Managing Media Companies • time to shift from Advertising Sales to a true B2B Marketing approach

Only a few TV channels apply sophisticated yield management techniques for the sales of scarce time-slots, similar to the techniques used by airlines when selling airline seats. Most advertising sales forces are managed traditionally, that is they are often organized by B2B customer size and region and selling only one type of media. The sales approach is mostly push, that is sell the available products, with little room left for the advertiser to shape the proposition.

Revision of advertising sales
The digital transition will foster traditional media companies to fundamentally revise their approach to advertising sales and implement sophisticated B2B marketing strategies. An aggressive sales force on its own will not suffice. The advertising sales process should be transformed into B2B marketing with a focus on targetability and measurability. For this, media companies will have to develop a much deeper understanding of their B2B customers' needs. With these deeper B2B customer insights, a value-added proposition has to be developed, based not only on strategically designed (crossmedia) advertising products, but also on a service offering along the whole advertising value chain.

(Source: Future of Advertising Project, Y. Wind)
Media companies have the unique chance to interact with advertisers in the concept phase, based on their understanding of target groups and storytelling abilities; in the media selection phase, based on their knowledge of media-usage patterns; and finally in the measurement phase, by providing consumer-usage data.

Tying this all together into a coherent approach will make the media company a strategic partner for advertisers/brand marketeers.....rather than suppliers of ad inventory.

Integrating sales forces
In many media companies the sales forces for offline and online are still separated. With the growth of online media and the increased need for integrated offerings, this approach will have to be revised.

Traditional media companies will have to manage the transition from price-based to value-based competition in advertising sales. This will entail a fundamental shift in mindset and innovative approaches in creating value for customers. Managing the complexity of more differentiated offerings, ensuring an effective use of resources and securing a constructive cooperation with the media agencies will be the main challenge in implementing this strategy.

David de Boer, Manager Marketing Intelligence Sales, Sanoma

(Source 1: Managing Media Companies, A. Aris and J. Bughin)

(Source 2: The basics of B2B sales succes, McKinsey)