Shaping

the Future
of the Newspaper
The new 10 step
Advertiser development
process
jim.chisholm@futureofthenewspaper.com

Shaping
the Future
of the Newspaper
 Advertiser development process

This ten step advertiser development process was created by

examining the best practice in advertising sales across a
range of leading European newspaper companies.

Whether implemented in whole or in part this process can

help your company to overcome the current downturn in
advertising, make your advertisers’ investment work harder
for them, and make each advertiser more loyal to your
newspaper.

Shaping
the Future
of the Newspaper
 Advertiser development process

A ten step plan built on success from

four European leaders.

Shaping
the Future
of the Newspaper
 Advertiser development process
1. Everyone in the newspaper is
involved in ADP
• Advertisers are readers
• They appear in stories
• They contribute stories
• They (usually) pay the majority of the wages
• While the editorial content must be above influence…….
• Editorial design has a critical impact on advertising readership
(and vice versa);
• Advertiser’s attitudes to the newspaper affect their loyalty and
perceived value;
• “Newspapers must have a coherent approach between
editorial and advertising” (Bain & Co);
• Advertising off-take must be a determinant of readership
development.

Shaping
the Future
of the Newspaper
 Advertiser development process
2. Understand each advertiser’s
objectives, needs and attitudes
• Understand what each advertiser is trying to achieve:
• Targeting
• Nature of transactions
• Objectives from different marketing channels
• Measure their use of the newspaper relative to other media
channels they use:
• Response
• Responsiveness
• Value
• Share of marketing budget
• Identify and prioritise their core concerns and barriers

Shaping
the Future
of the Newspaper
 Advertiser development process
2. Understand each advertiser’s
objectives, needs and attitudes
• Rolling methodology
• Ongoing tracking
• Total number of ledger accounts / 50
• Identify emerging problems
• Track advertiser confidence
• All transient advertisers on invoice
• Match sample with group of non-advertisers

• Integral part of advertising function

• Funded through results
• Linked to appraisals
• Interaction with sales people (and rest of company)
Shaping
the Future
• Means of identifying ideas and new strategies.
of the Newspaper
 Advertiser development process
3. Build customer knowledge – account
by account
• AttitudesValue
Response

• Service scoreSales
After sales

• Loyalty and share Frequency

Commitment

• Relative substitutionRelative positions of other media

Reasons for substitution

• NeedBusiness objectives
Business ambitions

Shaping
the Future
of the Newspaper
 Advertiser development process
4. Classify the prospect base
• Non customer those who have never advertised.

• Newthose who have advertised for the first time within

the last 3 months

• Activethose who have advertised in the last 6 months.

• Inactive those who have advertised 6-12 months previously

• Passive those who have not advertised for over 1 year.

One client analysis revealed that non-repeat

business accounted for 35% of revenue and 65% of
Shaping
the Future annual customer base.
of the Newspaper
 Advertising growth through ADP
4. Classify the prospect base
High

Secure
Value
Value index

through
management
service

Low-cost Revenue
ad-hoc development

Shaping
Low
the Future
of the Newspaper Loyalty index
 Advertiser development process
4. Classify the prospect base
Track points of growth and churn
within
• Identify the prospect
segments base.
of the advertiser base which are either
excessively vulnerable or showing exceptional growth:
• Value of spend
• Company profile
• Category
• Geography
• Attitude
• Sales person

• Patterns of growth and churn may not be obvious.

Shaping
the Future
of the Newspaper
 Advertiser development process
5. Build the sales organisation around
the advertisers
- Structure
• Too many advertising departments reflect the structure of the
newspaper, rather than the needs of the advertisers;
• Most of the effort goes into 10% - 15% of business at the
margin, rather than concentrating on levering those customers
with the greatest potential.
• Too much time is devoted to marginal needs and competitive
pressures;
• Identify what advertisers are driven by and sell to them
accordingly;

• Some products require forced selling;

• Portfolio selling must account for the products that are harder to
sell.
Shaping
the Future
of the Newspaper
 Advertiser development process
5. Build the sales organisation around
the advertisers
- Structure (Sanoma Corporation)

Shaping
the Future
of the Newspaper Source: Helsingen Sanomat
 Advertiser development process
5. Build the sales organisation around
the advertisers
“b 2 c”
-Cost
Structure by market, not product
“b 2 b”
line
per contact
(Axel Springer)
“Face to
face”

“Ear to
ear”

“Bit to
bit”

Average value order

Shaping
the Future
of the Newspaper Source: asdirekt
 Advertiser development process
5. Build the sales organisation around
the advertisers
- Implementation
• ChannelAlign sales force according to client value and
allocationpotential.

• ManagementEnsure appropriate appraisal systems track sales

systemsperformance against new measurements.
Provide appropriate award systems against value
creators, not short term targets.
• TrainingEstablish training needs against appraisal analysis
and customer feedback, by sales person and teams.

