Newspapers can improve their advertising revenue by adopting tactics used in other industries says Stephen Fisher, sales and marketing director of the Telegraph Herald in Dubuque, Iowa. Adherence to the basics combined with unconventional techniques can bring in more revenue in today's competitive environment. Fisher shared the ideas that boosted Telegraph Herald market share with members of the recent American Press Institute seminar, "Revenues and Costs."
Consistency is Key
Everyone on the staff should hold a consistent definition of market share before setting out to improve it. Fisher defines market share as the amount of the advertising dollars spent in one market that the newspaper has.
A consistent sales process is an important way to avoid excessive discounts and to create a smoother experience for the customer. Calling five different sales representatives should not put the same advertiser through five different sales processes. Standardizing this begins with new-employee training. All new sales reps at the Telegraph Herald experience the same training process before going into the field.
Measure the Market
Use marketing data to understand trends and target audiences. Thanks to the Telegraph Herald's marketing department, for example, Fisher knew that the number of older women in a certain part of town increased because of a surge in the population at the nearby Mississippi Abbey.
Teach Techniques
By listening to advertisers, Fisher found that the two biggest complaints are that the newspaper "doesn't follow up on the company's ROI" and that it "doesn't listen to my needs." Help sales reps overcome these stumbling blocks with innovative training procedures. The Telegraph Herald once brought in a body language expert to teach reps to pick up cues from their customers. Fisher also suggests selling a story to each advertiser. A typical sales pitch now also includes a thorough dissection of competing media to back up the recommendation to advertise with the newspaper. Sales reps are taught to stress the readership of a publication as opposed to the circulation.
Reward to Retain
Experienced sales reps not only outperform inexperienced reps, but also consistently exceed sales expectations, says Fisher. At the Telegraph Herald, sales reps with five plus years' experience sold an average of 2.9% more than expected whereas sales reps with less than three years' experience missed their targets by an average of 17.6%. Show your appreciation to your reps regularly so they stay with your paper. And the rewards don't always have to be monetary: The Telegraph Herald recently offered concert tickets to sales reps who met their goals. The local department store donated business attire for a "Dress for Success" seminar where select employee-models kept the clothes they modeled.
Share Revenue
Partnering can often bring more revenue than working alone. The Telegraph Herald partnered with the local Chamber of Commerce to put together a job search Web site that passed the popularity of monster.com for the Dubuque area after two years. The newspaper company also publishes a magazine for a local homeowners' association, bringing in additional revenue.
Promote Products
Use other media to promote your products. When the Telegraph Herald raised the newsstand price of its special Thanksgiving issue from $0.50 to $2.00, it purchased radio spots for the Wednesday before to promote the special advertising inserts that would be in the paper. Despite the fourfold increase in price, newsstand sales went up 10%.
Innovative Ideas
The Telegraph Herald uses a number of creative niche products to help its advertisers target segmented audiences. In addition to the homeowners' association publication, it also creates an advertiser-supported package for new residents called "My Opportunity Pack" that includes a DVD introduction as well as an annual publication about the city. One of the newspaper's most profitable endeavors is the annual "Big Boy Toy Show," an outdoor recreational equipment show. The paper produces a publication in conjunction with the show. The Telegraph Herald has also created a history of Dubuque in four volumes, published over the course of a couple of years. Priced from $29.95 to $39.95, each volume can be purchased individually at local book stores, museum shops, and at the paper's Web site. The first three installments were ad-free.
