in your face. I know quite a number of people, high-tech people, who have gone back to paper-based planners and lists because it’s much more evident, and it doesn’t sort of go away and you [don’t] go numb to it, which you can very easily do on the computer.”

I think this is analogous to magazines. Magazines we want to read are a lot like a “to-do” list. The easier they are to file away, the easier they will be to ignore. That’s the great thing about a physical object like a printed magazine. It’s right there, in the way, until we take action and either read it, file it, or decide to throw it away.

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Magazine Strengths

What is the Job To Be Done?  

from Issue #1, 2014

by Jim Elliott

Talking with publishing executives, I keep hearing encouraging comments about their businesses. Many have remarked that magazines don’t seem to be under a cloud, as they were not so long ago. Remember “print is dead?” We almost never hear this anymore. To be sure, some individual magazines are sick, for a variety of reasons, and some categories are in trouble, but everyone realizes now that there are bright spots. Whole categories are thriving.  

Less often now, critics of magazines find a weakness in one publishing segment and generalize it to all magazines, or attribute problems caused by changing conditions in one market to the printed format.  The format may have nothing to do with current business problems if the market has dried up.

There are some things that magazines can do better than any other product.  It’s a long list, pick your favorites. Magazines are trusted. Printed magazines have physical presence that cannot be ignored. They often look great, and print can be read without any technological devices but a little light.  

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Current Trends in Media Planning and Buying Revealed

New research from Kantar SRDS and the James G. Elliott Co., Inc. now being released  illuminates factors that affect the way media is planned and bought today.  Samir "Mr. Magazine™" Husni's video interview with Steve Davis and Jim Elliott, presidents of the sponsoring companies, will help viewers see how they can increase ad sales revenues by applying these findings and selling the way today's buyers want to be sold.

You can get a copy of the full study by filling out the form on the left.

Read more about it in our latest issue of Ads and Ideas: /ads-ideas/2014/3/19/how-agencies-plan-and-buy-today.html

More buzz about this study:

Mr. Magazine's™ Blog:  http://mrmagazine.wordpress.com/2014/03/18/when-in-comes-to-ads-ad-agencies-and-ad-sales-today-mad-men-dont-exist-the-mr-magazine-interview-with-stephen-davis-and-james-g-elliott/

Ambro.com: http://www.ambro.com/how-to-sell-advertising-know-your-customer/

 

Pulling Back the Curtain on Rate Base Inflation

Over at Publishing Executive's website (pubexec.com), Bo Sacks takes on Rate Base and asks industry leaders (including Jim Elliott) for their take on it.  An excerpt:

"From my perspective, rate base is a convoluted tool designed to produce distorted circulation figures. Yes, auditing is an attempt to verify with some precision and prove to the advertisers that a certain number of people may have picked up and read your magazine. But imbedded in this arcane system is a potential for trickery and a temptation to abuse the well-meaning audit results to achieve what amounts to some meaningless readership number."

You can read the rest here: http://www.pubexec.com/article/pulling-back-the-curtain-rate-base-inflation/1

RFP for ad sales? Not necessarily a good idea

Association Media & Publishing / By Carla Kalogeridis 

Sidebar Newsletter of February 13, 2014 from Association Media & Publishing, carries an interview with Jim Elliott. Jim shares ideas to help associations improve the search process when they are looking for new ad sales representation. Even when use of an RFP is mandated, some preliminary research can help publishers save time by narrowing the field to firms that have the right chemistry, capabilities and interest-level.  Read it in full here:

 

Flexible Selling

The modern salesperson must be agile enough to address the ever-changing advertising buying process. 

President’s Letter

by Jim Elliott

For years, I have been noticing a trend in advertising sales which I have described as a transition from relationship selling to transactional selling. When I discuss this topic with publishing executives, most agree immediately, because they have observed the same change. However, some of the comments made in response to my article in the April issue of Publishing Executive led me to realize that I need to explain my thoughts more completely.   

Some readers took my use of the term “transactional” as demeaning to the role of today’s salespeople. This was not my intention—I meant to convey that the focus is moving to be more between the buyer and the product, instead of the buyer and the seller. Since it is hard to have a personal relationship with a product, “transactional” was the best description I could think of to define the seller’s position. Friendliness is still important, and rapport does certainly help, but most buyers are no longer highly influenced by their personal relationships with the sellers. If nothing else, the accountability that comes from greater use of metrics and public discussions of advertising buys work to reduce cronyism. 

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Excerpted from “How Do I Love September? Let Me Count The Magazines...”

by Samir “Mr. Magazine™” Husni, Ph.D.

