Dear Colleague (continued):
Re-invest and retool for the New Competition
Many observers have attributed the malaise of print to magazines and newspapers giving their content away on the Internet. And they also assert that because purchases of magazines and newspapers have been declining, print is dead.
But the current print decline isn't simply about print dying. As I wrote two years year ago...the pressure on the magazine industry is due to the air going out of the print bubble.
Keep in mind, while bubble driven advertising was at a high, many new McMagazines were launched (comparison intended to McMansions). Professor Samir Husni unintentionally documented the trend for years with hundreds and hundreds of magazines being launched every year. And while there was so much so-called "demand" for magazines, Audit Bureau of Circulations and Business Publications Audit aided and abetted the bubble with rule changes that called bunches of liar loans -- I mean very low priced, bulk and free circulation -- triple A rated circulation. The bubble economics of print seemed to make sense at the time; lots of advertising (financed in the bubble economy by the purchase of goods and service financed on debt) seemed natural.
Now, while we work our way out of the bubble, print properties are being closed. Is it because print is dead? Is it because magazines and newspapers are giving away their content online? No, just as we know people will still live in houses after the housing bubble, we need to know that people will continue to read magazines and newspapers after the print bubble because they provide a fundamentally different experience; being fabulous places to browse lots of different content and advertising, sampling some, deeply consuming other content.
And advertisers like print too. Because they can do a great job in print of displaying their wares or their ideas in great size and detail...highly impactful ad units that can't be blocked by pop-up blockers or turning off images.
So the fundamental problem print publishers have is the growth of competition. New competition has emerged ramping up the number of media seeking the attention and the budgets of every advertiser.
It Is About the Competition
My purpose here is to make clear that we all operate in a far more competitive market than we did in the past. This competition starts with the fierce fight for readers online, and extends to the struggle to sell advertising. This eletter is about how to thrive in a business where advertising sales is IMPERATIVE. And I would assert that it is imperative that we re-tool and re-train our sales processes and staffs to compete in this new "flat" world of many competitors competing on a level playing field.
How is sales different than before? Let me count the ways.
- It is far more difficult to get appointments than in the past. There are fewer buyers being called on by more competitors, limiting the time available from buyers to learn about your media.
- This scarcity of interactions with clients mean that the value (and the stakes) of a sales call is far higher than before.
- The buyers have greater access to information than before so they don't need to see a sales person to get a media kit or to learn your circulation or how many unique users you have.
- Advertisers make shorter commitments, making advertising purchases on a more tactical basis than before.
- Bigger sales are available when selling integrated packages to clients accross multiple media.
- Advertisers profess to be more results oriented focusing on measuring the ROI on their advertising in a greater way than before.
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