It Is Marketing, Not Content?
December 23, 2009
I read with interest “Why Marketing Is Crucial for Publishers.” I have been under the impression that marketing supported sales. Sales produces revenue. Therefore, I thought, marketing has to make money. The publisher makes information too. I wonder what the relationship of marketing to information is. Probably money.
After reading the article, I am not sure. I keep coming back to the marketing – money hook up, but I think another angle lurks behind the words. Read the article. Verify my impression.
One idea that caught my attention was:
To best monetize a site, the ad sales team must harness the audience insight of the marketing team at a detailed level and align ad sales with generating more traffic.
The idea that sales and marketing are going to fall in love and get married strikes me as a Hatfield and McCoy problem. Sales makes sales, earn a commission, and head to the golf course. Marketing does “stuff” that is tough to tie to direct revenue. Sure, marketers can trot out traffic analysis, but the person who lands the sales is the hero. Apple had a brief marriage to a Pepsi marketer, and the company needed to bring the founder back to survive.
One passage that I noted was:
Here’s a simple example: The marketer knows his/her site has 20% of their visitors playing online games, where these visitors stay for between 15 and 30 minutes. Are the ad slots on those pages not worth more because the visitor watches the ad for so long? You bet! But the ad sales team can’t take advantage of it. Here’s another: The ad sales team knows it can sell its “health section” at a $20 cpm. What if the marketing team could buy search terms to generate traffic at less than $20? The marketer would reach its goal of more traffic and the ad sales would generate more revenue. From a technology perspective, the tracking of user behaviour already exists from both an ad perspective and a marketer perspective. Combining these two data sets is what will unlock significant value for both parties.
With automated ad systems, why have a sales person? The reason is that certain types of ads require a human to seal the deal. Inefficient and non-Googley for sure. But for most information companies, the notion of relying on semi autonomous agents is like a jigger of cod liver oil followed by a chunk of Limburger cheese. The idea of having a sales person and an AdWords program in order to “generate traffic at less than $20” strikes me as an expensive proposition.
Publishing, online or not, have some other tough math problems to solve. Online won’t do the job. The reality is that online cannot support the chubby overheads that were possible in the good old days of traditional publishing. Talking about getting sales and marketing to spend the rest of their lives together is far fetched in my opinion. One of the functions, maybe both, must be moved to software. Fire the humans. When that happens, the information companies may have a chance to generate sustainable income.
Tough love is needed for tough times. Fantasies of sales and marketing becoming soul mates is an idea that might have taken flight in the 1970s. A different approach is needed for publishers, online or traditional, in these uncertain times. I thought that information companies had to produce compelling, high value content to generate traffic and earn money. Guess I was wrong. I guess a great product and magnetic information are no longer important.
Stephen E. Arnold, December 23, 2009
Oyez, oyez, this is an uncompensated write up. No sales people or marketing pros involved. For that reason, I wish to report this miserable state of affairs to the National Drug Intelligence Center, which I hope is open during the snow storm in DC.
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