September brings about the hint of autumn, the singular flutter of a yellowing leaf to the ground, depending upon where you live; I live in Mississippi—hence the singular flutter, splashes of oranges and yellows from the pumpkins and fall squash in the markets.

But most important in the world of magazines (ink on paper that is) and magazine media (everything else) it is that time of year when the crème-de-la-crème of publishing rise to the top with their most extravagant issues of the year.

And for most, September 2013 is offering their biggest editions ever. It’s a celebration of fashion, football and the fall season.

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See highlights of the 2013 Folio: MediaNext Show

The Folio: MediaNext Show held in New York October 20-22, 2013 was packed with information useful to members of the publishing community.  A complete guide to all of the events are available here, with links to many of the individual presentations. Jim Elliott's presentation, The One Constant in Media Sales: Disruption, can be viewed in its entirety here.

ACT 4: Publishing industry event hosted by "Mr. Magazine"

In November 2013, Dr. Samir "Mr. Magazine" Husni once again hosted the annual ACT event for the publishing industry at Ole Miss. 

At ACT 4, speakers included such luminaries as Billy Morris, CEO of Morris Communications, Donna Kessler, President of Morris Media Networks (publishers of 65,000,000 circulation Where Magazine) and prominent M&A advisor Reed Phillips of Desilva+Phillips, interviewed by Jim Elliott. See Jim Elliott's interview with Reed Phillips here: 

"How Magazine Publishers are Creating Value for Their Companies in the Digital Age"

Reed Phillips, CEO and Managing Partner, Desilva + Phillips
Jim Elliott, CEO, The James G. Elliott Co., Inc.
The Power of Print Integrated
Magazine Innovation Center, The University of Mississippi

See what BoSacks had to say about ACT 4 immediately afterward: conta.cc/HQp72T

Flexible Selling

In the October issue of Publishing Executive, Jim Elliott talks about flexible selling. (To see the full digitial issue click here.)

Modern salespeople must be agile enough to adapt to the ever-changing ad sales process.

For years, I have been noticing a trend in advertising sales which I have described as a transition from relationship selling to transactional selling. When I discuss this topic with publishing executives, most agree immediately, because they have observed the same change. However, some of the comments made in response to my article in the April issue of Publishing Executive led me to realize that I need to explain my thoughts more completely.   

Some readers took my use of the term “transactional” as demeaning to the role of today’s salespeople. This was not my intention—I meant to convey that the focus is moving to be more between the buyer and the product, instead of the buyer and the seller. Since it is hard to have a personal relationship with a product, “transactional” was the best description I could think of to define the seller’s position. Friendliness is still important, and rapport does certainly help, but most buyers are no longer highly influenced by their personal relationships with the sellers. If nothing else, the accountability that comes from greater use of metrics and public discussions of advertising buys work to reduce cronyism.

Some readers mistook my use of the term “transactional selling” to mean direct sales through telemarketing and call centers. Although this kind of selling is most definitely transactional, it’s not exactly what I meant. We are not advocating abandoning personal calls by advertising salespeople in all, or even most cases, or making a wholesale shift to a call center, except in very specific situations. While there certainly is something to be learned from this type of selling in terms of discipline and quantitative goals, the campaign-oriented “dialing for dollars” approach requires a different mindset than longer-term key account development.

The larger point is that sellers need to sell the way the buyers want to be sold. This concept is as old as selling itself, but one which salespeople forget at their peril. The changing nature of the advertising buying process has resulted in buyers with all sorts of different expectations.    

I believe that the most important skill a seller can have is flexibility. There is an old saying: to the man who only has a hammer, everything looks like a nail. We must choose the right tool at the right time depending on the signals the buyer is sending.

Even within one account, with several planners and buyers involved, there may be a dozen different preferences. Some agency people want to receive everything via email. Most only want to hear from the salespeople when something occurs that is related to a current buy. Some buyers want short phone contact. Others want annual in-person presentations.  Many rely on social media to varying degrees.

Most client ad managers let their agencies screen out unwanted sales approaches, and some of them may still be open to personal calls or even entertainment from time to time, especially with salespeople who do a lot of business with them. Sometimes even golf, or sailing, or tennis, or dinner still might be called for. You just never know.

Whenever possible, we try to get our salespeople face-to-face with buyers, not only because that is the most productive way to make a strong impression, but also because that’s by far the best way to pick up information about their preferences and their current state of mind. That is why we still maintain offices in the major advertising centers.

