15 May 2009
INMA World Congress | Miami, United States
Ali Keshavarz, a consultant at McKinsey & Company, outlined some of the opportunities that exist for advertising sales in attractive small- and medium-sized companies as clients. He asserted that there is room for 20 percent growth if sales staffs were to tap into these smaller businesses as clients.
Newspapers today sell some ads to smaller businesses, but not the majority, and there are currently online and offline competitors on the way, which are conspiring to take these potential clients. Half of the revenue available comes from these smaller businesses. But newspaper sales staffs tend to focus on larger advertisers, which seem like an easier catch. He said that a new approach was needed to reach these smaller fish, emphasising low-cost sales channels and simple bundles.
Newspapers and online have the most penetration in small- and medium-sized local measured media, and online already has a higher penetration that newspapers among small advertisers. These advertisers currently spend a significant amount of money on paid search, and to reach them newspapers will need to move beyond traditional print products,...