Free advertising hurting ad sales and media market

Media buyers have noticed. In the ad recession, we sellers have to work harder and innovate more to make the same sale. On the Media Life Web site, written for media buyers and planners, an article ran last week entitled “When the going’s tough, the tough sell.” Writer Diego Vasquez dug into the innovation being used to chase fewer ad dollars:

Conde Nast Traveler’s Hughes says it’s about coming up with better ideas. “You have to be really out there, you have to be aggressive as a sales team. Advertisers are demanding great programs, and they scrutinize every dollar they spend. The titles that are hungry for the business and coming up with good ideas are going to win the business.”

Says Rachael Ray’s Balaban: “This is when it really counts to have good product and smart programs–building a base of smart programs that are unique to our brand and compelling enough to advertisers that makes them feel they’re getting so much value with their dollars. “

Says Tom Morrissy, OK!’s publisher: “Those who have strong programs in place and are strong brands will do fine. It just won’t be one of those years where everyone is breaking open champagne bottles.”

Popular Mechanics’ Congdon observes that good programs have a way of rooting out ad dollars. “It’s not so much that ad budgets are totally cut. Advertisers are just being cautious. But if you keep going in and keep bringing fresh ideas, they’ll still have that money.”

Valerie Salembier, publisher of Harper’s Bazaar, says it’s also about being where your competitors are not.

“Things are tough, but they’ve been tough before and all of these magazines continue to publish and last and endure,” she says.

“In terms of selling advertising, it is back to basics 101. Get out there and make the calls. You don’t get ads by sitting behind your desk on the phone, you get them sitting at your client’s desk.

Claudia Malley, vice president and U.S. publisher of National Geographic, says it’s also about being able to stand apart from your competitors, and a big part of that is reader engagement, which she says resonates with marketers.

“Integration will be a key. Those brands who can differentiate by being a brand leader and then have communication with consumers across all media will be the ones that succeed.”

We should return to the ‘good old days’

Reich has written several ‘ah ha!” books; books that so clearly explain what is happening or has happened with the world economy that as you read you say to yourself, “so this is what is going on!”

His latest work, The Future of Success describes the changes we are currently experiencing in the world economy. If it feels like earning a living has gotten more complicated, stressful and difficult, it is because that is exactly the case. We are working harder than ever before, working longer hours with less security than the previous generation of workers. What Reich describes as the new economy is taking a toll on our lives and health. Reich does not however take the position that we should return to the ‘good old days’; ever the realist, he knows all too well that there is no going back. Additionally, for all the challenges we face in adapting to this new economy, there are many opportunities open to those who have the skills and courage to capitalize on these opportunities.

It used to be that hard work and loyalty to a company assured you of a secure middle-class lifestyle. This lifestyle was driven by the financial security offered by your job to buy a house in the suburbs and a car on time. The new economy is based on an entirely different foundation: those with specialized skills and knowledge will succeed.

Reich explains that the current changes in our economy are driven by technological advances. Geography is no longer a determinant of where we do business; the world is truly one big market now. There are cascading consequences of this phenomenon; since consumers have access to world-wide markets, they can easily search for the ‘best deal.’ In turn, businesses have had to adapt to this new reality. In adapting, businesses have been forced to enter the global marketplace which is characterized by niche services, intense competition and an ever changing environment. While we as consumers have a much more diverse marketplace, there are a number of unintended consequences. These include the outsourcing of many repetitive jobs, the lowering of prices for goods and the concomitant lowering of wages, increased productivity in businesses, and the death of businesses that could not or would not adapt to the new way of doing things. The recent discussions about the value and cost of the ‘walmartization’ of the marketplace reflect this dichotomy of the quest for lower prices and access to a broad array of goods and the toll this takes on our communities.

It is not just the marketplace that is changing though. The very nature of work is changing. Reich observes that our traditional employment arrangement of individual workers working in an organization and performing specific duties is disappearing. The new work arrangements are increasingly ad hoc teams. Fluid organizations form to perform a specific project with the leader of the project gathering resources as needed. Reich refers to this type of worker as the ‘shrinks’. Shrinks are described as those who can read a situation and bring together the human and material resources needed to complete the task. The other primary type of worker in this new arrangement is called ‘geeks’. Geeks have a specialized skill needed for a particular project. Geeks must constantly keep current in their technology field.

If Reich is correct in his observations about the changes in our workplace, then the implication is that our own way of working will change dramatically also. Specialty skills, niche services, contract work, flat organizations will characterize employment in this new age. Perhaps one of the most dramatic changes will be in how we are compensated. If our work world does transform into ‘ad hoc’ teams who are compensated by the project, this means the end of our pay system characterized by regular paychecks and expected raises and benefits.

For Extension educators, it is important that we recognize the changes being experienced by our clientele. We are undergoing a seismic shift in how our entire world operates. We can help our clientele understand these changes and point them in the direction of finding ways to adapt.

Help Yourself Through Helping Others

Have you ever had someone help you out to the degree that you sat at your desk and simply pondered what you could do to return the favor?

One such time happened for me in 2002 when a friend worked to get me on a team for a major project that resulted in an $200,000 contract for my company.  What took him 15 minutes (time spent selling someone else on using my  services) would have cost me 40 hours of phone calls, multiple lunches, and numerous meetings, and even still I wouldn’t have been guaranteed a spot on the team.  Needless to say, I was not only thankful to my friend for his work, but I literally sat at my desk working up ways to return the favor.

 The key to this story wasn’t how he helped to get me on the team; it is how your actions can motivate other people to help you.  Those 15 minutes of work have resulted in dozens of referrals and project leads as I have worked to return the favor.  As my friend focused on helping me, he was developing a mutually beneficial relationship that resulted in me working hard to help him.

If you are looking to increase your effectiveness, start by helping other people in your network.  What can you do today that will leave someone else pondering what they can do to return the favor?