Sellers should embrace a philosophy of selling to advertisers the way they want to be sold. I realize this sounds very simplistic—but as a former buyer, and a manager of many ad sellers over the years, it isn't. Not every seller is equipped to do this.

The need for versatility has complicated the recruiting process. Not many years ago, it was fairly easy to pick highly successful ad salespeople for major magazines out of a crowded agency lobby. All you had to look for were the well-turned-out people with great social skills.

In the current environment, we are looking for more agility: people who can sell transactionally by phone or email, are adept at social media and have the ability to nurture relationships when it’s appropriate. In addition to telephone and in-person interviews, I’ve employed a psychologist for the past two decades to help me before we make an offer. (We also use the Sixteen Personality Factor Questionnaire or 16PF.)

To judge a prospective seller’s agility we look for proven success on complex assignments. This provides us with some reasonable assurance that the person has the capacity for an account that will surely require more complex selling. We don’t have a single assignment today where the publisher isn’t thinking about changes to their products that will invariably add to the seller’s challenge.

This new breed of salesperson must be able to express herself in writing, and understand and be able to communicate mathematic concepts quickly. There are two methods we use to gauge a person’s mathematic ability. First, the 16PF testing includes some basic math problems. It’s a simple screen but one that’s very telling. In addition, every interview today includes discussions around pricing since price is an essential part of every selling situation, especially since the publishers’ product menus have become longer with varying audience sizes, product frequencies and, hence, costs.

We find that writing skills are easy to judge because candidates have multiple opportunities to express themselves throughout the application process: the cover letter, the thank-you note after the initial interview, and perhaps the most overlooked tool—the interview itself. When you have a candidate who butchers syntax in a face-to-face or phone interview, you can be sure that person will be equally troubled with the written word. And, poorly crafted proposals always have a predictable ending.

I will probably continue to say that we are moving from relationship selling to transactional selling, but in essence what I mean is we are renewing our effort to sell the way buyers want to be sold. These days, that means a lot less emphasis on old-fashioned relationships.

The Current State of Advertising: Branding or Price?

Why price-based ads will give way to brand advertising in the rebounding economy.

President’s Letter

by Jim Elliott

I predict we are going to see a major shift in advertising. Advertising is unique when compared to other businesses, in that it is one of the fastest areas to react to macro-economic environmental changes. In my 40 years of experience, I’ve witnessed trends come and go. In a growing economy, price-based advertising will see a modest decrease, while brand advertising will see an increase.

The environmental change I speak of concerns the latest trends in the economy. Despite our relatively high unemployment of 7.6% (source: The New York Times 6/7/13), we have seen a great improvement since 2008. When the great recession hit, we saw an immediate conversion to price-based advertising. Advertisers tried to convince consumers to buy their products in the face of huge uncertainty.

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The Power of Print Goes to Finland

How was your trip to Finland?

Jim Elliott: It was a great trip. It was really wonderful to reconnect with a couple of executives from Otavamedia I had met a few years ago at Samir Husni’s ACT conference in Oxford, Mississippi. The purpose of the trip was to speak to the Otavamedia clients who, incidentally, were the majority of the advertisers in the nation of Finland. 

The subject of my speech was: The state of magazines in the United States, and how they integrate with digital. In order to prepare, I had to learn about Finnish publishing. I found their industry to be really interesting. It was the first time in my career that I deep dove into the character of a foreign country’s publishing market.

What did you find? 

JE: Finland is by far a smaller country with a population of 5.5 M. It has a 100% literacy rate and hardly anyone is without a college education. I was surprised to find that they have the highest per-capita readership of magazines in the world.

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The Importance of I.T.

by Victor Avalos

Modern companies in the information economy rely on actively engaged Information Technology departments.  Superior design and execution of information systems can confer significant competitive advantage. IT teams should be able to listen and adapt to deliver the right tools at the right time to do the right work. For example, today, everyone is focused on mobility. Technology can effectively make the resources of an entire office available for use by remote employees at any time. The significance of having an IT team that recognizes the business potential of providing sales reps with the right tools to best adapt to their environment is undeniable, just as it is vital to keep confidential corporate information secure.

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The Power of Print in Finland

On April 23, Jim Elliott was honored to deliver the presentation,"The Power of Print in the Digital Age," to many advertisers and staff of Otavamedia Oy, one of Finland's largest publishing houses. 

The Finns are avid magazine readers and consumers: Finland has the highest percentage in the world of magazines delivered by subscription. "We have much to learn in the US from the Finns about magazines, particularly on the circulation side of our business" was Jim Elliott's reaction after his visit. More on this visit in the next newsletter.