• CreativityInvest in creative solutions to meet measured needs

of customers.

Shaping
the Future
of the Newspaper
 Advertiser development process
5. Build the sales organisation around
the advertisers
- Reward
• Recognise drivers of growth as much as current performers
• Contracts
• Improved measures of loyalty and commitment
• Growing share of advertiser spend
• Penalties for excessive churn

• Reward sales people for the quality of their advertising

business not simply its value.

Shaping
the Future
of the Newspaper
 Advertiser development process
6. Provide a single view of the
advertiser relationship
• Accounts and spending record
• Payment history
• Customer knowledge
• Attitudes
• Service score
• Loyalty and share
• Relative substitution
• Need

• Know the advertiser’s measure of performance

• Share the single view. Share the ownership of the advertiser.

Shaping
the Future
of the Newspaper
 Advertiser development process
7. Track, measure, react, track,
measure, react, track, measure react,
track, measure,
Introduce react,improvement:
a process of continuous track, measure,
react,
• track,
Operational issuesmeas
• Tracking and removal of weaknesses and errors
• Product and service issues
• Creativity and advertising effectiveness for them
• Service quality and effectiveness for us
• Productivity issues
• Revenue
• Frequency
• Cost per order
• Retained revenue per order
• Record, report, share
Shaping
the Future
of the Newspaper
 Advertiser development process
8. Maximise the efficiency of the
advertisers’ message
• Better ad positioning
• Pagination
• Section
• Rotation
• Better ad design
• Offer of additional services
• Added value products and services
• Process benefits such as fulfilment

Shaping
the Future
of the Newspaper
 Advertiser development process
9. Maximise prices and yields

• Continually adjust prices to meet the needs of the market

• What does the advertiser value?
• Lack of data is driving prices down –
• Early right hand pages are worth more
• Position targeting will justify higher prices

• Ensure sales staff and managers are fully aware of the

profit implications of yield and are fully trained in
negotiating and presenting price.

Shaping
the Future
of the Newspaper
 Advertiser development process
9. Maximise prices and yields

Aware Understood

Sales Executives 82% 12%

Team leaders 93% 22%

Line managers 100% 73%

Shaping
the Future
of the Newspaper Source: The Byrne Partnership
 Advertiser development process
10. Build the business from the
knowledge
Markets
Current New
Current

Market New Market

Penetration Experience
Products

?
Evolved new
New product
?
New

Experience
product/service
/market
Shaping
the Future
of the Newspaper
 Advertiser development process
10. Build the business from the
knowledge
Markets
Current New
Current
Products

?
? =
New

Shaping
the Future
of the Newspaper
 Advertiser development process
10. Build the business from the
knowledge
= =

=
=
=
=
=
=
=
=
=
=

= =
=

Shaping
the Future
of the Newspaper
 Advertiser development process
10. Build the business from the
business
Advertisement Operational Business
effectiveness effectiveness reorganisation:
• Creative value • Perceived value • Exploiting new
• Relevant positions • Loyalty factors technologies
• Channels to niche
• Pricing • Competitive
• New organisation
position
• Service scores

Customer service Customer response

programme Listening to customers
•Sales training Creating new products
•Creativity seminars and channels
•Advertiser Incremental services
development process

Growth through
Shaping old and new.
the Future
of the Newspaper
 Added value advertising
Issues of implementation

• Establish communication process prior to definition and

implementation of the ADP process:
• In advertising
• Across the company
• Among the advertisers

• Process of improvement is achieved through people and not

through technology:

• Clearly define the hurdles

• Operational
• Economic
• Cultural
Shaping
the Future
of the Newspaper
 Added value advertising
Issues of culture

Shaping
the Future
of the Newspaper
?
 Advertiser development process
In summary

• 1. Everyone in the newspaper is involved in ADP

• 2. Understand advertisers’ objectives, needs and attitudes
• 3. Build customer knowledge – account by account
• 4. Classify the prospect base
• 5. Build the sales organisation around the advertisers
• 6. Provide a single view of the advertiser relationship
• 7. Track, measure, react, track, measure, react, track
• 8. Maximise the efficiency of the advertisers’ message
• 9. Maximise prices and yields
• 10. Build the business from the knowledge
Shaping
the Future
of the Newspaper
 Added value advertising
In conclusion

• Substitute shortfalls in ad revenue through added value:

• Making the advertising budget work harder
• Extended products and services
• Seeking new customers for our customers
• Working with advertisers on diversified products
• Growth opportunities lie below-the-line as much as in
broadcast or new media;
• We must reflect the move by media consumers and
communicators toward more relevance and less wastage.

• Advertiser development process is the big, fast hit. It is

working for many of Europe’s leading media companies.
• Implement it all or part, but implement Monday.
Shaping
the Future
of the Newspaper
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added value
the adverti
value advert
Director of the SFN
Project,

Jim Chisholm

Shaping
the Future
of the Newspaper