 Alex Baxter Frank Cutitta Paul DeBraccio Judy Franks Dave Hendricks Marko Hurst Jay Lauf Daniel Lagani Karen Macumber Diane Salvatore Ken Sonenclar Domenic Venuto Marta Wohrle Matthew Yorke |
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By Frank Cutitta
Over the past three years I’ve spoken with a wide variety of media companies struggling to develop a database-driven lead generation business. All have come to the realization that the media business is going through seismic changes, and that performance-based advertising models are far more than just a flash in the pan. Even those fortunate publishers with a robust print advertising base feel the market pressure to supplement their traditional portfolio with performance-based offerings. They know it’s only a matter of time, and they should delay the transition at their own peril.
While all of these media companies feel compelled to rapidly evolve and innovate, virtually all have one characteristic in common...”performance anxiety.”
This organizational neurosis manifests itself through a number of anxiety subsets:
Database Anxiety – There is a huge difference between a database of subscriber files and email addresses versus a lead generation database. Virtually every media company, Web site or blog has the former, but precious few have designed their database in a format that permit integration with performance-based lead generation programs. Most have their genesis in the circulation department with little ability to append “subscriber files” based on engagements or behaviors. These companies must choose whether to re-engineer their existing databases to accommodate engagement-based models, or whether to start from scratch with a platform designed to balance subscriber and lead generation strategies.
Editorial Anxiety – Many media executives remind me that performance-based programs imply performance-based editorial. This is much more than the church and state disputes that have been experienced in publishing since Guttenberg. Performance-based models, by definition, have a tendency to magnify content that resonates…and content that doesn't. There is a growing fear that quantifying lead generation response to editorial content will be used as a not-so-subtle means of evaluating editors. On the other hand, virtually every research study on consumer behavior tells us that independent editorial is near (or at) the top of the list for considered purchases. Balancing the fears and interests of all constituencies requires heavy lifting.
Salesforce Anxiety – Having firm roots as a “space rep” I recall the knot in my stomach when I was first required to sell performance-based programs. It brought back vivid memories of advertisers counting the “bingo card” responses they received in the old print days and using the stacks of these cards as the basis for media budgets the various media companies would get in the next quarter. Doubtful a salesperson from the advertiser’s company ever saw the bingo card responses. But the stacks made a great bar chart which gave the runners-up heartburn. Fast forward 20 years to a time when a qualified lead is generated instantaneously and redirected to a salesperson’s PDA in seconds and complaints about lead quality occur in real-time. This makes the media rep crave for the days when we just sold print brand advertising that took months or even years to evaluate using recall surveys.
Client Anxiety – Ad agencies and client marketing departments are coming under increasing pressure from senior sales management to generate actionable leads. Many traditional agencies are ill-prepared for this movement, while on the other hand a whole new breed of performance-based advertising agencies are developing that live entirely in a world of generating and nurturing leads. Media companies need to be in a position of helping the traditional agencies and marketers enter into performance-based advertising, and to interact with the boutique lead gen agencies who know well the alchemy of performance-based programs.
Regardless of which of the aforementioned anxieties your organization is experiencing, performance-based advertising requires a major commitment to training.
Circulation managers must learn the new world of engagement tracking and file append strategy related to behavior. New compensation models must be developed for editors who create compelling independent revenue that results in increased reader behavior or, more important, new subscribers generated organically. The advertising sales team must be trained to address the needs of the most important new influence in the media buy…the clients’ field sales force. And lastly, the client/agency must be educated on the unique performance based messaging needs required by your audience at the risk of developing content assets (white papers, web casts, etc.) in total isolation of what your engagement metrics show will resonate.
Only by increasing the confidence level among all stakeholders that your media organization is truly able to deliver on lead generation promises will the painful period of performance anxiety diminish.
Frank Cutitta is CEO of the Center for Global Branding. He was previously General Manager of IDG Connect and CEO of the International Advertising Association.
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