The Advertising Sales Game Has Changed: Do You Have the Right Players on Your Team?

President’s Letter

by Jim Elliott

(This article ran in the April issue of Publishing Executive Magazine.)

Transaction-oriented salespeople are surpassing those who base their approach on building relationships. For most of the past century, relationships formed the basis for the majority of large advertising sales.  Success in advertising sales was predicated on the ability to initiate, form, and maintain personal relationships with buyers.  In this new era, a different skill set is necessary.

Today, the buy may be accomplished before the parties even have an opportunity to meet.   Too often, trying to sell by first building relationships, as it was done in the last century, means wasting time on people who may not want any kind of relationship.  If done poorly, buyers may perceive the attempt to create a relationship as wasting their time as well.   Buyers are frazzled by the proliferation of media and demands by all the new sellers who want “just a few minutes” of their time.  Concurrently, the ranks of agency buyers are thinning as their load grows, with each person responsible for evaluating and buying as much as an entire team did not long ago.

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Resources I Find Helpful

Someone recently asked me what resources I find helpful in keeping up with the constantly changing media landscape.  Here are a few: 

  • The first is feedback from our salespeople, who have been selling many different media brands over the course of several decades.  As new opportunities emerge, we have people on the front lines trying to sell them, and to build integrated proposals involving them.  In order to help our salespeople separate valuable information from the white noise they inevitably get when presenting new ideas, we need to stay ahead of the curve.
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Work from Home?

Recently, Best Buy and Yahoo! Inc. curtailed their work-from-home programs.  That makes sense to us.   All Elliott Company offices in New York, Chicago and Los Angeles are located in downtown business districts, and we require our salespeople to use these offices. When we interview candidates for open positions, they often ask us why, citing mobile technologies and business trends that have made working from home acceptable.  Several other sales organizations allow it, so they think we should too.

We have consistently followed this policy since the founding of the company, and have no plans to change because our management really knows what it’s like to sell advertising.  It can be stressful, and a supportive social environment helps.  Day after day, our salespeople have to jump through agency hoops.  They hear the word “NO!” more than they would like.  They get beat up and pushed around.  To keep our salespeople positive, we want to surround them with encouraging energy and helpful ideas.  It’s easier to keep morale high when salespeople are located together.  Also, we share leads and information better when the process is face-to-face and informal.  It’s no more complicated than that.

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Help Buyers Buy

President’s Letter
by Jim Elliott

Sometimes publishing companies neglect the little things that might make it easier for buyers to buy.  With all of the technological reasons to create a workflow that works better for the publisher, it is too easy to forget to put the buyer experience first.  One of our clients, Jeffrey Stoffer of The American Legion, thought our readers would find it helpful to learn about his experience when he tried to execute a buy within a single day in several local markets. I hope you find it interesting, and would appreciate hearing from you.—Jim Elliott

Excerpts from an email from Jeffrey Stoffer, Director, American Legion Magazine Division, reprinted with permission: 

I have spent much of the day trying to place advertising in eight regional markets across the United States – urban, suburban and rural – and I have some thoughts.

I have searched the web looking for print and digital opportunities to promote the live webcast of The American Legion Baseball World Series. I have been trying to place ads in Milford, Conn., Florence, S.C., Omaha, Neb., Bellevue, Wash., Brooklawn (Gloucester County) N.J., Moline, Ill., New Orleans and Lakewood, Calif. The easiest placements, not surprisingly, were in the smallest markets.

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Wish you could have been there!

by Jim Elliott

Mr. Magazine™ has done it again: Dr. Samir Husni’s ACT Experience events are getting better each year.  For the publishing leaders who attended ACT 3 at Ole Miss in Oxford, MS in late October, it was a chance to share ideas and to assess the current state of affairs in a unique, intimate setting.  It was great to talk with some of the biggest names in publishing in the lecture halls and at dinner side by side with highly engaged university students.   This year’s theme was, “Never underestimate the power of print in a digital age.”  

The attendees clearly believe in traditional magazines: no one talked about getting rid of ink on paper. Many speakers did talk about interesting ways to leverage their brands into new areas, including digital and mobile platforms.  Several shared their thoughts on how best to achieve a balance between digital and print.  There were a couple of digital-only publishers, but most presenters showed how they are integrating their new businesses with their print products.

It was my privilege to share the lectern with Bill Pollak, former CEO of both ALM (formerly American Lawyer Media) and the ABM (The Association of Business Information and Media Companies).  Our presentation was entitled, “What is the Power of Print in Today’s Advertising & Sponsorship Environment?” Here is a quick overview of the highlights:

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