Start Selling What The Customer is Buying…

Most small to medium sized businesses will maintain or increase their ad spending in the next 12 months!

If you’re selling newspaper advertising this sounds hard to believe. But these were the findings earlier this year. (Yes it was a few months ago, and the economy has not performed well since, but the trend is still holding true for this category of business.)

The Local Commerce Monitor, an ongoing study of SMB (small to medium sized businesses) advertising behaviors conducted by The Kelsey Group and ConState, 81% of SMB’s surveyed expect to maintain (47%) or increase (34%) their ad spend on over the next 12 months, with only 9% planning to decrease.

Even further, SMB’s surveyed stated the primary influences on their ad spend decisions are:

• Performance/return on investment (31%)
• Business partner or competitor (25%)
• Information from media such as newspapers, TV and trade publications (14%)
• Friends or family members (12%)

The fact of the matter is that newspapers were not offering solutions that SMB’s seemed to be having success with. But that no longer needs to be the case as newspapers partner with emerging digital media concerns. In a recent post to MediaShift.com, a strong case is made for repositioning newspaper sales channels as indepenent agencies for loca businesses. The entire post is here.

What this really means is that the local newspaper sales channel does not have to own the “product” that local businesses find successful, but they should be in a position to own the “relationship” with the local business. This is already starting to take shape as newspaper sales staffs are adding products such as Yahoo inventory, Behavioral Targeting technology, local business listings and local search, (offered by independent 3rd parties with expertise in the field.) In all cases, the local newspaper did not bring specific media expertise to the table, but it does bring the ability to conduct the local relationship. In the end, that is what the local staff has to offer that is irreplaceable…for now.

None of this spells the end of newspapers, but it does mean that newspaper sales staffs need to take a different perspective on  the benefit they serve local customers. Some are already shifting in this direction, others are only now beginning to see it. What’s your take on this? Have you had luck in becoming a more independent advertising consultant to your local customers?

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